1. Research & Development Unit Economic Capsule April 2011

3. Back to Contents Financial Sector News > >

4. Back to Contents Research & Development Unit Commercial Bank 1Q, 2011 net profit rose 86 % to Rs. 2,065 mn from a year ago as it benefited from lower taxation.  56.09 %  86.42 % ComBank 1Q, 2011 Net Profit up by 86 % (Group) * Bank For the 03 months ended Mar 31 2011 2010 % Chg Profit Before Tax (after VAT) (Rs mn) 2,973.3 1,904.9 56.09 Profit After Tax (Rs mn) 2,065.3 1,107.9 86.42 As at 31.03.11 31.12.10 % Chg Gross Loans & Advances (Rs mn) 235,705.6 228,149.4 3.31 Deposits (Rs mn) 274,532.2 259,744.6 5.69 Assets (Rs mn) 394,758.7 370,257.9 6.62 *Gross NPA (%) 4.60 4.22 *Interest Margin (%) 4.59 4.74 *ROA (%) 3.14 2.69 *ROE (%) 24.66 17.87

6. Research & Development Unit CBC Branch Openings More News from ComBank… Back to Contents 197 Akkaraipattu 198 Eravur

10. Expansion of Financial Services - 2010 Back to Contents Research & Development Unit Source: CBSL Item End 09 End 10 Change in 2010 Total Of which N&E Bank Branches 1,847 1,937 90 29 Other Banking Outlets 890 988 98 23 ATMs 1,876 2,009 133 36

11. Credit Card Transactions on the Rise, Despite Usage Decline Back to Contents Research & Development Unit Credit Cards in Default Total number of credit cards in default (defined as the credit cards in which the "minimum payment" is in arrears for over 90 days) recorded by the Credit Information Bureau decreased by 6.1% to 87,802 during 4Q 2010, over 3Q 2010. The total value of defaults also declined by 7.2 % to Rs. 3 bn during the reference period. Source: CBSL, Payments Bulletin – 4Q 2010 Credit Cards in Use 4Q 09’ 4Q 10’ % Chg Total no. of credit cards (As at end period) 840,509 778,544 -7.4 Total number of transactions (in '000) 4,205 4,447 5.8 Debit Cards in Use - 2010 3Q - 2010 4Q - 2010 % Chg Total No. of Debit Cards (As at end period) 6,520,891 6,967,204 6.84 Total Number of transactions 1,334,308 1,716,761 28.7 Total Value of transactions (Rs.mn) 3,916 5,237 33.7

12. Economy & Business News > > Back to Contents

14. Sri Lanka Raises Taxes on Imported Vehicles Back to Contents Research & Development Unit Sri Lanka has raised import duties on several categories of petrol-engined cars and three wheelers with steeper increases seen in larger hybrid vehicles, which had exceptionally low taxes earlier. (w.e.f. 24.04.11) The period pertaining to the importation of used petrol cars, has also been brought down from 3.5 to 2 years Previous Tax New Tax (w.e.f. 24.04.11) Petrol Vehicles 1000 cc or less 95% 120% 1000 - 1600 cc 119% 128% Three Wheelers Petrol 38% 50% Diesel 38% 60% Hybrid Vehicles Below 2000 cc 38% 50% 2000 - 3000 cc 75% Above 3000 cc 100% Total taxes on all diesel and petrol cars above 1600 cc will remain unchanged

17. CBSL Medium Term Macroeconomic Framework Back to Contents Research & Development Unit Cont… Indicators Projections Real Sector Units 2009 (b) 2010 (c) 2011 2012 2013 2014 GDP at Market Prices Rs. bn 4,835 5,602 6,440 7,405 8,513 9,790 Real GDP Growth % 3.5 8.0 8.5 9.0 9.5 9.5 GDP Deflator % 5.9 7.3 6.0 5.5 5.0 5.0 Per Capita GDP US$ mn 2,057 2,399 2,794 3,200 3,660 4,190 Total Investment % of GDP 24.4 27.8 29.5 32.0 33.0 34.0 Domestic Savings % of GDP 17.9 18.7 19.9 23.2 25.0 27.0 National Savings % of GDP 23.7 24.7 25.8 29.1 30.7 32.3 External Sector Trade Gap US$ mn -3,122 -5,205 -6,762 -7,399 -7,993 -8,531 Exports US$ mn 7,085 8,307 9,626 10,876 12,341 14,027 Imports US$ mn 10,207 13,512 16,389 18,275 20,334 22,558 Services (net) US$ mn 391 698 1,148 1,487 1,778 2,209 Current Account Balance US$ mn -214 -1,418 -2,140 -1,953 -1,738 -1,500 Current Account Balance % of GDP -0.5 -2.9 -3.7 -2.9 -2.2 -1.7 Overall Balance US$ mn 2,725 921 775 525 825 1,325 External Official Reserves (d) (e) Months 5,097 6,610 8,004 8,938 9,668 10,281 Debt Service Ratio (f) % 18.9 14.6 13.5 16.2 12.6 14.3

18. CBSL Medium Term Macroeconomic Framework (cont…) Back to Contents Research & Development Unit (a) Based on the information available by mid March 2011 (b) Revised (c) Provisional (d) Excluding receipts of Asian Clearing Union (e) External official reserves include the proceeds from the IMF Stand-by Arrangement facility-2009. (f) Total debt service payments as a percentage of earnings from exports of goods and services (g) Year-on-year growth in end year values Source: CBSL Annual Report 2010 Indicators Projections Fiscal Sector Units 2009 (b) 2010 (c) 2011 2012 2013 2014 Revenue & Grants % of GDP 15.0 14.9 15.6 16.3 16.6 16.7 Total Revenue % of GDP 14.5 14.6 15.2 16.0 16.5 16.5 Grants % of GDP 0.5 0.3 0.4 0.3 0.2 0.2 Expenditure & Net Lending % of GDP 24.9 22.9 22.4 21.5 21.3 21.5 Current Account Balance % of GDP -3.7 -2.1 -0.8 1.0 1.7 1.6 Overall Budget Deficit % of GDP -9.9 -7.9 -6.8 -5.2 -4.8 -4.8 Domestic Financing % of GDP 5.1 3.6 4.6 4.2 3.9 3.9 Government Debt % of GDP 86.2 81.9 80.0 75.0 71.0 67.0 Financial Sector (g) Reserve Money Growth % 13.1 18.8 14.5 14.5 14.5 14.5 Broad Money Growth (M 2b ) % 18.6 15.8 14.5 14.5 14.5 14.5 Change in Credit to Government Rs. bn 57.4 -13.1 42.0 32.4 25.0 0..0 Change in Credit to Private Sector Rs. bn -73.4 300 281.3 303.1 340.1 383.7 Growth in Credit to Private Sector % -5.8 25.1 18.8 17.1 16.4 15.9

20. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise, suffered in consequence of using such information for whatever purpose. "Pleasure in the job puts perfection in the work” Aristotle