Economic Capsule May 2011

1. Economic Capsule June 2011 Research & Development Unit

3. Financial Sector N e w s Research & Development Unit

5. ComBank Commences Sharia Compliant Banking Commercial Bank launched ‘Sharia Compliant Banking’ to better serve an important segment of its customer base that requires Sharia-compliant financial products based on Islamic principles. Commercial Bank’s Islamic Banking Unit would initially be located on the fourth floor of its headquarters building at No 21, Bristol Street, Colombo 01, but the products would later be made accessible to customers visiting branches via the bank’s sophisticated IT system. Services Offered: Mudaraba - Profit Sharing Investment Musharaka - Joint Ownership Murabaha - Trade Financing Ijara - Islamic Leasing Diminishing Musharaka - Financing of Assets For further details + 94 11 2 486 072-5 Research & Development Unit

8. More Great Discounts with ComBanks Dine and Smile ! Promo period : 19 th June to 31 st August 2011 Eligible cards : All Credit and Debit cards of ComBank Discount percentage : 25% on the bill for Dining (Only @ "Pizza hut " the discount will be available for Dining as well as Takeaway and Delivery.) Restaurants : Ceylon Continental (Tandoori & The Emerald restaurants) , Pizza Hut, Barista Lavazza, Loon Tao - College Avenue, Mount Lavinia , Raja Bojun - Galle Road, Colombo 3 , Urban Kitchen - Hyde Park Corner, Colombo 2 , Jack Tree - Park Road, Colombo 5 , Mango Tree - Dharmapala Mw, Colombo 3 , Prima Taste Restaurant – Rajagiriya , Bars Café - Deal Place, Colombo 3 , Oak Ray Restaurant – Kandy , Senani Restaurant – Kandy , Devons Captains Table – Kandy. Conditions apply Minimum bill value: Rs. 500/- For more info: http://www.combank.net/newweb/info/192 Research & Development Unit

9. Branch Openings 198 Nittabuwa Nihal Super Market, No. 638, New Bus Stand, Nittambuwa. Research & Development Unit

10. Economic & Business N e w s Research & Development Unit

14. Sri Lanka Tourist Arrivals up 39 % in May 11 Tourist arrivals to Sri Lanka rose 39% to 48,943 in May 2011 from a year earlier, led by increases in visitors from India and East Asia. In the five months to May arrivals rose 40.2 % to 327,902 from a year earlier. Source: Sri Lanka Tourism Development Authority The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC Tourist Arrivals by Country of Residence Jan - May 2010 2011 % Cha. North America 14,319 17,711 23.7 Canada 7,683 9,044 17.7 USA 6,636 8,667 30.6 Latin America & Caribbean 261 459 75.9 Western Europe 94,369 129,367 37.1 France 11,999 22,335 86.1 UK 38,725 41,474 7.1 Germany 19,618 23,065 17.6 Eastern Europe 15,913 19,919 25.2 Russia 5,782 7,400 28.0 Africa 674 1,137 68.7 Middle East 11,146 15,958 43.2 East Asia 24,294 34,504 42.0 China 3,838 7,481 94.9 Japan 5,350 6,706 25.3 Malaysia 4,515 5,972 32.3 Singapore 3,608 5,300 46.9 South Asia 61,726 93,139 50.9 India 44,549 68,830 54.5 Maldives 12,633 15,624 23.7 Australia 11,220 15,708 40.0 Australia 10,026 13,933 39.0 Research & Development Unit

23. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain accuracy/completeness of the information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the information or for losses or damages, financial or otherwise, suffered in consequence of using such information for whatever purpose. The chief cause of failure and unhappiness is trading what you want most - for what you want right now. Zig Ziglar Research & Development Unit