Being the nation’s ‘PARTNER IN PROGRESS,’ Hatton National Bank PLC (HNB) has long recognized its responsibility as the financial institution to drive a sustainable future for Sri Lanka. As the country’s oldest bank, which started in 1888 to support the progression of Sri Lanka’s prime export product, CEYLON TEA, HNB has enriched the lives of millions of Sri Lankans throughout its journey to become a forerunner in driving the country’s sustainable development. With its own micro-financing program ‘Gami Pubuduwa,’ which is the first-ever barefoot banking initiative in Sri Lanka, the Bank extended financial services to thousands of under-banked communities engaged in self-employment projects and micro-enterprises in rural areas. The uniqueness of this scheme is that it revolves around field officers known as Gami Pubudu Upadeshaka, who closely associate with the rural community, identify their strengths and opportunities, and make suitable financial proposals to promote successful micro-entrepreneurs. The Gami Pubuduwa scheme has now become one of the most successful micro-finance programs implemented by a commercial bank in Sri Lanka and was recognized by the World Bank, endorsing our commitment to enriching the lives of fellow Sri Lankans at the bottom of the pyramid. Numerous entrepreneurs who received hand-holding from HNB Gami Pubuduwa to emerge in the commercial milieu have now graduated up the ladder to become SMEs, emerging corporates, and corporate-level tycoons that make significant contributions to the GDP of Sri Lanka.
Today, with its extensive island-wide presence, HNB has demonstrated its immense ability to influence change through its customers and operations. HNB has taken proactive steps to reduce its environmental impact by adopting a value chain approach to evaluating, mitigating, and disclosing its climate and broader environmental footprint. This commitment is reflected in various initiatives aimed at both internal resource efficiency and external environmental stewardship. The loan schemes, including the Gami Pubuduwa scheme, have now been improved to address wider ESG concerns by incorporating climate change adaptation and mitigation measures, managing environmental and social impacts, and addressing gender aspects and client protection measures as applicable.
Sustainability is embedded across our operations and strategic vision. Our Sustainability Management Framework (SMF) has evolved, integrating financial and non-financial metrics to guide decision-making that supports both business objectives and environmental, social, and governance (ESG) priorities. We are advancing this model, focusing on reducing our environmental footprint while enhancing social contributions, aligning with globally recognized standards such as SASB, TCFD, and GRI. These efforts underscore HNB’s commitment to sustainable banking that fosters value for our stakeholders and the communities we serve.
To ensure future readiness, we are actively adapting to the requirements of IFRS S1, addressing sustainability-related risks and opportunities, and IFRS S2, focusing on climate-related risks and opportunities. Our integration of these standards strengthens HNB’s capacity to identify, monitor, and mitigate sustainability challenges while leveraging opportunities that align with our business objectives and stakeholder interests.
Our Environmental and Social Management System (ESMS) continues to ensure a rigorous review of social and environmental impacts across our value chain, covering operations, clients, and suppliers. This framework enables us to identify, monitor, and mitigate potential risks while prioritizing sustainable opportunities that align with our objective of Creating Shared Value (CSV). Through CSV, HNB aligns its business practices to support social and environmental needs in ways that deliver both societal and shareholder value.
HNB reported strong financial growth in 2023, with a profit before tax (PBT) of Rs 32.7 billion and a profit after tax (PAT) of Rs 20.4 billion. Key milestones included assets surpassing Rs 2 trillion, advances crossing Rs 1 trillion, and deposits reaching Rs 1.6 trillion. As we drive digital banking adoption across retail and corporate sectors, HNB is leading efforts to broaden financial inclusion nationwide, creating unprecedented accessibility through our comprehensive digital platforms. Through innovative products and services, HNB continues to meet the diverse needs of all customer segments, from minor-focused savings accounts to the uniquely structured retirement accounts for pensioners, reinforcing our role in advancing economic empowerment.
Our Microfinance Programme plays a pivotal role in empowering grassroots entrepreneurs engaged in cottage industries. HNB stands as the only commercial Bank to scale down operations to effectively serve Sri Lanka’s Microfinance sector through its “Gami Pubuduwa” brand. This initiative provides micro- savings, micro-lending, money transfer services, and micro-insurance, particularly targeting rural communities in Sri Lanka. Our holistic approach provides not just financial support, but also technical guidance, marketing assistance, and financial management advice.
Social equity and community support are fundamental to our sustainability strategy. We address critical issues such as poverty, health, wellness, and human rights through our CSR initiatives. The Bank engages with community members, collaborates with local authorities, and leverages our branch network to address local needs effectively. HNB PLC has been a passionate advocate for preserving Sri Lanka’s cultural heritage through initiatives like “HNB රුවන්වැලි මහා සෑ නමස්කාරය,” embracing the rich traditions of the “Nallur Festival” and “Gaweshanayaka Mudrawa” Additionally, we partnered with the Kandy Esala Perahera to help preserve ancient traditions. Strong stakeholder support is vital in shaping our initiatives, ensuring they resonate with and benefit the communities we serve.
HNB became the first Bank in Sri Lanka to achieve fully Carbon Neutrality for entirety of its operations in 2023. Our Carbon-neutral certification is a testament to HNB's commitment to environmental stewardship. We have invested Rs. 7.1 billion in renewable energy projects, reducing our carbon footprint and driving eco-efficiency. Our sustainability roadmap forges ahead with digital transformation, waste reduction, and expanded partnerships to enhance our environmental impact, reaffirming our commitment to a greener, more resilient future.
