BANK GROUP
For the year ended 31 December Note 2013
LKR ’000		 2012
LKR ’000		 2013
LKR ’000		 2012
LKR ’000
Cash flows from operating activities
Interest received 20,603,610 16,317,018 20,841,634 16,568,884
Fee and commission income received 1,623,266 2,387,630 1,982,017 2,538,084
Dividend income received 718,461 126,648 45,116 162,855
Other income received 1,449,324 312,746 1,672,511 651,633
Interest paid (13,791,503) (9,918,252) (13,791,743) (9,917,401)
Personnel costs paid (2,469,540) (876,337) (2,714,920) (1,031,225)
General expenses paid (2,040,890) (2,721,155) (2,057,470) (2,910,189)
Operating profit before changes in operating assets and liabilities 6,092,728 5,628,298 5,977,145 6,062,641
Net increase in loans and receivables (21,548,181) (17,298,517) (21,548,181) (17,298,517)
Net increase in deposits from customers 22,229,446 24,739,780 22,229,446 24,739,780
Net (increase)/decrease in other receivables 406,098 341,993 409,521 339,356
Net increase/(decrease) in other liabilities (616,510) 63,941 (585,420) (41,960)
Net cash inflow/(outflow) from operating activities before taxation 6,563,581 13,475,495 6,482,511 13,801,300
VAT on Financial Services paid (806,647) (569,106) (806,647) (569,106)
Income taxes paid (1,244,412) (671,119) (1,293,080) (832,895)
Net cash provided by/(used in) operating activities a 4,512,522 12,235,270 4,382,784 12,399,299
Cash flows from investing activities
Net changes in financial investments (23,389,900) (1,871,575) (17,292,330) (8,684,891)
Disposal of subsidiaries/associates 5,954,774 884,951 (13,016) 7,654,287
Expenditure on property, plant & equipment (308,681) (295,273) (309,257) (325,078)
Proceeds from sale of property, plant & equipment 3,981 22,111 3,981 23,276
Net cash used in investing activities (17,739,826) (1,259,786) (17,610,622) (1,332,406)
Cash flows from financing activities
Net proceeds from issue of subordinated debts 9,488,350 (184,950) 9,488,350 (184,950)
Interest paid on subordinated debts (282,446) (262,728) (282,446) (262,728)
(Decrease)/increase in other borrowings 2,418,165 (3,777,544) 2,418,165 (3,777,544)
Dividends paid to non-controlling interests – – (96,867) (60,509)
Dividends paid to shareholders of the parent Company (3,430,480) (1,162,876) (3,430,480) (1,162,876)
Net cash provided by/(used in) financing activities 8,193,589 (5,388,098) 8,096,722 (5,448,607)
Net increase in cash and cash equivalents (5,033,715) 5,587,386 (5,131,116) 5,618,286
Cash and cash equivalents at the beginning of the year 13,114,541 7,527,155 13,269,129 7,650,843
Cash and cash equivalents at the end of the year 8,080,826 13,114,541 8,138,013 13,269,129
Reconciliation of cash and cash equivalents
Cash and cash equivalents 2,611,075 3,480,395 2,668,262 3,634,983
Balances with Central Bank 5,339,000 6,074,792 5,339,000 6,074,792
Placement with banks 130,751 3,559,354 130,751 3,559,354
8,080,826 13,114,541 8,138,013 13,269,129
 
Note a
Reconciliation of Operating Profit
Operating profit before value added tax on financial services 9,682,512 4,606,911 4,724,401 10,390,873
Non-cash items included in the profit (3,589,784) 1,021,386 1,253,988 (4,328,231)
Net increase in loans and receivables (21,548,181) (17,298,517) (21,548,181) (17,298,517)
Net increase in deposits from customers 22,229,446 24,739,780 22,229,446 24,739,780
Net (increase)/decrease in operating receivables 406,098 341,993 409,519 339,356
Net increase/(decrease) in operating liabilities (616,510) 631,941 (585,420) (41,960)
VAT on Financial Services paid (806,647) (569,106) (806,647) (569,106)
Income taxes paid (1,244,412) (671,119) (1,293,080) (832,895)
Net cash provided by/(used in) operating activities 4,512,522 12,235,270 4,382,784 12,399,299

Significant Accounting Policies and Notes to the Financial Statements are an integral part of these Financial Statements.