Annual Report for the year ended 31 March 2025

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 1

RESUS ENERGY PLC

ANNUAL REPORT 2024/25

At Resus Energy, we believe in the quiet power of change. As a pioneering force in solar and hydro power solutions, we embody the principle of "Stillness in Motion"-a dynamic yet serene approach to driving sustainable energy innovation. Our commitment to providing clean, renewable energy is not just a business goal; it is a movement that fuels progress, fosters environmental stewardship, and supports the well-being of our communities.

In a world where the demand for energy is growing at an unprecedented pace, the need for sustainable solutions has never been more urgent. Resus Energy rises to this challenge with unwavering dedication. Our journey has been one of continuous motion. Yet, at the heart of our efforts lies a deep sense of stillness-a mindfulness that guides every decision. It is through this balance of motion and stillness that

we create energy solutions that are not only efficient but also responsible and enduring.

As we look toward the future, we remain steadfast in our commitment to developing sustainable energy solutions that meet the needs of tomorrow while preserving the planet for future generations. In the stillness of our dedication to environmental integrity, we are moving forward with purpose and passion-one innovative step at a time.

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RESUS ENERGY PLC | ANNUAL REPORT 2024/25

CONTENT

CHAIRMAN'S MESSAGE

OUR GENERATION FOR THE YEAR WAS 62.3 GWH AND WE RECORDED A

TURNOVER OF APPROXIMATELY LKR 1.2 BILLION REFLECTING A 11% INCREASE OVER THE PREVIOUS YEAR.

MANAGING DIRECTOR'S REVIEW

OVER THE LAST NINE YEARS, OUR PORTFOLIO GREW FOUR-FOLD. AS OF NOW OUR PORTFOLIO STANDS AT APPROXIMATELY 30MW, WITH EIGHT SMALL HYDROPOWER STATIONS CARRYING 16MW AND THREE SOLAR PV STATIONS CARRYING 14MW.

INTRODUCTION TO OUR ANNUAL REPORT | 04

About Us | 05

Our Journey | 06

Our Organizational Structure | 08

Delivery of Value | 09

Financial Highlights | 10

Non-Financial Highlights | 11

Chairman's Message | 12

Managing Director's Review | 14

Board of Directors | 18

Management Team | 22

Our Business Operation | 23

MANAGEMENT DISCUSSION AND ANALYSIS

Creating Shared Value | 40

Connecting with Stakeholders | 42

Determining Materiality | 45

Resus Strategy | 46

Financial Capital | 47

Manufactured Capital | 55

Social and Relationship Capital | 58

Human Capital | 64

Intellectual Capital | 72

Environment Capital | 74

RESUS ENERGY PLC | ANNUAL REPORT 2024/25

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RESUS ENERGY PLC | ANNUAL REPORT 2024/25

INTRODUCTION TO OUR ANNUAL REPORT

SCOPE AND BOUNDARY

This report presents a comprehensive overview of the business operations of Resus Energy PLC and its Sri Lankan subsidiaries for the fiscal year ending March 31, 2025, with comparative figures for the preceding year ending March 31, 2024. In preparing this report, we have applied the principle of materiality to focus on the most significant economic, environmental, and social issues that are relevant

to both our internal and external stakeholders across short, medium, and long-term horizons. This materiality-driven approach is fundamental

to enhancing our performance, strengthening our sustainability framework, and reinforcing the Group's commitment to sound corporate governance throughout the organization.

We confirm that there have been no changes in the reporting scope, accounting policies, or boundaries compared to the prior year.

Furthermore, non-financial disclosures

A N N U A L R E P O R T 2024/25

ethos. We fully acknowledge the critical importance of reducing carbon emissions and addressing the challenges posed

by climate change. Our unwavering commitment is to responsibly harness renewable energy resources, ensuring that Sri Lanka's growing energy demands

NAVIGATING THE REPORT

are met in an environmentally conscious and sustainable manner.

RENEWABLE ENERGY PROJECTS AND FUTURE OUTLOOK

Our hydro power initiatives capitalize on the natural flow of water to produce

from the previous year remain consistent unless otherwise specified.

Economic Social Environmental

INTRODUCTION ABOUT THE COMPANY

Resus Energy PLC stands at the forefront of Sri Lanka's renewable energy sector, playing a pivotal role in advancing the country's shift towards a sustainable energy future. With

Financial Capital

Manufactured Capital

Social and Relationship Capital

Human Capital

Intellectual Capital

Environmental Capital

a diverse and robust portfolio that includes both hydro and solar power projects, we are dedicated to fostering innovation, championing sustainability, and enhancing the nation's energy independence.

At Resus Energy PLC, sustainability is deeply embedded in our corporate

Feedback

We welcome your comments and inquiries on this report.

Please contact:

Manohara S. Tillakawardana Chief Financial Officer Resus Energy PLC

250/1, Torrington Avenue, Colombo 7, Sri Lanka.

Email : manohara@resusenergy.lk

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 5

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 5

ABOUT US

clean, dependable electricity. By utilizing Sri Lanka's abundant water resources, we deliver

sustainable energy solutions that minimize environmental impact. Through ongoing optimization of our hydroelectric facilities, Resus Energy PLC proudly contributes to the nation's transition towards a clean energy future.

In addition to hydro power, we are leaders in solar energy innovation within Sri Lanka. Our advanced solar installations harness the plentiful sunlight that bathes

the island, reducing dependence on fossil fuels and promoting a greener, more sustainable future.

Looking ahead, Resus Energy PLC is well positioned for continued growth and expansion.

We are actively exploring new opportunities to develop renewable energy projects throughout Sri Lanka, with a

focus on driving innovation and supporting the country's economic and environmental sustainability.

Central to our mission is a strong commitment to the wellbeing

of both people and the planet. We engage closely with local communities and stakeholders to ensure our projects generate

shared benefits. Furthermore, we are dedicated to environmental stewardship, championing efforts to lower greenhouse gas emissions and safeguard natural resources for future generations.

Resus Energy strives to build a commercially sustainable and an energetic World-class organization that cares for "people and the planet" in meeting electricity needs of the people.

We generate electricity using renewable energy sources. In doing so, we create an organization that is: commercially sustainable and provides superior value to our shareholders; a challenging and fulfilling work environment to our employees; caring for stakeholders and our natural environment.

Creativity Integrity

Concern for People and Planet Obsession for Performance Sense of Urgency

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RESUS ENERGY PLC | ANNUAL REPORT 2024/25

OUR JOURNEY

2003/04

JUNE

Incorporated Hemas Power (Pvt) Ltd as a fully owned subsidiary of Hemas Holdings PLC

2004/05

SEPTEMBER

Commissioned Heladhanavi Limited, the first power project. It is a thermal power plant with capacity of 100 MW and was a joint venture between Hemas Power (Pvt) Ltd and Lakdhanavi Limited

2008/09

OCTOBER

Commissioned the first hydro Power project, Giddawa Hydro Power (Pvt) Ltd with a capacity of 2.0 MW in

Digana, Theldeniya

2009/10

SEPTEMBER

Raised Rs. 626 Mn

by way of an Initial Public offering and listed on the Main Board of the Colombo Stock Exchange as 'Hemas Power PLC.'

DECEMBER

Acquired Upper Agra Hydro Power (Pvt) Ltd, an operational hydro power plant with capacity of

2.6MW located in Lindula, Thalawakelle

2011/12 APRIL

Secured permits for hydropower projects in Bundibugyo, Uganda with an aggregate capacity of 10MW under Butama Hydro Electricity Company Limited, a fully owned subsidiary of Hemas Power PLC incorporated in Uganda

DECEMBER

Commissioned 2.4MW Upper Magalganga mini hydropower project in Maliboda, Deraniyagala

2014/15

OCTOBER

Sold joint venture stake in Heladhanavi Limited to Lakdhanavi Limited and became 100% renewable energy company

DECEMBER

Sold entirety of shares of Butama Hydro Electricity Company Ltd. Hemas Holding PLC sold 75% of ownership stake in Hemas Power PLC to a consortium comprising NDB Capital Holdings Limited, ACL Cables PLC and Trydan Partners (Pvt) Ltd. Changed the name of the company to "Resus Energy PLC".

2015/16

SEPTEMBER

Carried out a capital reduction and a share repurchase distributing Rs.

1.6Bn to its shareholders. Raised Rs. 1.08Bn bank loans for Group capital restructuring.

2016/17

AUGUST

Commissioned 1.4 MW Gomale Oya hydropower project in Imewatte, Magala, Deraniyagala

OCTOBER

Sold 15% ownership stake of Associate company Pan Asian Power PLC

MARCH

Commissioned 1.5MW Moragaha Oya hydropower project in Panwila, Kandy

2017/18

APRIL

Acquired J.B Power (Pvt) Ltd with right to develop a 0.7MW Ranwala Oya hydropower project in Maliboda, Deraniyagala

FEBRUARY

Obtained right to develop two solar projects of 1MW each in the Ampara District under the 60MW PV Power Plants of the 1 X 60MW "Soorya Bala Sangramaya- Phase Two" tender.

2018/19

APRIL

Acquired Sierra Power (Pvt) Ltd with right to develop a 2.4MW hydropower project in Karapalagama, Nuwara Eliya District

NOVEMBER

Commissioned Ranawala Oya hydropower project in Maliboda, Deraniyagala

MARCH

Resus Energy PLC merged with its wholly owned subsidiaries Giddawa Hydropower (Pvt) ltd, Okanda Power Grid (Pvt) Ltd and Upper Agra Oya Hydro Power (Pvt) Ltd. Signed SPPA's for two solar power projects of 1MW each in Ampara district under 1

X 60MW 'Soorya Bala Sangramaya-Phase Two"tender

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 7

2021/22

APRIL

2019/20

Obtained right to build twelve solar power projects of 1MW each in the Ampara and Mahiyanganaya districts the 1 X 60MW 'Soorya Bala Sangramaya- Phase 2 tender

JULY

Commissioned 1.9 MW Upper Huluganga Hydropower plant in, Huluganga. Panwila, Kandy

SEPTEMBER

Secured a study permit for a hydropower project in Uganda

JANUARY

2020/21

SEPTEMBER

Commissioned 1MW Solar PV plant in Siyambalanduwa, Monaragala district, being the first operational solar plant under Resus Energy PLC

NOVEMBER

Commissioned 1MW Solar plant in Siyambalanduwa, Monaragala district, being the second operational solar plant under Resus Energy PLC

FEBRUARY

Obtained rights to build 2 solar power projects of 10MW each in the Ampara and Mahiyanganaya areas under 150MW solar PV tender.

MAY

Partly Commissioned 1MW of 2.4MW hydropower plant in Karapalagama under phase 01

Commissioned balance

1.4MW of hydropower plant in Karapalagama under its final phase

MARCH

Resus Energy PLC issued debenture for 611.35 Mn with maturities spanning from 03 to 05 years for group debt restructuring

2022/23

APRIL

Commissioned 6MW Solar PV Power Plant in Mahiyanganaya under 1X 90MW PV Soorya Bala Sangramaya -Phase 2 tender

2023/24 2024/25

SEPTEMBER

Commissioned 1MW Solar PV Power Plant in Siyambalanduwa under 1X 90MW PV Soorya Bala Sangramaya -Phase 2 tender

MARCH

Commissioned 5MW PV Solar Power Plant in Ampara under 90MW Solar power project of Soorya Bala Sangramaya - Phase 2.

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RESUS ENERGY PLC | ANNUAL REPORT 2024/25

OUR ORGANISATIONAL STRUCTURE

Resus Energy PLC is a limited liability company listed on the Colombo Stock Exchange. The company and its subsidiaries are incorporated and domiciled in Sri Lanka.

Resus Energy PLC

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Gomale Oya (Pvt) Limited

Moragaha Oya

(Pvt) Limited

J B Power (Pvt) Limited

Upper Huluganga (Pvt) Limited

Rawanakanda Hydro Power (Pvt) Limited

Resus Solar (Pvt) Limited

Sierra Power (Pvt) Limited

Resus Eastern Solar (Pvt) Limited

Resus Engineering (Pvt) Limited

Resus Solar Electric Pvt Ltd

"During the year, the Group was able to integrate 5MW Solar power project to the national grid based in Ampara under 1*90 sooryabala sangramaya phase II"

RESUS ENERGY PLC | ANNUAL REPORT 2024/25

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DELIVERY OF VALUE

Hydropower Sector Revenue

Community Engagements

Water Recycled

Total Training Hours

Investments in Community Development

Solarpower Sector Revenue

Engineering Sector Revenue

Operating Profit

Taxes paid to Government

Group PAT

Reduction in Greenhouse Gas Emission

Electricity Generation from Fully-owned Solarpower

Plants

Electricity Generation from Fully-owned Hydropower

Plants

Net Assets Value per Share

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RESUS ENERGY PLC | ANNUAL REPORT 2024/25

FINANCIAL HIGHLIGHTS

RESUS ENERGY PLC | ANNUAL REPORT 2024/25

11

ENVIRONMENTAL CAPITAL

HUMAN CAPITAL

SOCIAL AND RELATIONSHIP CAPITAL

NON- FINANCIAL HIGHLIGHTS

12 RESUS ENERGY PLC | ANNUAL REPORT 2024/25

CHAIRMAN'S MESSAGE

Our generation for the year was 62.3 GWh and we recorded a turnover of approximately LKR 1.2 billion reflecting a 11% increase over the previous year.

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 13

Dear Shareholders,

Welcome to the twenty second Annual General Meeting of Resus Energy PLC. I am happy to present to you our tenth Integrated Annual Report and the

Audited Financial Statements for the year ended 31st March 2025. The consistent performance of our power plants contributed to another year of excellent operational results.

Our generation for the year was 62.3 GWh and we recorded a turnover of approximately LKR 1.2 billion reflecting a 11% increase over the previous year. That translated into Rs. 370 million Profit before Tax (PBT) at 39% YoY growth. PBT increase was aided by increased other income and reduced finance costs. However, our Net Profit After Tax declined 43% YoY to LKR 215 million, primarily due to a deferred tax charge-out from our deferred tax asset.

Although we were on a consolidation strategy resulting from CEB defaulting on timely payments leading to low liquidity, we have now reverted to a growth path. However, our expansion plans will feature our aspiration to geographically diversify investments to limit our overdependency on one public utility. Therefore, while we would participate in new government tenders and Feed-in Tariff projects, we would do so cautiously.

In these lines, we developed and commissioned the 5MW solar project in Ampara, which was held back on force majeure. With our improved liquidity, reduction in market interest rates and solar panel prices backed by stability in exchange rates, makes this project viable. With that, our aggregate installed capacity now stands at 30MW.

In line with our priority to maximize returns to our shareholders, assisted by

Although we were on a consolidation strategy resulting from CEB defaulting on timely payments leading to low liquidity, we have now reverted to a growth path.

the improved financial liquidity, we paid a cash dividend of Rs. 86,184,827 during the year.

Looking ahead, with a strategic focus on talent, innovation, and operational excellence, I am confident that Resus will continue to utilize its resources

efficiently to drive sustainable growth and create excellent long-term value to our stakeholders.

I therefore take this opportunity to extend my appreciation to our team for their contribution in achieving this success as well as my colleagues on the Board for steering the Company and guiding them at a high level. I thank all of you, our valued shareholders, for the continued trust and confidence placed in us.

Suren Madanayake

Chairman

Colombo, Sri Lanka 31st July 2025

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MANAGING DIRECTOR'S REVIEW

Over the last nine years, our portfolio grew fourfold. As of now our portfolio stands at approximately 30MW, with eight small hydropower stations carrying 16MW and three solar PV stations carrying 14MW.

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 15

Driven by strong operational results, finance cost reduction and improved liquidity,

the Resus Energy Group concluded the financial year 2024/25 on another high note. Both our hydropower plants and solar power stations performed well. That in turn enabled us to record highest Profit Before Tax since transitioning to a fully renewable energy company in 2014/15.

The improvements in the macroeconomic conditions, especially the stability of LKR against the US Dollar and the reduction in prices of solar PV panels also enabled us to come out of the force majeure state and

develop our Ampara 5MW solar project. This plant was commissioned in March 2025.

With that the Resus Energy Group now operates 30MW power plants in eleven locations.

In the new financial year, Resus launched the country's first Green Bond by a non-banking & finance company and raised Rs. 1 billion to support our new renewable energy projects and refinance some existing loans. Both solar PV and small hydropower will take center stage in our medium-term expansion plans backed by meaningful geographical diversification in managing investment exposure.

OPERATIONAL AND FINANCIAL PERFORMANCES

Weather and its impact

The southwest monsoon rain arrived later than usual this time. But it caught up in subsequent months thus positively impacting overall hydropower generation. Whilst most of our hydropower stations exceeded their annual generation targets,

the high levels of solar irradiance prevailed in our solar power stations, in spite of being cloudy and a good rainfall year led to good operational output from our solar plants too.

Electricity Generation

Annual generation for the financial year 2024/25 was 62.3 GWh. This is 4% greater

than 59.7 GWh recorded in the year before. Mahiyanganaya Solar PV station with 10.6 GWh (115% YoY) recorded the highest generation for a single location. The Giddawa plant, that generated 8.9 GWh (110 % YoY) at 51% plant-utilization-level, recorded the highest generation amongst hydropower plants. At the same time, the generator failure at the Gomale Oya plant put off its operations for

about three months, reducing its annual generation substantially. The generation details are as follows::

Financial results

Despite the Gomale Oya generation loss and the tariff reduction from Rs.18.85/ kWh to Rs.9.27/kWh as it transitioned to the second tariff tier in August 2024, higher overall generation from our other power stations boosted our revenues for the year. This was further assisted by the revenues from Resus Engineering.

However, additions to the operational costs stemming from new installations and/or reflection of full-year operations of those that operated partially the year before, the increase in revenues last year was not sufficient to fully absorb the increase in operational costs. Therefore, our Operating Profit declined 5% YoY from

Rs. 801 million to Rs. 760 million. But with

a 28% finance cost reduction from the decline in interest rates and timely invoice settlements, together with an increase

in other income, our Profit Before Tax increased 39% YoY to Rs. 370 million from Rs. 265 million. Nevertheless, the deferred tax charge out from the deferred tax assets created in the previous year, brought our Net Profit After Tax down 43% YoY from Rs. 374 million to Rs. 215 million.

On the other hand, despite channeling over Rs.750 million for the 5MW

Ampara project, our total loan exposure increased only marginally from Rs.

3.456 billion to Rs. 3.597 billion. As a result, our gearing ratio dropped to 59% from 60%. However, since this project was mainly developed with internally generated funds keeping a low gearing level, the impact of its low gearing on the overall group's gearing will be reflective only with the increase in its retained earnings in the coming years. At the same time, as an investment company engaging in development activities, sustaining a balanced capital structure with a reasonable level of gearing while maintaining an acceptable level of liquidity is essential to ensure efficient capital deployment and maximize earnings.

16 RESUS ENERGY PLC | ANNUAL REPORT 2024/25

MANAGING DIRECTOR'S REVIEW

ECONOMIC AND THE SECTOR OUTLOOK

Economic Challenges

Notwithstanding the political regime change, Sri Lanka is seemingly committed to macroeconomic stabilization through the implementation of IMF-supported reforms agenda. The completion of international sovereign bond restructuring and the receipt of the third tranche of IMF funding under the Extended Fund Facility significantly contributed to restoring macroeconomic stability and laying the groundwork for sustainable economic recovery. Sri Lanka recorded a 5% GDP growth in CY2024.

During the year, Fitch Ratings upgraded the country's long-term foreign currency default rating to 'CCC+', officially marking Sri Lanka's exit from default status for the first time since 2022. This development is likely to restore investor confidence that may eventually improve the economic outlook. The broader macroeconomic environment improved steadily, supported by declining interest rates and low inflation. These factors contributed to a more stable economic environment. At the same time the sluggish state of our key export markets and the war in the middle east are a serious concern for our balance of payment scenario although the tourism income and inward remittances

are sustained at satisfactory levels. Further, if this turns out to be an El-Nino year

as predicted by some, that will affect our produce outputs and the costs of electricity generation.

Sector Outlook

In spite of implementation challenges, favorable government policies over the last two decades accelerated renewable energy development in Sri Lanka. As of December 2024, the country's installed renewable energy capacity was 3,845MW. This is 65%

against the total installed capacity of 5,908 MW. At 9,175 GWh, this translated into

a 54% of the total electricity generation. At the same time, substantially aided by 590MW solar rooftops, the addition from Non-conventional Renewable Energy (NCRE) to the national grid in 2024 was astounding 627MW. Accordingly, NCRE capacity as of December 2024 was 2,314MW. That was 39% against the total installed capacity. Whereas at 3,749 GWh, NCRE represented 22% of the total generation for 2024. Rooftop solar, at 1400MW (24%) is now the largest NCRE segment in the country. It is followed by 432MW (7%) small hydropower, 263MW (5%) wind, 163MW (3%) ground-mounted

solar and 44MW (1%) biomass. Accelerating Sri Lanka's clean energy transition requires not just ambitious policy but also decisive execution, coordinated stakeholder effort, credibility of the utility and that of the regulator, and sustained infrastructure development to bridge the gap between policy intent and the ground-level progress.

The improved financial health of the Ceylon Electricity Board (CEB) since the introduction of cost-reflective consumer tariffs, made it financially liquid and independent once again. That also enabled settlement of long outstandings to the renewable energy sector, which peaked

at a staggering 15-months delay. These developments are conducive for the sector in attracting new investments.

Government Policy and ground reality

The reforms proposed in the new Electricity Act 2024 in general were well received by industry and the public. The Act outlines several transformative actions aimed at modernizing Sri Lanka's power sector and proposes to unbundle CEB to separate entities for generation,

transmission, and distribution to enhance transparency and productivity. It calls to establish a permanent National Electricity

Advisory Council to provide strategic policy direction, and empowerment of the Public Utilities Commission of Sri Lanka with greater autonomy to ensure regulatory accountability. In addition, the Act promotes a transition to a market-

based energy framework to attract private investment, accelerating renewable energy adoption, and reducing fiscal pressure from subsidies and public debt. These collectively help the implementation of the country's energy policy especially to deal with energy security, saving forex

and economic benefits and to fulfill our sustainability pledges.

However, the new regime's proposed changes to the Act, which according to some arguments, would effectively

create multiple CEB's as opposed to the envisaged unbundling, is alarming. CEB now operates as a commercial monopoly contravening cardinal rules of good governance. Views expressed in a joint letter by the World Bank, ADB and JAICA raised similar concerns. On the other hand, the effectiveness of reforms, whichever they turn out to be, will largely be dependent on inclusivity and benefits they translate to the stakeholders, including the consumers.

Notwithstanding some progressive policy directions over the years, the ground realities present a more complex landscape. Sub-optimal behavior by

the public sector and political offices is regularly encountered. Sri Lanka's dependency on coal and thermal oil

continues to expose the country to global fuel price volatility and exchange rate risks, affecting affordability and long-term energy security. On the other hand, CEB's failure to establish crucial infrastructure to integrate renewable energy, especially the substantial influx of rooftop solar,

is suboptimal and counterproductive to achieving these goals. CEB also forcefully shuts renewable energy plants down in

RESUS ENERGY PLC | ANNUAL REPORT 2024/25 17

low demand periods to manage the grid stability inflicting significant financial damage to them.

This shows CEB's poor planning and implementation as these outages could have been averted if the pump-storage plant enlisted in their own Longterm Generation and Expansion Plan from ten years ago was built. Now the Battery Energy Storage Systems (BESS) with a far lower lifecycle and thus with a higher lifecycle cost are looked at. It would still take a year or two for a BESS to be commissioned. At the same time, it is extremely disturbing

to see CEB's interest in procuring more LNG plants which for all practical reasons run on Heavy Fuel Oil. Besides, LNG is still an imported commodity and drains out forex as opposed to generating electricity using indigenous sources. LNG also has a considerable carbon footprint and work against our decarbonization aspirations and commitments.

STRATEGIC OUTLOOK OF THE COMPANY

Growth and Operations

Over the last nine years, our portfolio grew four-fold. As of now our portfolio stands at approximately 30MW, with eight small hydropower stations carrying

16MW and three solar PV stations carrying 14MW. This is a near-perfect balance. Our estimated annual energy production is 75GWh.

Further 2MW and 1MW solar PV projects are earmarked for development in Ampara and Pallekele in the coming year. These new additions are expected to contribute approximately 5.0 GWh to our annual energy production. In addition, we are hopeful of breaking ground in our first international project in East Africa this year. While we intend to look for and participate in new and emerging opportunities in Sri Lanka which remain our key development

hub for now, our effort to invest overseas relates to derisking our overdependency on one market.

Although our past growth has primarily been in the small hydropower sector, our more recent investments in the solar PV segment enabled vital segmental diversification. Solar generation provides more consistent output compared to hydropower, which can be affected by drought conditions. We are also hopeful that opportunities will emerge in BESS, as the medium-term solution to the challenges posed by the considerable renewable energy integration, especially from the rooftops.

Resus, as a long-term player in the energy sector, remains resilient and optimistic about an economic turnaround. Despite improvements in power infrastructure and household electrification, our per

capita electricity consumption remains low compared to many South Asian countries. In case of an economic rebound, electricity demand is likely to increase. Since Sri Lanka is working towards achieving 70% renewable energy by 2030 and become

a fully decarbonized nation by 2050, the government's policy is likely to back higher renewable integration. This could therefore open-up considerable opportunities to those in the renewable energy space.

Sustainability

Our Vision and Mission are the cornerstones Our Vision and Mission are the cornerstones of creating value for our stakeholders.

Our core values, structures, systems, and processors encourage sustainable development and inclusive growth,

transparent and visible through our corporate reporting process. Continuous surveillance of compliance with systems, which include our Environmental Management Plan, is

part of our development and operational framework. In addition, the quest to

empower our staff is taking further strides. Our scheme to grow our own produce as a home garden project, the harvests from which are distributed amongst the staff, is gathering further momentum. Also, we are

striving through almost our daily behavioral actions to fulfill our aspiration to be an equal opportunity employer.

Global Reporting Initiative Standards

This is our tenth integrated Annual Report, and we unceasingly follow the best practices in corporate reporting and matters relating to sustainability. In the past few years, our sustainability reporting

has been guided by the GRI G4 guidelines. As a responsible corporate citizen, we were amongst the early adopters of the GRI Standard taking sustainability reporting to greater heights.

Conclusion

With our liquidity situation improving, we paid a cash dividend of Rs. 86,184,827 during the year in line with our objective to maximize returns to our shareholders. Starting off a difficult year, our team stood steadfast as we gradually consolidated our business as they did in more difficult times. They work hand in glove with me in our pursuit to take this company to greater heights. I salute them. I also extend my sincere gratitude to my fellow colleagues on the Board and to all of you, our valued

shareholders, for your continuous trust and confidence, placed in us.

G A K Nanayakkara

Managing Director

Colombo, Sri Lanka 31st July 2025

18 RESUS ENERGY PLC | ANNUAL REPORT 2024/25

BOARD OF DIRECTORS

MR. H A S MADANAYAKE

Non-Executive Chairman

MR. G A K NANAYAKKARA

Managing Director

MR. U P EGALAHEWA

President's Counsel Non-Independent Non-Executive Director

MRS. D C ABEYEWARDENA

Independent Non-Executive Director

PROFESSOR N.D. GUNAWARDENA

Independent Non-Executive Director

MR. K P P M AMARASIRI

Non-Independent Non-Executive Director