COLOMBO – August 31, 2026 – Ramboda Falls PLC (CSE: RFL), a prominent player in Sri Lanka’s hospitality sector, today announced its Annual Report for the financial year ended March 31, 2026. The report highlights a period marked by external disruptions and strategic adjustments, resulting in moderated revenue and profitability, yet showcasing substantial growth in total assets and equity, primarily driven by property revaluations.
Navigating External Headwinds with Prudence
The financial year 2025/2026 presented significant challenges for the company and the broader tourism industry. According to the Chairman’s Message, Cyclone Ditwah in late November 2025 severely disrupted tourist arrivals and infrastructure, followed by the Middle East crisis from late February 2026, which impacted international travel sentiment. Despite these adversities, Ramboda Falls PLC focused on operational continuity, reassuring guests, and maintaining service standards.
In response, the Board adopted a prudent approach to capital allocation, temporarily halting previously proposed development projects to prioritize essential investments in safety, security, property protection, and enhancing the guest experience. The company’s strategic roadmap continues to emphasize sustainable tourism, digital transformation, community partnerships, selective expansion, and organizational effectiveness.
Financial Performance: Moderated Profitability, Robust Asset Growth
For the year ended March 31, 2026, Ramboda Falls PLC recorded a revenue of Rs. 212.75 million, a decrease of 12.2% from Rs. 242.27 million in the previous year. Gross Profit also saw a decline of 15.6% to Rs. 90.56 million (FY25: Rs. 107.28 million), with the gross margin moderating to 42.6% from 44.3%.
Profit from operations significantly decreased by 61.0% to Rs. 16.58 million (FY25: Rs. 42.49 million), while Profit Before Tax (PBT) fell 51.9% to Rs. 21.53 million (FY25: Rs. 44.75 million). Consequently, Profit After Tax (PAT) stood at Rs. 16.37 million, a 45.4% reduction from Rs. 29.96 million in the prior year. Earnings Per Share (EPS) for FY26 was Rs. 0.82, down from Rs. 1.50.
Despite the dip in profitability, the company’s financial position strengthened considerably. Total Assets surged by 39.1% to Rs. 1,047.83 million (FY25: Rs. 753.25 million), and Total Equity increased by 41.8% to Rs. 742.92 million (FY25: Rs. 524.04 million). This substantial growth was primarily attributed to the higher carrying value of property, plant and equipment and a revaluation reserve of approximately Rs. 542.87 million. Net Assets Per Share also rose significantly to Rs. 37.15 from Rs. 26.20.
The segmental review revealed that the Ramboda property remained the principal revenue generator, accounting for approximately 98.3% of total revenue, while the Polonnaruwa segment (Muwan Palassa Resort) continued to be loss-making before tax, underscoring the importance of its revitalisation initiatives.
Strategic Investments and Guest Experience Enhancements
Ramboda Falls PLC continued to invest in enhancing its guest experience and protecting its valuable natural assets. During FY26, the flagship Ramboda Falls Hotel saw 21 rooms completely renovated, and improvements were made to the front-office and check-in area. The company initiated construction of retaining walls and a drainage system at an estimated cost of Rs. 30 million to safeguard the property against terrain-related risks.
Future plans include upgrading the waterfall viewing deck, creating safer walkways, continued room improvements, refreshing restaurant offerings, establishing a coffee house, and strengthening network and IT infrastructure to reduce cybersecurity vulnerabilities. Muwan Palassa Resort in Minneriya is being revitalised under the management of Zimar Tourism Int Pvt Ltd to enhance its marketability.
Strengthening Governance and Leadership
The Annual Report underscores Ramboda Falls PLC’s unwavering commitment to transparency, accountability, and ethical conduct. Significant changes occurred within the Board of Directors: Mr. Kim Leng Yeoh transitioned from Executive Chairman to Managing Director/CEO effective May 1, 2026. Concurrently, Mr. Lee Kiyau Loo, previously an Independent Non-Executive Director, was appointed as the Non-Executive Chairman, effective May 1, 2026.
The company also noted the departure of Executive Director/General Manager Mr. Jayasuriya Arachchige Don Viraj Rasanga on April 22, 2026, and Non-Executive Director Mr. Sudusinghe on July 18, 2026. The upcoming Annual General Meeting on September 25, 2026, will address the re-election of Mr. Bulathsinghala Arachchige Nipul Nishantha Kumara Perera and Mr. John Tyrone Dayalan David, who retire by rotation. Furthermore, resolutions will be presented for the re-appointment of Mr. Kim Leng Yeoh, Ms. Yau Sin Lee, Mr. Mathews George, and Mr. Lee Kiyau Loo, all of whom have attained the age of 70 years, in compliance with the Companies Act.
The Board’s sub-committees – Audit, Remuneration, Related Party Transactions Review, and Nominations & Governance – continued to play a crucial role in overseeing the company’s financial reporting, internal controls, risk management, and overall governance framework.
Outlook: Optimistic Amidst Continued Vigilance
The medium-term outlook for Sri Lanka’s tourism and hospitality sector remains positive, driven by improved international connectivity and enhanced destination visibility. Ramboda Falls PLC, with its unique hill-country location, is well-positioned to capitalize on this recovery. However, the industry remains exposed to global economic conditions, geopolitical developments, and operational costs, necessitating continuous adaptation and prudent management.
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