COLOMBO, Sri Lanka – 25 August 2026 – Palm Garden Hotels PLC (CSE: PALM) today announced the release of its Annual Report for the financial year ended 31 March 2026, offering a comprehensive overview of the Group’s financial performance, operational resilience, and strategic direction amidst a fluctuating global and local tourism environment. The report, filed with the Colombo Stock Exchange (CSE), highlights a significant increase in revenue and a narrower net loss for the period.
Financial Performance: Growth in Revenue, Strategic Investments
For the fiscal year 2025/26, Palm Garden Hotels PLC and its Group demonstrated a robust top-line performance, with Group revenue reaching LKR 6.9 billion, marking a 15% increase year-on-year. This growth was largely attributed to the sustained recovery in travel demand, with both accommodation and food & beverage operations contributing evenly.
Key financial figures from the report include:
- Group EBIT (Earnings Before Interest and Tax) rose to LKR 526.2 million, up from LKR 456.8 million in the previous year, reflecting effective cost management and strategic investments across its subsidiaries.
- The Group reported a net loss of LKR 4.056 billion for the year, a reduction from the LKR 4.397 billion loss in the prior year, indicating a positive trajectory towards profitability.
- Palm Garden Hotels PLC recognized a fair value gain of LKR 343 million on its investment properties, driven by improved market conditions and appreciation in asset values.
- A significant non-cash event was the recognition of impairment provisions totaling approximately LKR 2.2 billion on certain equity investments. This prudent, conservative assessment aligns with accounting standards and reflects current operating and market conditions, rather than a change in long-term confidence in the underlying businesses.
Operational Resilience Amidst Global Headwinds
The Chairman’s Review acknowledges a year defined by global economic uncertainty, geopolitical shifts, changing travel patterns, and rising operating costs. Disruptions to international air connectivity, particularly due to geopolitical tensions in the Middle East, impacted Sri Lanka’s inbound tourism by increasing airfares and flight complexities. However, the Group commended the destination’s adaptability, with redirected marketing efforts and a focus on regional and emerging source markets.
Palm Garden Hotels PLC’s response focused on:
- Revenue Optimization: Implementing data-driven yield management, dynamic pricing, and refined market segmentation.
- Operational Excellence: Emphasizing tighter cost discipline, rigorous procurement, and continuous efficiency drives without compromising service quality.
- Asset Quality: Continued investment in property maintenance, infrastructure upgrades, and service enhancements to protect long-term value.
- Guest Experience: Investing in employee development, cross-functional collaboration, and a culture of accountability.
Pioneering Sustainability Reporting and Governance
Notably, the 2025/26 Annual Report marks Palm Garden Hotels PLC’s first-time reporting under the SLFRS Sustainability Disclosure Standards (SLFRS S1 and SLFRS S2), issued by the Institute of Chartered Accountants of Sri Lanka. This commitment underscores the Group’s dedication to transparency and responsible business practices.
The report details a multi-tier governance framework established to oversee sustainability-related risks and opportunities, from the Board of Directors to operational teams. It identifies both physical climate risks (e.g., extreme weather, sea-level rise) and transition risks (e.g., regulatory changes, green market shifts), while also highlighting opportunities in eco-tourism and sustainable product development.
Optimistic Outlook for Sri Lankan Tourism
Despite ongoing uncertainties, the Board expressed confidence in the future prospects of Palm Garden Hotels PLC and the broader Sri Lankan tourism sector. Improving international connectivity, steadily increasing visitor arrivals, and rising global demand for authentic, experiential, wellness, and cultural travel are identified as favourable medium-term tailwinds.
The Group remains committed to agile decision-making, operational flexibility, and a continued focus on innovation and efficiency, aiming to strengthen its market position and deliver lasting returns to shareholders and all stakeholders.
Investor Information and Upcoming AGM
As at 31 March 2026, Browns Hotels and Resorts Limited held 98.921% of the Company’s shares. The public shareholding stood at 1.079%, spread among 2,248 shareholders. The Float Adjusted Market Capitalisation was reported as LKR 302,016,792. The Company notes that it has not complied with the minimum public holding requirement under Option 2 of CSE Listing Rule 7.13.1(b).
The Fifty-Second (52nd) Annual General Meeting (AGM) of Palm Garden Hotels PLC will be held as an online audio-visual meeting on Wednesday, 23 September 2026, at 10.00 a.m. Shareholders will vote on key resolutions, including the re-election of directors Mrs. K U Amarasinghe, Dr. J M Swaminathan, and Mr. T Dharmarajah, and the re-appointment of M/s Deloitte Partners as External Auditors.
Source: Read original document
