COLOMBO, Sri Lanka – 25 August 2026 – Serendib Hotels PLC (CSE: SHOT) has announced a commendable financial and operational performance for the financial year ended 31st March 2026, navigating a dynamic global tourism landscape with strategic resilience. The company, a key player in the Sri Lankan hospitality sector under Browns Hotels and Resorts, reported significant growth in revenue and profit before tax (PBT) at the group level, despite persistent geopolitical uncertainties and inflationary pressures.
Robust Financial Growth Driven by Strategic Focus
According to its latest Annual Report, released today, Serendib Hotels PLC achieved a group revenue of Rs. 3.78 billion for FY2025/26, marking an 11% increase from Rs. 3.40 billion in the previous year. This impressive top-line growth contributed to a substantial 25% surge in group Profit Before Tax (PBT), reaching Rs. 746.80 million, up from Rs. 596.84 million in FY2024/25. The company’s financial position also strengthened, with total assets rising to Rs. 12.00 billion from Rs. 11.55 billion, and total shareholders’ funds increasing to Rs. 8.46 billion from Rs. 7.89 billion.
While Group Profit After Tax (PAT) and Earnings Per Share (EPS) saw a slight moderation, the Chairman’s Review clarified that this was influenced by strategic, planned investments in certain subsidiaries aimed at strengthening asset quality and supporting future growth. The Company (standalone) recorded a 13% increase in revenue to Rs. 964.15 million and a significant jump in PBT to Rs. 218.94 million from Rs. 71.29 million, demonstrating robust individual performance.
Key financial highlights for the Group (FY2025/26) include:
- Revenue: Rs. 3,782,612,000 (11% increase)
- Profit Before Tax (PBT): Rs. 746,801,000 (25% increase)
- Total Assets: Rs. 12,004,458,000
- Total Shareholders’ Funds: Rs. 8,458,415,000
- Net Assets per Share: Rs. 18.96
- Interest Cover: 10.92 times
Operational Resilience and Enhanced Guest Experience
The Annual Report highlighted the company’s ability to navigate a challenging operating environment characterized by geopolitical tensions affecting global air travel and inflationary cost pressures. Despite a slight dip in overall occupancy to 76% (from 78% in 2025), Serendib Hotels PLC successfully implemented a revenue optimization strategy, leading to a significant improvement in its Average Room Rate (ARR). This underscores the effectiveness of its disciplined execution, astute revenue management, and unwavering commitment to service excellence.
The Chairman, W.D.K. Jayawardena, noted, “Sri Lanka’s tourism industry continued to demonstrate resilience. Strong destination appeal, growing interest in experiential and wellness tourism, ongoing destination marketing initiatives, and continued market diversification supported visitor demand throughout the year.”
Investments in property maintenance, refurbishment, and operational infrastructure were prioritized to preserve asset quality and enhance guest experiences, reinforcing the Group’s competitive positioning.
Commitment to Sustainability and Future Outlook
Serendib Hotels PLC continues its strong focus on sustainability. The report features the Thaala Bentota Resort’s partnership with the Department of Wildlife Conservation on the “Rathamilla Conservation Initiative,” aimed at protecting one of Sri Lanka’s rarest mangrove species. This initiative aligns with global Sustainable Development Goals (SDGs) and reflects the company’s dedication to responsible environmental stewardship.
Looking ahead, the company maintains a cautiously optimistic outlook. The CEO’s review highlighted confidence in Sri Lanka’s continued tourism recovery, supported by improving airline connectivity, strengthening inbound visitor demand, and growing interest in authentic leisure and experiential travel segments. Serendib Hotels PLC plans to undertake a soft refurbishment programme during the 2026/27 financial year to further enhance its offerings and competitiveness. The strategic focus will remain on operational excellence, revenue optimization, guest experience enhancement, and expanding digital engagement and direct booking capabilities.
Robust Corporate Governance and Risk Management
The Annual Report reaffirms Serendib Hotels PLC’s adherence to the highest standards of corporate governance. The Board, supported by its Audit, Remuneration, Related Party Transactions Review, and Nominations & Governance Committees, ensures effective oversight and transparent practices. The company has robust risk management frameworks in place to proactively identify, assess, and mitigate risks across global travel, macroeconomic conditions, liquidity, market dynamics, and human resources, supported by a strong balance sheet and healthy liquidity position.
Serendib Hotels PLC’s FY2025/26 Annual Report demonstrates a strategic and resilient approach to navigating complex market conditions, positioning the company for continued sustainable growth within Sri Lanka’s burgeoning tourism sector.
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