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Commercial Development Company PLC (CDC)

Commercial Development Company (CDC) was formed in 1980 to construct the head office of the Commercial Bank. It now operates as the Bank’s main utility services provider. CDC’s principal sources of income are building rent, vehicle hire charges and maintenance fees. The Bank presently holds a 94.55% stake in the company.

CDC recorded a post-tax profit of Rs. 338.95 Mn. in 2011, largely due to fair-value gain on investment properties and increased rental income. Discounting the fair-value gain, the Company’s post-tax profit from normal operations was Rs. 69.10 Mn. for the year 2011.

Future Outlook

CDC is in the initial stages of developing a new business line to provide premises maintenance services to Commercial Bank customers. And, as another potential avenue of growth, the Company is exploring the possibility of constructing new branches for the Bank, and increasing the scope of utility services it provides.

ONEzero Company Ltd.

Incorporated in 2003 as a fully owned subsidiary of Commercial Bank, ONEzero Company provides information technology products and services to the Bank as well as outside customers. The company’s offering consists of IT solutions, equipment, software and maintenance services delivered in partnership with many of the world’s leading IT brands.

ONEzero’s main revenue drivers in 2011 were IT solutions, hardware, software development and post-warranty maintenance. Several software development projects were completed on behalf of the Bank’s IT group during the year, which yielded significant returns to the Company. The Company recorded a substantial improvement in their profit compared to last year. The Company also investigated adding a range of IT products to enhance its existing hardware and solutions business.

Future Outlook

ONEzero has begun implementing a three-year plan to build a stronger team, develop more IT solutions and serve a larger client base. To further its vision of becoming a leading IT solution provider in Sri Lanka, the company is working towards a divisional and management realignment that will transform its software development and IT solutions groups into separate, profit-generating entities.

Commex Sri Lanka S.R.L.

Having seen the potential in remittance business from Italy, Commercial Bank initially tied up with National Exchange Company, an Exchange House operating in Italy. With this arrangement many Sri Lankans who previously relied on various informal channels to remit money started utilizing our e-Exchange Money Transfer System. Realising the potential in this line of business, the Bank formed a fully owned Subsidiary by the name - Commex Sri Lanka S.R.L. in Italy.

Commex Sri Lanka S.R.L. received the Money Transfer License from the Bank of Italy in February 2010. However, the Company had to re-apply for the license due to the change of laws relating to money transfer business in the European Union.

Re-registration application of Commex has now been declined by the Bank of Italy on the grounds that Sri Lanka has been identified by Financial Action Task Force (FATF) as a country having certain strategic deficiencies in its Anti-Money Laundering / Combating Financing of Terrorism (AML/CFT) Legislation.

Future Outlook

Commex would re-apply for registration if Sri Lanka's position is cleared by FATF in future. Presently the Bank is exploring other alternate arrangements that would facilitate fund transfers from Italy.