For the period ended	Bank		Group
	30.09.2007 Rs.000	30.09.2006 Rs.000	30.09.2007 Rs.000	30.09.2006 Rs.000
Cash flow from operating activities
Interest Receipts	3,484,265	2,384,593	4,253,431	2,764,092
Interest payments	(2,635,433)	(1,452,754)	(3,136,676)	(1,652,088)
Recoveries on loans previously written off	56,133	57,262	56,133	57,262
Receipts from other operating activities	89,046	74,868	311,266	248,385
Cash payments to employees & suppliers	(655,017)	(480,311)	(912,028)	(635,449)
Value added tax	(225,190)	(127,370)	(249,059)	(173,251)
Operating profit before changes in operating assets
	113,804	456,288	323,067	608,951
(Increase )/decrease in operating assets:
Balances with Central Bank of Sri Lanka	0	0	307,636	47,580
Funds advanced to customers	104,932	(3,016,796)	(1,990,361)	(3,951,368)
Other short - term securities	(1,015,463)	295,446	(980,053)	437,260
Others	36,710	(109,403)	(206,209)	(324,655)
Increase /(decrease ) in operating liabilities:
Deposits from customers	(6,901,266)	784,955	(6,669,136)	1,025,892
Negotiable certificates of deposit	(13,563)	(4,963)	(51,241)	41,133
Net cash flow from operating activities before Income tax
	(7,674,846)	(1,594,473)	(9,266,297)	(2,115,207)
Income tax paid	(435,980)	(349,030)	(500,236)	(377,222)
Net cash from/(used in) operating activities
	(8,110,826)	(1,943,503)	(9,766,533)	(2,492,429)
Cash flow from investing activities
Dividends received	341,259	205,991	317,268	182,483
Interest received	473,975	115,785	525,058	153,072
Proceeds from sale of securities and redemption of securities	45,919	113,357	89,873	128,009
Purchase of securities	(21,430)	(25,445)	(138,131)	(74,331)
Subscription to rights issue in associate - ( Commercial Bank Limited)	(1,602,541)	0	(1,602,541)	0
Purchase of property , equipment ,intangibles and investment property	(70,227)	(12,752)	(183,000)	(165,640)
Proceeds from sale of equipment and investment property	10,063	1,012	11,563	3,315
Net cash from investing activities
	(822,982)	397,948	(979,910)	226,908
Cash Flow from financing activities
Issue of debentures	0	955,000	0	955,000
Issue of new shares under option	3,236	4,302	3,236	4,302
Issue of new shares under Right Issue	3,029,479	0	3,029,479	0
Share issue expenses	(35,933)	0	(35,933)	0
Borrowing , medium and long - term	5,630,801	5,211,049	5,630,801	5,643,199
Other Borrowings	2,677,771	72,150	4,343,135	535,514
Repayment of borrowing ,medium and long - term	(4,026,851)	(4,456,046)	(4,026,851)	(4,456,046)
Dividends paid	(65,289)	(343,324)	(98,138)	(377,076)
Net Cash flow from financing activities
	7,213,214	1,443,131	8,845,729	2,304,893
Net increase/(decrease) in cash & cash equivalents	(1,720,594)	(102,424)	(1,900,714)	39,372
Cash & cash equivalents/(overdraft-net) at the beginning of period	4,746,177	1,149,381	6,506,073	2,245,931
Cash & cash equivalents at the end of period
	3,025,583	1,046,957	4,605,359	2,285,303
Reconciliation of cash & cash equivalents
Cash & short - term funds	2,415,583	975,143	3,483,492	1,805,613
Securities purchased under resale agreements	610,000	303,344	1,124,335	732,773
Borrowing short term - Bank overdrafts	0	(231,530)	(2,468)	(253,083)
	3,025,583	1,046,957	4,605,359	2,285,303
The Cash Flow Statement of the bank includes the results of associate /subsidiary companies only to the extent of the cash flows between Bank and respective companies as required by Sri Lanka Accounting Standards . Comparative figures have been re-stated to conform to the period ended 30 September 2007 classification