Development Bank RAM Ratings Lanka has assigned respective long- and short-term financial institutions ratings of A and P1 to Lankaputhra Development Bank Limited ("LDB" or "the Bank"). The ratings are primarily

based on the Bank’s state ownership and its strategic importance vis-à-vis the Government of Sri Lanka’s ("GOSL") economic development agenda. The ratings are, however, constrained by Bank’s short operating history and large risk appetite.

LDB is a licensed specialised bank ("LSB") created by the GOSL as part of the incumbent President’s new economic vision of promoting the development of domestic enterprises. LDB focuses on providing funding to start-up small and medium-scale enterprises ("), a segment overlooked by other banks due to the inherently higher risk. LDB was incorporated in 2006

following cabinet approval; it merged with 2 other state-backed development finance institutions in 2008. The Bank’s strategic direction is guided by its Chairman, A Sarath de Silva, who has well

over 3 decades experience in the banking sector, having also served as General Manager in Sri Lanka’s largest commercial bank, Bank of Ceylon. Not surprisingly, the Bank’s short history meant that it accounted for only 1.51% of the LSB industry’s assets as at end-December 2008.