CIPM Full Draft_compressed

51 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Standing (back row left to right) Mr. Indika Wijayasriwardana - Head of Shared Services | Mr. Sampath Rathwatta - Assistant Centre Manager - Galle | Mr. Amila Perera - Manager- Finance | Ms. Udani Ranawaka - Deputy Manager - Marketing | Mr. S.Sivasuriyar Manager - IT | Mr. Sujeewa Perera - Manager - Examinations | Mr. Lahiru Bandara - Manager - Premises Development & Administration | Ms. Kamani Perera - Manager - Research & Development | Ms. Upeksha Kodikara - Librarian | Ms. Ruwani Senevirathne - Senior Manager - Quality Assurance & Compliance | Mr. Anushka Earskin - Head of Business School

52 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 PAST PRESIDENTS

53 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023

54 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 STRATEGIC REPORT Value Creation Model ............................................................................................. … Materiality Assessment........................................................................................... … Stakeholder Engagement ....................................................................................... … Operating Environment........................................................................................... … Strategy & Resource Allocation .............................................................................. …

55 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 MEERKATS (SURICATA SURICATTA) ARE SPECIALLY ADAPTED FOR LIFE IN THE HARSH DESERT ENVIRONMENT. MEERKATS ARE SMALL AND LEAN. THESE CHARACTERISTICS ALLOW THE ANIMAL TO THRIVE WITH LIMITED FOOD SOURCES. AROUND ITS EYES, THE MEERKAT HAS DARK RINGS TO REDUCE THE GLARE OF THE BRIGHT DESERT SUN.

56 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 INPUTS Financial capital Accumulated Fund Rs. xxx Net Surplus Rs. xxx Total Assets Investments Rs. xxx Rs. xxx Rs. xxx Rs. xxx Rs. xxx Rs. xxx Property and Equipment Rs. xxx IT Infrastructure Rs. xxx Website and Social Media Platforms Our Branch Network Rs. xxx Manufactured capital Human capital Skills and Competencies Performance driven Culture Commitment to Learning Performance Based Reward Structure Rs. xxx Rs. xxx Active Students Active Members Intellectual capital Social and relationship capital Natural capital OUR VISION TO BE A GUIDING FORCE AND GLOBAL LEADER IN DEVELOPING AND MANAGING HUMAN CAPITAL OUR MISSION DEVELOPING INNOVATIVE PRACTICES FOR UNLEASHING HUMAN POTENTIAL CONSUMERS COMMUNITIES Growth Strategy OUTCOMES Financial capital +13.5% Asset Growth +15.6% Increase Operating Income +8.8% Growth in Surplus After Tax +8.1% Income Tax Manufactured capital Efficient Use of Resources Wider Presence and Enhanced Reach Enhanced Productivity Growth in Capacity and Capability Human capital Intellectual capital Social and relationship capital Natural capital EMPLOYEES RETAILERS SUPPLIERS damaged goods and emissions. food and packaging waste, damaged goods and pilferage, waste water and emissions. OUTPUTS . SUPPORTING MATERIAL RELATIONSHIPS GOVERNANCE FRAMEWORK & POLICIES 1. HR Courses 2. T & D Programs 3. Specialised programs Problem Solving Excellence in collaboration Strategic Framework Key ambitions First-choice for students Excellence in Teaching Strategy, Innovation, and Entrepreneurship Educational Experience Education Services Professional Development Solutions HR IT Finance & Accounting Marketing Logistics Accumulated Fund CIPM Curriculum and Trainings Governance Framework Effective Internal Control System Policies and Procedures Risk Management Framework Brand Image & Brand Equity Ethical Business Conduct Brand Equity Government and Regulators Profitable Stakeholder Relationships Effective Communication Channels Targeted Marketing Activities Transparent Policies Operational Efficiency Empowerment and Engagement Engaged in training & development programs Improved Productivity through remote working Compliance Information systems Recognition of the Qualification Our Accreditations Attractive Exemptions Growth in Member Base Active Student Base Discounts and Special Offers Event Sponsorships Community Engagement Deliver Value CIPM focuses on converting HR strategies and initiatives into tangible business value requires the appropriate delivery approach, a solid foundation of HR capabilities and infrastructure and the definition of business-driven performance measures to track whether the expected results are being delivered. 4. Workshops and Seminars 5. Research and library facilities 6. Member support services Governance Risk Management Per of mr ance Out ol ok Primary Activities Supporting Activities CORE BUSINESS ACTIVITIES VALUE CREATION MODEL

57 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 INPUTS Financial capital Accumulated Fund Rs. xxx Net Surplus Rs. xxx Total Assets Investments Rs. xxx Rs. xxx Rs. xxx Rs. xxx Rs. xxx Rs. xxx Property and Equipment Rs. xxx IT Infrastructure Rs. xxx Website and Social Media Platforms Our Branch Network Rs. xxx Manufactured capital Human capital Skills and Competencies Performance driven Culture Commitment to Learning Performance Based Reward Structure Rs. xxx Rs. xxx Active Students Active Members Intellectual capital Social and relationship capital Natural capital OUR VISION TO BE A GUIDING FORCE AND GLOBAL LEADER IN DEVELOPING AND MANAGING HUMAN CAPITAL OUR MISSION DEVELOPING INNOVATIVE PRACTICES FOR UNLEASHING HUMAN POTENTIAL CONSUMERS COMMUNITIES Growth Strategy OUTCOMES Financial capital +13.5% Asset Growth +15.6% Increase Operating Income +8.8% Growth in Surplus After Tax +8.1% Income Tax Manufactured capital Efficient Use of Resources Wider Presence and Enhanced Reach Enhanced Productivity Growth in Capacity and Capability Human capital Intellectual capital Social and relationship capital Natural capital EMPLOYEES RETAILERS SUPPLIERS damaged goods and emissions. food and packaging waste, damaged goods and pilferage, waste water and emissions. OUTPUTS . SUPPORTING MATERIAL RELATIONSHIPS GOVERNANCE FRAMEWORK & POLICIES 1. HR Courses 2. T & D Programs 3. Specialised programs Problem Solving Excellence in collaboration Strategic Framework Key ambitions First-choice for students Excellence in Teaching Strategy, Innovation, and Entrepreneurship Educational Experience Education Services Professional Development Solutions HR IT Finance & Accounting Marketing Logistics Accumulated Fund CIPM Curriculum and Trainings Governance Framework Effective Internal Control System Policies and Procedures Risk Management Framework Brand Image & Brand Equity Ethical Business Conduct Brand Equity Government and Regulators Profitable Stakeholder Relationships Effective Communication Channels Targeted Marketing Activities Transparent Policies Operational Efficiency Empowerment and Engagement Engaged in training & development programs Improved Productivity through remote working Compliance Information systems Recognition of the Qualification Our Accreditations Attractive Exemptions Growth in Member Base Active Student Base Discounts and Special Offers Event Sponsorships Community Engagement Deliver Value CIPM focuses on converting HR strategies and initiatives into tangible business value requires the appropriate delivery approach, a solid foundation of HR capabilities and infrastructure and the definition of business-driven performance measures to track whether the expected results are being delivered. 4. Workshops and Seminars 5. Research and library facilities 6. Member support services Governance Risk Management Per of mr ance Out ol ok Primary Activities Supporting Activities CORE BUSINESS ACTIVITIES

58 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 MATERIALITY At CIPM, the objectives vested in us by the act of incorporation, the expectations of our stakeholders and our work towards sustainable growth have led to a series of material topics, which have become priorities throughout the years. The following material topics are relevant to our vision and mission and to creating value for our stakeholders. It addresses aspects that we work tirelessly to achieve, especially in developing and promoting the professional of people management and in elevating HRM in its national role Material Topic Reason for materiality Importance to the Institute Importance to relevant stakeholder/s How we approach the topic Relevant disclosure Financial viability and stability — Sustain operations by fulfilling operational costs. — Foster Institute’s growth through investments and resource allocations. u v — The finance and accounting department, the Standing Committee on Finance and Administration oversees prudent financial management and conduct — Financial highlights — Financial capital report — Subcommittee Report on Finance and Administration CIPM employees’ development — Our employees’ are our strongest asset u u — Standing Committee on Build up Internal Capabilities and the Right Culture to fulfill CIPM Objectives oversees employee growth and implements numerous initiatives — Human capital report - Nurturing our most valuable asset — Standing Committee Report on Build up Internal Capabilities and the Right Culture to Fulfil CIPM Objectives Innovative teaching methods and standards — Encourage student learning and enhance learning experience u u — The Technical Committee on Professional and Academic Affairs oversees improvements in learning methods and material and updates guidelines and assessment criteria. — Builds frameworks to ensure competencies of students and examiners. — Report of the Technical Committee on Professional and Academic Affairs — Intellectual capital report - Harnessing the power of knowledge Employability and leadership development — Help students and members to seize opportunities — For the betterment of the HR profession u u — Work done by the Standing Committee on HR Profession as a Leading Strategic Partner for Organisational Excellence to develop HR professionals — Student Grooming and Engagement Committee ensures student’s access to information and satisfaction — Report by Standing Committee on HR Profession as a Leading Strategic Partner for Organisational Excellence to develop HR professionals — Report by the Student Grooming and Engagement Committee — Social and relationship capital report – Elevating stakeholder value creation

59 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Material Topic Reason for materiality Importance to the Institute Importance to relevant stakeholder/s How we approach the topic Relevant disclosure Developing national standards and role in HRM — Create homogenous benchmarks and adopt credible international best practices u v — Standing Committee Report on Empowered Authority and National Role in HR undertakes standards development and implementation — Report of the Standing Committee on setting up people management standards certification and Accreditation International and national accreditation s and standards — Better recognition for students and members — Increases access to state and international support and increases opportunities to increase partner relations u u — Relevant actions implemented by the Standing Committee on Setting up People Management Standards, Certification and Accreditations — Report by the Standing Committee on Setting up People Management Standards, Certification and Accreditations Continuous professional development — Keep members’ knowledge and skills relevant and increase opportunities for career growth u u — Standing Committee on Setting up People Management Standards, Certification and Accreditations develops related competency standards — Report by the Standing Committee on Setting up People Management Standards, Certification and Accreditations Strong research capabilities and actions — Use empirical information for strategising and conclusions that solve challenges and improves people management u v — Numerous work done by National HR Data Hub with Research and Development Capabilities in building a research culture in HRM — Report by the National HR Data Hub with Research and Development Capabilities Regulatory support — Achieve Institute’s objectives and safeguard stakeholder interests u v — Progress Report based on the Objectives, Standing Committee Reports, Corporate Governance Report — Progress Report based on the Objectives, Standing Committee Reports, — Corporate Governance Report New technologies and IT infrastructure — Increase efficiencies and enhance productivity — Ensure reliability and security of the IT infrastructure — Meet Institute’s objectives u v — The Standing Committee on Digitalization, Automation, and ICT Projects oversees new developments — Report by the Standing Committee on Digitalization, Automation, and ICT Projects — Intellectual capital report - Harnessing the power of knowledge

60 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Material Topic Reason for materiality Importance to the Institute Importance to relevant stakeholder/s How we approach the topic Relevant disclosure Strong global and local professional partnerships — Connect with like-minded institutions to exchange information, capabilities and enhance student learning u v — The Technical Committee on Professional and Academic Affairs establishes collaborations with similar institutions. — Work done by the Standing Committee on People Management Solutions relates — The Standing Committee on International Affairs promotes CIPM internationally — Report by the Technical Committee on Professional and Academic Affairs — Report by the Standing Committee on People Management Solutions relates — Report by the Standing Committee on International Affairs Reach and accessibility — Improve overall stakeholder experience, especially students, members and fraternity u u — Standing committee on infrastructure development and facilities management oversees centre expansions and building improvements — Report by Standing committee on infrastructure development and facilities management Building HR fraternity / knowledgesharing — To help upgrade skills and making a purposeful profession u u — Standing Committee on Developing Globally Competent HR Professional & Business — Standing Committee on National HR Conference — Report by the Standing Committee on Develop Globally Competent HR Professional &Business — Standing Committee on National HR Conference ESG — Helps determine alignment with sustainable business development u w — Sustainability endeavours undertaken by the Standing Committee on Sustainability, Diversity and Inclusivity — Report by the Standing Committee on Sustainability, Diversity and Inclusivity Accountable governance — Improve institutional performance and ensure stability u v — Accountable leadership maintained by the Executive Council — Committee Chairmen/Chairpersons ensure fulfilment of committee objectives — Standing committee on Audit Legal oversees compliance — Corporate governance report Robust risk management — Identify and manage potential risks u v — Standing committee on Audit Legal recommends actions to identify and mitigate potential risks — Risk management report Assessing macroeconomic impacts — Important for the state of the Institute’s financial performance and planning u v — Standing committee on Audit Legal recommends actions to identify and mitigate potential risks u High v Medium w Low MATERIALITY

61 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 STAKEHOLDER EXPECTATIONS At CIPM, the work we do benefits all stakeholders. The decisions and actions of the Institute contribute towards creating value for stakeholders, with various interests and needs. The Stakeholders of CIPM fall broadly into several categories. CIPM Stake Holders 1. Members 2. Students 3. Employees 4. Business Partners 5. Faculty 7. Suppliers 8. Regulatory Authorities/ (Government) 9.General Public & HR Fraternity Sharing value with stakeholders Our diverse stakeholders have varying expectations of us as a professional and, reputed service provider of HRM related education and training. Our success in developing and promoting personnel management in Sri Lanka relies substantially on our relationships with our internal and external stakeholders. — Chartered Fellow, Chartered Member, Honorary Member, Associate Member, Affiliate Member — 6200+ students across all programs, including the pinnacle of qualifications, CQHRM — The general public including the HR fraternity and the environment — Asia Pacific Federation of Human Resource Management (APFHRM) — Tertiary and Vocational Education Commission — Accounting bodies — ISO — SLSI — 72 employees — 100+service providers (goods and services) — 227 faculty members in CIPM — Local 17 partner institutes/universities — International 5 partner institutes/universities — Other Ministry of Labour and Foreign Affairs ILO Sponsor companies

62 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 In our quest to serve stakeholders at the highest possible level, has identified their expectations and aligned these expectations to our strategic plan through which strategic approaches have been set up to provide value addition to all the stakeholders thus, fulfilling their needs in the best manner possible. Students Students are a key stakeholder of CIPM. Their expectations, academic excellence and professional development remain at the core of all CIPM programs. Value additions to students Approaches — Recognised higher education for employability — Internationally accredited qualifications — Globally recognised programs — Chartered Qualification in Human Resource Management, developed on global standards — Programs built on 10 competencies, seeking to inculcate the knowledge, practical problem-solving ability and professionalism — Quality of learning methods — Comprehensive curriculum that optimises learning outcomes, delivered by experienced and highly qualified lecturers — Online learning — Academic support — Continued faculty and institute support on courses and assessments — Easy access to study materials — Increased accessibility to study materials through the Learning Management System (LMS) — Career guidance — Open days/career guidance seminars and in person consultations — Professional skill development — Highly relevant course units to enhance knowledge and understanding — Facilities — Well-equipped learning facilities — Internship opportunities — Internships at CIPM — Recommendations based on employer inquiries — Access to memberships — Stages of memberships based on completion of CQHRM and years of experience — Leadership skill development — Toastmasters club for leadership development — Affordability of programs and materials — Lowest investments for the students — Clear and timely communications — We utilise several engagement methods (physical and digital) to disseminate information. STAKEHOLDER EXPECTATIONS

63 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Members CIPM members represent the CIPM brand through their designated member status and provide to employers best in class services. The recognition they receive from their employers is a reflection of the institute’s professional standards, which are engrained in the study programmes, seminars, workshops, and continues professional development model. Value additions to members Approaches — Access to the highest professional accreditations and memberships — Memberships based on experience and qualifications — Opportunity to achieve ‘Chartered Fellow’ membership - the top-most and sought after membership — Career growth and employability — Workplace recognition due to the high acceptance and global recognition of membership — Ongoing professional development and knowledge enhancement — Access to knowledge hub/publications — Membership benefits — Continuous Professional Development — Phd Grants — Discounts and rewards, access to career hubs, financial assistance — Ability to obtain expert advice — Branded items — Networking — Access to HR workshops and seminars — Events and conferences (E.g. NHRC, HR Quiz, Coffee with President) — Volunteering to be in Standing Committees to deliver results Employees Our employees drive the Institute’s growth and stability. They are the intermediary between external stakeholders and Institute’s leadership and fulfil sound operational management. Value additions to employees Approaches — Fair remuneration — Remuneration is aligned to market rates, we maintained commitment to timely remuneration and benefits, even at the height of the economic crisis — Increments based on KPI achievements and industry standards — Professional development — Continuous training and development on leadership management, customer service, marketing, technology, team work, monthly evaluation questionnaire for all staff — Career growth — Career tracking, career counselling, career coaching, one to one discussions, annual promotions — Supportive work environment — Conducive work climate with advanced technology, staff meetings, excellent ambience, dining facilities, free tea and water, superior sanitary conditions — Reward and recognition — Year-end bonuses, Annual get together, Employee of the quarter, employee of the year, urban gardening competition& prizes for winners — Staff wellbeing and work life balance — Work from home on need basis, flexible rosters for shift work, annual leave, medical assistance, spectacle allowance, on site doctor, insurance cover

64 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Business Partners CIPM’s business partners are universities, professional institutes based on MOU s for collaborations in business matters. Value additions to partners Approaches — Knowledge enhancements — Joint seminars/webinars — Exchange programmes — Career guidance — Accreditations — Chartered Institute of Personnel & Development UK (CIPD) has accredited Chartered HR Qualification of CIPM for mutual value addition to both parties — Enhancement of Professional Consultancy — Chartered Management Institute UK (CIM) has accredited CIPM to conduct their Level 07 in Professional Consulting programs for value addition of both parties. Faculty Our faculty members are a critical stakeholder due to their ability to deliver the right knowledge that we aim to equip our students with. Due to their direct relationship with students, they are incredibly vital assets for the Institute in achieving our core objectives. Value additions to faculty Approaches — Knowledge enhancement — Continuous Professional Development (CPD) Programs — Research and Publications — Conferences and Seminars — Educational Technology Integration: — Feedback and Evaluation: — Arrange knowledge enhancement initiatives such as Seminars/Lecture competency framework (LCF) — Clear and open communication — Programme contents are updated on regular basis and educate the faculty — Remuneration/payments — We honoured reasonable payments in a timely and comprehensive manner in line with the market rates — Recognize their service — Service confirmation letters — Lecturer felicitation programmes Service providers The goods and services procured through service providers allow us to facilitate expansions and sustain operations. Value additions to service providers Approaches — Contractual obligations — We maintain our commitments to contract time periods and renew agreements accordingly — Payments — We honour timely payments — Communication — Proper point of contact such as Finance / Shared Services etc is given for all service providers. STAKEHOLDER EXPECTATIONS

65 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Government and regulatory bodies Government and regulatory bodies provides us necessary directives to operate within acceptable parameters and ensure transparency and accountability, which are crucial for long-term growth. By adhering to such regulations we ensure acceptance as a legitimate and professional entity. Value additions to Government and regulatory bodies Approaches — Regulatory compliances and good governance — Compliance with all applicable statutory and regulatory requirements — Sound governance practices and accountable leadership — Transparency in transactions — Abidance to the act of incorporation — Providing HR related education/ Consultancies, information and professional development for the betterment of the HRM profession — National level Research based on the requirement. — National HR Standards — Public Interest — Statutory registrations and payments — Adherence to timely payments and registrations — Payment of all the due taxes on time without defaulting — Compliance with all the statutory payments The general public and HR fraternity Community and public acceptance of us as a highly-reputed organisation enables us to thrive and sustain operations and growth both across the country. What matters to the general public and fraternity Approaches — Responsible operational conduct — Corporate Social Responsibility endeavours — Scholarships for study programmes — Access to industry resources personnel and knowledge — Forums, Conferences, and Seminars — Industry competition (e.g. Great HR Quiz) — Career guidance — Career guidance seminars in schools/universities on the importance of HRM

66 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Engaging with stakeholders Across time, the relationships with our stakeholders have become stronger. This is a result of continued interactions to communicate and confer with them and to address what matters to them. In this regard, stakeholder engagement allows us to exchange ideas and perspectives with our stakeholders to continuously strengthen relationships while using engagement methods to communicate our decisions and actions, and deliver value. STAKEHOLDER EXPECTATIONS Stakeholders Members Students Employees Partners Clients Faculty Service providers Government and regulators Public (including HR fraternity) How we engaged in 2022 — Member registration process (as and when required) — Coffee with President — New member induction (annual) — Members day — Guest lecture sessions (seminars/workshops – across the year) — CIPM Research Symposium(annual) — CEO’s forum (annual) — The Great HR Quiz (annual) — Email and tele communications (continuous) — Classroom sessions (continuous) — CIPM graduation ceremony (annual) — Certificate awarding ceremony (annual) — HR Fun Quiz — Career Guidance and open days (ongoing) — CIPM Research Symposium (annual) — Recreational activities (intermittent/ planned) — Meetings (daily/ weekly) — Memos (as and when required) — Employee award ceremonies (quarterly/annual) — Verbal recognitions (intermittent, when required) — Get-togethers (annual) — Felicitation occasions (Ongoing) — Training and development (continuous/ planned) — Seminars — In-house training — Development programs — Events — Courses — Satisfaction surveys (annual) — Performance reviews (Bi-annually and year-end) — Social responsibility events (planned/less frequent) — Email and telecommunications (as and when required) — Meetings (as and when required) — Seminars (planned/ infrequent) — Visits (as and when required) — Sponsor events (planned/infrequent) — Research programs(as and when required) — Agreements and MOUs (planned/ infrequent) — Training programs given by CIPM (planned/infrequent) — Consultations (planned/sporadic) — Workshops and seminars (planned/ sporadic) — CEO’s forum (annual) — Lecturer competency framework (LCF) (continuous) — Email and tele communications (continuous) — Agreements — Email and tele communications (continuous) — Meetings (as and when required) — Letters — Visits (as and when required) — APFHRM Board Meeting (annual) — Meetings with other regulators (as and when required) — Research (as and when required) — Official letters (as and when required) — Official submissions/ documentation (as and when required) — Annual report (annual) — AGM (annual) — Conferences — Meetings (continuous) — CEO’s forum (annual) — Exhibitions (continuous) — CIPM research symposium (annual) — The Great HR Quiz (annual) — HR Conference (Annual) — Career guidance (Continuous)

67 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Stakeholders Members Students Employees Partners Clients Faculty Service providers Government and regulators Public (including HR fraternity) How we engaged in 2022 — Member registration process (as and when required) — Coffee with President — New member induction (annual) — Members day — Guest lecture sessions (seminars/workshops – across the year) — CIPM Research Symposium(annual) — CEO’s forum (annual) — The Great HR Quiz (annual) — Email and tele communications (continuous) — Classroom sessions (continuous) — CIPM graduation ceremony (annual) — Certificate awarding ceremony (annual) — HR Fun Quiz — Career Guidance and open days (ongoing) — CIPM Research Symposium (annual) — Recreational activities (intermittent/ planned) — Meetings (daily/ weekly) — Memos (as and when required) — Employee award ceremonies (quarterly/annual) — Verbal recognitions (intermittent, when required) — Get-togethers (annual) — Felicitation occasions (Ongoing) — Training and development (continuous/ planned) — Seminars — In-house training — Development programs — Events — Courses — Satisfaction surveys (annual) — Performance reviews (Bi-annually and year-end) — Social responsibility events (planned/less frequent) — Email and telecommunications (as and when required) — Meetings (as and when required) — Seminars (planned/ infrequent) — Visits (as and when required) — Sponsor events (planned/infrequent) — Research programs(as and when required) — Agreements and MOUs (planned/ infrequent) — Training programs given by CIPM (planned/infrequent) — Consultations (planned/sporadic) — Workshops and seminars (planned/ sporadic) — CEO’s forum (annual) — Lecturer competency framework (LCF) (continuous) — Email and tele communications (continuous) — Agreements — Email and tele communications (continuous) — Meetings (as and when required) — Letters — Visits (as and when required) — APFHRM Board Meeting (annual) — Meetings with other regulators (as and when required) — Research (as and when required) — Official letters (as and when required) — Official submissions/ documentation (as and when required) — Annual report (annual) — AGM (annual) — Conferences — Meetings (continuous) — CEO’s forum (annual) — Exhibitions (continuous) — CIPM research symposium (annual) — The Great HR Quiz (annual) — HR Conference (Annual) — Career guidance (Continuous)

68 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 OPERATING ENVIRONMENT In the year under review, economic contraction was a common global occurrence while the national economic crisis became a global highlight. Cost-of-living was a key consideration amidst tightening monetary conditions, worldwide, which was in addition to high public debt seen across the world. Global economy Considering the time frame reviewed in the annual report, the world witnessed several crucial junctures in the global economic and geopolitical context. Despite the gradual dissipation of the pandemic, the world economic climate experienced a downturn in global economic activity in 2022. While the economy contracted to 3.2% in 2023 from 6% in 2022; meanwhile inflation soared to 8.8% in 2022 from 4.7% in 2022. Emerging and Developing Asia faired better in relation to economic growth in the Euro Area and Advanced Economies. 0 1 2 3 4 5 6 2021 2022 2023 World Real GDP Growth National economy The local economy underwent significant pressures within the time period being considered. The limitations which occurred due to the pandemic, such as border closures, trade restrictions and mobility constraints, had severe longterm impacts on the economy. As Sri Lanka commenced its recovery from these effects, the drastic drop in gross official reserves impacted the country’s ability to sustain imports of absolute necessity and service external debt payments. Moreover, the country already had a wide trade deficit at the end of 2021, with imports exceeding exports, which reflects the higher currency outflows compared to lesser inflows. During the economic crisis of 2022, we witnessed widespread shortages of fuel and gas, which suspended the country’s power supply and impacted the transportation sector; the foreign currency limitations resulted in import restrictions and rationed supply of many commodities. Subsequently, the combined outcome of these effects was massive social unrest and a political crisis. However, amidst the country’s socio-economic upheaval in 2022, the country’s policymakers continued to adopt policy measures to control further deterioration of the situation. Such measures included import restrictions, oversight of the financial sector, debt standstill and debt restructuring, the IMF-EFF discussions and subsequent arrangements amongst others. -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 2020 2021 2022 Sri Lanka GDP growth The country’s Gross Domestic Product contracted to 7.8% in 2022, with an 11.5% contraction in the first quarter of 2023. The latter became the result of contracted activities in the Industry and Services sectors. Inflation which peaked above 70% in September 2022 has declined over the first quarter of 2023 with headline inflation dropping below 20% by March 2023. Global education sector In the past two years, global learning underwent severe disruptions due to the COVID-19 pandemic; according to World Bank estimations, learning poverty could increase to 70% in low- and middle-income countries, especially in South Asia, Latin America and the Caribbean, with life-long impediments to future generations. The pandemic worsened pre-existing crisis in learning and skill development. The inequalities in accessing technologies impeded remote learning, although the method became used in many countries to compensate for the closure of schools during the pandemic. Based on UNESCO reports, 244 million youth and children are currently out of school, while 771 million adults across the world lack the right skills and knowledge with relevance to 21st century demands in technological know-how. According to UNESCO, adult learning continues to improve in certain places, but with lingering inequalities. With the objective of advancing access to adult learning opportunities, UNESCO organized a conference in June 2022, adopting the Marrakech Framework for Action for the coming decade, with commitments from over 140 countries.

69 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Amidst these concerns, there is an increasing momentum toward higher education, globally, with recent reports indicating that those registered in higher education institutes have doubled in the past twenty years with international student migration experiencing growing momentum. Source: The State of Global Learning Poverty, 2022 update, (World Bank, UNESCO, UNICEF, UK FCDO, USAID, and the Bill & Melinda Gates Foundation 2022) Local higher education sector Unprecedented power outages and fuel shortages, which limited transportation became key challenges to in-person learning across 2022. As a result of disruptions to physical learning, blended learning or a mix of in-person and online (hybrid) learning methods was required to maintain the continuous flow of education. The high cost of living, including high travelling expenses worsened challenges, with inflation impacting the financially impoverished persons and families in the country. The higher education sector undertook several measures to bolster education delivery. State universities utilised the LEARN online platform to ensure educational services. Moreover, authorities took measures to strengthen infrastructure in state universities with new departments instituted across several universities. In addition, new degree programs and projects were established to enhance the competencies of students, including knowledge of English and Information Technology. The private sector also maintained its contributions to developing individuals, with intended contributions to the national workforce. In this regard, the Technical and Vocational Education and Training (TVET) sector also made contributions to shaping individuals with the purpose of filling gaps within the workforce and enhance skills required to advance the economy. In 2022, over 117,000 National Vocational Qualification (NVQ) certificates were distributed to students. As at the end of 2022, the sector had 1,136 registered TVET institutions with 1,043 TVET-accredited courses offered to learners. Source: Central Bank Annual Report, 2022 Outlook Although the global outlook seems somewhat optimistic due to projections of a slight growth in economic activity in 2024 and a deceleration of inflation, the ongoing Ukraine-Russia war continues to create concerns on global energy and food supplies. The Sri Lankan economic context continues to show improvements but remains impacted by concerns over changing policy rates, rupee depreciation and a brewing concern over workforce migration. In terms of the education sector, prudent policy measures are required to address the inequalities that persist in learning and accessing digital resources, especially amongst the economically vulnerable.

70 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 STRATEGIC PLAN AND RESOURCE ALLOCATION At CIPM, our strategic plan was designed around a conceptual framework, which explored the existing status quo and our expectations of the future; this was done with the ultimate focus of establishing strategic and financial objectives. Nevertheless, our overall strategic direction is broadly shaped by the vision, mission and values (page xx) of the Institute. Eight strategic roles have been established as part of our strategic focus. These roles are fulfilled by individual committees with specific committee members assigned to undertake and fulfil objectives. 8 Strategic Roles 1. Empowered authority and national role in HR 2. Setting up People Management Standards/Certification/ Accreditation 3. HR Profession as a leading strategic partner for organisational excellence 4. Develop globally competent HR professionals 5. National HR Data Hub with research and development capabilities 6. People Management solutions provider 7. Globally recognized Member Centric Organization 8. Build internal capabilities and the right culture to fulfil CIPM Objectives The following underscores the strategic trajectory of the Institute, based on strategic roles. 1. Empowered authority and national role in HR Under the act of incorporation, CIPM has been vested with the authority and a role in developing the profession of HRM in Sri Lanka. Areas of focus/Objectives: — Develop National HR Standards and implementation in the Country — Conduct an Industry Survey to ascertain desired standards from HR/Business/Policy Makers — Submissions to the Ministry of Labour for Legislation to be passed. — Submissions to the Minister of Labour in order to make required Acts and legislations. — Meet the Minister of Labour and educate them on what CIPM can offer. — Organise a national forum with Govt. ministerial Secretaries / key officials. — Organise periodical forums, seminars. — Organise a session for new entrepreneurs/start-up FDIs annually in consultation with the Ministry of Industries and Chairman BOI as an annual event. — Organise a session for new entrepreneurs/start-up FDIs annually in consultation with the Ministry of Industries and Chairman BOI as an annual event. — Organize Career Guidance Programmes for other provinces — To Implement Career guidance seminars/ workshops (Six per year) — Initiate a programme to develop 1000 school teachers as career guidance resource persons.

71 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 2. Setting up people management standards/certification/ accreditation We are the country’s main professional body to accredit and award professional HRM qualifications. Our qualifications have become the accepted professional benchmark for HR professionals and trainers in various sectors of the country. Moreover, standards set by the Institute, identify and promote core HR practices that are effective. Developing nationally-accepted standards will enable organisations to use benchmarks in improving HR practices and people management. Standards and accreditations in people management will lead to creating competent HR professionals while providing organisations with the right personnel and HRM standards for success. Areas of focus/Objectives: — Develop a competency standards framework aligned to CPD — To finalize the framework and SOP to accredit the HR Educational institutions. — Lobby with the relevant state bodies to enable CIPM to exercise the authority given by the Act of Parliament and complete the framework and SOPs to accredit HR Bodies — Seek Attorney General’s intervention to enforce provisions in the parliamentary act. — Obtain NARIC accreditation 3. HR Profession as a leading strategic partner for organizational excellence CIPM works to bridge the void between the work fulfilled by HR teams and C-Suite missions. We strive to promote the role of HR to support businesses while providing effective consultations and aligning the HR function with strategic direction of organisations. Areas of focus/Objectives: — Conduct National HR Awards once in two years for corporates and public sector organizations as per the National HR Standards, in collaboration with foreign/local partners. — Lobby with management services department and public administration to include CIPM qualifications in the Government scheme of recruitments. — Conduct remuneration surveys together with foreign consultancy services — Design CIPM’s HR Audit programme / framework — Obtain authority from the accreditation board of Sri Lanka to be the licensed HR certification body — Develop an action plan to groom potential HR professionals to serve at C Suite level.

72 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 4. Develop globally competent HR professionals We understand the need for HR professionals who seek individual global competencies. Therefore, we have made efforts to develop professionals with global skills and competencies while collaborating with educators and policy makers. Areas of focus/Objectives: — Undertake a review of the current assessment structure (Learning Outcome) — Design an Examiner Competency Framework (ECF) — Ensure all examiners complete ECF programme — Undertake CQHRM Syllabus Review — Design Study Materials to global /CIPD Standards — Standard Study Text for every level of CQHRM Programme — Train all lecturers on ECF & reinforce lecture allocation process — Ensure all classrooms are equipped to conduct Hybrid lectures — Strengthen the Internship Programme — Conduct a Survey among the HR Heads/ CEOs to identify the specific HR needs of the organizations — Develop Competencies and Skills Manual — Offer CIPM Memberships to International Students 5.National HR Data Hub with research and development capabilities We are committed to developing the skills of researchers and enhance access to research information to support effective and regular policy-making. We manage a research-centred unit with knowledge, infrastructure, digital resources and the right infrastructure to conduct research and deliver findings to strategically benefit those making strategic decisions and also the business fraternity. Areas of focus/Objectives: — Strengthening the CIPM Research Centre-aligned to global standards — Conduct at least 03 research each year on National issues in the following areas — Publish HR research journals, articles and books periodically — Publish 10 articles yearly on HRM on the best. — HR practices and trends, in print / Digital media 6.People management solutions provider With businesses opting to outsource HR functions, we have understood the need to provide HR related services to organisations. The Institute provides HR solutions to organisations, surrounding activities such as compensation, recruitment, payroll, rewards and recognition. Areas of focus/Objectives: — Collaborate with a minimum of 2 foreign partners — Collaboration with Non-HR professional bodies (Initiate to sign 2 MOUs to start HR programs for non-HR professionals) — Set up an HR Outsourcing unit under the PMS division to provide outsourcing services — Establish a Leadership Academy — Initiate action to invite CIPM members/HR Professionals to submit articles for consideration STRATEGIC PLAN AND RESOURCE ALLOCATION

73 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 7. Globally-Recognized Member Centric Organization We are a member-centric organisation, which offers knowledge, experiences and services for members’ professional development and as recognition for the years of hard work and academic achievements in HRM. We provide a host of services to members, including career support and knowledge that enables them to maintain professional development and remain connected. Areas of focus/Objectives: — Gain adequate recognition for CIPM membership; objective to approach SHRM (Bangladesh) & MAHRP (Malaysia) for employment opportunities and Lobby with AHRI (Australia) for CIPM members to obtain membership — Lobby with International Partners to introduce short term programmes and introduce at a concessionary rates for our members — A member grievance procedure and dispute resolution procedure — Approach Head of HRs who satisfy the entry criteria of companies with 2 Billion PAT — Obtain reciprocal membership from CIPD 8.Build internal capabilities and the right culture to fulfil CIPM Objectives Internal capabilities involve our organisational capabilities and the competencies of our team. In developing team skills and abilities, we invest in staffing, training, remuneration and performance rewards to foster a culture where mutual expectations are met. Building internal capabilities and the right culture entails fostering a positive mindset, brand loyalty, accountability, learning and leadership, and collaboration. Importantly, it centres on a culture of shared beliefs and values that paves the path for mutual value creation for the Institute and the team members. Areas of focus/Objectives: — Organizational Structure to facilitate the new strategic plan — Develop second level management team — Enhance staff motivation — Opportunity for advancement — Formulate a comprehensive training plan and implement it in focusing following areas as Competency based skills communication, Soft skills — Work life balance — Prepare a competency framework for each job position in CIPM in line with the organizational competency model — Identify the competency gaps of staff members and recommend required individual training for development

74 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 SUSTAINABLE DEVELOPMENT GOALS The Chartered Institute of Personnel Management (CIPM) is proud to present a review, highlighting the significant strides made towards the following SDGs during the period under review. CIPM Sri Lanka recognizes the importance of promoting good health and well-being as outlined in SDG 3. We believe that ensuring access to quality healthcare and promoting well-being among our community members is essential for their overall personal and professional development. In line with this commitment, CIPM Sri Lanka introduced a medical centre and consultation service to cater to the health needs of our Staff. CIPM Sri Lanka established a dedicated medical centre within the premises of the HR House to provide convenient and accessible healthcare services to our staff. The medical centre is staffed with qualified healthcare professionals who offer a range of services, including routine check-ups, medical consultations, and preventive care. The services aim to promote good health, early detection of illnesses, and the adoption of healthy lifestyle practices. In addition to primary healthcare services, our medical centre provides health consultations and counselling sessions. These sessions allow individuals to discuss their health concerns, receive personalized advice, and gain insights into managing their overall well-being. The consultations cover various aspects, including stress management, healthy habits, nutrition, and mental health support. CIPM has more consideration on Quality Education and has aligned its strategies and operations to achieve goal-based targets. CIPM contributes to enhancing affordable technical, vocational and higher education, universal literacy and numeracy for the field of HR, and increasing the supply of qualified lecturers in developing countries. CIPM Business School organised Training Programmes for Lecturers once in six months and it is monitored by the Quality Assurance & Compliance division. SDG 4 aims to provide children and young people with quality and easy access to education, and CIPM implemented more infrastructure and digital facilities to provide safe, inclusive, and effective learning environments. Additionally, CIPM launched its online learning opportunities for remote and isolated communities and developed Distance Learning Management System.  CIPM contributed to formulating National HR Standards in collaboration with the Sri Lanka Standards Institution. It benchmarked existing, ISO, British and American standards to formulate country specific National HRM Standards. It is unifying and streamlining practices of HR in line with the globally accepted best practices and standards, which will benefit not only the profession but also the corporate world. CIPM facilitates Internship programs that give students earlier access to the corporate environment for CIPM students in collaboration with corporate organisations.

75 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 In respect of Gender Equality, CIPM firmly believes in promoting gender equality and empowering women in the workplace and has implemented various initiatives and policies to further this important agenda. Recruitment Policies: CIPM has implemented robust recruitment policies that promote gender equality and ensure equal opportunities for all individuals. By embracing diversity and actively seeking to reduce gender biases in the hiring process, CIPM aims to create an inclusive environment that encourages women to pursue careers in human resource management. CIPM actively organises events such as celebrations of International Women’s Day, recognizing the achievements and contributions of women in the workplace. By organising engaging activities and programs, CIPM highlights the importance of gender equality and fosters an environment of appreciation and support. Recognizing the significance of professional development, CIPM recommends training programs that focus on gender equality and the empowerment of women. These initiatives aim to bridge the skills gap and provide women with the necessary tools and resources to excel in their careers. By investing in the growth and development of women professionals, CIPM is actively contributing to the advancement of gender equality. CIPM is committed to gender diversity at all levels of the organisation. The institute actively encourages the appointment of women in senior management positions, recognising their unique perspectives and valuable contributions. Through this proactive approach, CIPM sets an example for other organisations, promoting gender-balanced leadership and fostering an inclusive corporate culture. CIPM recognizes the importance of female representation at the board level. The institute actively promotes and supports the participation of women in decision-making processes. By advocating for women’s inclusion on boards, CIPM aims to create an environment where diverse perspectives are valued, and strategic decisions reflect a balanced and inclusive approach. CIPM remains committed to these efforts and will continue to strive towards gender equality, both within its own organisation and by influencing the broader human resource management community. By championing gender equality, CIPM aims to create a workplace environment that fosters equal opportunities, empowerment, and success for all individuals. In line with our commitment to Affordable and Clean Energy, CIPM Sri Lanka organised a competition to promote awareness and educate students, members, and staff about the importance of affordable and clean energy. The competition aimed to inspire innovative ideas and foster a culture of sustainable energy practices within our community. The primary objective of the competition was to encourage participants to explore solutions and strategies for promoting affordable and clean energy sources. By engaging students, members, and staff, we sought to raise awareness, inspire creative thinking, and ignite a passion for sustainable energy practices among future HR professionals and leaders. The competition invited participants to submit proposals or projects that focused on one or more aspects of affordable and clean energy, such as renewable energy sources, energy-efficient practices, or initiatives to improve energy access in underserved communities. Participants were encouraged to consider the local context and propose innovative ideas that could be implemented within our organisation or shared with external stakeholders.

76 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 CIPM Sri Lanka remains committed to promoting Decent Work and Economic Growth. In line with this objective, we have undertaken various initiatives to provide career guidance, and internship programs, and actively participate in policy discussions to enhance employment opportunities and contribute to the overall economic growth of the country. Throughout the year, CIPM Sri Lanka organised a series of career guidance programs aimed at assisting students, members, and the wider community in making informed decisions about their careers. These programs provided valuable insights into various industries, job roles, and the skills required to succeed in the current job market. Participants were exposed to industry experts and HR professionals who shared their experiences and provided guidance on career development and job search strategies. Recognising the importance of practical experience in career development, CIPM Sri Lanka facilitated internship programs for CIPM Students. We established partnerships with leading organisations to provide internship opportunities for students, enabling them to gain hands-on experience in their respective fields of study. Additionally, we facilitated Board Room exposure, where students were exposed to real-world HR practices and organisational dynamics. Sri Lanka actively participated in the Consultative Labour Reforms Seminar organised by the Ministry of Labour. Our representatives made a comprehensive presentation, highlighting the key issues and proposing inputs to improve labour reforms. We emphasized the importance of fair labour practices, worker rights, and the need for policies that promote decent work conditions, job security, and a supportive working environment. Our inputs were well-received, and we contributed to the ongoing dialogue aimed at enhancing labour regulations and creating an environment conducive to decent work. SDG 09 entails building resilient infrastructure and fostering innovation. It draws on specific targets, which include enhancing scientific research, increasing access to information and building inclusive infrastructure. Recognising the importance of these targets, CIPM engages in various research projects, including national research in exploring the underlying challenges and context based on specific people management issues that impact the national workforce. We take active participation in collaborative research, which in the year under review entailed the completion of two national level research projects. These projects explored empirical evidence through primary research to identify underlying contexts and possibly sustainable solutions. Research on the “Attraction and Retention of Youth in Paddy Farming: Strategic Perspective and Policy Guidelines for Sri Lanka” was undertaken in collaboration with the Department of Agrarian Development to address challenges surrounding youth involvement in paddy farming. The second research involves “Female Migrant Domestic Workers: Challenges and Prospects in Sri Lankan Perspective”, undertaken in collaboration with the National Committee on Women (NCW) Sri Lanka. Both projects were facilitated by inperson research teams, with CIPM’s Committee on ‘National HR Data Hub with Research and Development Capabilities’ taking the lead in the analysis and research compilation. To infuse fresh and innovative thinking in the HRM profession, CIPM also expedites the annual international research symposium which involves the publication of research papers and case studies selected through a double-blind peer review and a review panel with national and international university members. The symposium is Sri Lanka’s foremost scholarly program for the HR fraternity and advancing scientific research to develop the field of people management. UN SUSTAINABLE DEVELOPMENT GOALS

77 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Furthermore, to increase access to such research and material on innovations in the HR field, CIPM publishes a bi-annual peer-reviewed open access journal, ‘Journal of HRM Perspectives’ for the betterment of the fraternity and learners across Sri Lanka and the world over. Additionally, the Institute also maintains an e-repository of research publications including national survey reports, research symposium proceedings and case studies from industrial organisations, as well as the Journal of HRM Perspectives. All these research sources can be accessed free of charge. Increasing accessibility to students, members and the fraternity or anyone with interests, CIPM maintains the most comprehensive and sought after library facilities in the country. Moreover, the Institute also maintains an e-book collection with access to an online repository of HRM and business books, apart from journals and information pertaining to the two disciplines. In providing continued access to learning materials and resources, the institute maintains a learning management system (LMS). The LMS became a vital resource and access point to students and lecturers during the pandemic’s mobility restrictions and during transportation limitations amidst the economic crisis of 2022. This ensured undisrupted learning, ensuring that gaps in knowledge and skills are avoided. Supporting resilient infrastructure, CIPM has ensured that our facilities house the best amenities and resources to provide a sound and comprehensive learning experience to students. We maintain our learning centres regularly to ensure comfortable learning spaces and access to educational resources. This involves responsible consumption, and in contributing to this agenda, we continued to reduce our consumption of plastic by drastically cutting the use of plastic water bottles. Thereby, we have eliminated single use plastic water bottles, switching to refilled glass bottles in the year under review. Moreover, in reducing the usage of paper, we have transitioned to e-books, paper and digital learning resources, cutting down our dependence on paper, drastically. The initiative complements the focus ‘Life on Land’ in addition to being an example of how horticulture and environmental sustenance can be pursued even within the smallest of spaces. With the rapid spread of urbanization, such an initiative becomes timely. The initiative focuses on the ethos of ‘Planting a tree today, to help us breathe tomorrow’. From an organisational perspective, CIPM makes several contributions to Goal 17, ‘Partnership for the Goals’. Collaboration on research projects and publishing findings have become a focus of our main agenda. Through research and empirical evidence, CIPM strives to explore challenging contexts and make viable contributions to help resolve challenges in people management. In this regard, we have formed partnerships with several state institutions to collaborate on national-level research projects. In developing local workforce capacities, CIPM educates school leavers and develops professionals on HRM practices while helping to shape their careers. Importantly, we strive to build competent HR professionals who can confidently face real-life HR challenges in organisations with practical solutions. We partner with similar institutions and organisations to develop the competencies of a wide base of students. In the year under review, we signed several MOUs for partnerships with various educational institutions to offer their students HR-related education, training and skill development. Moreover, by providing professional HR solutions to clients, we actively work with the fraternity to build Individuals’ competencies and improve organisational success through strong HR solutions. Moreover, such partnerships and collaborations are interconnected with providing quality education to students of CIPM and partner institutions.

78 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Financial Capital ..................................................................................................... … Manufactured Capital.............................................................................................. … Human Capital........................................................................................................ … Intellectual Capital .................................................................................................. … Social & Relationship Capital.................................................................................. … Natural Capital........................................................................................................ … MANAGEMENT DISCUSSION AND ANALYSIS

79 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 BEAVERS ARE RODENTS THAT HAVE ADAPTED TO A MOSTLY AQUATIC LIFE IN THE WATER. THEIR LARGE FRONT TEETH NEVER STOP GROWING THROUGHOUT THEIR LIVES, SO THEY MUST CONSTANTLY USE THEM TO CHEW ON WOOD. THEY CAN TAKE DOWN AN ENTIRE TREE IN ABOUT 15-20 MINUTES AND DRAG IT INTO THE WATER WHERE THEY BUILD DAMS. THESE DAMS CAN DIVERT WATER FLOWS OF RIVERS AND STREAM TOTALLY CHANGING THE ECOSYSTEMS. A BEAVER’S THICK COAT KEEPS IT WARM WHILE SPENDING SO MUCH TIME IN THE WATER. BEAVERS ARE HERBIVORES THAT HAVE ADAPTED TO NOT ONLY EATING LEAVES AND PLANTS BUT ALSO WOOD, TREE BARK AND ROOTS.

80 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 FINANCIAL CAPITAL Financial prudence and sustained stability At CIPM, the management of our financial capital is centred on the values of prudence, discipline and transparency. At the same time, we have taken far-sighted approaches to ensure that the Institute remains financially independent. This becomes essential to strong operational sustenance and strategic growth, especially as a not-for-profit Institute with modest financial interests. We believe that our ability to be financially viable and stable will ensure our long-term existence and help nurture stakeholder interests. How we maintain a prudent mix of financial capital The Institute depends mainly on revenue from our varyinglytenured academic programs. These include the pathway program of the coveted Chartered Qualification in HRM, and various HRM programs based on specialised topics. The Institute also secures gains from interest income through our fixed-income instruments alongside several other sources, which include membership fees and income from hall reservations. Our financial year, which extends from April 1, 2022, to March 31, 2023, weathered the impacts of the economic crisis. The challenges of external volatilities continued to influence our plans and activities while having varying degrees of impact on our stakeholders, especially Students. Yet, amidst the uncertainties and through disciplined financial management, we ensured that profitability reached the best possible extent. Surplus of the year 2022/23 The Chartered Institute of Personnel Management achieved a Gross Surplus of Rs. 358 Mn for the financial year, which ended on 31st March 2023. Surplus before tax amounted to Rs. 92 Mn, declining from Rs. 124 Mn achieved in the previous financial year. The surplus after tax amounted to Rs. 70 Mn, declining from Rs. 107 Mn reported in the previous financial year. 0 50 100 150 200 250 300 350 400 2018/19 2019/20 2020/21 2021/22 2022/23 Surplus (past five years' performance) Gross surplus Surplus before tax Surplus after tax GROSS SURPLUS Rs. 358 Mn REVENUE Rs. 490 Mn TOTAL ASSETS Rs. 1,108 Mn Focus for FY 2022/23 Across the year, maintained prudent financial planning, stringent cost controls and every conceivable approach in proper financial management.

81 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Gross surplus ratio improved to 73% in the year under review while net surplus ratio declined to 14% 0 10% 20% 30% 40% 50% 60% 70% 80% 2018/19 2019/20 2020/21 2021/22 2022/23 Profitability Margin Gross surplus ratio Net surplus ratio The surplus before taxation became impacted by higher operating costs, inclusive of admin, promotional and finance expenses. The comparatively higher ‘other operating income’ fared well in offsetting the higher ‘committee expenditure’ in the year under review. Nevertheless, lower revenue and higher expenditure had a combined effect in the reduction of surplus before tax to Rs. 92 Mn in the financial year under review. Income tax expense had an impact on surplus after tax, as taxation increased to Rs. 22 Mn in the year under review. Revenue In the financial year under review, we witnessed an 8.6% drop in revenue to Rs. 490 Mn from Rs. 536 Mn reported in the previous financial year. The overall reduction reflects the decreased revenue from our main study programs. 0 100 200 300 400 500 600 2018/19 2019/20 2020/21 2021/22 2022/23 Revenue - Study programs Rs. (Mn) Gross surplus Surplus before tax Surplus after tax Program 2022/23 2021/22 2020/21 FCHRM 19,047,948 12,943,000 12,674,695 ACHRM 126,022,660 141,913,765 98,244,307 CQHRM 308,228,193 332,465,264 270,846,394 DTHRD 6,151,834 8,252,084 7,963,046 MSc 12,150,667 20,316,031 19,580,893 BSc 603,750 640,000 2,561,961 DIREL 1,650,417 2,659,000 - DOSH 5,291,083 2,235,250 - ECHRA 4,940,200 5,516,000 4,313,222 ECEL 6,314,667 8,812,880 6,800,000 TOTAL 490,401,419 535,753,274 422,984,518 From the above, 63% of revenue derives from the aggregated total of our Chartered Qualification in HRM programs. The source of 26% of study program earnings is through ACHRM. As a financial unburdening and a service to our Students, we did not increase the program fees during the year under review. By absorbing the reduction in program-based revenue, we passed on the benefit to students, at a time when the cost of living, including transportation and cost of goods was afflicting the economic conditions of the country’s ordinary citizens. Other income shows a notable improvement in the financial year being reviewed. Total value of other income stood at Rs. 61 Mn which is a 239% increase from Rs. 18 Mn earned in the previous fiscal year. Other income is largely inclusive of interest income, which accumulated a total of Rs. 51 Mn in the year under review. The higher interest rate climate boded well on fixed-income investments as it resulted in a 325% increase in our investment income. Revenue from programs Other income 11% 89% Income Structure

82 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Income from hall hires saw a 335% increase in the year, with an increased number of workshops and programs organised by external parties. This was followed by a 3.2% increase in membership fees and a notable growth in sundry income. Other sources of income also showed positive improvements in the financial year OTHER INCOME 2022/23 2021/22 2020/21 Interest income 51,274,845 12,499,810 10,717,210 Sundry income 1,055,267 184,160 827,148 Dividend income 4,604 4,297 1,562 Membership fees 4,224,100 4,092,165 2,407,870 Net sale of CIPM branded items 43,521 33,437 - Profit on asset disposal 103,543 9,083 - Hall hire income 4,749,653 1,091,813 418,491 Total 61,455,533 17,914,765 14,372,281 0 10 20 30 40 50 60 Interest Income Rs. (Mn) 2022/23 2021/22 Interest income 325%increase Direct cost and operational expenditure During the year under review, direct costs amounted to Rs. 132 Mn, declining from the previous year’s cost of Rs. 164 Mn. Amidst hyperinflation and the daily concerns over rising expenditures, the Institute recorded an operational expenditure of Rs. 291 Mn, increase of 19% from the previous year’s expenditure. Administration expenses Promotional expenses Finance expenses 1% 2% 97% Operational expenditure The composition of operational expenses includes Rs. 284 Mn in administration expenses, which accounts for 97% of total expenditure. Promotional expenses and finance expenses forms the remainder of the cost structure, with promotional expenses recording a slight increase over the previous year to Rs. 2.7 Mn. Finance expenses recorded a decline to Rs. 5 Mn from Rs. 5.9 Mn incurred in 2021/22; this was a commendable decline against high interest rates on bank borrowings, as the institute was able to settle the existing loan in full during the year. Key elements of expense Salaries and wages formed the highest portion of administrative expenses, which represents 27% of the total expenditure. This is followed by depreciation and amortisation which represents 16% of total expenditure, followed by transport and mobile allowance, which represent 8% of the aggregate. FINANCIAL CAPITAL

83 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 0 100 200 300 400 500 600 700 2018/19 2019/20 2020/21 2021/22 2022/23 Direct cost and operational expenditure Rs. (Mn) Direct cost Operational expenditure Revenue Despite the increase in operational expenditure, revenue surpassed the aggregated amounts of direct cost and operational expenditure – marking a satisfactory financial performance amidst a volatile macroeconomic climate. In the year under review, we expedited several projects to improve facilities and to improve property value of our Colombo 05 Head Office (HR House). The said projects were expedited with minimum possible investments and expenditures. Expenditures for these developments amounted to Rs 15Mn in the year under review. The said projects covered: — Development of premises — Maintenance — Improving safety — Service level agreements — Implementation of renewable energy project — General activities to improve building conditions and facilities. For a detailed breakdown of projects please refer the Report by Standing Committee on Finance and Administration on page xx. Well-grounded financial position Despite the macroeconomic stabilities, the Institute’s financial position remained stable and strong in the year being reviewed. The balance sheet reflects the efficacy of well-planned and well-implemented financial management measures by the finance and accounting department with oversight from the subcommittee on finance and administration. Total assets improved during the year under review, to Rs. 1.1 Bn with an increase in non-current and only a marginal increase in current assets. Financial assets (investments) amounted to Rs. 340 Mn in the year under review, which led to the increase in non-current assets. 0 200 400 600 800 1000 1200 2018/19 2019/20 2020/21 2021/22 2022/23 Assets and Liabilities Rs. (Mn) Against the Rs. 1.1 Bn asset base our liabilities amounted to Rs. 251 Mn and is a contraction from Rs 291 Mn recorded in the previous financial year. We are pleased to state that the Institute has no short-term or long-term interest bearing borrowings, which made our financial position extremely resilient against the substantial increase in interest rates for borrowings. Bank overdrafts is merely a book balance due to reconciling items whereas the actual bank balance is a positive balance. As demonstrated in the above graph, total assets exceeded total liabilities, indicating strong potential to fulfil debt obligations and liquidity requirements. Due to this reason, the liquidity ratio improved to 4.57 in the year under review. Total equity belonging to the Institute amounted to Rs. 857 Mn, formed by Rs. 856 Mn in accumulated reserves and other funds. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 2018/19 2019/20 2020/21 2021/22 2022/23 Liquidity ratio

84 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Interdependencies/ trade-offs Value driving activity Premises and infrastructure development Trade off with financial capital Enhanced property and Improves physical work environment Property improvements results in long-term increase in property value Increase in salaries and wages Trade off with financial capital Cost of living benefits and pay hikes improve employee morale and economic growth A necessity for employee growth expectations Investment income from fixed income instruments Increases CIPM’s financial stregnths Returned the benefits to students through Stringent cost controls Limited the increase in reduced program fees costs Aspirations With the economic crisis, our heightened approaches to cost controls proved to be effective. With this in mind, we will continue to make calculated decisions on investments, while keeping in mind our obligation to our stakeholders. From a top line growth perspective, we will continue to pursue activities that maximize revenue through study programs and professional services. Our focus will remain in ensuring the Institute’s financial independence, integrity and stability for strategic growth and operational resilience. — Diversify Revenue Streams — Maintaining fixed-income investments — Implementing rigorous cost management practices is essential to maintain financial independence. — Transparency and Accountability: Ensuring transparency in financial operations and reporting enhances the Institute’s integrity and trustworthiness among stakeholders. FINANCIAL CAPITAL

85 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 INTELLECTUAL CAPITAL Focus for FY 2022/23 — Growth in faculty members — New research publications — Research symposium — Research collaborations — Successful completion of fraternity events Harnessing the power of knowledge The individual and collective intellectual resources and capacities at CIPM make us a distinctly capable and advanced professional educational service provider. The combination of our intellectual assets is our biggest competitive strength and enables us to deliver an inimitable level of professional education and training in HRM. Our intellectual prowess and offering in HRM programs and accreditations can be demonstrated as our topmost intellectual asset. We pair our expert knowledge of the profession with our internal capabilities, which include the faculty, procedures and policies, digital technology, research capabilities, CIPM culture and our brand name. How we manage our intellectual capital At CIPM, we invest our intellectual assets to impart knowledge and to create a highly competent fraternity of HRM professionals, members and students. We invest in the strengths of our faculty, governing council, committee members, management and other staff to help enhance the knowledge and capabilities of these stakeholders. Moreover, dedicated standing committees ensure that our faculty, and employees receive continuous training on general and targeted subject matters. (For a full list of training programs and details please refer to the human capital report) Continuous research by our Research Department also adds value to our intellectual capital by harnessing researchbased new insights and fact-backed conclusions on HRM and other topical arenas. Faculty and resource personnel At CIPM, our experienced and highly qualified faculty leads our learners and trainees towards an advanced understanding of HR practices and knowledge. Our team of qualified faculty members and trainers comprise 227 professionals. The team’s professionals holds a combined portfolio of commendable education qualifications, including PhDs, Masters’ Degrees, specialised qualifications and qualifications in CIPM NDHRM, PQHRM and CQHRM. Our faculty members are also multi-disciplined with academic knowledge on topics outside of HRM.

86 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 0 50 100 150 200 250 2019* 2020* 2021* 2022* 2023* Number of Lecturer The base of faculty members increased in the year under review by 8% compared to the total member base in 2021/22. Improving faculty members The Standing Committee on Business School nurtures relationships with new resource personnel, reviews faculty performance and takes action to improve performance. During the year, 2 programs took place to improve their capacities, details of which are provided in the Report of the Standing Committee on Business School. These are in addition to the Lecturer Competency Framework (LCF) that continuously trains and develops resource persons/faculty members.  Competency frameworks The Business School Committee and the Standing Committee on Developing Globally Competent HR Professionals oversee the Lecturer Competency Framework and Examiner Competency Framework, respectively. These frameworks are intellectual assets of the Institute and have been established to ensure competency-development of lecturers and examiners to enhance learning and quality of education received by students; thereby making exceptionally-competent HR graduates and professionals. Please refer the respective committee reports for detailed presentation of frameworks. Internationally - recognised Chartered Qualification Our value proposition as a professional educational service provider is one of our competitive strengths, which has helped us attract and sustain local & international reputation and recognition. A substantial part of our value proposition entails the programs we offer, especially the best-accredited Chartered Qualification in Human Resource Management (CQHRM). The program has the objective of developing globally-skilled and knowledgeable HRM professionals. Highest Qualification Masters Other Specialized Qualifications PhD Holders CIPM NDHRM/ PQHRM/CQHRM 43% 29% 5% 23% Faculty Members - Highest Qualification HRM Law IT General Mgmt Finance Marketing Statistics 4% 4% 66% 2% 3% 4% 17% Subject Expertise INTELLECTUAL CAPITAL

87 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 CQHRM has been accredited by the Chartered Institute of Personnel and Development (CIPD) UK. The CQHRM curriculum is based on a combination of ten competencies, covering Human Resource Expertise, Professional Credibility, Business Acumen, Entrepreneurial Expertise, Strategic Leadership and Navigation, Sustainability Focus, Capability Building and Enhancement, Performance Driven, Digital Expertise and Change Management. Each subject within the curriculum connects with relevant competency and competency standards as well as core behaviours for a well-rounded learning outcome. The qualification aims to instil in professionals education and application of HRM knowledge in overcoming professional challenges. CIPM also operates as an accredited centre for CIPD in Sri Lanka Assessment process (CQHRM) CQHRM, which is formed of four levels, involves various assessment methods. Each subject within all four levels correlates with a core competency to ensure students gain the desired learning outcomes. Prior to being assessed, subject contents strive to instil these learning outcomes by helping students understand and absorb knowledge during class sessions. Assessments Advanced Certificate in HRM (ACHRM) Diploma Professional HRM (DPHRM) Chartered Intermediate in HRM (CIHRM) Chartered Qualification in HRM (CQHRM) Number Open book 3 hours QP 0 0 2 1 3 Closed book 03 hours QP 1 0 3 0 4 Closed book 02 hours QP 0 3 0 1 4 Individual assignment 0 4 1 1 6 Case study 1 5 3 3 12 Group presentations 0 2 1 2 5 Individual presentation 0 0 2 2 4 Project report 1 0 0 0 1 Research report 0 0 0 1 1 Viva voce 0 0 0 1 1 Total 3 14 12 12 41 Specialised study programs The Institute’s Business School provides access to specialised educational programs, designed to enhance the knowledge of learners across various specialisations in HRM. In total, we offer six unique programs with various durations. Intellectual properties of CIPM, these programs are ideally designed for practicing HR professionals or individuals with interest. For detailed understanding please refer the Standing Committee on Develop Globally Competent HR Professional & Business School & Marketing report. Chartered Membership pathway Upon completion of CQHRM, students become eligible for Membership at CIPM. As the years of work experience progress, affiliate members can apply for the next membership within the pathway, leading up to Chartered fellow – Chartered FCIPM. Affiliate member Associate member Chartered member Chartered fellow member Eligibility criteria — 2 years in HRM — One Key Result Area (KRA) in HRM — 3 years in HRM — (Stepping stone to reaching Chartered Member Status — 3 years as an Associate Member — 5 years as a Chartered Member — A minimum of five Key Result Areas — CPD assessment — 5 years experience in HRM — 10 years experience in HRM, including five years in Senior HR Management position in a recognised organisation

88 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 The Standing Committee on Globally Recognized Member Centric Organization holds various programs to mentor and improve members. Programs of 2022/23 are detailed under Social and Relationship capital report, ‘Elevating stakeholder value creation’. CPD (Continuous Professional Development) The importance of Continuous Professional Development is underscored by the need for professionals with continuously improvements in knowledge and professional skills. Although, it is the individual’s responsibility to maintain a documented record of CPD, CIPM takes great care in encouraging our members in expanding and updating their intellectual capacities and experiences. Continues Professional Development (CPD) is vital to elevating memberships as they take into consideration the overall intellectual development of members. In this regard, the number of CPD points earned by a member is the key determinant to an upgraded member status. Each membership level has specific guidelines requiring members to complete a set of points over a minimum number of years. Members are required to improve their knowledge, skills experiences, formally and informally, which adds to a progressive record of documented professional development undertakings. Research capabilities As an academic institution and a professional body in Human Resource Management, CIPM is extensively dedicated to developing the profession for current and future fraternities. CIPM is greatly invested in nurturing and grooming academics and corporates as contributors to enhancing the knowledge and practical applicability of HRM disciplines. CIPM has engaged academia, students, HR professionals and corporates in various research collaborations – to develop students and professionals towards research-oriented, critical thinking. Research symposium The International Research Symposium enables HR professionals, students, researchers and any interested individual to submit scholarly papers. The objective of the symposium is to provide formal recognition of research findings for the broader aim of creating a repository that could provide reference to HR practitioners and researchers on a local and international level. The symposium was organised for the 7th occasion, conducted by the Standing Committee on National HR Data Hub with Research and Development Capabilities in May 2023. The event was held under the title of ‘Transforming the Future of Work’ and was held under the aegis of Mr. Ken Vijayakumar, President – CIPM and Chairperson of the Symposium, Professor Prasadini Gamage. Research collaborations In the year under review, we partnered with two institutions to conduct national-level research projects on two separate topics, with data collection through survey questionnaires, from target populations. — We collaborated with the National Committee on Women (NCW) Sri Lanka to conduct research under the title - ‘Female Migrant Domestic Workers: Challenges and Prospects in Sri Lankan Perspective’. The objective of the research was to identify the social and economic progress of female domestic migrant workers upon repatriation. Moreover, the research quantified the risks posed by work conditions on workers’ physical and mental health. The research team comprised the Chairperson of the Standing Committee on Applied Research and Knowledge Centre, Professor Prasadini Gamage as Principal Researcher; Dr Prabhashini Wijewantha as Team Leader, Dr Dillanjani Weeratunge Mr G.G. Udaya Priyasantha Rathnayake and Mr Tharindu Weerasinghe. — The research report was published along with findings, which will enable the Government to obtain insights and advice in supporting economically impoverished women who depart the country in search of work abroad. The report will also enable authorities to regulate the migration process by increasing oversight of foreign employment agencies to eliminate hardships women face when working overseas. It also addresses eliminating challenges faced by families and children of migrant workers and supporting their economic and social development upon repatriation. It also highlights the need for more government power and involvement of foreign missions in Sri Lankan female migration for domestic work. — We also partner with the Technical and Vocational Education and Training (TVET) to research ‘Attracting Sri Lankan Youth to Technical and Vocational Education: The Way Forward’. The research team from CIPM included Prof. Prasadini Gamage – Principal Researcher, Dr. Dilrukshi Herath as Team Leader, Mr Indika Kaluarachchige and Mr. Athula Hewapathirana.   Published as a research report, it explored the integration of labour market needs for a skilled workforce in the TVET system to establish formal TVET qualifications based on findings. The report reaffirmed that TVET is sought-after locally and internationally and that NVQ qualification holders gain recognition in job opportunities locally to gain jobs across borders.  INTELLECTUAL CAPITAL

89 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Internal policies and procedures Our internal policies and procedures set the rules and guidelines to ensure the best possible standards in advancing our value proposition. As a professional institution, we commit to maintain prudent processes for delivering programs and learning experiences. Our internal policies and procedures help set the tone and define our intellectual assets while adhering to protocols that ensure successful operational conduct of academic work, business endeavours and quality in all operational aspects. Each of CIPM’s divisions has several policies and procedures that guide the work we do. In total, we have 105 policies and procedures across the organisation, with each department following its own set of policies and procedures. Fraternity events and competitions Our flagship events demonstrate our intellectual resources and capabilities in HRM. They are also a form of nurturing relationships with the corporate world and HR fraternity.  As Sri Lanka’s leading authority in HRM, our commitment to advancing the principles and practices of personnel management is reflected through pioneering events. Dedicating time and resources to engage and exchange ideas between the institute and the HR fraternity, we organised several such programs during the operational year 2022/23. National HR Conference Our premier flagship event, the two-day conference held in June 2023, received the participation of nearly 1000 delegates from private and state sector organisations, covering multiple industries and foreign delegates. Based on the theme, ‘Navigating Dire Straits’, the 2023 National HR Conference was graced by Mr Rolf Blaser, Managing Director/ CEO of A. Baur & Co. (Pvt) Ltd as the keynote speaker. The event comprises a main conference with six technical sessions on timely topics. The conference will be held alongside the Great HR Debate and the National HR Exhibition, in addition to awarding the CIPM Lifetime Gold Award. A media briefing preceded the event in April 2023, at the CIPM Members Lounge, with President Mr Ken. Vijayakumar speaking on the conference and its objectives. The conference was a platform where thought leaders and likeminded individuals shared insights and knowledge while networking and engaging in stimulating discussions. The Great HR Debate Held in association with our National HR Conference, the event witnessed many corporate teams from leading local companies facing opposing teams - eyeing the number one position as master debaters on specific HR topics. All competing teams shared insightful information, presenting factual proof to their arguments and speaking articulately on assigned pros and cons. Knowledge centre and publications In advancing human resource management in Sri Lanka, we make HRM learning material and publications accessible to the fraternity, state and private sectors and members and students. Our library at the HR House is considered the largest HR library in the country. It houses a regularly maintained and consistently updated e - repository of physical textbooks and publications of all manners. Apart from HR-related written material, it houses materials and sources on general business management and related disciplines. Our library is pursued by the HR fraternity for its rich collection of material and special management book collection. Moreover, the library grows its e-book collection, providing access to HRM journals, sample reports, directories and a base of academic and business information. The library is accessed by students and members for academic and practical purposes. In addition to the HR House library, we operate three mini-libraries, located at the Kandy, Kurunegala and Galle regional centres. They all serve the vision of being a knowledge centre in HRM with the mission of developing an inclusive collection of material and international information sources that enrich the lives of learners.  Publications We have two flagship publications issued periodically for the reading pleasure of our stakeholders and the HR and business fraternities. Both publications are compiled and developed internally and are accessible digitally through the CIPM web portal. The Journal of HRM Perspectives - Our bi-annual journal publication, the ‘Journal of HRM Perspectives’ was issued twice in 2022. The issues publicised five research projects and were overseen by the Standing Committee on National HR Data Hub with Research and Development Capabilities. The journal’s purpose is to disseminate insights into Human Resources Management Practices with students, members and the broader HR fraternity. People Power - Our quarterly news magazine highlights local and regional HR activities of CIPM. In 2022, we published the magazines on four occasions, one at the end of each quarter, comprehensive of all activities conducted by the Institute, in addition to information on new membership information, intellectual resources and engagement activities. 

90 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Digitalisations at CIPM Distance Learning Management System (DLMS) The DLMS powers students’ learning through a comprehensive digital portal, which continues to undergo improvements regularly. The DLMS provides students and lecturers access to learning sources and study materials. CIPM E-Repository https://www.cipmlk.org/research/e-repository/ is CIPM’s dedicated portal and electronic repository of HR-related research publications. The E-Repository includes national survey reports, publications from the International Research Symposium, case studies from leading industrial organisations and the bi-annual journal of HRM Perspectives. Digital library Our digital library provides access to Pearson journals, books and publications, covering a vast amount of subjects, topics and titles from many countries. Brand capital As a Chartered Institute in HRM in Sri Lanka, CIPM has amassed local and international recognition.  The brand name carries tremendous recognition and acceptance within the local HR fraternity and has become a sought-after Institute for those seeking to enhance their knowledge and capabilities in HRM. Over the years, our team has undertaken many brandbuilding strategies, which have translated into increased recognition. In 2022/23, we partnered with Sri Lankan Cricket Captain Dasun Shanaka as the Brand Ambassador for CIPM – promoting our brand name and value offerings amongst the masses. The partnership will also enable us to work with Mr. Shanaka in developing a resilient culture of leadership and motivating national-level HR leadership within the fraternity and CIPM students. Ethics and code of conduct Our institutional code of conduct reflects our commitment to being ethical, honest and sincere in all dealings. We consider proper conduct to be imperative in modelling the correct behaviour and discipline in our students and members. In upholding fair and transparent operations, we educate our staff at induction programs and all Heads of Departments empower staff to adopt the code of conduct and ethics in all their duties.  Governance and culture Our governing council comprises veterans in HRM with extensive leadership experiences as well as experiences in other business disciplines. Collectively, they hold unparallel insights into Sri Lanka’s personnel development landscape, history and strategic endeavours, as they have empirical experiences in developing personnel and businesses. Moreover, our management team is competent in performing their respective functions and guiding subordinates to work effectively. Our numerous standing committees that oversee designated areas of the Institute’s operations perform a vital role in utilising and processing intellectual capital for knowledgesharing programs, capacity development initiatives and national-level HRM agendas.  In ensuring decentralised roles and responsibilities, these standing committees are overseen by committee members who are experienced in their chosen professions and assigned job roles. Awards of Excellence Over the years, CIPM has gained numerous accolades, which primarily demonstrate good performance in business, leadership and compliance. In 2022/23, we received several awards in these areas. — CIPM won the Bronze Award in the Small and Medium Sized Entities Category at the TAGS Awards, organised by CA Sri Lanka in 2022 – making a streak of consecutive annual report wins. — Demonstrating unequivocal knowledge and leadership capability of our top-most executive leader, CIPM President Mr Ken Vijayakumar was honoured as the ‘Most Outstanding HR Business Leader of 2022’. This demonstrates the Institute’s leadership ability to the HR fraternity of Sri Lanka. — CIPM once again clinched three awards at the National Business Excellence Awards, organised for the year 2022. INTELLECTUAL CAPITAL

91 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Interdependencies/ trade-offs Value driving activities Growing faculty and faculty training — Financial trade-off to improve faculty-member competencies; offset by program revenue — Improves organisational capital — Enriches student learning and development — Increased interactions with the HR fraternity as resource persons — Improved relationships with resource persons Membership development — Investments recovered through membership contributions — Enhances member professional development — New members and improved member-CIPM relations — Continuous development of members Employee training — Financial trade-off that enhances Institute’s staff and combined competencies — Enhances employee capabilities — Grows organisational capital — Improved employee skills builds capabilities that enhance value creation work for stakeholders Research collaborations — Costs shared with partners — Improves employee intellect and research capabilities — Increasing institutional partnerships — Evidence-based solutions to HRM challenges HRM events — Investments recovered through charges/fees — Enhances employee awareness on HRM topics — A Stronger alliance with the HR fraternity, corporates and similar institutes Improved brand capital — Considerable investments recovered in the long run — Brings value to Institute’s intangible assets — Better recall by masses

92 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 NATURAL CAPITAL Accountability for our actions on the environment The institute depends on natural resources for our activities and to facilitate expansions. Although not obtained from direct sources, the resources we consume have been procured by processing non-renewable sources. With climate change accelerating natural resource depletion and unpredictable atmospheric changes, we have acknowledged our responsibility towards minimising our impact on the environment. Although there are no longterm effects on the environment from our activities, we take precautions to reduce our footprint on the environment. How we manage our impact on the environment We understand that there is a considerable time lapse between actions impacting natural resources and the environment’s response towards them. Therefore, we have taken actions to minimise our environmental footprint. We continue to measure our consumption of energy and water to make informed decisions in reducing our consumption. Moreover, we take concentrated efforts to reduce plastic waste and non-biodegradable materials. Our focus is to adopt every possible measure to consciously reduce consumed volumes and reduce our environmental impact. Energy management Waste management Environmental compliance Water management TREES PLANTED REDUCTION IN PRINTED MATERIAL REDUCTION IN PLASTIC USAGE n Focus for FY 2022/23 Across the year, we adopted a series of initiatives to achieve our environmental objectives. — Reduce plastic bottle consumption. — Reduce paper consumption and printing. — Adhere to ISO environmental sustainability guidelines. — Cultivation project

93 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Energy management Our key source of electricity is the national power grid. We focus on energy-saving methods in daily operations including highly energy-efficient VRF conditioning usage, where AC consumption is high. Moreover, we strive to use natural illumination through construction designs that make this possible. Our cafeteria at the HR House is an excellent example of this, where the road-facing structure was built using translucent glass for optimum illumination. We also promote natural ventilation where applicable and we encourage students and employees to use stairways instead of elevators. Importantly, we use LED lights within the building to reduce energy consumption and has introduced energy-efficient AC units for areas where usage is high. During daytime we encourage students and staff to eliminate non-essential lighting. Electricity consumption 2022/23 2021/22 2020/21 Total 231,597 196,859 207,749 Head office 196,381 165,188 172,186 Branches 35,216 31,671 35,563 *consumption in units (kWh) Water management At CIPM, we monitor our water consumption to take proactive measures in reducing water waste and safeguard this valuable resource. Our consumption for the period under review and comparison to the previous year is as follows: Water consumption 2022/23 2021/22 2020/21 Total pipe-borne water 5048 5093 6812 Total bottled water 2500 1920 1100 Pipe-borne water - Head office 4695 4855 6542 Bottled water – Head office 2400 1800 1000 Bottle -borne water - Branches 353 238 270 Pipe-borne water - Branches 100 120 100 In conserving water, we adopt the following proactive measures: — Technical services obtained for preventive maintenance related to our water systems and pipes. Any breaches are rectified no sooner the damage happened. — We are in the process of adopting single-touch taps to help conserve water — Students and staff are encouraged to consume water carefully. Reducing waste Plastic waste Use of plastic water bottles (one-time) use was a serious concern for us. In 2022, we switched from plastic water bottles to glass bottles, which are reused and refilled at the branch premises. This has been implemented at the HR House in Colombo and at all our branches, eliminating the use of 500 single-use bottles, monthly. However, we continue to use mega volume plastic bottles for water dispensers for the use of students, which are reused and refilled by the bottle providers. For meetings and for employees, we provide glass bottles.

94 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 100% Single-use plastic bottle elimination Paper waste At CIPM, paper is one of our highest consumed materials. As a result, we reuse printed material and documents are recycled as high-grade paper. Moreover, we have adopted policies to manage waste including electronic formats that replace printed documents, including: — CIPM magazine People Power, a quarterly news magazine issued in digital format. — A majority of student textbooks in e-format — LMS system student platform acts as a hub for student study material and information resources — An online examination platform for answer sheet submissions and electronic report submissions. — E-mail communications to substantially reduce paper usage in daily communications. — An ERP system that ensures smooth interdepartmental communication between the Business School and the Finance Department. Other waste We separate food waste before handing it over for composting purposes to the municipal council garbage collection or food waste collectors. Electronic waste remains our only hazardous waste element. With recent adoptions of electronic mediums, the use of electronic products has increased. Addressing this concern, we have adopted measures to hand over e-waste for recycling. In managing waste, we have adopted the 3R strategy (Reuse, Reduce, Recycle) in departments and the 3 bin strategy to manage canteen waste. Polythene and paper waste are collected by the Colombo Municipal Council waste collectors. Moreover, wastewater is treated at the Head Office. Urban agriculture project In 2022/23, we conducted the CIPM Urban Agriculture Competition for staff members with the objective of establishing an Urban Agricultural Garden. Employees were tasked with establishing a greenhouse and received three criteria to measure their success: most healthy cultivation, most creative outdoor gardening and most creative indoor gardening. The initiative was implemented under the patronage of the CIPM President with the aim of contributing towards environmental sustainability. The greenhouse will be maintained under the technical guidance of an Agricultural Officer. Environmental compliance and standard Our sustainability journey commenced with the adoption of ISO 14001:2015 Environmental Management Systems in 2020. Since then, we have continued to enhance our environmental performance by managing our responsibilities in a conscious and structured manner. By fulfilling compliance obligations and achieving objectives we have conformed to the ISO standard in the year under review. In monitoring the operational impact on the environment, we conduct internal quality audits each year. NATURAL CAPITAL

95 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Interdependencies/trade-offs Value Driving Activities Reduced paper use and printing Less costs Reduced equipment/ resources Convenience Convenience Less waste Plastic bottle elimination and use of glass bottles Less costs Reduced procurement No waste Electronic publication use No costs Digital development tools Convenience Better access E-waste Urban agriculture Optimised land Increased knowledge Nurturing Water conservation Low cost Increased knowledge Reduced depletion Energy efficiency Reducing cost Reduced equipment use Increased knowledge Reducing carbon release Environmental compliance Related costs Increased knowledge Minimising footprint (Green – positive impact, Red – negative impact and Blue – neutral impact, white – no impact) Aspirations We will continue to pursue similar measures as FY 2022/23 while taking active measures to better manage resource consumption - Solar power project to install panels with an initial cost of Rs. 8.5 Mn to generate 40 kW of power, monthly. This will be done to cover the cost of high electricity and to compensate for the growing energy (electricity) demand. - Based on the increased consumption of electricity, water, and fuel our focus will be on reducing consumption through increased awareness among staff and students. - Energy efficient lighting and air conditioners. - Single touch taps that reduce flow.

96 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 HUMAN CAPITAL Nurturing our most valuable asset Human capital management is at the core of what we represent and deliver as a higher education institute, professional body, and employer. Our expertise in HRM education and professional services gives us a solid backdrop for being an employer that leaves no gaps in how we treat our employees. The same expertise and experience have made us experts at aligning human capital with our objectives. How we nurture our human capital Our approach to human resource management is based on equal opportunity, inclusion, diversity and camaraderie. Our approach to personnel management includes attracting the best talent with the right organisational fit and retaining them through proper remuneration, benefits and recognition while honouring individual perceptions, skills and knowledge. At CIPM, our employee value proposition includes best practices in recognising employee performance, focused on providing employees with the best experience to learn, grow and thrive in a conducive work environment. We provide our employees with equal opportunities for career advancement as a small-medium scale organisation, by expanding our resources to accommodate employee growth We ensure adherence to all labour laws and regulations while benchmarking ourselves against international best practices in people management. Composition CIPM Team In 2022/23, our team grew by 4.3% compared to 2021/22, partially as a result of our new regional centre being established. At CIPM, oversight of all HR-related functions is the responsibility of the Standing Committee on Building up Internal Capabilities and the Right Culture and Remuneration Committee. The Committees comprise senior HR professionals who are members of the institute and a designated Chair. The Committee together with the HR department and Remuneration Committee ensures that employees feel fulfilled and engaged while receiving a rewarding career at CIPM. Focus for FY 2022/23 — Training and development — New employee recognition scheme — New employee onboarding scheme — Higher salary and remuneration

97 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Job categories 2022-23 2021-22 2020-21 Male Female Male Female Male Female CEO 1 0 1 0 1 0 Director 1 1 1 0 1 0 HOD 3 1 3 2 3 2 Manager 4 3 4 4 4 5 Assistant Manager 6 5 7 6 5 7 Senior Executive/ Executive 7 13 5 15 6 13 Officer/ Coordinator 13 14 14 7 13 11 2022-23 2021-22 2020-21 Age Male Female Male Female Male Female Baby Boomer Generation - Age 60-75 2 1 2 1 2 1 Generation X (Baby Bust) - Age 41-59 7 3 7 2 7 6 Millennial/ Generation Y - Age 20-40 26 33 26 31 24 31 2022-23 2021-22 2020-21 Service period at CIPM Male Female Male Female Male Female More than 20 1 0 1 0 1 0 Between 15-20 4 1 3 1 3 1 Between 10-15 4 8 5 6 2 5 Between 5-10 9 7 10 11 12 12 Between 3-5 7 5 5 4 4 2 Less than 3 years 10 16 11 12 11 18 2022-23 2021-22 2020-21 Male Female Male Female Male Female Average period of service at CIPM 6.7 Years 5.2 Years 6.68 Years 6.19 years 6.40 Years 5.34 years

98 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Job Category Wise Department Male Female Business School 10 12 CEO’s Office 1 1 Examination 3 4 PMS 3 2 Finance 3 4 Knowledge Centre - 2 Maintenance 3 - Secretariat 3 4 Front Office - 2 Quality Assurance - 2 Shared Services 1 - IT 3 - HR 1 1 Marketing 1 3 Research - 1 Professional & Academic Affairs 2 - Employees centre-wise HR House 63 Galle 3 Kandy 2 Kurunegala 2 Gampaha 2 HUMAN CAPITAL Turnover and retention While 15 employees left CIPM in 2022/23, the overall turnover rate was 21% in the year under review, which has decreased compared to a 27% turnover recorded in 2021/2022. Retention rate of female staff has improved while retention of male staff has undergone a drop. 2022 2021 2020 Male Female Male Female Male Female Retention Rate 80.55% 78.94% 85.71% 58.82% 96.96% 89.47% Diversity and inclusion Our team is diverse in all aspects, which creates a unique combination of knowledge, skills, and capabilities. Their unique capabilities that come from diverse social backdrops and traits enable us to understand needs and work closely with diverse stakeholders, including students, partners, and corporate clientele. 36% 17% 22% 1% 7% 17% Emlpoyee - Years of Service Less tha 3 years Between 10 - 15 Between 3 - 5 Between 5 - 10 Between 15 - 20 More than 20 14% 4% 82% Generation wise Employees Generation Y (1982 - 2002) - Age 20 - 40 Baby boomer Generation (1943 - 1960) Age 60 -75 Generation X (Baby bust) (1961 - 1981) - Age 41 - 59

99 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 During the year, employees continued to benefit from CIPM’s many provisions, including bonus payments and medical coverage. Employees received bonus payments and increments based on performance reviews conducted annually. The following covers some of the year’s financial benefits. — Travelling and mobile phone incentives — Over time payment for non-executive staff and out-ofpocket allowance for executive staff — An attendance incentive for non-executive staff — Critical illness and life cover of Rs. 500,000/-, provided they are covered by the relevant Insurance policy and meet the provisions of the Insurance policy — Hospitalisation insurance for staff and family members — Distress Loan — 75% Discounts on CIPM Study Programs — Claim annual membership fees not exceeding Rs. 20,000/- at any professional organisation/institute in which they have qualified as members. — CIPM shares the medical costs of employees’ family members by providing OPD Medical cover and hospitalisation benefits in the event of any illness or accident. Other provisions Moreover, on the occasion of being blessed with a newborn, male employees receive three days of paternity leave.  In 2022/23, two male employees obtained paternity leave.  Recruitment We maintain structure and consistency when fulfilling vacant positions. We select suitable candidates based on their ability to satisfy job requirements and based on their qualifications and previous professional exposures. During the year, 20 recruitments took place compared to 17 in the past year. The majority of recruits filled the positions of Officer/Coordinator and majority was under 30 years of age. New recruits also included Trainees and Interns. Promotions and succession During the year, no promotions took place compared to three promotions in 2021/22. Second level of succession plan has been identified and required training plan has also been identified. The position of Director Operations was created and provided required leadership coaching to groom for the next level. To develop the second level a customised management development programme was carried out in fulfilment of future requirements. In terms of age, 81% of CIPM’s employees are between the ages of 20-40, while another 15% belong to the Gen X category of 41-59. In relation to tenure at CIPM, 36% of employees have less than three years of service at CIPM. 22% of staff have a service period of 5-10 years, while another 17% have between 10-15 years of service at CIPM. 7% of team members have remained with the Institute for over 15 years. 47% 53% Gender Balance Male Female Gender balance - We take pride in the team’s gender representation, which continues to improve towards equilibrium. Remuneration In the year under review, staff remuneration amounted to Rs. 139 Mn, which is a 12% increase from Rs .124 Mn from the previous year. The main component of remuneration is salaries and wages, which amounted to Rs. 78 Mn, compared to Rs. 72 Mn in the previous year. Allowances for transport and mobile increased considerably during the year to Rs 21 Mn compared to Rs 12 Mn, the year before. Moreover, a total of Rs. 1.5 Mn was investment on staff training and development, which is 304% higher than the previous year. Moreover, a bonus payment of Rs. 14 Mn was also made in the time under review. Employee Benefits The well-being of employees and their sense of security depends largely on how we take care of them financially. Financial benefits not only provide an impetus to work productively, but the quality of such benefits creates overall satisfaction with work and life.

100 Annual Report 2022/2023 CIPM SRI LANKA DRAFT 02 21.07.2023 Employee training and development At CIPM, we consider employee training and development to be of utmost importance, as it helps build them professionally and personally. By shaping the knowledge, skills and capabilities, we are also aligning them with the short and long-term goals of the Institute. During the year, all employees received training in areas related to Soft skill development, Exceeding Customer Satisfaction etc. Furthermore, in contributing towards employee knowledge enhancement and career growth, we sponsored five staff members to enrol in CIPM courses, with one employee sponsored for a digital marketing program. Moreover, Toastmaster Club membership was also offered to a staff member. 2022/23 2021/22 Average No. of hours dedicated for a training programme 7.17 hrs Number of training programs (total) 18 No. of programmes conducted by Internal Resources 1 No. of programmes conducted by External Resources 18 We utilise several mechanisms to enable employee learning. Across the year, we delivered training and knowledge through seminars, in-house training, diplomas and courses, development programs, workshops, events and LinkedIn training through the LMS for self-paced learning. During 2022/23, we also sponsored our Director-Operations to receive one-to-one Leadership Coaching and four HODs for a Leadership Development program. Program Duration Participants Managing Work-Life balance during a crisis 2.5 All Staff Appreciative Inquiry workshop 7.5 Managerial Level Staff The Smart Professional- Customer Service and Corporate Etiquette 7 10 Lead without Titles – WIM Leadership Series (External 2 1 Appreciative Inquiry workshop 7.5 Assistant Managers & Executives Urban Agriculture training session 2 All Staff Advance Excel Training –Session 01 8 17 Executive Development Programme 3 All Staff Programme on Fire Safety & Emergency Evacuation 3 All Staff National IT conference (External Training) 8 IT Staff Standards for Sustainable Development Goals (SDG) 1 All Staff Ways to Improve Your Presentation Skill 7 Managers & Assistant Managers How to Conduct a Performance Appraisal Discussion 4 Manager &Above Introduction to Quality Control Circles and how to implement it successfully in your workplace 4.5 All Staff Workshop on “Internal auditing for ISO 9001:2015 quality management systems” 16 4 Customer Service 3 All Staff Creating HR Dashboard 8 9 Sales & Passion to Perform 8 All Staff Detailed information on employee training can also be found on the report by the Standing Committee on Building up Internal Capabilities and the Right Culture and Remuneration. The ‘buddy’ system In order to provide a positive onboarding experience for the newly recruited employees a buddy system was introduced. A policy has been drafted and it is in the process of implementation. A well executed onboarding process positions new employees for longer term success within the institute. Assigning every new employee a ‘buddy’ gives employees’ a reliable and enthusiastic single point of contact for any questions they may have. Having a buddy system helps a new employee to feel like part of the team, making a substantial difference in early performance in the institute and long-term retention. Performance management and rewarding Performance management ensures that our workforce have the right environment in which they can grow and thrive. With a structured approach to performance management, our employees receive empowerment to make the most of their knowledge and capabilities. Not only do we champion the achievement of workplace objectives through better performance, but individual professional growth is also endorsed through performance Based rewarding system HUMAN CAPITAL