GRI 2-6, 3-3

CDB firmly believes in cultivating cohesive and holistic ecosystems with its business partners, resulting in enduring relationships and mutual growth. Leveraging technology and sustainability while integrating innovative tools and digital platforms, CDB empowers partners to optimise operations, make informed decisions, and collaborate efficiently. This tech-driven approach fosters productivity and competitiveness.

Moreover, CDB emphasises sustainability, encouraging partners to adopt eco-friendly practices and sustainable business models. This not only reduces environmental impact but also opens new avenues for growth in a changing market. By aligning goals and promoting shared values, CDB and its partners establish a thriving ecosystem where all stakeholders benefit.

Through collaborative efforts, CDB strengthens relationships, fosters resilience, and drives mutually beneficial growth. By embracing technology and sustainability, the Company supports partners in navigating a dynamic business landscape while contributing to a sustainable future. Together, they create a harmonious ecosystem that enhances performance, fosters innovation, and ensures long-term success.

 

A sustainable supply chain to benefit the environment

GRI 3-3, 414-1, 414-2

A sustainable supply chain is a critical component of any organisation as it considers environmental, social, and economic impacts throughout the entire value chain. It helps reduce carbon emissions, waste generation, and resource depletion. It promotes ethical practices, fair labour conditions, and social responsibility. A sustainable supply chain enhances brand reputation, reduces risks, including reputational risk, and ensures long-term business resilience. It also fosters innovation, collaboration, and cost-efficiency. In essence, a sustainable supply chain is crucial for achieving environmental stewardship, social equity, and long-term economic viability.

CDB values its business partners to strengthen its supply chain and execute its strategic objectives. Nurturing strong relationships through regular engagement and mutual benefits is crucial. The Company has the risk of selecting wrong partners or relying too heavily on a limited number of suppliers, which can undermine its market position and competitiveness. Inadequate supplier management leads to disruptions, penalties, and tarnishes the Company’s image. To ensure the resilience of its supply chain, CDB has implemented several measures which enabled it to maintain a smooth supply flow without delays or interruptions. We maintain open and transparent communication channels to share updates and provide feedback.

Supporting our business partners

CDB has consistently upheld its commitment to supporting its business partners by ensuring prompt payment and fulfilling all obligations as outlined in the partnership agreements. The Company has worked closely with its suppliers and external parties to maintain smooth business operations. Special arrangements were made to ensure timely payment for all services rendered, without any delays. CDB’s dedication to honouring its financial commitments has sustained strong relationships with its business partners and ensured uninterrupted provision of services.

Selecting our business partners

GRI 308-1, 414-1, 414-2

A financial organisation should select its business partners judiciously to ensure compatibility, reliability, and ethical alignment. Thorough due diligence is crucial, including assessing partners’ financial stability, reputation, and regulatory compliance. Evaluating their track record, expertise, and compatibility with organisational values and objectives is essential, in addition to their technological capabilities, risk management practices, and customer-centric approach. Selecting trustworthy and mutually beneficial partners contributes to long-term success, customer satisfaction, and risk mitigation.

Accordingly, CDB’s procurement process ensures ethical practices with business partners. Through due diligence, including financial health and compliance assessments are conducted pre- and post-contract. Suppliers’ environmental impact and adherence to labour standards are evaluated, with preference given to local suppliers meeting the required standards. The Purchasing Committee validates all suppliers in accordance with transaction authorisation limits.

CDB adopts the following criteria to select suppliers and business partners:

• Compliance with applicable laws and regulations
• Compliance with relevant certifications and standards
• Adherence to environmental and social specifications
• Quality standards
• Cost competitiveness
• Reliability
• On-time delivery
• Past performance
• Customer reviews

If the supplier or business partner fails to meet their responsibilities of respecting human rights and honouring the sustainability requirements, termination of the relationship will be actively considered.

Technological partners

CDB has continued to nurture strong and longstanding relationships with its technological partners to provide an uninterrupted service and meet the increasing demand for digital services. These partnerships have enabled CDB to advance its disruptive processes while effectively implementing robust governance and cybersecurity measures. Please refer the Disrupt section for more detailed information about CDB’s technological partners.

Our motor vehicle dealer partners

CDB’s business heavily relies on motor vehicle leasing, which constitutes a significant portion of its lending portfolio. However, the vehicle leasing market has faced challenges due to restrictions on vehicle imports imposed by the Central Bank in recent years. Nonetheless, CDB has cultivated strong and amicable relationships with various vehicle suppliers throughout the country, who continue to be crucial strategic partners for the Company.

Funding partners

CDB’s funding partners provide the required finances to expand its business, grow the balance sheet and help meet obligations towards its stakeholders. CDB has built durable relationships with both local and international funding partners by maintaining their trust through the delivery of obligations on respective due dates on time.

Local funding partners

GRI 204-1

These include banks and intermediary fund arrangers who ensure the availability of funds as per CDB requirements. Over 70% of the Company’s total borrowings are raised through local banks, who remain an important value-adding partner.

Foreign funding partners

Stringent compliance, commitment to transparency, discharging of debt obligations in a timely manner and following ethical business practices have enabled CDB to build trust and confidence of its foreign funding partners. The Company has channelled funds in keeping with the respective mandates, contributing towards green financing that combats climate change, empowering women, rural and SME development, and expansion of agriculture. CDB continued to strengthen its relationships with foreign funding partners. The long lasting relationship we have built and progress we have made are a testament of the business strategy which complements the development goals of the foreign funding partners.

Funding received from foreign funding partners

Name of the partner	Country	Originated Year	Purpose (Extract from term sheet)	Amount	Loan Period	Status
Triodos Fair Share Fund & Triodos SICAV II	Netherlands	2020	Capital support and to expand green vehicle portfolio and SME loan portfolio	EUR 5 Mn.	5 Years	Active (Regular)
BlueOrchard Micro Finance Fund	Luxembourg	2019	To expand MSME Portfolio	USD 25 Mn.	5 Years	Active (Regular)
Belgian Investment Company for Developing Countries	Belgium	2018	To expand MSME Portfolio	USD 10 Mn.	5 Years	Fully Settled
Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V.	Netherlands	2018	To expand MSME Portfolio	USD 25 Mn.	5 Years	Active (Regular)

 

 

Sustainability partners

Over the years, CDB has forged partnerships that enhance its conservation initiatives, resource efficiency goals, and conservation awareness. These collaborations include working with energy providers and relevant companies to promote the adoption of renewable energy, expand its supply and demand, and establish district energy systems. CDB also engage with suppliers to procure clean energy, increase the proportion of renewable energy sources, and support innovative business models that prioritise sustainability and renewables.

In 2020, CDB joined the Global Compact, with the commitment to uphold its 10 universally recognised principles based on UN standards. To ensure the integration of these principles into its business operations, CDB is currently in the process of developing comprehensive guidelines, policies, and action plans that encompass all aspects of its business.

Sustainability Partners

Partner	Project
Ministry of Education	Sisu Diri Scholarship Programme
Biodiversity Sri Lanka	Environment Conservation Efforts
Centre for Sustainability of University of Sri Jayewardenepura	Mangrove Conservation Efforts
Green Links (Pvt) Ltd.	Paper and E-waste Recycling
Sri Lanka Climate Fund	ISO 14064-1 2018 GHG Verification
Sri Lanka Association for Child Development	Act Early for Autism Project
Sustainable Energy Authority	CDB Advance Roof Solar
Ceylon Electricity Board
Fenton’s Solar

Support services ensuring smooth operations

To ensure seamless operations, CDB relies on a range of support services provided by both local and international business partners. These services include security, janitorial, logistics, courier, waste management, and maintenance of office equipment and machinery. To maintain the efficiency of these services, CDB has outsourced them to specialised companies. The Company actively engage with these service providers, recognising their contributions and ensuring timely payment for their services. During the fiscal year 2022/23, a total of Rs. 105.3 Mn. was disbursed to utility service providers, covering expenses such as electricity, water, telephone, and internet services. CDB’s ERP Queue based supplier payment process speeds up the process of supplier payment release with automated controls with minimised data entry.

Memberships and associations

GRI 2-28

CDB continued to maintain membership in several industry organisations, professional institutes, associations and societies. This enables the Company to keep abreast of the latest advances in the industry, provide opportunities for employees for networking, benefit from activities offered by these organisations, and contribute its best to resolve any industry issues. This is an ideal opportunity to build stronger relationships by engaging with our stakeholders.