Corporate Social Responsibility (CSR) reporting has become an increasing trend in the corporate
world. It is a relatively new concept but has become a major research topic in the accounting
profession. In recent years, few notions have so fully captured the corporate imagination as that of
corporate social responsibility (CSR), defined broadly as a company’s status and activities with
respect to its perceived societal or, at least, stakeholder obligations. While CSR is by no means a new
idea, more companies than ever before are backing CSR initiatives such as corporate philanthropy,
cause-related marketing, minority support programs, and socially responsible employment and
manufacturing practicesand they are doing so with real financial and marketing muscle.The
motivations behind why companies make voluntary CSR disclosures are unclear. This paper aims to
analytically explore the relationship between Corporate Social Responsibility and financial
performance among the ten selected banks in Sri Lankan. CSR is measured by using of “Nila Unit”
andfinancial performance is measured using two financial ratios namely; Return on Equity and
Return on Assets. For the measurement of “Nila Unit” it was used 77 Key words with relates to
corporate social Responsibility. This is carried out to see to what extent CSR activities are affected on
each banks financial performance over seven years of time.The results indicates that there is a
significant positive relationship between Corporate Social Responsibility and Financial Performance
