Colombo, 04 September 2026 – SERENDIB LAND PLC (CSE: LAND) today announced the release of its 45th Annual Report for the financial year ended 31st March 2026, revealing a period marked by strategic operational changes and a notable uplift in profitability driven by property revaluation. The report highlights a substantial increase in profit before tax despite a significant reduction in rental income, as the company navigates a pivotal transition in its investment property portfolio.
Financial Performance: Revaluation Fuels Profitability Amidst Revenue Shift
The financial year 2025/26 saw SERENDIB LAND PLC record a turnover of Rs. 6,761,661, a considerable decrease from Rs. 27,046,644 reported in the previous year. This revenue decline is directly attributable to the termination of the lease agreement with Janashakthi Insurance PLC, effective 15th June 2025, meaning the company generated rental income for only the first three months of the financial year.
Despite the sharp drop in operational revenue, the company posted a robust Profit Before Taxation of Rs. 53,749,300, a significant improvement over the Rs. 19,862,058 recorded in 2025. This surge in profitability was primarily propelled by a substantial fair value gain of Rs. 68,257,739 arising from the revaluation of the company’s land and building assets. Consequently, the company’s profit after tax stood at Rs. 44,377,143, up from Rs. 13,434,971 in the previous year.
The revaluation has strengthened SERENDIB LAND PLC’s asset base, with the investment property portfolio increasing to Rs. 806.24 million, and total assets reaching Rs. 872.30 million. Shareholders’ funds also rose to Rs. 748.54 million, underscoring the positive impact of the asset revaluation on the company’s financial position.
Strategic Operational Outlook: New Lease in Discussion
Following the termination of the previous lease, management’s focus has shifted towards securing new tenancy and restoring sustainable rental income. The Chairman’s Review notes that the company has identified a suitable tenant – a leading financial service company – for the premises and is actively engaged in negotiating the terms and conditions of a proposed new lease agreement. This strategic move is crucial for the company’s future revenue generation and operational stability.
The Board remains cautiously optimistic about Sri Lanka’s economic outlook, citing ongoing macroeconomic reforms, progress in debt restructuring, and strengthening investor confidence. The real estate sector, in particular, has shown encouraging signs of recovery, benefiting from lower inflation and greater exchange rate stability, factors that are expected to support the company’s efforts in securing new tenants and enhancing long-term value.
Corporate Governance and Upcoming Annual General Meeting
The Annual Report also details key corporate governance initiatives. During the year, the Board of Directors was strengthened with the appointment of two new Independent Directors, enhancing the company’s governance framework. The Board currently comprises nine Non-Executive Directors, reflecting a balanced representation of shareholders and a commitment to diverse expertise.
The company will convene its Forty-Fifth (45th) Annual General Meeting (AGM) virtually on 28th September 2026, at 3:00 p.m. Among the key resolutions, shareholders will be asked to:
- Receive and consider the Audited Financial Statements for the Year Ended 31st March 2026.
- Re-elect Mr. G.G. Ponnambalam, who retires by rotation.
- Re-appoint Dr. Jayanta Mootatamby Swaminathan, Mr. Thirunavukarasu Someswaran, and Dr. (Mrs.) Y. Ponnambalam as Directors, with special resolutions noting their age exceeds 70 years.
- Re-appoint M/s KPMG, Chartered Accountants, as the company’s auditors.
A significant announcement from the Board is that no dividend is to be declared for the financial year ended 31st March 2026. This decision was made in light of the reduced rental income and its impact on the company’s profitability and cash flows, with the Board opting to retain resources for ongoing operations and financial stability.
The full Annual Report provides comprehensive insights into SERENDIB LAND PLC’s financial health, governance practices, and future strategies as it adapts to a changing economic landscape and a new operational phase.
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