Colombo, Sri Lanka – August 25, 2026 – KELANI TYRES PLC (CSE: TYRE.N0000), a pivotal player in Sri Lanka’s automotive sector, today announced the release of its Annual Report for the financial year ended March 31, 2026. The report highlights the company’s robust financial results, ongoing strategic investments, and a strengthened commitment to corporate governance and sustainability, even as its joint venture navigated a complex business landscape.
Strong Profit Growth for KELANI TYRES PLC
For the fiscal year under review, KELANI TYRES PLC demonstrated commendable financial resilience, recording a Profit After Tax (PAT) of Rs 663.4 million. This marks a significant increase from the Rs 538.6 million reported in the previous year, underscoring the company’s effective management and strategic positioning.
The company’s primary income stream, the CEAT Kelani Joint Venture (JV), faced a challenging period. The JV reported a gross turnover of Rs 25.9 billion, a decrease from Rs 27.4 billion in the prior year. Consequently, the JV’s Profit After Tax also saw a reduction, settling at Rs 1.088 billion compared to Rs 1.527 billion in the previous fiscal year. Despite this, the CEAT Kelani Group reinforced its position as the largest tyre manufacturer and distributor of motor vehicle tyres in Sri Lanka.
In a move to reward shareholders and reflect confidence in future prospects, the Board of Directors has approved an interim dividend of Rs 6.50 per share for the financial year 2026/27. Furthermore, the dividend for the financial year 2025/26 also stood at Rs 6.50 per share.
Strategic Investments and Future Growth
A key highlight from the Chairman’s Review is the ongoing Rs 4.0 billion investment project aimed at elevating the company’s tyre manufacturing capabilities to higher international production platforms. This significant undertaking is progressing satisfactorily and is expected to reach completion in the second half of 2027, promising enhanced efficiency and capacity for the Group.
Chairman Chanaka De Silva, in his review, extended gratitude to fellow Directors, and the management and staff of both Kelani Tyres PLC and CEAT Kelani Sri Lanka Joint Venture for their dedication in navigating a challenging and complex business climate.
Robust Governance and Pioneering Sustainability Disclosure
KELANI TYRES PLC continues to uphold high standards of corporate governance, meticulously adhering to the Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka and the Listing Rules of the Colombo Stock Exchange. The Annual Report details the effective functioning of its Board Sub-Committees: the Audit Committee, Remuneration Committee, Related Party Transactions Review Committee, and Nominations and Governance Committee, all designed to ensure transparency, accountability, and effective oversight.
Notably, the company has released its inaugural Sustainability Disclosure, prepared in accordance with Sri Lanka Financial Reporting Standards SLFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and SLFRS S2 (Climate-related Disclosures). This commitment to ESG reporting underscores the company’s proactive stance on environmental and social responsibility.
The disclosure details climate-related risks and opportunities, including initiatives such as the operational 2.42 MW rooftop solar array at Kelaniya and a planned 1 MW installation at Kalutara for 2026/27, aimed at cutting electricity costs and reducing emissions. The company also highlights its robust risk management framework and strong credit profile, reinforced by Fitch Ratings reaffirming CEAT Kelani Holdings (Pvt) Ltd’s National Long-Term Rating at AA+(lka) with a Stable Outlook.
Comprehensive Annual Report Details
The Annual Report provides a comprehensive overview of the company’s operations, financial performance, and strategic direction. It includes:
- Detailed financial statements for both the Company and the Group.
- Reports from all Board Committees outlining their activities and findings.
- Information on Property, Plant and Equipment, including fair value adjustments from revaluations.
- Insights into the company’s shareholding structure, with Silverstock Limited remaining the immediate parent, holding 49.744% of issued shares.
- A detailed review of significant related party transactions and compliance declarations.
The 32nd Annual General Meeting of Kelani Tyres PLC is scheduled to be held on September 22, 2026, where shareholders will review these results and consider key resolutions.
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