Colombo, 18 September 2026 – Softlogic Holdings PLC (CSE: SOFT) has released its Annual Report for the financial year ended March 31, 2026, detailing a period of substantial operational improvement and strategic recalibration amidst Sri Lanka’s ongoing economic recovery. The report, publicly announced on September 17, 2026, underscores the conglomerate’s resilience across its diversified business segments.
Robust Financial Performance Indicators Emerge
The Annual Report reveals a noteworthy upturn in key financial metrics for the Group. Total revenue for the year surged by 24% to an impressive Rs. 129.0 billion, up from Rs. 103.6 billion in the previous financial year. This growth was mirrored in the Group’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), which saw a significant 43% increase to Rs. 17.8 billion, compared to Rs. 12.5 billion in FY2024/25.
A pivotal highlight is the Group’s turnaround to a profit before tax of Rs. 24 million, a stark contrast to the Rs. 7.49 billion loss recorded in the prior year. While the Group reported a loss after tax of Rs. 3.59 billion, this represents a substantial narrowing from the Rs. 11.09 billion loss in FY2024/25, signaling improved profitability. Operating cash flow also strengthened considerably, climbing 60% to Rs. 14.0 billion. Despite these operational advancements, the Group’s accumulated losses for the year increased to Rs. 92.53 billion, with negative shareholders’ funds reaching Rs. 66.43 billion, reflecting the legacy financial challenges.
Strategic Progress Across Diverse Business Verticals
Softlogic’s diversified portfolio demonstrated focused strategic execution and recovery throughout the year:
* Retail & Telecommunications: The sector benefited from improved product availability and consumer demand. Strategic adjustments included store network rationalisation and the expansion of GLOMARK supermarkets with a focus on differentiated offerings. The restaurant portfolio is set to broaden with new international franchise brands like Mad Over Donuts, Wow! Momo, and Tiong Bahru Bakery.
* Healthcare Services (Asiri Health): Asiri Health sustained strong performance, driven by increased patient activity and the expansion of specialized services, including Sri Lanka’s first robotic surgery programme and advancements in liver transplantation. Regional hospital capabilities were also strengthened, along with continuous JCI accreditation.
* Financial Services: Softlogic Life Insurance PLC consolidated its position with a 19.3% market share, bolstered by the acquisition of Allianz Life Insurance Lanka Ltd and strategic international expansion into Bangladesh with Diamond Life Insurance Company Ltd. Softlogic Finance PLC saw its regulatory restrictions lifted, allowing it to rebuild its lending portfolio.
* Information Technology: The IT sector progressed towards higher-value enterprise solutions, achieving Dell Technologies Titanium Partner status. Expansion in fintech, secure digital identity solutions, and the international success of Softlogic Australia’s ChefMax platform were noted.
* Automobiles: Following the normalisation of vehicle imports, the sector experienced a strong recovery with the re-establishment of Ford vehicles and Suzuki motorcycles, alongside a new partnership with ATUL Auto for three-wheelers.
* Leisure & Property: The tourism recovery provided a more supportive backdrop. Softlogic’s Colombo and Bentota hotels were rebranded under Accor’s premium Pullman brand, aiming to enhance international market positioning. The ODEL Mall project underwent significant recalibration, shifting focus to office space and phased development to align with market realities and optimize capital deployment.
Addressing Going Concern and Future Outlook
The Annual Report explicitly addresses the “emphasis of matter on going concern” highlighted by the external auditors. Softlogic’s Board of Directors acknowledges the material uncertainty arising from accumulated losses and current liabilities exceeding current assets. However, the Board is confident in the Group’s ability to continue as a going concern, citing a comprehensive liquidity and working capital enhancement plan.
Key initiatives in this plan include:
* Substantial progress in renegotiating debt repayment plans with lending institutions, securing grace periods and restructuring arrangements.
* Ongoing efforts to raise funding from overseas banks and private placements.
* Active pursuit of strategic divestments and asset monetisation to strengthen the capital structure.
* Planned equity infusion through the exercise of warrants, expected to further bolster the Group’s equity base.
* Implementation of rigorous cost control measures, operational rationalisation, and aggressive marketing strategies across all business segments.
The Securities & Exchange Commission (SEC) of Sri Lanka has granted a deferment of the trading suspension of Softlogic Holdings PLC’s securities until June 30, 2027, providing additional time for the Group to execute its recovery strategy.
Chairman A. K. Pathirage stated in the report, “The same entrepreneurial conviction that built Softlogic over more than three decades is today being applied with greater financial discipline, sharper capital allocation and a clear focus on sustainable returns.” He added that the progress made reinforces confidence in the Group’s ability to continue operations and sustain its businesses over the long term.
The report also details the Group’s robust corporate governance framework, including the roles of various board committees and adherence to CSE Listing Rules, ensuring transparency and accountability.
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