COLOMBO, Sri Lanka – 28 August 2026 – The Nuwara Eliya Hotels Company PLC (CODE: NEH.N0000) today announced the release of its Annual Report for the financial year ended 31st March 2026, showcasing a period of strong financial performance and strategic advancements amidst the continued recovery of Sri Lanka’s tourism industry. The report, filed with the Colombo Stock Exchange (CSE), reaffirms the company’s commitment to preserving its rich heritage while embracing innovation and sustainability.
Impressive Financial Performance Drives Shareholder Value
The company delivered an encouraging financial performance, with significant growth across key indicators for both the company and the group:
- Group Revenue: Increased to Rs. 2.45 billion, a 4% year-on-year (YoY) growth.
- Group Profit Before Tax: Rose to Rs. 1.16 billion, marking an 8% YoY improvement.
- Group Profit After Tax: Stood at Rs. 812.40 million, up 6% YoY.
- Earnings Per Share (EPS): Improved to Rs. 365.64, reflecting a 6% increase.
- Total Assets: Grew by 11% to Rs. 9.11 billion.
- Total Equity: Strengthened by 13% to Rs. 7.41 billion.
- Robust Liquidity: The Group maintained a strong liquidity position with minimal structural debt, positioning it for future strategic investments.
These results underscore the effectiveness of the Group’s revenue management, disciplined cost control, and the enduring appeal of the Grand Hotel brand, as highlighted in the Chairman’s message.
Strategic Investments Elevate Guest Experience
A core focus for the period was enhancing the guest experience through selective refurbishment and infrastructure development. Key initiatives included:
- Barnes Hall Refurbishment: A significant investment of close to Rs. 200 million revitalized Barnes Hall, a commercially vital space for banqueting, weddings, and premium buffet experiences.
- Red Lounge Enhancement: Refurbishment commenced for the Red Lounge, aiming to improve the crucial first impression for arriving guests.
- Continuous Improvements: Ongoing room refurbishments and modifications were carried out to boost comfort and functionality, alongside continuous enhancement of the hotel’s picturesque gardens.
- Wellness and Culinary Offerings: The introduction of guided forest walks, weekly yoga sessions, and expanded farm beautification with strawberry cultivation further enriched guest offerings, supporting wellness tourism and the farm-to-table concept.
- Digital Engagement: The company strengthened its digital footprint, achieving consistently positive guest reviews and ratings on platforms like TripAdvisor (4.4 out of 5), Booking.com (8.8), and Agoda (8.7), reinforcing its reputation as a preferred hospitality destination.
These investments align with the company’s strategy to balance heritage preservation with modern conveniences, ensuring a comfortable and luxurious experience for guests.
Commitment to Sustainability and Responsible Governance
The Nuwara Eliya Hotels Company PLC continues to embed Environmental, Social, and Governance (ESG) principles into its core operations. The annual report includes detailed disclosures under SLFRS S1 and S2 frameworks, demonstrating a commitment to transparency and responsible business practices.
Notable achievements in sustainability include:
- Prestigious Awards: Winner of the Silver Award at the Presidential Environment Awards 2025 and Travelife Gold Certified for Accommodation Sustainability (2025-2027).
- ISO Certifications: Maintained ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and successfully obtained ISO 22000:2018 (Food Safety Management System) certification.
- Resource Efficiency: Achieved a 28% reduction in mains water consumption and significant reductions in LPG (9%), diesel (11%), petrol (12%), and wood logs (35%) usage. Overall, total greenhouse gas emissions decreased by 30%.
- Waste Management: Implemented a food waste composting initiative, achieving a 12% reduction in staff dine food waste and diverting 63% of solid waste from landfills.
- Human Capital Development: Investments in employee training increased by 25%, with 15,538 training hours delivered. The company also initiated new ladies’ accommodation facilities, reinforcing its commitment to employee welfare and diversity.
The robust corporate governance framework ensures compliance with CSE Listing Rules and best practices, with strong oversight from the Board and its committees on financial reporting, risk management, and ethical conduct.
Optimistic Outlook for Sri Lanka Tourism
Despite global uncertainties and regional challenges such as climate-related events, the company remains optimistic about the medium to long-term prospects of Sri Lanka’s tourism sector. The management’s forward-looking strategy emphasizes building a more competitive, digitally capable, and sustainability-led business, focusing on value-led revenue, market diversification, and continuous operational excellence.
The Nuwara Eliya Hotels Company PLC’s 2025/2026 Annual Report highlights a heritage brand that is not only financially strong but also deeply committed to sustainable practices and delivering exceptional value for all its stakeholders, contributing meaningfully to the nation’s growing tourism sector.
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