Colombo, Sri Lanka – 24 September 2026 – Lanka Realty Investments PLC (LRI), a premier real estate investment and asset management company, today announced the release of its Annual Report for the financial year ended 31st March 2026. Titled “The Power to Anticipate,” the report highlights a pivotal year of growth, strategic realignment, and significant financial strengthening, driven by a forward-looking vision and the integration of advanced technologies like Artificial Intelligence (AI).
Strong Financial Foundations and Record Profitability
LRI reported a robust financial year, demonstrating significant growth across key metrics. The Group’s revenue for FY 2025/26 increased to LKR 1.26 billion, up from LKR 1.205 billion in the previous year. A major highlight was the substantial surge in profit for the year, reaching LKR 1.55 billion, a remarkable turnaround from LKR 147.28 million in 2025. This impressive performance was largely underpinned by a significant change in the fair value of investment properties, which added LKR 3.22 billion.
Key financial indicators from the report include:
- Revenue: LKR 1,260,830,620
- Gross Profit: LKR 362,615,740
- Profit for the Year: LKR 1,555,411,378
- Profit Attributable to Equity Holders: LKR 806,852,513
- Basic/Diluted Earnings Per Share (EPS): LKR 3.82
- Return on Equity (ROE): 8.3%
- Return on Assets (ROA): 5.3%
- Total Assets: LKR 29,612,888,792 (a substantial increase from LKR 19.17 billion in 2025)
- Equity Attributable to Equity Holders: LKR 10,642,178,081
- Debt/Equity Ratio: Improved to 0.22 (from 0.49 in 2025), reflecting disciplined deleveraging.
- Net Assets Per Share: LKR 50.35
The company attributes this performance to its proactive approach in asset management, capital optimisation, and strategic growth opportunities. LRI’s focus on leveraging human and artificial intelligence to “anticipate success, growth opportunities and distinction” has enabled sharper action and stronger strategy in a dynamic market.
Strategic Acquisitions Bolster Commercial Property Portfolio
A defining moment of the financial year was LRI’s successful acquisition of a controlling 51% stake in Lee Hedges PLC in January 2026. This acquisition, part of a combined 71.11% acquisition with partner Eighth Wonder valued at approximately LKR 3.93 billion, significantly expands LRI’s footprint in prime commercial real estate in Colombo. The move aligns with LRI’s strategy to transition from passive land banking to high-yielding, premium corporate real estate management, immediately enhancing recurring cash flows with an established base of 13 high-profile corporate tenants.
Further capital optimisation strategies included the divestment of the Baseline Holdings landbank to Prime Lands and the sale of a 49% stake in HQ Colombo to Eighth Wonder. These actions unlocked significant liquidity, reduced Group gearing, and strengthened long-term strategic alliances.
Operational Excellence Across Core Segments
LRI’s four core business pillars—Commercial Properties, Investment Properties and Land, Leisure and Hospitality, and Residential Development—delivered robust performance:
- Commercial Properties:
- HQ Colombo: Maintained 100% occupancy and saw its valuation rise to LKR 4.00 billion. Targeted capital refurbishments reinforced its status as a premier corporate address.
- Unity Plaza: Occupancy surged to 94%, with its valuation reaching LKR 6.40 billion (a 177.2% increase since its 2021 acquisition). The operationalisation of a state-of-the-art 470 square-metre wrap-around LED digital façade created a new advertising revenue stream.
- Lee Hedges Towers: Seamlessly integrated into LRI’s asset management platform, strengthening recurring revenue and long-term equity value.
- Residential Development:
- Mulberry Residencies: Achieved 98% inventory clearance with 119 of 121 units sold, successfully completing handovers to 71 apartment owners.
- Leisure and Hospitality: The W15 brand benefited from a sustained rebound in national tourist arrivals, recording improved occupancy levels. Future developments like W15 Yala and W15 Ambalangoda are positioned to extend LRI’s presence in strategic tourism destinations.
- Manufacturing: Amtrad Limited resumed manufacturing operations, securing 15 new commercial clients and driving top-line revenue to LKR 36.6 million for the financial year. The company is actively pursuing ISO certification to reinforce market leadership.
Forward-Looking Governance and Future Outlook
LRI’s commitment to rigorous risk management and sound corporate governance practices remained fundamental, with the Board actively evaluating strategic, operational, financial, and regulatory risks. The Group successfully raised approximately LKR 2.9 billion in foreign private equity from Eighth Wonder, demonstrating its ability to attract international capital and strengthen its capital base without increasing leverage.
The immediate priority for LRI is to strengthen its position as one of Sri Lanka’s leading property and investment companies, pursuing selective acquisitions and disciplined capital allocation. Over the longer term, the Group aims to progressively evaluate regional opportunities and position itself as a genuine regional commercial real estate player, with plans to access broader regional and international capital funding.
The Board of Directors expressed sincere gratitude to shareholders, tenants, financial partners, employees, and new partner Eighth Wonder, looking forward to building lasting value for generations to come.
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