Colombo, 07 September 2026 – LAUGFS POWER PLC, a key player in Sri Lanka’s renewable energy sector, today announced the release of its Annual Report for the financial year ended 31st March 2026. The report, titled “Powering the Bigger Picture,” reveals a robust 84% growth in Profit After Tax (PAT), reaching Rs. 461 million, demonstrating the company’s resilience and strategic operational enhancements in a challenging yet evolving environment.
The announcement, made public via the Colombo Stock Exchange (CSE), highlights LAUGFS Power’s unwavering commitment to sustainable growth and its pivotal role in advancing Sri Lanka’s energy transition. Despite a 15% decline in consolidated revenue to Rs. 765 million from Rs. 897 million in the previous fiscal year, the company achieved significant profitability, primarily driven by a substantial reversal of impairment charges and disciplined financial management.
Financial Performance Highlights: Resilience and Growth
LAUGFS Power PLC’s financial performance for FY 2025/26 showcases strategic agility in navigating market complexities:
- Profit After Tax (PAT): Surged by 84% to Rs. 461 million (FY 2024/25: Rs. 250 million).
- Operating Profit: Increased by 2% to Rs. 575 million (FY 2024/25: Rs. 563 million), bolstered by a Rs. 544 million reversal in impairment charges.
- Profit Before Tax (PBT): Grew by 17% to Rs. 477 million (FY 2024/25: Rs. 408 million), attributed to reduced finance costs (down from Rs. 208 million to Rs. 158 million).
- Revenue: Declined by 15% to Rs. 765 million, primarily due to regulatory uncertainty, grid constraints, and weather variability impacting the renewable energy sector.
- Earnings Per Share (EPS): Rose to Rs. 1.19 from Rs. 0.65 in the previous year.
- Group EBITDA: Remained strong at Rs. 896 million (FY 2024/25: Rs. 871 million).
- Total Assets: Increased by 6% to Rs. 4,568 million.
- Total Equity: Grew by 21% to Rs. 2,688 million.
Operational Excellence and Strategic Expansion
Throughout the fiscal year, LAUGFS Power maintained a diversified renewable energy portfolio of 26.06 MW, comprising solar, hydro, and other renewable assets. The company focused intensely on plant-level performance management, aiming to maximise generation and improve asset availability across its facilities.
Key operational advancements include:
- Ongoing enhancements at the Iris and Anorchi solar plants, which have already improved performance.
- Strengthening of technical infrastructure at PAMS Power’s 2 MW hydro plant.
- Dedicated focus on operational and administrative matters at the 0.70 MW Ginigathena project.
- Proactive measures in preventive maintenance, safety, and reliability across all power plants.
Looking ahead, LAUGFS Power is committed to growth under the three pillars of performance, resilience, and disciplined expansion. The company will selectively pursue new opportunities in solar, hydro, and wind power, while also evaluating Battery Energy Storage Systems (BESS) to enhance energy delivery and extend its market reach. A long-term objective is to evolve into an integrated renewable energy asset management and development platform.
Leadership Perspectives: Powering the Nation Forward
The leadership reiterated their commitment to supporting Sri Lanka’s energy transition. The Group Chairman, Deshabandu W.K.H. Wegapitiya, PhD, highlighted that in a year of national resurgence, LAUGFS Power’s responsibility extended beyond energy generation to supporting communities and investing in its people. He also noted the company’s plans to expand into the Mechanical, Electrical & Plumbing (MEP) sector within the construction industry, creating additional avenues for sustainable growth.
Mithila Wegapitiya, Group Executive Vice Chairman, emphasized the company’s strategic role in diversifying the LAUGFS Group’s energy sector presence and contributing to Sri Lanka’s growing renewable energy landscape. Dhanusha Muthukumarana, Acting Group Managing Director/Group Executive Director, acknowledged the challenging regulatory environment but expressed confidence in the company’s long-term strategic relevance, driven by a focus on operational reliability, technical governance, and financial discipline.
Mr. Russell De Zilva, Managing Director/CEO, underscored the year’s achievements in operational improvements and the clear roadmap for future growth. He stressed the importance of optimising existing assets, improving cash generation, and reversing losses into profits, rather than merely increasing installed capacity.
Commitment to Sustainability and Robust Governance
LAUGFS Power’s Annual Report 2025/26 reaffirms its dedication to Environmental, Social, and Governance (ESG) principles. The company has strengthened its governance and compliance frameworks, ensuring enhanced Board oversight, reinforced internal controls, and strict adherence to regulatory requirements and best practices.
The company views sustainability not only through energy generation but also through environmental preservation, efficient resource use, and reducing its ecological footprint. These efforts align with the United Nations Sustainable Development Goals (SDGs), reflecting LAUGFS Power’s ambition to contribute meaningfully to a cleaner, greener, and more sustainable energy future for Sri Lanka.
Source: Read original document
