INDEPENDENT ASSURANCE REPORT

To the Board of Directors of SANASA Development Bank PLC

Report on the Director’s Statement on Internal Control

We were engaged by the Board of Directors of SANASA Development Bank PLC (“Bank”) to provide assurance on the Directors’ Statement on Internal Control over Financial Reporting (“Statement”) included in the annual report for the year ended 31st December 2023.

Management’s Responsibility

Management is responsible for the preparation and presentation of the Statement in accordance with the “Guidance for Directors of Banks on the Directors’ Statement on Internal Control” issued in compliance with section 3 (8) (ii) (b) of the Banking Act Direction No. 11 of 2007, by the Institute of Chartered Accountants of Sri Lanka.

OUR INDEPENDENCE AND QUALITY CONTROL

We have complied with the independence and other ethical requirement of the Code of Ethics for Professional Accountants issued by the Institute of Chartered Accountants of Sri Lanka, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
The firm applies Sri Lanka Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our Responsibilities and Compliance with SLSAE 3050

Our responsibility is to issue a report to the board of directors on the Statement based on the work performed. We conducted our engagement in accordance with Sri Lanka Standard on Assurance Engagements (SLSAE) 3050 - Assurance Reports for Banks on Directors’ Statements on Internal Control, issued by the Institute of Chartered Accountants of Sri Lanka. This Standard requires that we comply with ethical requirements and plan and perform the engagement to obtain reasonable assurance about whether the Statement is free from material misstatement.

Summary of Work Performed

Our engagement has been conducted to assess whether the Statement is supported by the documentation prepared by or for directors; and appropriately reflects the process the directors have adopted in reviewing the system of internal control for the Bank.

The procedures performed were limited primarily to inquiries of Bank personnel and the existence of documentation on a sample basis that supported the process adopted by the Board of Directors. SLSAE 3050 does not require us to consider whether the Statement covers all risks and controls, or to form an opinion on the effectiveness of the Bank’s risk and control procedures. SLSAE 3050 also does not require us to consider whether the processes described to deal with material internal control aspects of any significant problems disclosed in the annual report will, in fact, remedy the problems.

Our Conclusion

Based on the procedures performed, nothing has come to our attention that causes us to believe that the Statement included in the Annual Report is inconsistent with our understanding of the process the directors have adopted in the review of the design and effectiveness of internal control system over the financial reporting of the Bank.