Colombo, Sri Lanka – 31 August 2026 – Radiant Gems International PLC (CSE: RGEM), a venerable name in Sri Lanka’s gem cutting industry, today announced the release of its Annual Report for the financial year ended 31 March 2026. The report highlights a significant reduction in the company’s net loss, alongside a strategic focus on operational efficiency and market expansion, despite prevailing challenges in the global gem and jewellery sector.
Financial Performance: A Turn Towards Recovery
For the financial year ended 31 March 2026, Radiant Gems International PLC reported a revenue of Rs. 234.59 million, marking a commendable increase of approximately 5.36% from the Rs. 222.65 million recorded in the previous financial year. This growth underscores the company’s persistent efforts to bolster customer relationships and enhance operational efficiency within the competitive international gem processing industry.
A notable achievement for the period was the substantial narrowing of the net loss to Rs. 8.01 million, representing an impressive improvement of approximately 74% compared to the previous year. While the company remains in a loss-making position, this positive trajectory reflects management’s dedicated focus on improving efficiency, stringent cost control measures, and optimised utilisation of company resources. The company also generated Rs. 41.55 million in net cash from operating activities, indicating improved operational cash flow.
Navigating Going Concern Considerations with Strategic Initiatives
The Annual Report candidly addresses going concern considerations, noting an accumulated loss of Rs. 52.14 million, negative working capital of Rs. 6.55 million, and an overdue long-term loan of Rs. 57.08 million from the Bank of Ceylon FCBU as at 31 March 2026. However, the Board of Directors expresses cautious optimism, citing several mitigating factors:
- Projected net profits of Rs. 4.40 million, Rs. 5.15 million, and Rs. 6.03 million for the financial years 2026/2027, 2027/2028, and 2028/2029, respectively.
- A reported net profit of Rs. 1.29 million for the period from 1 April 2026 to 30 June 2026 (unaudited), indicating positive momentum post-reporting period.
- Ongoing efforts to acquire new clients and expand market and business segments.
- Continued repayment of the Bank of Ceylon FCBU loan in monthly instalments, with intentions to negotiate revised repayment terms.
A Legacy of Precision and Brilliance in Gem Cutting
With over 47 years at the forefront of the Sri Lankan Gem Cutting Industry, Radiant Gems International PLC continues to uphold its legacy of cutting through convention and exceeding expectations. Operating from its workshops in Sri Lanka, the company seamlessly integrates traditional craftsmanship with state-of-the-art precision cutting technology, including Swiss and Israeli machines, constantly upgraded by its dedicated R&D department. This unique blend transforms rough gemstones into brilliant, high-value precious and semi-precious stones, with a specific focus on the demanding watch industry.
The company prides itself on an unwavering commitment to accuracy, symmetry, and light performance, guided by principles of integrity, sustainability, and ethical sourcing. These values foster lasting relationships with jewellers, wholesalers, and collectors globally, delivering not just gemstones but a legacy of unparalleled precision and brilliance.
Strengthened Corporate Governance and Leadership
The report details the company’s robust corporate governance framework, aligning with the Code of Best Practice for Corporate Governance and CSE Listing Rules. The Board of Directors, comprising five members including three Non-Executive Directors (two of whom are independent), actively oversees the company’s strategic direction and operational performance.
Key Board Sub-Committees—namely the Audit Committee, Remuneration Committee, Related Party Transactions Review Committee, and Nominations and Governance Committee—play crucial roles in scrutinising specific areas and ensuring strict controls. Notably, Mr. M.L. Munasinghe was appointed Joint Managing Director with effect from 11 February 2026, further strengthening the executive leadership.
Auditor’s Review and Future Outlook
Kreston MNS & Company, Chartered Accountants, served as the external auditors. Their report identified key audit matters, including revenue recognition, assessment of the fair value of Property, Plant & Equipment (PPE), and the assessment of the fair value of Investment in Gems, all of which received appropriate attention from the Audit Committee and management.
Looking ahead, the Board remains cautiously optimistic. Chairman S.H. Munasinghe outlined key priorities for future growth: strengthening relationships with existing international customers, developing new markets and business opportunities, improving productivity, maintaining high standards of quality, prudent cost management, and fortifying the company’s financial position. The ultimate objective remains the achievement of sustainable profitability and long-term growth for Radiant Gems International PLC.
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