Annual Report 2024-2025

Annual Report

2024 - 2025

Our story 1

Milestones 2

Our Businesses at a glance 4

Financial Highlight 6

Operational Spotlight 7

Chairman's Message 8

Profile of Directors 10

Managing Director's Statement 15

Corporate Governance 20

Risk Assessment 24

Report of the Senior Independent Director 26

Report of the Remuneration Committee 27

Report of the Nominations and Governance Committee 28

Report of the Related Party Transactions Review Committee 30

Annual Report of the Board of Directors of the Company 35

Report of the Audit Committee 38

Statement of Directors' Responsibilities 40

Independent Auditor's Report 41

Statement of Profit or Loss and Other Comprehensive Income 45

Statement of Financial Position 46

Statement of Changes in Equity 47

Statement of Cash Flows 50

Notes to the Financial Statements 52

Five Year Review - Group 132

Group Directory 133

Information of Shareholders 136

Notice of Annual General Meeting 138

Form of Proxy 139

Form of Request 141

Corporate Information Inner Back Cover

‌Annual Report 2024 - 2025

C T Holdings PLC

C T Holdings PLC, formerly known as Ceylon Theatres Limited, was incorporated in 1928 with its roots in cinema, movie production, and the broader entertainment industry. The company owned and operated a network of iconic cinemas across the country, including landmark locations such as Regal Colombo, Empire, and Majestic. In 1956, it made a pioneering move by establishing Ceylon Studios Ltd-the country's first film production and processing facility-laying the foundation for the development of local filmmaking expertise.

Though its first production, Asokamala, met with limited success, the company soon went on to produce several acclaimed films such as Golu Hadawatha, Akkara Paha, and Sakman Maluwa. The film Nidhanaya was later recognized as the best Sri Lankan film produced in the past 50 years.

In anticipation of structural changes in the film industry during the 1970s and 1980s, the Company began to diversify into other areas of business, notably, consolidating its interest in Millers Limited and Cargills (Ceylon) Ltd. (now Cargills (Ceylon) PLC). Millers Limited was subsequently merged with CT Holdings PLC in 2008.

A defining milestone in the Group's history came in 1983, when Cargills transitioned from the traditional Department Store model to launch Sri Lanka's first modern supermarket-Cargills Food City-at Staple Street, Colombo. This strategic shift marked a turning point not only for Cargills but for the entire CT Holdings Group.

It laid the foundation for Cargills to become the largest modern retailer in Sri Lanka, serving customers across all districts and emerging as the principal growth engine of the Group.

Building on this momentum, Cargills ventured into Food Processing (FMCG) in 1993 by acquiring a convenience food processing facility and expanded into the Restaurant sector in 1996 after obtaining the local franchise of the globally renowned Kentucky Fried Chicken (KFC). Over the years, Cargills has

strengthened its presence in the FMCG space, expanding into dairy, fruit-based beverages, culinary foods, as well as entering the confectionery segment. These investments have positioned Cargills as a leading FMCG company in Sri Lanka. In 2013, the Group further expanded its portfolio by establishing a fully-fledged commercial bank under the name Cargills Bank. The Group also operates the Cargills Square shopping and entertainment malls and established the first shopping mall in Sri Lanka in 1991, the Majestic City shopping complex, through the subsidiary CT Land Development PLC.

Today, C T Holdings PLC stands as a diversified conglomerate with interests across Retail, FMCG, Restaurants, Real Estate, Cinema, Hospitality, and Banking & Financial Services - driven in large part by the transformational role and continued leadership of its flagship subsidiary, Cargills.

‌C T Holdings PLC Annual Report 2024 - 2025

Annual Report 2024 - 2025

C T Holdings PLC

‌C T Holdings PLC Annual Report 2024 - 2025

The retail sector of the Group functions under Cargills (Ceylon) PLC. The modern trade arm covers all districts of the island through its iconic brand Cargills Food City and is the market leader in Sri Lanka's supermarket sector.

The e-commerce operation is carried out by Cargills Online. The retail sector is supported through a vast supply chain consisting of a 24-hour delivery operation, a vast cold chain, collection centers for fresh produce and seafood, and a state-of-the-art distribution center.

The Group's FMCG brands are operated by Cargills (Ceylon) PLC and are some of the widely consumed food brands in the country which include, Magic ice cream, Kotmale dairy products, KIST range of jams, cordials, nectars, juices, culinary & confectionery, Goldi and Sara's range of Convenience Foods, RIDE energy drink, and Knuckles Water. Products are manufactured across 10 large, modern production facilities that follow stringent food safety standards.

The Restaurants sector comprises the world-renowned KFC and TGI Fridays franchises, operated by Cargills (Ceylon) PLC.

Annual Report 2024 - 2025

C T Holdings PLC

Consists of the Majestic City shopping and entertainment mall operated by CT Land Development PLC, and the Cargills Square Malls in Jaffna, Gampaha, Dematagoda, Bandarawela & Katubedda, operated by Cargills (Ceylon) PLC.

The Group is the promoter of Cargills Bank PLC.

The Group operates 17 cinema screens across 6 locations under Regal Cinemas and Majestic Cineplex, which are operated by Ceylon Theatres (Private) Limited.

The capital market operations are carried out under C T CLSA Holdings Ltd, which covers stockbroking, asset management, and investment banking services.

C T Holdings PLC Annual Report 2024 - 2025

Group Company

Note

Earnings, dividends and shareholders' funds per share have been calculated based on the number of issued shares presently in issue.

Others - 0.02% Real estate - 0.17% Real estate - 0.14%

Restaurant - 5.01%

FMCG - 19.53%

Entertainment - 0.21%

Restaurant - 4.77%

FMCG - 20.17%

Entertainment - 0.23%

Revenue Composition 2025

Revenue Composition 2024

Retail - 75.06% Retail - 74.69%

‌Annual Report 2024 - 2025

C T Holdings PLC

Rs. Bn

250.00

200.00

150.00

100.00

50.00

Revenue - Group

Profit for the Year Attributable to Equity Holders of the Parent - Group

Rs. Bn

6.00

5.00

4.00

3.00

2.00

1.00

Rs. Bn

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

Profit for the year - Group

0

2021 2022 2023 2024 2025

0

2021 2022 2023 2024 2025

0

2021 2022 2023 2024 2025

Rs. Bn

60.00

50.00

40.00

30.00

20.00

10.00

Borrowings - Group

Rs.

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

Dividends per share - Group

Rs.

30.00

25.00

20.00

15.00

10.00

5.00

Earning per share - Group

0

2021 2022 2023 2024 2025

0

2021 2022 2023 2024 2025

0

2021 2022 2023 2024 2025

Dear shareholder,

I am pleased to share the Annual Report and Financial Statements of CT Holdings PLC for the year ended 31st March 2025.

The past year saw many significant changes in our country. Most notably, we have seen encouraging progress in the country's economic recovery -widely acknowledged as a story of remarkable resilience. While macroeconomic indicators point toward growing stability and renewed optimism, it is imperative that that all stakeholders remain vigilant,

as Sri Lanka's debt position still makes the economy extremely fragile and sensitive to external shocks.

During the year, Sri Lanka successfully concluded its debt restructuring program, enabling the country to exit default status and regain international creditworthiness. 2024 was also a year of elections for Sri Lanka. Following the elections and the strong mandate received by the new NPP government, there is renewed hope that Sri Lanka will now move decisively toward a future grounded in rule of

law, accountability, and transparency. We are also encouraged by the new Government's commitment to the IMF

program, which is paramount to Sri Lanka's recovery process. In our view, global economic conditions and geopolitical

risks pose the greatest external threats to Sri Lanka's outlook, provided the country remains on course in terms of fiscal discipline and its commitment to structural economic reforms.

CT Holdings remains committed to nation building, which is reflected in the significant investments the Group has made in the recent years despite

economic, political and health crises which impacted the country. These investments reflect our unwavering belief in Sri Lanka's long-term potential, confidence in our management team, and the opportunities we see in the sectors we operate in.

We are equally proud of our ongoing contribution to rural livelihoods.

Business performance

During the year under review, the Group recorded a revenue of Rs. 243 Bn, an 8.0% year-over-year (YoY) increase. EBITDA increased to Rs. 22.0 Bn, recording a growth of 9.1% from the previous year.

Profit After Tax (PAT) was Rs. 7.3 Bn, marking a 15.6% YoY increase. PAT improved on account of volume led topline growth, cost optimisation measures, lower overheads mainly arising from downward revisions to the electricity tariffs, and

lower interest costs. The Group's net debt remained steady, and our ability to service the debt remains healthy, supported by strong operating cash flows.

Looking ahead

With improved consumer sentiment and growing optimism across the economy, we will continue to make focused investments to extend our reach, get closer to our consumers, and further strengthen our brands-many of which are now leaders in their categories.

Capital investments will focus predominantly on the expansion of our retail stores, restaurants, and the renovations to the Majestic City shopping complex. The renovations at Majestic City will include

re-zoning, upgrading of the facilities, and the introduction of new features to the mall including the Majestic cinema.

Dividend

The Group declared an interim dividend of Rs. 4.00 per share for the reporting period, paid on 18 November 2024. This represents an increase from the interim dividend of Rs. 3.50 per share in the previous financial year. Subsequent to the reporting period, the Board of Directors proposed a second interim dividend of Rs.

10.00 per share for the reporting period, which was paid on 18 June 2025, up from the second and final dividend of Rs. 8.50 per share in the previous financial year.

Appreciation

It is with a deep sense of sadness that I record the passing of our former Chairman Emeritus - Mr. Anthony A Page, fondly known to all as Baba. Anthony succeeded our late father, Mr Albert Page, who himself succeeded Sir Chittampalam A Gardiner

- the founder of CT Holdings PLC, then known as Ceylon Theatres Limited. They all shared a powerful vision: for the group to be an association dedicated to the welfare of its descendants, employees,

shareholders, partners, and society at large.

Anthony joined Ceylon Theatres in 1971, at a time when significant challenges

loomed over the local film industry. In 1972, with the establishment of the State Film Corporation, the state progressively took over the import and distribution of films.

This left Ceylon Theatres - the pioneer in Sri Lanka's film industry - and its associate Ceylon Studios, then in partnership with Mr K. Gunaratnam, as exhibitors only.

Following this nationalisation, the industry declined significantly until a limited liberalisation emerged in the early 2000s.

Anthony was a steadfast advocate for the liberalisation of the film industry -guided by appropriate censorship - and encouraged the production of quality Sinhala cinema. Today, we are beginning to see a meaningful improvement in the standards of local films. In keeping with the vision of our late chairman, it is our intention to actively contribute to the revitalisation of the local film industry.

In 1980, Ceylon Theatres made a strategic decision to re-establish its majority shareholding in Millers Limited and Cargills (Ceylon) PLC. Following this, Anthony was appointed Executive Director of Ceylon Theatres in 1981, and subsequently Executive Director of Millers and Director of Cargills. In 1984, he became Managing Director of Ceylon Theatres, and in 2000, was appointed Chairman of the group. In 2014, he was named Chairman Emeritus.

Throughout his career at CT Holdings, Anthony was a pillar of strength to the Board of Directors, and a source of guidance and mentorship to many. His quiet resolve, strategic insight, and enduring commitment to the group and its people have left an indelible mark on our legacy.

I am certain Anthony would echo my heartfelt appreciation to every member of the group-past and present-for their dedication and service to our shared purpose. To our shareholders who continue to support the vision of our patriarch, Mr Albert Page, we reaffirm our

commitment: the group will continue to be led by the best executive talent, guided always by meritocracy-an ideal Anthony deeply believed in.

In conclusion, I wish to express my appreciation to our team, customers, valued partners, and my colleagues on the Board. Your trust and support have been integral for our growth and success. Mr. Asite Talwatte and Ms. Cecilia Page have informed the Board that they will not be seeking re-election at the upcoming Annual General Meeting. On behalf of

the Board, I extend our heartfelt thanks for their service and valued contributions to CT Holdings PLC over the years. I would also like to place on record our appreciation to Mr. J. B. L. De Silva and Mr. Priya Edirisinghe, who stepped down from the Board in August 2024. We thank them for their guidance and contributions to the Group. A special note of gratitude is due to Mr. Priya Edirisinghe, who has been an integral part of our Group since 1994, serving with distinction in various capacities over a remarkable three-decade-long tenure. His wisdom, integrity, and commitment have left a lasting mark on the organization.

(Signed) Louis Page Chairman

27 June 2025

LOUIS PAGE

Chairman, Non-Executive Director

Appointed to the Board on 29 November 1982

Expertise & Qualifications

Mr. Louis Page is a distinguished corporate leader with extensive experience in accounting, management, and corporate strategy. He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka and a Fellow Member of the Chartered Institute of Management Accountants (UK). Over the course of his career, he has held a number of senior leadership and board positions in prominent overseas public companies and public institutions.

Current Appointments

He serves as the Chairman of Cargills (Ceylon) PLC and also serves as Chairman of CT Land Development PLC, Ceylon Theatres (Pvt) Ltd, and Odeon Holdings (Ceylon) (Pvt) Ltd. He also serves as a Director of CT CLSA Holdings Limited, C T Properties Ltd, C T Property Management Company (Pvt) Ltd, C T Real Estate (Pvt) Ltd, C T Properties Lakeside (Pvt) Ltd, and CT Properties GS (Pvt) Ltd.

RANJIT PAGE

Deputy Chairman / Managing Director, Executive Director

Appointed to the Board on 26 June 1998

Expertise & Qualifications

Mr Ranjit Page has been with the Group for over four decades, having joined the company in May 1982. He was appointed to the Board of Cargills (Ceylon) PLC in August 1989 and took on the role of Managing Director in April 1992, serving in that capacity for 8+ years before assuming his current position as Deputy Chairman/Group CEO in December 2000.

He has been a pivotal figure in the transformation of Cargills, playing a crucial role in evolving the company from a small-scale operation to a leading Sri Lankan corporate that meets the diverse needs of communities across Sri Lanka. His visionary leadership and strategic acumen were key in establishing the Cargills business model, which facilitated the company's expansion into various sectors including food retailing, food manufacturing, restaurants, and banking.

Under his guidance, Cargills has become a household name in Sri Lanka, known as a socially responsible and community-focused organization demonstrating that a socially driven mission can be both impactful and financially sustainable. Beyond driving business growth, he has been committed in identifying and nurturing talent, shaping teams that uphold the company's values, and fostering the next generation of business leaders.

Current Appointments

He currently serves as Deputy Chairman/CEO of Cargills (Ceylon) PLC, and also serves as Chairman of Cargills Convenient Foods Ltd, CT Properties GS (Pvt) Ltd, CT Real Estate (Pvt) Ltd, CT Property Management Company (Pvt) Ltd, CT Properties Lakeside (Pvt) Ltd, and as a Director of Kotmale Holdings PLC, CT Land Development PLC, Cargills Retail (Pvt) Ltd, Odeon Holdings (Ceylon) (Pvt) Ltd, Cargills Enterprise Solutions (Pvt) Ltd, The Empire Investments Company (Pvt) Ltd, and Ceylon Theatres (Pvt) Ltd.

PRIYAN EDIRISINGHE

Senior Independent Director

Appointed to the Board on 31 July 2024

Expertise & Qualifications

Mr. Priyan Edirisinghe is a Chartered Accountant with over 20 years of experience in audit, tax, and business consulting, serving both the private sector and professional practice. He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka (FCA), an Associate Member of the Chartered Institute of Marketing (UK) (ACIM) and holds a Master of Business Administration from the University of Southern Queensland, Australia.

He currently serves as the Managing Partner of Baker Tilly Edirisinghe & Co., Chartered Accountants.

Current Appointments

He also serves as an Independent Non-Executive Director of Cargills (Ceylon) PLC, Kotmale Holdings PLC, CT Land Development PLC, and Tea Small Holder Factories PLC.

He previously served as an Independent Director of Dialog Finance PLC.

ASITE TALWATTE

Non-Independent, Non-Executive Director

Appointed to the Board on 28 March 2016

Expertise & Qualifications

Mr. Asite Talwatte is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka (ICASL) and the Chartered Institute of Management Accountants (UK). He also holds a Postgraduate Diploma in Business and Financial Administration from ICASL and the University of Wageningen, Netherlands, an MBA from the University of Sri Jayewardenepura, and has completed the Executive Program at the Kellogg School of Management, Northwestern University, USA.

He served for 37 years at Ernst & Young, including 10 years as Country Managing Partner. His international exposure includes working at EY in Cleveland, Ohio, and serving on several EY Asia-Pacific leadership committees. He has held prestigious positions such as President of CA Sri Lanka and CIMA Sri Lanka, and chaired key standard-setting and governance committees within CA Sri Lanka. He played a leading role in developing Sri Lanka's corporate governance framework and chaired the International Integrated Reporting Council of Sri Lanka from 2018 to 2021.

Current Appointments

He is currently the Chairman of Management Systems (Pvt) Limited. He serves as an Independent Non-Executive Director on the Boards of Ceylon Hospitals PLC, Central Finance PLC, DIMO PLC, Tokyo Cement PLC, Braybrooke Residential Towers (Pvt) Ltd, and Silvermill Investment Hodings (Pvt) Ltd. He is a Non-Independent Non-Executive Director of Cargills (Ceylon) PLC and Kotmale Holdings PLC, and also serves as a Non-Executive Director of Gilkrist Leisure (Pvt) Ltd. Additionally, he is a Director of Cirute Plantation(Pvt) Ltd, Myanthiho Investment & Trading (Pvt) Ltd, and Colombo City Apartments (Pvt) Ltd.

He previously served as Chairman of Central Finance PLC and as an Independent Director of Sunshine Holdings PLC and Chevron Lubricants PLC.

Profile of Directors ... Contd.

JOSEPH PAGE

Non-Independent, Non-Executive Director

Appointed to the Board on 26 June 1998

Expertise & Qualifications

Mr. Joseph Page counts over 35 years of management experience in the private sector, having held several leadership roles across entities within the CT Holdings Group. He is part-qualified with the Chartered Institute of Management Accountants (CIMA), UK.

Current Appointments

He currently serves as the Deputy Chairman and Managing Director of C T Land Development PLC. He is also a Director of Cargills (Ceylon) PLC and Kotmale Holdings PLC. In addition, he serves as a Director of Ceylon Theatres (Private) Limited, C T Properties Limited, C T Properties Lakeside (Private) Limited, C T Real Estate (Private) Limited, CT CLSA Asset Management (Private) Limited, and C T Property Management Company (Private) Limited.

CECILIA PAGE

Non-Independent, Non-Executive Director

Appointed to the Board on 07 July 2009

Expertise & Qualifications

Ms. Cecilia Page is a finance and capital markets professional with extensive leadership experience in investment services. She is a Fellow Member of both the Institute of Chartered Accountants of Sri Lanka and the Chartered Institute of Management Accountants (UK).

Current Appointments

Chairman of CT CLSA Holdings Ltd, CT CLSA Securities (Pvt) Ltd, CT CLSA Capital (Pvt) Ltd, and CT CLSA Asset Management (Pvt) Ltd. She also serves as a Director of Odeon Holdings (Ceylon) (Pvt) Ltd.

ARAVINDA PAGE

Non-Independent, Non-Executive Director

Appointed to the Board on 28 June 2014

Expertise & Qualifications

Dr. Aravinda Page is a cardiothoracic surgeon with specialized expertise in adult cardiac surgery and heart/lung transplantation. He has been affiliated with leading UK institutions including Royal Papworth Hospital, Cambridge, and currently Royal Brompton and Harefield Hospitals, London. He holds an MA (Cantab), MB BChir from the University of Cambridge and is a Fellow of the Royal College of Surgeons, UK [FRCS(CTh) Eng].

Current Appointments

CT Holdings PLC - Non-Independent, Non-Executive Director

IMTIAZ A. WAHID

Non-Independent, Non-Executive Director

Appointed to the Board on 01 December 2016

Expertise & Qualifications

Mr. Imtiaz Abdul Wahid is a senior business leader with over 30 years of experience in finance, operations, and corporate management, both in Sri Lanka and internationally. He is an Associate Member of The Institute of Chartered Accountants of Sri Lanka and a Fellow Member of the Chartered Institute of Management Accountants (UK).

He first joined the Cargills Group in 1987 as Chief Internal Auditor and progressed through several senior executive roles across the business. He was appointed to the Board of Cargills (Ceylon) PLC in 1997 and served as Deputy Managing Director from 2001. During his career, he has also gained valuable international exposure through senior leadership roles held in overseas companies. He rejoined the Group and was appointed to the Board of Cargills (Ceylon) PLC on 21 May 2010. His deep understanding of the business and extensive leadership experience have been instrumental in shaping the Group's strategic direction and operational excellence.

Current Appointments

He serves as the Group Managing Director and Deputy Chief Executive Officer of Cargills (Ceylon) PLC and also serves as Chairman of several key subsidiaries within the Group, including Cargills Retail (Private) Limited, Cargills Dairies (Private) Limited, Cargills Food & Beverages Limited, Millers Limited, CPC (Lanka) Limited, Cargills Agri Solutions Company (Private) Limited, Cargills Confectionaries (Private) Limited, Cargills Restaurants (Private) Limited and Kotmale Holdings PLC, and serves as the Deputy Chairman of Cargills

Convenient Foods Limited. He is also the Managing Director of Cargills Distributors (Private) Limited, Cargills Frozen Products (Private) Limited, Kotmale Milk Products Limited, and Kotmale Products Limited. In addition, he serves on the Boards of Cargills Enterprise Solutions (Private) Limited, Dawson Office Complex (Private) Limited, Cargills Foundation, the Albert A. Page Institute of Food Business, Ceylon Theatres (Private) Limited, C T Properties Limited, C T Properties GS (Private) Limited, C T Real Estate (Private) Limited, C T Property Management Company (Private) Limited, and C T Properties Lakeside (Private) Limited.

SANJAY NILES

Executive Director

Appointed to the Board on 01 February 2017

Expertise & Qualifications

Mr. Sanjay Niles is a finance and management professional with broad experience in accounting, financial management, and group-level operations. He is an Associate Member of the Institute of Chartered Accountants of Sri Lanka (ACA) and the Chartered Institute of Management Accountants, UK (ACMA). Having joined the Group in 1996, he rose to the position of Group Chief Financial Controller and currently serves as Executive Director of CT Holdings PLC.

Current Appointments

He currently serves as Executive Director of Ceylon Theatres (Private) Limited, C T Properties Limited, C T Property Management Company (Private) Limited, C T Properties Lakeside (Private) Limited, and C T Properties G S (Private) Limited. He is also a Director of CT Land Development PLC, CT Real Estate (Private) Limited, Fortune Premier (Private) Limited, CT CLSA Capital (Private) Limited,

The Empire Investment Company (Private) Limited, Frederick North Hotel Company (Private) Limited, and Cargills Enterprise Solutions (Private) Limited.

Profile of Directors ... Contd.

JOEL SELVANAYAGAM

Independent, Non-Executive Director

Appointed to the Board on 16 August 2024

Expertise & Qualifications

Mr. Selvanayagam is an entrepreneur with extensive experience in international trade and private sector leadership. He was educated at St. Joseph's College, Colombo.

Current Appointments

Mr. Selvanayagam currently serves as the Chairman of Hovael Construction (Private) Limited and Hovael Holdings (Private) Limited. He also serves on the Board of CT Land Development PLC as the Senior Independent Director.

SUREN DE SILVA

Independent, Non-Executive Director

Appointed to the Board on 16 May 2025

Expertise & Qualifications

Mr. Suren de Silva is a senior legal professional with over 27 years of experience specializing in commercial and corporate litigation, arbitration, intellectual property, shipping and admiralty law, and customs-related matters. He is an Attorney-at-Law of the Supreme Court of Sri Lanka and a Barrister-at-Law of Gray's Inn, England and Wales.

He holds an LLB (Hons.) from the University of Wales, College of Cardiff, and a Master of Laws (LLM) from University College London, with a focus on the regulation of financial markets, foreign investment in emerging economies, and privatization. Mr. de Silva currently serves as an Independent Counsel and Consultant (Special Projects) at D.L. & F De Saram, Attorneys-at-Law, and has advised on a range of legal and regulatory issues in both domestic and international contexts.

Current Appointments

He serves as an Independent Non-Executive Director of Cargills (Ceylon) PLC. He is also a Non-Executive Director of the Colombo Stock Exchange and CSE Clear (Private) Limited.

CHULANTHA WICKRAMARATNE

Independent, Non-Executive Director

Appointed to the Board on 16 June 2025

Expertise & Qualifications

Mr. Wickramaratne is a senior finance and governance professional with over 30 years of public sector leadership experience. He served as the Auditor General of Sri Lanka from 2019 to 2025, overseeing audits of government entities and State-owned enterprises, and advising key Parliamentary Oversight Committees such as COPE and COPA. He has played a pivotal role in public sector reform, audit modernization, and the implementation of ethical and HR frameworks within the National Audit Office. He is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka, a qualified accountant of the Chartered Institute of Public Finance and Accountancy (UK), and an Associate Member of the Institute of Certified Management Accountants of Sri Lanka. He holds a B.Com (Special) Degree with Second Class Upper Honours from the University of Kelaniya.

Current Appointments

CT Holdings PLC - Independent, Non-Executive Director

Operating Environment & Economic Overview

The Sri Lankan economy recorded a growth rate of 5% in 2024, marking a welcome recovery following two consecutive years of contraction in

the wake of the 2022 economic crisis. Consumer demand-accounting for more than two-thirds of GDP-gathered momentum throughout the year, underpinned by stabilised price levels, reductions in utility and energy tariffs, lower interest rates, and improving consumer confidence. Economic

indicators showed marked improvement across the board, signalling that the country is gradually moving in the right direction. Notably, stronger inflows from tourism and worker remittances bolstered foreign exchange reserves-critical sources of income to meet debt obligations and support imports. The new government presented its inaugural budget to Parliament in February 2025, reaffirming its commitment to fiscal consolidation. The budget outlined several reforms aimed

at enhancing revenue collection and curbing unproductive public expenditure, signalling a more disciplined approach to economic management.

A notable deflationary trend emerged from September 2024 and continued into April 2025, largely due to high base effects, supporting a steady recovery in demand. The Central Bank of Sri Lanka (CBSL) projects that inflation will stabilise around its medium-term target of 5% during the second half of 2025. However, volatility in the prices of certain essential goods-such as rice, coconuts, and salt-persisted due to intermittent supply constraints. In particular, the price of rice surged owing to limited

market availability of paddy. In response, the

government intervened by importing key rice varieties and imposing wholesale and retail price caps to stabilise the market.

A prolonged monsoon and heavy rainfall presented challenges during parts of the year, disrupting trade distribution, dampening consumer demand for certain product categories, and leading to temporary closures of supermarkets and restaurants. While adverse weather

conditions also affected the production of some agricultural crops, the overall impact remained limited.

Financial Review

The Group's performance was driven largely by the Cargills Retail, FMCG, and Restaurant sectors, which contributed over 99% to Group's turnover and profitability. Though consumer demand is on the ascendancy,

as seen in the volume led growth of our retail business, as well as the increase in volumes of our FMCG portfolio and growing transactions in the restaurants, we have

not seen the same level of traction in other consumer facing businesses. During the year under review, the Group's revenue increased 8.0% while EBITDA rose by 9.1%, despite a sizeable impact coming through the introduction of the VAT to the dairy sector, which is discussed in more detail in the Operational Review below. Profit After Tax (PAT) increased by 15.6%. Adjusting for the impact of the revaluation gains on the Group's investment property during both the reporting period as well as the previous year, the increase in the PAT is 40.3%.

Operational Review

Retail

The Retail sector of the Group, driven by its iconic brand Cargills Food City, continued to deliver strong results with

Rs. Bn

200

150

100

50

0

Rs. Mn

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Rs. Bn

50

40

30

20

10

0

Rs. Mn

4000

3000

2000

1000

0

Segmental Revenue - Retail

2021 2022 2023 2024 2025

Segmental Profit - Retail

2021 2022 2023 2024 2025

Segmental Revenue - FMCG

2021 2022 2023 2024 2025

Segmental Profit - FMCG

2021 2022 2023 2024 2025

Management and Financial Review ... Contd.

revenue growing by 9.1%. Same-store sales grew 8.5%, supported by a recovery in consumer confidence and robust footfall. Network expansion continued, bringing the total store count to 543. Operating profit increased by 39% to Rs. 7.4 Bn, while Profit After Tax (PAT) doubled to Rs. 3.3 Bn-reflecting continued cost discipline, energy efficiency measures, and a favourable

While topline growth was modest due to VAT-related impacts, the sector remains a key engine of earnings and cash generation for the Group, supported by scale, brand equity, and operational integration.

Restaurants

The Restaurants sector posted revenue growth of 13.7%, driven by improved

Segmental Revenue - Restaurants

Rs. Bn

15

10

5

electricity tariff environment compared to the previous year. Cargills Food City was once again recognised as Supermarket Brand of the Year at the 2025 SLIM-Kantar People's Awards, reaffirming our leadership in value-driven retailing.

The Retail sector remains the single largest contributor to Group profitability, with consistent returns and a proven model for growth and scalability.

FMCG

same-store performance and network expansion. Seven new KFC locations were added during the year, bringing the total to 78 restaurants, alongside the continued presence of our TGI Fridays franchise.

Margins held firm as raw material prices stabilised and operating efficiencies-including energy cost savings-continued to support the bottom line. Profitability improved, and the sector continues to be a strong contributor to Group returns.

Lower footfall affected certain locations,

0

Rs. Mn

1500

1000

500

0

2021 2022 2023 2024 2025

Segmental Profit - Restaurants

2021 2022 2023 2024 2025

The FMCG sector delivered a resilient performance across all core

categories-including dairy, beverages, convenience foods, culinary products, and confectionery-despite headwinds such as the introduction of the 18% VAT on locally produced dairy products which impacted our entire dairy portfolio.

Our brands retained market leadership in key categories including ice cream,

value-added dairy, fruit-based beverages, and processed meats. Strategic portfolio rationalisation, product innovations,

and operational efficiencies supported profitability. Similarly, revitalised brand activity-including the relaunch of RIDE and the KIST sparkling fruit beverage range, introduction of halal-certified processed meats under Sara's, and the introduction of Knuckles Water in glass bottles-helped position the portfolio for future growth.

although overall performance remained resilient. The bankruptcy filing of the TGI Fridays parent company in the U.S. has no bearing on our business, which continues under a fully independent franchise arrangement.

Real Estate

The Group's real estate sector comprises five Cargills Square malls and the Majestic City shopping complex in Colombo.

The five Cargills Square malls continue to maintain healthy occupancy levels, with certain sites nearing full occupancy. While these locations are operationally profitable, their overall performance is

constrained by borrowing costs associated with the two most recent malls.

Majestic City, operated by listed subsidiary CT Land Development PLC, has been in operation for over three decades. The

Segmental Revenue - Real Estate

Rs. Mn

500

400

300

200

100

0 2021 2022 2023 2024 2025

Segmental Revenue - Entertainment

Rs. Mn

600

400

200

0 2021 2022 2023 2024 2025

economic challenges of recent years necessitated rental concessions and led to a decline in occupancy levels to below 75%. In response, a refurbishment of the

mall is underway to reposition the mall in line with evolving consumer expectations. This renovation, estimated at Rs. 2.0 billion and funded via bank borrowings, is scheduled for completion by October 2025.

Real estate investments typically involve longer payback periods relative to the Group's main operating sectors. Since the onset of the COVID-19 pandemic, subdued footfall and slow recovery have further extended the time required to recoup investments. Excluding fair value

gains on investment properties, the sector has not made a material contribution to Group profitability during the past 5 years. Nonetheless, we remain committed to revitalising this portfolio and enhancing access to modern, affordable retail

and entertainment experiences across underserved regions of Sri Lanka.

Entertainment

Ceylon Theatres (Private) Limited operates the Group's entertainment business under the Regal and Majestic brands, with 18 screens across seven locations.

This sector continued to face significant challenges during the year. Occupancy levels remained low, which meant

that revenue was insufficient to cover operating costs. This led to a loss of Rs. 28 million for the year, compared to a Rs. 26 million loss in the previous year. A weak pipeline of quality Sinhala and Tamil films contributed to this underperformance, compounded by global shifts in consumer behaviour favouring streaming platforms over traditional cinema. The Group continues to evaluate long-term strategic options for this sector in light of these changing dynamics.

Banking and Capital Markets (Associate Investments)

Cargills Bank PLC delivered a satisfactory performance, marking its third consecutive year of profitability. Profit after tax grew

by 48% year-on-year to Rs. 651 million in 2024, supported by capital gains from

treasury bond investments. The Bank's asset base expanded to Rs. 80 billion during the year. Efforts were focused on active management of non-performing loans and strategic portfolio rebalancing. However, the rapid decline in domestic interest rates compressed Net Interest Margins (NIM), as the repricing of

longer-tenure deposits lagged behind falling lending rates. Additionally, the macroeconomic environment-amplified by uncertainty ahead of elections-dampened credit demand and constrained lending growth.

Despite these headwinds, the Bank recorded a 14% growth in its loan book and a 17% increase in its deposit base. Capital and liquidity buffers remained strong, with a Total Capital Adequacy Ratio of 22.44% and all liquidity-related ratios comfortably exceeding the Central Bank's minimum thresholds.

Meanwhile, CT CLSA, which provides stockbroking, investment banking, and asset management services, also posted an improved performance during the year.

Performance trend:

Management and Financial Review ... Contd.

*Includes fair value gains on investment property and after inter-Company consolidation

Restaurants - 5%

FMCG - 20%

Real estate - 0% Entertainment - 0%

Entertainment - 1%

Restaurants - 13%

Real estate - 0%

Revenue contribution

FMCG - 37%

Operating profit contribution

Retail - 49%

Retail - 75%

Sustainability

We continued to advance our environmental stewardship efforts during the year, focusing on reducing our ecological footprint and promoting responsible practices across our value chain. Key initiatives included supporting

our outgrower farmer network in adopting sustainable agricultural methods, expanding solar energy capacity across our operations, reducing reliance on single-use plastics, promoting recyclable packaging, and implementing recycling programs in line with extended producer responsibility and plastic collect-back initiatives. Our commitment also extends to aligning our strategies with the UN Sustainable Development Goals (SDGs), ensuring our initiatives contribute positively to global sustainability efforts.

Governance

We continued to strengthen governance, processes, and internal controls across the Group through a series of structured initiatives. Governance has been reinforced at all levels, starting from

the Board and cascading throughout the organization. A core enabler of this progress has been our continued

investment in technology to digitalize key operational processes, thereby enhancing oversight, accountability, and efficiency.

These efforts include the digitalization of our milk and agricultural produce collection systems, as well as the rollout of a new sales distribution platform-introduced in the previous year to monitor and track sales in the general trade (GT) channel. These tools have significantly improved transparency and

responsiveness across our supply chains. Ongoing initiatives will further strengthen governance frameworks, enabling the Group to operate with greater agility, consistency, and integrity.

We remain firmly committed to upholding the highest ethical standards across all aspects of our business. We have a strict policy against bribery and corruption, supported by robust internal controls and regular awareness initiatives to reinforce

compliance. As one of the country's largest employers, we are equally dedicated to cultivating an inclusive and equitable workplace that provides equal opportunities for all team members-regardless of gender, ability, background, or belief.

Concluding remarks

I would like to take this opportunity to express my deep appreciation for our late Chairman, Mr. Anthony Page. He leaves behind an indelible mark on the Group and on all our lives. We are truly grateful for the invaluable guidance and wisdom he extended to the Board and Senior Management over the years.

I also extend my sincere thanks to our dedicated teams across the Group for their continued commitment and trust. The evolution and diversification of the

Group over the years have been driven by our ability to adapt to changing customer needs and shifting consumer patterns

an approach that has underpinned our resilience and growth.