Colombo, 25 August 2026 – Eden Hotel Lanka PLC (CSE: EDEN) today announced the release of its Annual Report for the financial year ended 31st March 2026. The report details a period of resilient operational progress and improved financial results, achieved despite persistent global economic uncertainties and evolving travel patterns.
The premium Sri Lankan hospitality provider demonstrated strategic agility in navigating a complex operating environment, with management effectively capitalising on favourable market conditions and disciplined revenue strategies.
Key Financial Highlights for FY2025/26
The Annual Report showcases a strong financial performance across both the Company and the Group:
- Revenue Growth: The Company recorded revenue of Rs. 1.5 billion, a 16% increase from Rs. 1.3 billion in the previous year. At the Group level, revenue rose to Rs. 6.9 billion, up 15% from Rs. 6.0 billion in the prior financial year. This growth was driven by improved occupancy levels and effective yield management.
- Enhanced Occupancy: The Company’s occupancy rate significantly improved to 69%, compared to 62% in the previous financial year.
- Operational Profitability (EBIT): The Company’s Operational Earnings Before Interest and Tax (EBIT) increased to Rs. 330.5 million, a substantial improvement from Rs. 171.2 million in the previous year. This figure excludes a notable impairment provision of Rs. 260 million recognised on the investment in Browns Ari Resorts (Pvt) Limited. Group EBIT also saw an increase to Rs. 559.8 million, up from Rs. 519.2 million.
- Net Loss: Despite operational gains, the Company reported a net loss after tax of Rs. 442.2 million (2025: Profit of Rs. 239.2 million), while the Group recorded a net loss after tax of Rs. 2.76 billion (2025: Rs. 2.75 billion loss). These figures reflect significant finance costs and, in the Company’s case, the aforementioned impairment provision.
Navigating a Dynamic Operating Landscape
In his Chairman’s Review, W D K Jayawardena titled the year “FROM RECOVERY TO RENEWED GROWTH,” highlighting management’s success in optimising occupancy, enhancing operational efficiencies, and maintaining disciplined cost management. The report acknowledges the impact of global economic uncertainty, geopolitical developments in the Middle East, and their influence on international aviation markets and operating costs. Despite these headwinds, Sri Lanka’s tourism industry demonstrated resilience, with increasing global preference for experiential and nature-based travel reinforcing the country’s appeal.
CEO R L E C Wijeratne further elaborated on the proactive measures taken, including strengthened destination marketing initiatives, diversification towards regional and emerging source markets, and enhanced direct distribution channels. These efforts helped mitigate the impact of external disruptions and supported the industry’s recovery.
Commitment to Operational Excellence and Asset Enhancement
The Board’s strategic priorities focused on revenue optimisation, operational excellence, financial discipline, and delivering exceptional guest experiences. Key initiatives included:
- Data-driven revenue management and dynamic pricing strategies.
- Rigorous expenditure controls, disciplined procurement, and efficient resource allocation to mitigate inflationary pressures.
- Continuous investment in employee development, cross-functional collaboration, and service quality enhancements.
- Preservation and enhancement of the Company’s asset portfolio through property maintenance, refurbishment, and operational infrastructure upgrades.
Looking ahead, Eden Hotel Lanka PLC intends to undertake a soft refurbishment program during the 2026/27 financial year to further enhance its value proposition and strengthen market positioning.
Embracing Sustainability
Eden Hotel Lanka PLC is committed to sustainable business practices. The Annual Report highlights initiatives such as the Eden Resort & Spa’s Butterfly Garden Project, promoting biodiversity conservation and environmental education. The Group also conducted greenhouse gas calculation and verification training in line with ISO 14064, strengthening its carbon accounting capabilities.
Significantly, the Group has prepared its sustainability-related financial disclosures for the first time in accordance with the Sri Lanka Financial Reporting Standards (SLFRS) Sustainability Disclosure Standards, which are aligned with the International Sustainability Standards Board (ISSB) standards, reflecting a commitment to increasing transparency and responsible operations.
Positive Outlook for Sri Lankan Tourism
The report maintains a positive outlook for Sri Lanka’s tourism sector, anticipating continued growth driven by improving international connectivity, increasing visitor arrivals, and sustained global interest in authentic and wellness tourism experiences. Eden Hotel Lanka PLC and the Group express confidence in their ability to leverage these trends, supported by their experienced management team, dedicated workforce, and ongoing strategic investments.
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