UNFORGETTABLE

PEOPLE. CONNECTIONS. MEMORIES.

Aitken Spence Hotel Holdings PLC

Annual Report 2023/24
UNFORGETTABLE
PEOPLE. CONNECTIONS. MEMORIES.
At Aitken Spence Hotels, every memory we create is designed to last.

Over the years, we have fostered an atmosphere that evokes a sense of nostalgia,
simply by curating memorable experiences that are etched in the hearts and minds of
every guest that walks through our doors.

We believe that every connection created here at Aitken Spence Hotels is invaluable.
That’s why we have always invested considerable time and resources towards
building relationships that last a lifetime, while directing our every effort towards
delivering unmatched stakeholder value in all we do.

Armed with an indelible legacy, we’re creating a powerful, all-encompassing narrative

that stands the test of time.

Aitken Spence Hotels. We are truly unforgettable.

CONTENT

OVERVIEW Performance and Capital FINANCIAL REPORTS

Management
4 About this Report 162 Financial Calendar
71 Financial Capital
7 About Us 163 Index to the Financial
74 Manufactured Capital
10 Group Structure Statements
82 Human Capital 164 Independent Auditor’s Report
12 Key Milestones
92 Intellectual Capital 168 Statement of Profit or
14 Group Performance Highlights
98 Social and Relationship Capital Loss and Other
16 Chairman’s Review
106 Natural Capital Comprehensive Income
22 Managing Director’s Review
26 Board of Directors 170 Statement of Financial Position
32 Corporate Management Team 172 Statement of Changes in Equity
174 Statement of Cash Flows
176 Notes to the Financial
Statements
272 Quarterly Statistics
274 Indicative US Dollar
Financial Statements

GOVERNANCE
114 Corporate Governance
143 Audit Committee Report
146 Related Party Transactions
Review Committee Report
148 Remuneration
Committee Report
150 Nomination & Governance
Committee Report
152 Statement of Directors’
Responsibilities
153 Annual Report of
The Board of Directors SUPPLEMENTARY
159 The Board of Directors’ INFORMATION
MANAGEMENT Statement on Internal Controls 279 Investor Information
DISCUSSION & ANALYSIS 284 Decade at a Glance
39 How We Create Value 285 Real Estate Holdings
42 Responding to Our Stakeholders of the Group
45 Strategy and Resource Allocation 286 Group Companies
48 Determining Material Issues and Directorate
50 Managing Risks and Opportunities 289 Corporate Information
58 Operating Environment 290 Independent Assurance Report
63 Sustainability at Aitken Spence Hotels 294 GRI Content Index
301 SASB Disclourses
64 Our Socio-economic Impact
302 Glossary of Financial Terms
66 Performance Analysis
304 Notice of Meeting
307 Form of Proxy
309 Investor Feedback Form

2
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 OVERVIEW

A THRILLING ADVENTURE
At Aitken Spence Hotels, we empower our stakeholders
with the freedom to explore their true potential, and the
opportunity to experience all that life has to offer.
ABOUT OUR 13TH INTEGRATED ANNUAL REPORT

Welcome to the 13th Integrated Annual Report of Aitken Spence

Hotel Holdings PLC (ASHH) for the financial year ended 31st
March 2024. The report seeks to provide a concise and balanced
view of how the Group strategically leveraged its resources to
deliver value to its stakeholders. The Report also provides relevant
information on the operating environment, corporate governance
practices and risk management, while reflecting on the future.

GRI 2-3 SCOPE AND BOUNDARY

REPORTING PERIOD The Report covers the operations of Aitken Spence Hotel Holdings PLC (“Aitken Spence
The Report follows an annual reporting Hotels” or the “Company”), its subsidiaries and interests in equity accounted investees
cycle and covers the financial period from (collectively referred to as the “Group”). Reporting boundaries for both financial and non-
01st April 2023 to 31st March 2024. It financial information are aligned and extends to include developments in the external
builds on the Group’s most recent report environment and along the Group’s value chain.
for the year ended 31 March 2023, for
which comparatives are presented where The Financial information presented on pages 164 to 271, and the discussion of financial aspects
applicable. Material events subsequent to in the narrative report present a consolidated view of the Group, unless otherwise stated.
the reporting period and up to the Board The non-financial information is limited to the 15 properties owned by Aitken Spence Hotels
approval date of 15th July 2024 have also in Sri Lanka, the Maldives, India, and Oman. It excludes the managed properties.
been included.
There were no significant changes to the structure, supply chain or material restatements of
GRI 2-2 information nor changes to our reporting boundary during the year.

GRI 2-4
Integrated Reporting Boundary

Reporti ng Bound
cial ary
n an
Fi

https://www.aitkenspencehotels. Non-Financial Reporting

com/about-us/investor- Boundary
relations.html
15 owned properties in
Sri Lanka, the Maldives,
Oman and India

s
03 M rti e
anaged Prope
Our Annual Report is also available online,
Please visit our website at https://www. Operating environment, external stakeholders including customers,
aitkenspencehotels.com to access the report value chain partners and communities.

4
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
REPORTING FRAMEWORKS
The following frameworks have been applied in preparing this Report, moving beyond regulatory compliance to incorporate international best
practice into the reporting process.

Financial Reporting Narrative Reporting Sustainability Corporate Governance

• Sri Lanka Accounting • Integrated Reporting • In accordance with GRI • Continued Listing
Standards (SLFRS/ LKAS) Framework of the standards issued by the Global Requirements of the
issued by CA Sri Lanka International Integrated Reporting Initiative Colombo Stock Exchange
• Sri Lanka Accounting & Reporting Council (IIRC) • ESG Reporting Guidelines • Code of Best Practice on
Auditing Standard Act No. issued by the Colombo Stock Corporate Governance
15 of 1995. Exchange 2017, as amended in 2023,
• Companies Act No 7 of • Sustainable Development Goals issued by CA Sri Lanka.
2007 (SDG) of the United Nations
• Securities and Exchange
• Gender Parity Reporting
Commission of Sri Lanka
Framework issued by CA Sri
Lanka Act No. 19 of 2021 and the
amendments thereto.
• SASB® Standards, IFRS
Sustainability Disclosure
Standards

MATERIALITY
The Report provides information on material themes that can significantly impact Board Responsibility Statement
the Group’s ability to create value over the short, medium and long term. (Refer Aitken Spence Hotel Holdings PLC Board
Determining Material Issues on page 48 for more on the process for determining acknowledges its responsibility for ensuring the
materiality) integrity of this Report. We hereby confirm that
GRI 2-5 the 2023/24 Annual Report fairly represents the
Group’s integrated performance and addresses
COMBINED ASSURANCE all relevant material that have a bearing on our
The integrity of this Report is ensured through a combined assurance model which ability to create value over the short, medium and
includes both internal and external assurance on the financial and non-financial long term. We also confirm that the Report has
reporting. Internal assurance on financial reporting includes consistent monitoring been prepared in accordance with the Integrated
by the Audit Committee and internal audit function while dedicated sustainability Reporting Framework of the International
units at both Aitken Spence Hotels level and parent entity level (Aitken Spence Integrated Reporting Council.
PLC) ensure the accuracy of the non-financial information.

Independent Third-Party external assurance obtained from the following: FEEDBACK

• External assurance on the financial statements have been provided by Messrs. We continuously strive to improve the quality and
KPMG and is available on pages 164 to 167 of this Report. readability of the Annual Report and value your
• External assurance on the Group’s sustainability reporting information has comments and suggestions. Kindly direct your
been provided by Ernst & Young under Sri Lanka Standard on Assurance feedback through the investor feedback form on pages
Engagements (SLSAE) 3000 (Revised). The opinion of the above is given on 309 to 310. Our contact details are:
pages 290 to 293. info@aitkenspence.lk

FORWARD-LOOKING STATEMENTS Group Business Development Unit- Aitken Spence PLC

The Report includes forward-looking statements regarding the Group’s future
performance and prospects which involve an element of uncertainty, given the This Annual Report
exposure to external conditions. We do not undertake to update or revise these is also available online.
statements publicly in the event of a change of circumstances.

5
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ABOUT OUR 13TH INTEGRATED ANNUAL REPORT

APPROACH TO INTEGRATED REPORTING

The Group’s integrated approach to corporate reporting reflects the holistic thinking that has been embedded across the organisation in
formulating strategies and engaging with stakeholders. This entails clearly identifying capital inputs, assessing resource allocations and
tradeoffs when implementing strategy and driving stakeholder value creation.

Materiality Assessment: Identification of topics that are material to the company

Material Topics: Selection of material topics
Operating Environment
• Risks and opportunities Strategy Formulation: Formulation of strategy
Material topics for
stemming from the to manage these topics
2023/24 are:
operating environment. • Macro-economic Shareholder Value:
Strategic goals Shareholder outcomes
(Refer page 50) conditions
• Portfolio maintenance
Stakeholder considerations • Cost management and upgrade Shared value delivered to
• The diverse and often • Financial performance • Operational excellence • Customers
competing interests of our and enhancement of • Employees
• Developing our talent
stakeholders. financial stability • Shareholders
Sustainability
(Refer page 42) • Service and operational
(Refer page 46 for full list) • Business partners
excellence
Unique strengths and • Government
• Customer satisfaction
capabilities • Communities
• Talent management
(Refer page 14 for full list)
(Refer page 48 for full list)

NAVIGATION ICONS
We have used the following navigation icons across the Report to showcase the connectivity of information.

CAPITALS

Financial Manufactured Human Social and Intellectual Natural

Capital Capital Capital Relationship Capital Capital Capital

STAKEHOLDERS

Investors Business Customers Employees Government & Communities

Partners Regulators

6
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
ABOUT US

To achieve excellence in all our activities, establish

Our high growth businesses in Sri Lanka and across
Vision new frontiers, and become a globally competitive
market leader in the region.

Our • Reliable
• Honest & Transparent
Core • Warm & Friendly
Values • Genuine
• Inspiring Confidence

OUR PRIORITISED SUSTAINABLE DEVELOPMENT GOALS (SDGs)

We contribute to several of the United Nations Sustainable Development Goals (SDG’s) through our operations and strategic
CSR initiatives.

7
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ABOUT US

AT A GLANCE
Situated in key tourist locations, the
Aitken Spence Hotels chain boasts exotic
Aitken Spence Hotel Holdings
PLC is one of Sri Lanka’s properties from the award-winning eco-
largest hotel operators, friendly Heritance Kandalama which
operating a chain of 18 hotels
and resorts in Sri Lanka, the is situated in close proximity to two
Maldives, Oman and India. UNESCO world heritage sites...

The Group’s competitive edge

stems from its best-in-class
service standards, distinctive
collection of hotels – some
of which are architectural
masterpieces – and excellence
in cuisine. Each of the Group’s
unique properties caters to
a diverse client base, having
hotels and resorts suited
to every need and budget,
while maintaining inimitable
hospitality.

...to the Desert Nights Resort in Oman,

The Group is a subsidiary of rated as one of the top ten desert retreats
Aitken Spence PLC, - one of in the world.
Sri Lanka’s most respected and
diversified conglomerates with
widespread business interests
in Maritime and Logistics,
Strategic Investments and
Services, and Tourism.

8
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
EARNING OUR LICENSE TO OPERATE
Our hotels in Sri Lanka, the Maldives, Oman and India strive to be at the forefront of driving sustainability, adopting a holistic ESG agenda in
line with the Integrated Sustainability Framework of our parent entity. We offer immersive experiences to our guests while leaving a positive
footprint through environment and community development initiatives. This has earned us the trust and respect of our stakeholders.

Embracing the Local Culture Environmental Responsibility Socio-economic Empowerment

Our hotels embody a multidimensional Environmental responsibility is key as we We nurture relationships with a range of
nature, embracing the culture of each strive to minimise our environmental impact stakeholders including suppliers and the
location by connecting with people, and preserve the natural beauty of our community, making a strong contribution
celebrating diversity and fostering a surroundings. to their socio economic empowerment.
sense of belonging.

OUR PRESENCE
With fifteen owned properties and three managed properties spanning four countries, our brand offers guests unparalleled experiences.

While having a strong presence in Asia through its leisure hotels in Sri Lanka and the Maldives, the Group was one of the earliest hoteliers
to move into Oman, which is an emerging tourist destination.

The Group also owns a hotel in India targeting business travel, which is a rapidly growing market segment.

2,823
Sri Lanka Direct employees
1,295 rooms in
8 properties owned 04
Country footprint
116 rooms in
1 property managed 2,639 Rooms
Across 18 owned properties

Maldives Oman India 34,433 tCO2e

Carbon Footprint
745 rooms in 150 rooms in 1 property owned 140 rooms in
5 properties owned 1 property owned 813,444 m3
193 rooms in 2 properties managed
Water Footprint

Sri Lanka Sri Lanka

Maldives
Turyaa Kalutara Amethyst Resort
Sri Lanka Adaaran Prestige Vadoo
Earl’s Regency*
Heritance Kandalama Adaaran Select Meedhupparu India
Heritance Ahungalla Adaaran Select Hudhuran Fushi Turyaa Chennai
Heritance Tea Factory Adaaran Club Rannalhi
Heritance Ayurveda Hotel RIU Sri Lanka
Sentido Heritance Negombo Oman
Maldives Al Falaj Hotel
Heritance Aarah Desert Nights Resort*
Sur Plaza Hotel*

* Managed Properties

9
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GROUP STRUCTURE

Aitken Spence
Hotel Holdings PLC

60% 41% 51%

Cowrie Investment Pvt Ltd. Aitken Spence Hotels Aitken Spence Hotel
Adaaran Select Meedhupparu/ International (Pvt) Ltd. Managements Asia (Pvt) Ltd.
Heritance Aarah

20% 84.57%
Aitken Spence Hotels PR Holiday Homes Pvt Ltd.
International (Pvt) Ltd.

99.99%
Perumbalam Resorts
Pvt Ltd.

100% 100% 100% 99.99% 100%

Ace Resorts Pvt Ltd. ADS Resorts Pvt Ltd. Unique Resorts Pvt Ltd. Aitken Spence Hotel Aitken Spence Resorts
Adaaran Select Adaaran Prestige Vadoo Services Pvt Ltd. (Middle East) LLC
Hudhuran Fushi Al Falaj Hotel

0% 0%
(One share) (One Share)
Ace Resorts Pvt Ltd. Aitken Spence Hotel
Managements
(South India) Pvt Ltd.
Turyaa Chennai

27.89% 100% 37.42% 16.60% 94.44% 60% 100% 100%

Amethyst Turyaa (Pvt) Ltd. Browns Beach Aitken Hethersett Ahungalla Neptune Nilaveli
Leisure Ltd. Turyaa Kalutara Hotels PLC Spence Hotel Hotels Ltd. Resorts Ltd. Ayurvedic Holidays
[Amalgamated Managements Heritance Tea Hotel RIU Village (Pvt) Ltd. (Pvt) Ltd.
with Turyaa (South India) Factory Sri Lanka
Resorts (Pvt) Ltd. Pvt Ltd.
with effect from 100% Turyaa Chennai
100% 1st April 2023]
Negombo Beach
Paradise Resorts Resorts (Pvt) Ltd.
Passikudah (Pvt) Ltd. Sentido Heritance
Amethyst Resort Negombo

10
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 100% 98.01%

Crest Star (BVI) Ltd. Aitken Spence Hotels Ltd.

Heritance Ayurveda

83.40% 95% 100% 63%

Aitken Spence Hotel Managements Jetan Travel Services Kandalama Hotels (Pvt) Ltd.
Heritance (Pvt) Ltd.
(South India) Pvt Ltd. Company Pvt Ltd. Heritance Kandalama
Turyaa Chennai Adaaran Club Rannalhi

0.01%
(One share)
Perumbalam Resorts
Pvt Ltd.

100% 100% 49% 100% 0% 0% 0% 0%

Nilaveli Resorts Galle Heritage Aitken Meeraladuwa (One Share) (One Share) (One Share) (One Share)
(Pvt) Ltd. (Pvt) Ltd. Spence Hotel (Pvt) Ltd. Aitken Spence ADS Resorts Unique Resorts Ace Resorts
Managements Resorts (Middle Pvt Ltd. Pvt Ltd. Pvt Ltd.
(Pvt) Ltd. East) LLC Adaaran Select Adaaran Prestige
Al Falaj Hotel Hudhuran Fushi Vadoo

100%
Aitken Spence
Resources (Pvt) Ltd.

11
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
KEY MILESTONES

1973 1994
The Company acquires
2000
The third hotel in the Maldives, the
INCORPORATES approximately 97% of the share
capital of Aitken Spence Hotels
215 room Meedhupparu Island
Resort is launched in June 2000.
AITKEN SPENCE Ltd; thereby gaining a controlling
interest in Neptune Hotel,

HOTELS LTD. Kandalama Hotel and Pearl Beach

Hotel. 2004
Investment in Browns Beach The Group acquires Earl’s
Hotel and Hotel Hilltop. Regency hotel in Kandy for the

1978
management.
Kandalama Hotel commences
operations.

INCORPORATES The Company acquires its first

island in the Maldives, Bathala 2005
AHUNGALLA Island Resort, becoming the first
Sri Lankan hospitality company to
20 Luxury Water Villas are
constructed and launched at
HOTELS LTD, AS A invest overseas. Meedhupparu, Maldives.

PUBLIC QUOTED
COMPANY. 1995 2006
The Company acquires a majority The Company’s new ‘Heritance
holding in Hethersett Hotels Ltd., Hotels and Resorts’ brand is
the owning company of The Tea launched.

1981
Factory Hotel.

COMMENCES 1996
2007
COMMERCIAL
The Company ventures into India
The Tea Factory in Nuwara Eliya and is successful in securing
commences operations. management contracts for four
OPERATIONS OF The Company acquired its second resorts.

TRITON HOTEL
Hotel Rannalhi Island Resort in Completes renovations and
the Maldives. unveils Heritance Ahungalla.

WITH 126 ROOMS. The Company acquires its fourth

resort in Maldives, ‘Adaaran
Select Hudhuran Fushi’.

1986
TRITON HOTEL IS
AWARDED 5-STAR
STATUS, THE FIRST
FOR A BEACH
1997
HOTEL IN SRI The Company changes its name to

LANKA.
Aitken Spence Hotel Holdings Ltd

12
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
2008 2014 2017
The Company made further Entered into a joint venture Aitken Spence Hotels unveils
investments in the Maldives agreement with Spanish Heritance Negombo located in
through the acquisition of Vadoo Company RIU to construct a 501 proximity to the City and the
Island Resort. room, 5-star resort adjoining International Airport, making it a
Heritance Ahungalla. popular hotel for travellers keen
The Group divested its to be near the City and explore its
investment in Bathala Island attractions.
Resort.
The Company ventures into 2015 Hotel RIU,Sri Lanka commenced
operations, under the Group’s
Oman by securing management Acquisition of a strategic stake in collaboration with RIU Hotels
contracts for four hotels. Amethyst Resort Passikudah. Spain
The Company made further
investments in the Maldives
2009 through the acquisition of Aarah
Island in Raa Atoll.
Adaaran Prestige Vadoo, the
latest addition to the Adaaran The Group acquires a 143
Resorts commences operations. roomed hotel in Chennai, India
Secured a management contract
for luxury desert camp in Oman.

2010
The Company acquires 2018
ownership of Golden Sun The Group divested its
Resorts, Kalutara. investment in Hotel Hilltop
in September 2017.
The Group acquires Earl’s
2012 Regent hotel in Kandy for
the management.
Neptune undergoes a complete
renovation and opens as a
specialised ayurvedic resort –
Heritance Ayurveda 2019
The Company acquires total The Group launched its first
ownership of Hotel Hilltop, ‘Heritance’ property overseas,

2016
Kandy. with the introduction of
Heritance Aarah.
The Group acquires its sixth island
in the Maldives, Raafushi in the
2013 Noonu Atoll.
2023
Golden Sun Resorts Kalutara is Launch of Turyaa Chennai, the
refurbished and rebranded as The first property in India under the The Group divested its leasehold
Sands by Aitken Spence Hotels. Group’s ownership. rights of Raafushi Island.

Turyaa Kalutara commences

operations with an increased
inventory of 199 rooms.
The Group acquires ‘Al Falaj Hotel’
in Oman, making it the Group’s
first acquisition in the Sultanate.

13
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GROUP PERFORMANCE HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Unit 2023/24 2022/23 Change %

Financial Performance for the year ended 31st March

Gross Revenue Rs.’000 47,258,528 46,059,884 3
Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA) Rs ’000 13,436,133 12,696,685 6
Group Profit Before Tax Rs. ’000 3,006,151 1,644,950 83
Group Profit/ (Loss) After Tax Rs. ’000 1,864,687 46,809 3884
Group Profit/ (Loss) Attributable to Equity Holders of Parent Rs. ‘000 1,140,112 (287,893) 496
Earnings/ (Deficit) per Share (EPS) Rs 3.35 (0.94) 456
Depreciation, Amortisation & Impairment Rs ‘000 5,125,872 5,385,799 (5)
Cost of Finance - On financial liabilities Rs. ‘000 4,875,191 4,834,909 1
- On Lease liabilities Rs ‘000 791,477 975,064 (19)
Interest Cover No. of times 1.54 1.35 14
Return on Equity % 5.42 (1.57) 445

Financial Position & Stability as at 31st March

Total Assets Rs.’000 97,089,577 107,951,564 (10)
Long-term interest-bearing borrowings* Rs.’000 39,831,679 50,341,589 (21)
Total Equity* Rs.’000 30,864,692 30,015,271 3
Number of shares in issue Number 336,290,010 336,290,010 0
Net Assets per Share Rs. 63.03 62.08 2
Gearing- Debt/(Debt + Equity)* % 56.47 62.65 10
Debt/ Total Assets % 41.03 46.63 12
Current Ratio Times 0.63: 1 0.66: 1 (5)
Quick Assets Ratio Times 0.57: 1 0.59: 1 (3)

Investor Information as at the year ended 31st March

Market price per share Rs. 66.20 59.90 11
Market capitalisation Rs.’000 22,262,399 20,143,772 11
Price/Earnings ratio Times 19.76 (63.72) 131

Value Added for the year

To Government Rs. '000 8,315,217 6,506,273 28
To Employees Rs. '000 7,467,911 7,957,453 (6)
To Providers of Capital Rs. '000 6,391,243 6,144,675 4
To Shareholders Rs. '000 - - -
Retained for Reinvestment and Future Growth Rs. '000 6,285,984 5,097,906 23
Total Value Added Rs. '000 28,440,355 25,706,307 11

*Preference Share value is excluded from Total Equity and included in Long Term Interest Bearing Borrowings.

14
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
NON-FINANCIAL HIGHLIGHTS

Unit 2023/24 2022/23 Change %

Number of Employees No 2,823 2,989 (6)

- Sri Lanka 1,355 1,544 (12)
- Maldives 1,197 1,250 (4)
- India 149 107 39
- Oman 122 88 39
Value added per employee LKR Mn 2.64 2.66 (1)
Human Training hours Hours 86,104 88,662 (3)
Capital
Retention rate % 48 58 (17)
Voluntary turnover rate for lodging facility employees 877 838 5
Involuntary turnover rate for lodging facility employees 93 56 66

Certifications No 29 27 7
Average length of service of an employee Years 5.20 5.51 (6)
Awards received No 62 87 (29)
Intellectual
Capital
Carbon footprint- scope 1 & 2 tCO2e 34,433 37,437 (8)
Carbon footprint per guest night kgCO2e 31 45 (33)
Energy consumption GJ 423,550 388,599 9
Energy consumption per guest night MJ 377 471 (20)
Natural Water consumption m3 813,444 717,252 13
Capital
Water consumption per guest night litres 724 870 (17)
Room inventory No
- Owned 2,330 2,320 0.43
- Managed 309 307 1
Capital expenditure LKR Mn
Manufactured - Capacity enhancement 407 205 99
Capital - Product enhancement 375 640 (41)
- Operational CAPEX 1,056 1,175 (10)
Average occupancy rate % 66% 47% 40
Restaurants inspected by a food safety oversight body % NIL NIL
Restaurants receiving critical violations % NIL NIL
Business Partners
Tour operators No 963 842 14
Registered travel agents 1,214 1,623 (25)
Registered corporate clients 476 1,130 (58)
Social and
Relationship Country representations 21 17 24
Capital Suppliers
No. of suppliers No. 1,334 1,010 32
Payments to local suppliers LKR Mn 22,415 21,639 4
Communities
Employees from the local community % 36 41 (12)
Guest satisfaction rate at owned properties % 92.22 91.66 1

15
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CHAIRMAN’S REVIEW

I am pleased to present to you the Integrated

Annual Report and the financial statements
of Aitken Spence Hotel Holdings PLC
(ASHH) for the financial year ended 31st
March 2024. Aitken Spence Hotel Holdings
PLC recorded a significant rise in profits,
driven by the strong revival of tourism in
Sri Lanka, complemented by the steady
performance from the South Asia and
Middle East sector. Operational and service
excellence supported by a strategic sales
and marketing thrust enabled the Group to
report a profit before tax of Rs. 3.0 Bn for
the year ended 31st March 2024, up from
Rs. 1.64 Bn the previous year, showcasing
the remarkable success and resilience of our
operations.

GLOBAL MACRO-ECONOMIC
OVERVIEW
In the 2023/24 financial year, the global
economic environment faced significant
challenges with declining growth rates, high
inflation, geopolitical tension, and fiscal
instability.

However, the global tourism industry

rebounded strongly, recording a 34%
increase over 2022 to reach 1.28 Bn
international tourists in 2023, achieving
approximately 90% of pre-pandemic levels.
The Asia Pacific region lagged, recovering
only 65% of pre-pandemic levels, while the
Middle East experienced a remarkable 22%
growth above pre-pandemic levels. This
contrast underscores both the potential
and hurdles that the global tourism industry
faces on its path to full recovery.

Our Spensonians are In South Asia, economic growth has

the heartbeat and the been robust. India’s economy remained
driving force behind our resilient, contributing significantly to the
achievements. region’s economic strength with South Asia
recording a GDP growth of 5.6% in 2023.
This growth trend, despite global challenges,
indicates a positive outlook for the region’s
economic prospects.

16
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
A PORTFOLIO OVERVIEW growth persisted in the Maldivian and Indian These synergies not only fortify our market
A diverse portfolio of properties across regions, where strong occupancy levels were position but also enhance our ability to
four countries provided stability and cash already established from the previous year. navigate global complexities while delivering
flows during the pandemic, providing Although interest rates were high at the exceptional guest satisfaction.
an effective buffer against volatility. In start of the year, they have since stabilized to
2023, the Sri Lanka sector experienced a a moderate level. SUSTAINED PROGRESS
remarkable 106% increase in tourist arrivals ASHH delivered strong growth in the Sri
compared to 2022. Notably, Sri Lanka has GROWTH THROUGH PARTNERSHIPS Lankan sector and maintained a steady
been ranked as the fourth most popular ASHH ensures value-driven market growth performance of the South Asia & Middle
destination in the world for 2024 by Forbes through sustainable partnerships with our East sectors to deliver top line growth of
and among the top five fastest-growing partner network across the value chain. 3%, despite the impact of the currency
tourist destinations by Travel Off Path, These synergistic relationships encompass translation. It is noteworthy that the
highlighting its significant potential. tour operators, travel agents, and online Sri Lanka sector recorded an operating
channel partners, bolstering our footprint in profit of Rs. 1.0 Bn for the period under
In the South Asia & Middle East sectors, target markets and revitalizing established review, reflecting the improved occupancy
the Maldives remained a relatively stable ones. levels. The Sri Lanka sector was unable to
market, providing crucial support during contribute to the bottom line due to high
the pandemic and the Sri Lankan economic Group synergies play a pivotal role in this finance costs but reduced the loss before tax
crisis. The Maldives saw an increase in regard, such as our ties with Aitken Spence from Rs. 2.4 Bn to Rs. 657.8 Mn supporting
tourism, with 1.87 Mn arrivals in 2023, a Travels, the leading destination management profit growth. The South Asia & Middle East
12% rise from 2022, strongly supported by company in the country, which accounted for sector maintained their steady contribution
the growth in arrivals from Russia and India. over 200,000 tourist arrivals in 2023, with a to the bottom line with a profit before tax
notable market share of approximately 20% of Rs. 3.66 Bn despite the impact of foreign
India also recorded strong growth, with the after discounting the visiting friends and exchange rate volatility.
hospitality sector seeing a 60% increase relatives (VFR) traffic.
in revenue per available room (RevPAR) in The Group funding structure remains
2023, benefiting from a surge in domestic During the year, Heritance Negombo skewed to interest bearing liabilities which
travel and a rebound in business travel. entered into a strategic franchise were necessary to weather the darkest
partnership with Sentido, a highly reputed times for tourism. Financial discipline and
In Oman, the market dynamics proved brand of DER Touristik Hotels & Resorts oversight continue to be priorities for the
challenging as the country pursued its GMBH. This collaboration leverages Board as we seek to reinvigorate operations
ambitious plan for expanding the tourism Sentido’s extensive marketing network in Sri Lanka and Oman.
industry, resulting in increased competition. and global brand reputation. Through this
The Israel-Palestine conflict has negatively alliance, we anticipate a significant boost in CORPORATE GOVERNANCE
affected leisure traffic since winter 2023. visibility and guest engagement, drawing ASHH commenced the year with the
more visitors from around the globe to appointment of Mr. M.A.N.S. Perera, the
Our extensive geographical presence across experience Sri Lanka’s rich heritage and Managing Director of Melstacorp PLC in
Sri Lanka, the Maldives, India, and Oman renowned hospitality. April 2023, who was duly re-elected at
enables us to effectively mitigate risks and the Annual General Meeting last year as a
navigate diverse global market conditions. The Group also extended its representation Non-Executive Non-Independent Director.
This diversified portfolio ensures resilience network in key source markets in a move Ms. D.S.T. Jayawardena was appointed as
and stability across our operating properties. to strengthen the sales and marketing Joint Deputy Chairperson/Joint Managing
During the year under review, the portfolio capabilities across the globe, ensuring Director in September 2023 and is a
encountered significant external influences robust market penetration and support signatory to this message in this capacity.
primarily from fluctuations in exchange and sustained growth. Mr. J.M.S. Brito was re-designated as an
interest rates. During the year under review, Independent Director in September 2023
the Sri Lankan Rupee appreciated 8.16%, Our collaboration with the globally and Dr. R.A. Fernando was appointed as
leading to subdued growth in the top line acclaimed RIU Hotels at RIU Ahungalla has an Independent Non-Executive Director
of the South Asia & Middle East sectors in introduced an innovative service offering in January 2024. We were saddened by
the reporting currency. Despite this, steady to the market. We anticipate significant the demise of Mr. Gemunu Gunawardena
performance growth in the coming years.

17
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CHAIRMAN’S REVIEW

during the year and place on record our certification from the SHe Travel Club, to impact tourism recovery and the growth
appreciation of his invaluable contributions acknowledging our dedication to providing momentum in the future.
to the ASHH Group for over four decades. experiences tailored to female travellers.
Sri Lanka
The year saw significant developments in Our properties in Oman were recognized for While Sri Lanka has made significant
corporate governance with the issue of their exceptional standards by the Luxury progress post-economic crisis to stabilize
the listing rule on Corporate Governance Lifestyle Awards as the Best Luxury Desert the economy and achieve normalcy,
by the CSE, the issue of the new Code on Resort, and by Studiosus Reisen for Quality the recent progress in external debt
Corporate Governance and the SLFRS Standards of the Desert Nights Resort. restructure will undoubtedly help the
Sustainability Standards by the Institute of In India, we received accolades from the country’s balance of payments. However,
Chartered Accountants of Sri Lanka. These South Asian Travel Awards as the leading sustaining the balance of payments in the
will drive meaningful changes in the year meeting and conference hotel, highlighting years ahead remains a challenge. While
ahead as we move toward compliance by our dedication to excellence across diverse we acknowledge the need to increase
their effective dates. regions. Government revenue, it is important to be
conscious of the impact on more vulnerable
RECOGNITION /ACCOLADES Aitken Spence Hotel Holdings won the segments of society. Hence it is critical to
This year has been outstanding for Aitken TAGS 2023 Gold Award, recognizing our increase tax revenue by widening the base
Spence Hotels, marked by significant excellence in transparency, accountability, and improving transparency, whilst making
achievements and accolades that reflect governance, and sustainability in the a conscious effort to minimize the public
our commitment to service excellence and hospitality sector. We were also the runner- sector expenditure. It is also critical to revive
sustainability. up in the Sustainability Reporting Awards the economy with consumer and business
in the Leisure and Connected Services confidence, underpinned by consistent long-
Our properties in Sri Lanka were recognized category 2023 by the ACCA (Association of term policy frameworks.
by esteemed awarding bodies in the financial Chartered Certified Accountants).
year, with Heritance Kandalama being The current economic hardships faced by
named among the Top 20 Sustainability With these accolades under our belt, Aitken the society at large is resulting in a brain
Champions by the Sri Lanka Tourism Spence Hotels was recognized as the Most drain, and one of the biggest challenges for
Alliance. The South Asian Travel Awards Awarded entity in hospitality in Sri Lanka, the tourism industry’s growth in Sri Lanka is
recognized Heritance Kandalama, Heritance securing a spot in the top 5 of LMD’s Most the lack of skilled talent.
Tea Factory, Heritance Ayurveda, and Awarded Hall of Fame, the culmination of
Sentido Heritance Negombo, for eco- our relentless efforts. Additionally, connectivity within the
friendly practices, design, wellness, and island is a significant inhibitor for tourism
luxury respectively. We also achieved These acknowledgements are a testament development, necessitating greater
Travelife certification, reflecting our to our commitment to provide outstanding attention from the Government. Enhancing
commitment to sustainability. Additionally, experiences to our guests. transportation infrastructure will not only
Heritance Kandalama was ranked No.1 in improve tourist access to attractions but
the LMD Customer Excellence Survey. THE FUTURE OUTLOOK also significantly enhance their overall
Global experience.
Our properties in the Maldives earned In 2024, a full recovery of tourist travel
recognition from esteemed entities such to pre-pandemic levels is projected by As tourist arrivals continue to rise,
as Forbes, which honoured Heritance UNWTO. Increased air capacity and a accommodation capacity constraints pose
Aarah as one of the world’s top 20 Family- rebound in Asian markets, specially China is a significant risk to growth, potentially
friendly resorts and the Best Beach-Front expected to propel global tourism growth. undermining service delivery and guest
All-Inclusive Resort for Families, being satisfaction. To ensure sustainable tourism
the only Maldives resort to earn this However, the economic slowdown in Europe, development, it is essential to expand
recognition. Adaaran Select Meedhupparu geopolitical conflicts between Russia- capacity to meet demand. Failure to do
was recognized with Conde Nast Traveller’s Ukraine and Israel-Palastine, high interest so could compromise service quality and
Reader’s Choice Award 2023, and by Der rates, volatile oil prices, high air travel cost, damage the reputation of the brand
Touristik for its high quality of service extreme weather conditions and dearth of ‘Sri Lanka’.
delivery. Heritance Aarah received Gold talent in the tourism industry are expected

18
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Despite these challenges, we are optimistic tourists, it is essential to manage this Oman to innovate and differentiate its
on what tourism holds for Sri Lanka and carefully to maintain the Maldives’ brand as tourism product. The impact of geopolitical
expect tourist arrivals to exceed 2.2 Mn by a premium luxury holiday destination. tensions, particularly the ongoing Israel-
the end of 2024. A strong global marketing Palestine conflict affecting leisure travel to
campaign focusing on the key source markets India Oman, and heightened competition leading
and a free visa policy will provide the much- Chennai continues to develop as a major to excess capacity in Muscat, are currently
needed boost to the industry which is yet to economic and cultural hub, with the city exerting pressure on room rates.
recover fully from the challenges it faced over experiencing significant investments in
the last few years. information technology, automobile, and With anticipated increases in tourist arrivals,
medical facilities making it an attractive we foresee improved profitability for our
We expect the Sri Lanka hotels to continue destination for business, healthcare, and hotel in the medium term.
its growth trajectory and perform well in the leisure travellers. In 2023, Chennai saw a
future. 12% increase in foreign tourist arrivals, with POTENTIAL RISKS
domestic travel rising by 15% year-on-year. In an increasingly interconnected world,
Maldives geopolitical factors must be closely
The Maldives experienced steady growth The national strategy under the ‘Heal in monitored, as they have the power to
in tourist numbers. In 2023, tourist arrivals India, Heal by India’ brand emphasizes shift dynamics in source markets and
reached 1.87 Mn, representing a 12% wellness tourism, aligning with Chennai’s connectivity. Approximately half the world
increase from the previous year. This efforts to promote holistic travel will face elections this year which could
upward trend is expected to continue, experiences. The proximity of Turyaa change dynamics in source markets as
driven by several key developments and Chennai to new medical infrastructure well as destinations. Agility will be key to
market dynamics. The country’s arrivals are will uniquely benefit the hotel, offering navigating the year ahead and to seize the
expected to reach 2.0 Mn in the year 2024. convenience and accessibility to healthcare short-term opportunities while staying
services for guests seeking both medical focused on developing the medium- and
The planned opening of the new terminal treatment and leisure opportunities. Its long-term strategies.
at Velana International Airport by late strategic location within the IT Corridor also
2024 would be a significant milestone. gives it an added advantage to strengthen its Whilst looking ahead with optimism, it is
This expansion is anticipated to clear the corporate and MICE segments. important to recognise potential downside
bottleneck that challenged the country’s risks that need to be managed during the
capacity to accommodate increased tourist Oman year ahead. The exchange rate movements
arrivals. The new terminal will enhance Oman’s economy has shown robust growth had a significant impact this year as the Sri
the airport’s annual passenger handling in recent years. The government’s strategic Lankan Rupee appreciated after a sharp
capacity. focus on expanding tourism, as outlined in decline in the previous year. Consequently,
Vision 2040, aims to diversify the economy exchange rates need to be watched carefully
The resurgence of the Chinese market, away from oil dependence and enhance to understand medium- and long-term
historically one of the largest sources of Oman’s position as a global tourism trends and their impacts on financial
tourists for the Maldives, and the anticipated destination. Vision 2040 includes plans performance. There is significant uncertainty
growth in Russian arrivals due to the to develop new tourist attractions, while surrounding interest rates, highlighting the
stabilization of the Rubel is expected to efforts are also underway to streamline visa need to both reduce exposure and leverage,
significantly boost tourism inflow. processes and potentially grant visa-free as well as to make strategic investments.
access to tourists from selected countries. These tradeoffs are being considered and
The notable shift in the market mix due The planned developments at Port Sultan will be calibrated in the year ahead.
to the expansion of guesthouses and the Qaboos, are expected to attract more
growing segment of budget-conscious tourists to Muscat and boost the local Economic stability and policy consistency
travellers, is a concern for destination economy. combined with strong stakeholder
Maldives. As of 2023, guesthouses engagement are essential to maximizing
accounted for 24% of the total bed capacity However, Oman faces competition from the opportunities the current environment
in the Maldives, compared to less than other GCC markets, which are also offers. Although Sri Lanka is gradually
19% five years ago. While this shift offers diversifying their tourism offerings. This emerging from the economic crisis, it
opportunities for broader segments of competitive landscape adds pressure on still faces the challenge of catching up,

19
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CHAIRMAN’S REVIEW

particularly since the Asia Pacific region sustainability across all our operations. This preferences and expectations, we can create
has lagged behind other regions. Exploring comprehensive approach ensures that our a work environment that appeals to this
lucrative markets will, therefore, be crucial efforts not only benefit the environment new generation of workers. This includes
for progress. but also align with our overarching goal of leveraging technology, fostering innovation,
conserving resources for future generations. and offering flexible work arrangements that
The Maldives faces risks related to align with their values and lifestyles.
environmental sustainability, including the Our commitment to Environmental, Social,
impact of climate change on its island resorts and Governance (ESG) principles is integral By focusing on these key areas, Aitken
and marine ecosystems. to our operations and growth strategy. This Spence Hotel Holdings aims to build a
dedication to ESG not only strengthens our strong, dedicated, and diverse workforce
India contends with challenges such as position in sustainability but also enhances that drives our success and supports our
domestic economic reforms and geopolitical our reputation as a responsible and forward- strategic goals.
tensions affecting regional stability, thinking hospitality company.
potentially influencing tourism dynamics. Digitalization
I am pleased to note that our early advocacy Digitalization will be the cornerstone of
Oman faces economic diversification and implementation of sustainability our growth strategy, playing a critical role
challenges with an influx of new investment reporting have provided us with a strong in elevating guest experiences, optimizing
resulting in short term excess capacity foundation to achieve full compliance by the processes, and driving revenue growth.
amid fluctuating oil prices and geopolitical specified dates.
tensions in the Gulf region, which could The focus on Customer Experience (CX) will
impact existing tourism developments in the Talent Management take centre stage, influencing every phase
country. At Aitken Spence Hotel Holdings, talent of the customer journey, from pre-stay
management remains a key priority, to post-stay interactions. By integrating
PRIORITIES FOR ASHH recognizing that retaining top talent is digital solutions at each touchpoint, we aim
Sustainability and ESG Reporting crucial for our continued success and to enhance the overall experience for our
ASHH has a proud legacy of sustainable growth. We are committed to creating a guests, making their stay more personalized
stewardship. Heritance Kandalama supportive and engaging work environment and memorable. This digital shift not only
expanded its ecological conservation where employees feel valued and motivated. improves the immediate guest experience
efforts across 211 acres of land, nurturing By offering competitive compensation but also helps in nurturing our future
128 species of native flora, 64 butterfly packages, comprehensive benefits, and customers.
species, and 183 endemic and migratory opportunities for career advancement,
bird species. In our operations, we prioritize we aim to foster a sense of loyalty and Prioritizing analytics is essential to
environmentally friendly practices. Notably, commitment among our staff. ensure our readiness for the future.
in the Maldives, we have eliminated Through advanced data analytics, we gain
single-use plastic water bottles, and we are As an equal opportunity employer, we valuable insights into guest preferences
charting a similar path in Sri Lanka. There are dedicated to promoting diversity and behaviours, enabling us to tailor our
is immense potential to create specialized and inclusion within our workforce. We services more precisely. This comprehensive
segments and experiences that promote actively seek out new talent from a wide approach allows us to remain agile and
responsible tourism, thereby spreading the range of backgrounds, ensuring that our adaptable in the dynamic landscape of our
tourism impact more evenly. hiring practices are fair and unbiased. This industry, ensuring that we consistently
approach not only enriches our company deliver exceptional experiences to our
We are committed to responsible sourcing, culture but also enhances our ability to existing guests while attracting and engaging
as well as investing in technologies for innovate and adapt in a competitive market. the audience of tomorrow.
tracking and reducing emissions, energy
consumption, water usage, and waste To be future-ready, we are placing a strong By focusing on these strategic investments,
management. By implementing these emphasis on attracting and retaining Gen we ensure that our properties remain at the
technologies, we aim to further minimize Z – the first generation of true digital forefront of the industry.
our environmental footprint and promote natives. By understanding their unique

20
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
APPRECIATION
We wish to extend our sincere appreciation
to the ASHH leadership, and teams across
all our locations for their dedication and
commitment. Our heartfelt thanks go to our
employees for their unwavering commitment
to delivering exceptional, unforgettable
guest experiences and upholding the highest
standards of hospitality.

We are also immensely grateful to our Board

members for their valuable insights and
guidance. To our business partners, your
collaboration has been vital in supporting
the revival of the industry.

Lastly, we express our sincere gratitude

to our shareholders for their continued
confidence in the ASHH Group. Together, we
have achieved excellence and look forward
to a promising future.

Deshamanya D.H.S. Jayawardena

Chairman

Ms. D.S.T. Jayawardena

Joint Deputy Chairperson and
Joint Managing Director

15th July 2024

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING DIRECTOR’S REVIEW

As an organisation, Aitken Spence Hotel

Holdings is committed to the ideal of
delivering multiple customer experiences
through the focus on our internal clients, our
team.

I am pleased to announce that Aitken Spence

Hotel Holdings PLC achieved strong bottom-
line growth for the year under review. This
success was driven by a resurgence in Sri
Lankan tourism, a steady performance
from our overseas operations, and a strong
focus on operational excellence and cost
management by our dedicated teams.

Despite facing challenges in both domestic

and international markets, we have
successfully steered the Company to fulfil
our commitments to internal and external
stakeholders. This has reinforced our
dedication to excellence and sustainable
growth, aligning with the country’s economic
recovery.

A GLOBAL REVIVAL
The global tourism resurgence is promising,
with recovery approaching pre-pandemic
levels. Global tourism recovery stands
at 88%, while the Asia Pacific region is
experiencing a slower recovery at 65%.
The Middle East, however, has surpassed
pre-pandemic volumes by 22%, and Europe
has shown robust rebounds achieving 94%
of its pre-pandemic levels. Surveys suggest
optimistic growth prospects for 2024 and
2025, with recovery projected to surpass
pre-pandemic levels by 2024 globally. While
our outlook is optimistic, we are wary of
When you are in geopolitical factors such as the Ukraine-
leadership, you are no Russian war, and the conflict in the Middle
longer responsible for East which have the possibility to disrupt
doing the job. You are source markets and dampen demand for
now responsible for leisure travel. The conflict of the Middle
inspiring, coaching and East also has the potential to disrupt supply
mentoring your team to chains as it is a key hub for connectivity to
become the very best Africa and Asia.
version of themselves.
- Simon Sinek The affordability of air travel is crucial for the
revival of tourism in Asia, as long-haul flights
represent a significant portion of travel

22
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
costs. High inflation in 2023 heightened aggregators to effectively market its service and ensuring our brand maintains its
this issue, diverting interest to other leisure destinations. Online aggregators, luster. Comprehensive training is provided
markets. In the Maldives, the growth of the contributing to approximately 20% of guest throughout their careers to help employees
informal sector intensified competition, nights, played a key role in the Company’s realise their potential. Dedicated hotel
while an increase in room inventory and the online marketing efforts. The addition of new schools and the Aitken Spence School of
presence of global hospitality brands further tour operators from the USA for both the Management provide extensive training
heightened competitive pressures across Maldives and Sri Lanka, targeting affluent through face-to-face programmes, hybrid
our operating environment. and brand-conscious travellers, alongside and online learning. It is this level of
the acceptance of ASHH hotels by luxury engagement that motivates and equips
The shortage of trained staff emerged consortium operators, further enhanced the our staff with the knowledge, skills, ethics,
as a key challenge worldwide. At the Company’s market presence. and courtesy to deliver passionate service
point when the industry experienced a that differentiates our offering from the
downturn, many employees migrated to In Sri Lanka, ASHH leveraged its connections competition.
other sectors, exacerbating the scarcity with the parent company’s destination
of skilled personnel. Addressing this issue management business to boost occupancy. SECTOR REVIEW
becomes imperative as we navigate the The ongoing partnership with TUI continues
Sri Lanka Sector
rapid expansion in demand, requiring the to drive volume from European source
Sri Lanka experienced a resurgence in
development of fresh talent pools to support markets and provides access to new
tourist arrivals which increased by106%
our growth trajectory. markets.
in 2023 to record 1.48 Mn tourist arrivals.
Pent-up demand led to popular tourist ASHH also catered to emerging tourism Destination management companies
spots experiencing immense overcrowding, trends through specialised properties. brought in over 50% of the tourists while
occasionally eliciting resistance from local Heritance Ayurveda focused on wellness local tourists accounted for another 25%
communities. In this context, it becomes tourism, attracting guests for extended stays of guest nights. Online travel agents, the
imperative to implement sustainable with its Ayurveda therapeutic programmes. hotel website and casual walk-ins accounted
practices to ensure the long-term viability of Heritance Kandalama enhanced its for the balance. ASHH tied up with the
these destinations while balancing the needs ecological footprint, transforming into respected German brand of the DER group
of tourists and locals alike. a sanctuary for ecological preservation. Sentido for Heritance Negombo who will
Heritance Tea Factory continued to create be responsible for promoting the hotel in
As we navigate a progressive landscape the unique experiences that highlight its history, the source markets they promote which is
integration of digitalisation and Artificial character, and the essence of its destination. now branded Sentido Heritance Negombo.
Intelligence (AI) emerge as enablers to The partnership with TUI continues to
enhance customer engagement. Moreover, Excellence in hospitality and cuisine has contribute to high levels of occupancy
digitalisation and AI offer opportunities to long been a hallmark of ASHH’s identity, throughout the year. We also tied up with
optimise room rates, capacity utilisation and the Company remains steadfast in its Framissima Club who operate tours from
and customer experience through tools that commitment to maintaining the highest France utilising our hotels. Heritance
facilitate value creation. ASHH is embracing standards. At Heritance properties, menus Ayurveda continues to gain interest in most
these technologies to enhance our service have been thoughtfully revised to feature European markets for its authentic Ayurveda
offering and will look to extend the same to more local favourites and fusion dishes, offering. Most hotels in the ASHH portfolio
other aspects as well. predominantly utilising local produce. in Sri Lanka doubled occupancy rates which
Dining experiences have been curated to were above 60% except for two properties.
DRIVING GROWTH offer guests an authentic local experience,
ASHH adopted distinct strategies for the capturing the essence of the destination. Top line growth in the Sri Lanka sector was
four regions, aligning with their specific 91% amounting to Rs. 10.5 Bn for 2023/24
characteristics. Sri Lanka and Maldives were Through all these initiatives, one thing supported by a return to stability in the
focused on leisure and MICE travel, India on remained constant: an unwavering focus country. Turnover was affected by the
business/MICE, and Oman on a blend of all. on our team members to bring our ideas continuing appreciation of the rupee during
and strategies to life, to create multiple the year. Operating costs increased by 60%
ASHH collaborated closely with tour customer experiences to our guests. They to Rs. 9.5 Bn reflecting increased energy and
operators, travel agents, and online are the key to delivering outstanding other costs due to inflation. Despite these

23
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING DIRECTOR’S REVIEW

challenges, the Sri Lanka sector recorded an cuisine, the food and beverage offerings Post tax earnings of Rs. 3.1 Bn continued
operating profit of Rs. 1.0 Bn. However, have been a key strength in this sector. to cushion the impact of losses from the Sri
Net Financing expenses amounted to The main source markets for Oman were Lankan sector.
Rs. 1.62 Bn which resulted in a Loss before domestic corporate traffic, followed by the
tax of Rs. 658 Mn Losses from equity GCC and Europe. The Sector however, was BUILDING TALENTED TEAMS
accounted investees reduced by 91% from not able to positively contribute towards the The sector’s reputation for offering global
Rs. 398 Mn to Rs. 36 Mn and Taxation of overall performance of the Group. career opportunities remains a significant
Rs. 626 Mn resulted in a loss after tax of draw for talent. Sri Lanka, in particular, has
Rs. 1.28 Bn, well below the loss of Rs. 3.7 Bn India been experiencing a brain drain to other
recorded in 2022/23. India continues to gain prominence on the markets, prompting renewed efforts in
world stage as it surpassed UK to become training initiatives.
OVERSEAS SECTOR the 5th largest economy. Its forecast growth
rate is the highest among large economies ASHH operates two hotel schools supported
Maldives
and its leadership on a number of global by Heritance Ahungalla and Heritance
Tourist arrivals in the Maldives increased
forums continues to increase interest in the Kandalama, with 76 students graduating
by 12% to 1.87 Mn in 2023, continuing
market and attract travellers and a large during the year. Many of these students
its recovery. Competition increased in the
diaspora as tourist arrivals continue to gain were successfully employed by the two
country as bed capacity increased by 5%,
momentum. hotels. However, the demand for skilled
with resorts accounting for most of the
personnel outstrips the supply, leading
increase. Occupancy reflected a significant
India recorded over 9.2 Mn international to challenges in employee expenses and
change in the market with occupancy in
tourist arrivals, an increase of 43.5% over retention. To address this, the Company
resorts decreasing from 71.4% to 66.3%
2022 although it remains 15.5% below has intensified its Learning & Development
while occupancy of guesthouses increased
pre-pandemic levels. A vibrant domestic activities to ensure a steady stream of talent
from 30.8% to 42.7%. Increasing airline
tourism industry also supports growth of the for its hotels.
capacity is a challenge until the new airport
sector. Its pro growth policies saw an influx
is opened. These factors combined to The Aitken Spence School of Management
of business visitors supporting high levels
exert pressure on room rates with three (ASSM) played a pivotal role in assessing the
of occupancy at Turyaa Chennai. The hotel
properties experiencing a marginal drop training needs of managers and higher-level
recorded above 80% average occupancy and
in occupancy while Heritance Aarah and staff, organising tailored training programs.
contributed positively to the bottom line of
Adaaran Select Meedhupparu managed to ASHH remains committed to investing in
the sector.
increase occupancy despite the challenges. training initiatives to uphold high service and
ASHH is the 4th largest operator in the OVERSEAS SECTOR PERFORMANCE culinary standards across the Group.
Maldives with a portfolio of 5 properties. The South Asia and Middle East Sector
The steady contribution of the Maldives delivered a Profit After Tax of Rs. 3.1 OUTLOOK
continued in the year under review. Bn which is largely attributable to the The outlook for 2024 is positive with a
steady performance of properties in the forecast growth of 24% in international
Oman tourist arrivals. Sri Lanka is expected to
Maldives and the hotel in India. Despite
The Middle East was the only region to drive top line and bottom-line growth as it
heavy competition the top line grew in
record growth above pre-pandemic levels in restores the former vibrancy of the market.
the operating currency except in Oman .
2023. Oman experienced a 23.5% increase Sri Lanka continues to climb the charts in
However, appreciation of the Sri Lankan
in tourist arrivals, reaching 3.9 Mn in 2023. popular travel sites as its rich and varied
Rupee resulted in a decrease of revenues
The country continues to pursue its Vision offering continues to delight tourists. In the
by 9.4% to Rs. 36.73 Bn. Operating profit
2040 plan to grow the tourism industry Maldives, the opening of the airport will
too recorded a growth except Oman in the
from USD 3 Bn in 2019 to USD 22.5 Bn by support expansion but structural changes in
operating currency however recorded
2040, representing 5-10% of the country’s the market with the growth of guest houses
Rs. 7.3 Bn, 6% below the previous year due
GDP. International brands have entered the continues to be a challenge. India is expected
to the rupee appreciation. Finance costs
market with new infrastructure, intensifying to maintain its steady performance,
were managed in line with the previous year
competition. Despite this, ASHH was able contributing positively to both the top and
as interest rates stabilised. This enabled the
to increase occupancy during the year and bottom lines. In Oman, the strengthening
sector to record pre-tax earnings of Rs. 3.66
has ramped up marketing efforts to maintain of marketing functions to recapture market
Bn, which was 9.8% below the previous year.
this momentum. Renowned for its excellent share has augured well to drive top-line.

24
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Social and political stability, along with ACKNOWLEDGEMENTS
diplomatic relations, are pivotal factors in I commend the ingenuity and commitment
the development of destinations and source of Aitken Spence Hotel Managements (Pvt)
markets. The first quarter of 2024 witnessed Limited, the Management company, led by
political issues affecting the Maldives, the Chairperson and the Managing Director
leading to a decrease in Indian tourists, a who steered the team to deliver strong
significant source market for the country, growth amidst challenges. I thank the
ranking among the top three. With it being Board for their advice during challenging
an election year in Sri Lanka, ensuring times and the Chairman, Deshamanya
smooth and credible elections is crucial D H S Jayawardena for his astute leadership,
to consolidating the recovery achieved visionary guidance, policy direction and
in 2023. The geopolitical situation in the strategic inputs, afforded. Our business
Middle East will be closely monitored, as its partners have worked with us in different
repercussions could impact all markets. ways to enhance our product and we
value their perspectives in opening up
It is essential to acknowledge the significant new markets and revitalising old markets.
role played by Sri Lankan Airlines in In closing, I thank our investors for their
sustaining connectivity to the country by constant support and hope for their
offering direct flights from long-haul source continued trust in our capacity to deliver
markets, eliminating the need for travellers results.
to transit through other hubs. Given that
most international airlines utilise their home
country as a hub, it is imperative to maintain
this advantage to further develop the
tourism sector in the country.
Dr. M. P. Dissanayake
Prioritising the sustainability of tourism and Managing Director
mitigating overcrowding is paramount as the
15th July 2024
industry bears a responsibility to safeguard
the environment. Numerous instances
illustrate how quickly the natural wilderness,
which attracts tourists, can deteriorate,
posing risks to both wildlife and the tourism
sector. Striking a balance is imperative for
the industry’s long-term viability, and all
stakeholders must heed this crucial call to
action.

The tourism industry in Sri Lanka requires

favourable and consistent policies to foster
meaningful development, particularly as a
key foreign exchange earner for the country.
It is crucial for the sector, having recently
emerged from a prolonged period of stress
spanning from 2019 to 2022, to consolidate
the progress achieved in 2023. Nurturing
supply chains and enhancing connectivity
are essential to support market development
activities, enabling us to capitalise on the
ongoing opportunities.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
BOARD OF DIRECTORS

DESHAMANYA D.H.S. JAYAWARDENA MS. D.S.T. JAYAWARDENA DR. M.P. DISSANAYAKE

Chairman Joint Deputy Chairperson and Managing Director
Joint Managing Director

MR. C.M.S. JAYAWICKRAMA MR. J.M.S. BRITO

Executive Director Independent, Non-Executive Director

26
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
MR. R.N. ASIRWATHAM MR. N.J. DE SILVA DEVA ADITYA MR. C.H. GOMEZ
Independent, Non-Executive Director Independent, Non-Executive Director Independent, Non-Executive Director

MR. M.A.N.S. PERERA DR. R. A. FERNANDO

Non-Independent, Non-Executive Director Independent, Non-Executive Director

27
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
BOARD OF DIRECTORS

GRI 2-17

DESHAMANYA D.H.S. JAYAWARDENA MS. D.S.T. JAYAWARDENA of Commerce Committee since 2019. She
Chairman Joint Deputy Chairperson and Joint Managing is an Executive Committee Member at
Director the International Chamber of Commerce
Appointed in May 2003 in Sri Lanka since 2020 and a Steering
Appointed in July 2014 Committee Member of the Ceylon Chamber
Deshamanya D.H.S. Jayawardena, of Commerce Tourism. She was appointed as
recognised as an outstanding citizen for the Ms. Stasshani Jayawardena marks several Chairperson of the Employers’ Federation of
service to the motherland, was appointed to milestones for Aitken Spence PLC and Ceylon (EFC) Hotels and Tourism Employers
the Board of Aitken Spence Hotel Holdings Aitken Spence Hotel Holdings PLC as Group for the financial year 2020/21. Ms.
PLC, on 02nd May 2003 and has been the the youngest Board Member, and the Jayawardena is also a member of the PWC
Chairman of the Company since. He was first female member on the Board. Ms. NextGen Advisory Board.
appointed to the Board of the Aitken Spence Jayawardena was appointed as Joint Deputy
PLC and has been the Chairman of the Chairperson and Joint Managing Director, Ms. Jayawardena represents the Company
Company since 25th April 2003. Aitken Spence PLC and Aitken Spence as the Ambassador from Aitken Spence PLC
Hotel Holdings in September 2023 and at the Target Gender Equality initiative of
As a visionary entrepreneur, he leads many she also heads the Tourism sector of Aitken the UN Global Compact since 2020. She
enterprises in diverse fields to achieve Spence PLC inclusive of hotels, destination is also a member of the Austrian Business
great success. He is the Founder Director management and overseas travel. Circle in Sri Lanka.
and current Chairman/Managing Director
of the Stassen Group of Companies and is With a career spanning over 10 years In recognition of her work and commitment
the Chairman of Lanka Milk Foods (CWE) at Aitken Spence, she wields a fresh to inspire, she was recognised at Top 50
PLC, Browns Beach Hotels PLC, Balangoda perspective in management and leads Professional & Career Women Awards in
Plantations PLC, Madulsima Plantations strategic business units across the Group. Sri Lanka with a Gold award in the Hotel
PLC, Melstacorp PLC, Ambewela Livestock She leads several key strategic teams as & Hospitality Sector in 2017, and in 2020
Company Ltd, Lanka Bell Ltd and the the Chairperson of Aitken Spence Hotel by Sri Lankan business magazine, Echelon,
Chairman of the Distilleries Company of Sri Managements (Pvt) Ltd., as a member on listing her among the most innovative
Lanka PLC. He is also a Director of several the Board of Directors of, Stassen Group, and influential young leaders who have
other listed and privately held companies in Lanka Milk Foods (CWE) PLC, Aitken Spence succeeded in business and shaping the
Sri Lanka and is a former Director of Hatton Aviation (Pvt) Ltd, Western Power Company future of Sri Lanka.
National Bank PLC, the largest listed bank in (Pvt) Ltd., She was appointed to the Board of
Sri Lanka. Directors of Melstacorp PLC and Distilleries Ms. Jayawardena became the award
Company of Sri Lanka in September 2022. recipient of the Expatriate Contribution
Mr. Jayawardena has been appointed to Award – Gold category by Women in
lead large public sector institutions and is She is graduate of St. James’ & Lucie Management Maldives. The Professional
a former Chairman of Ceylon Petroleum Clayton College and Keele University in and Career Women Awards Maldives 2022
Corporation and Sri Lankan Airlines (two the United Kingdom, Emeritus Institute of presented this award to Ms. Jayawardena
stints). Management, Singapore – and an Associate for her exceptional contributions and
Alumni of University of Cambridge (Judge achievements in the field of Hotel &
In 2005 Mr. Jayawardena was awarded Business School), United Kingdom. Ms. Hospitality.
the prestigious title, “Deshamanya” Jayawardena was the youngest intern to
in recognition of his services to the work under US Senator Hilary Rodham Her passion remains in designing the next
Motherland. Clinton and the Former US President Bill generation of business with the core values
Clinton in 2003; and was appointed as the of integrity, sustainability, empowerment,
He is presently the Honorary Consul for Sri Lankan Ambassador for EY NextGen and equal opportunities. She believes in
Denmark and on 9th February 2010, was Club from 2017 to 2019. driving her business decisions by using data
knighted by Her Majesty the Queen of and technology.
Denmark with the prestigious honour of Ms. Stasshani Jayawardena was appointed
“Knight Cross of Dannebrog”. to the Executive Board of The Hotel
Association of Sri Lanka (THASL) and
represents THASL at the Ceylon Chamber

28
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
DR. M.P. DISSANAYAKE MR. C.M.S. JAYAWICKRAMA Federation of Ceylon, Sri Lankan Airlines and
Managing Director Executive Director has also served on the Board of Sri Lanka
Insurance Corporation. He holds a L.L.B.
Appointed in March 2019 Appointed in April 2005 degree from University of London, MBA
degree from London City Business School
Dr. Parakrama Dissanayake is the Managing Mr. Susith Jayawickrama has had a career and is a Fellow of the Institute of Chartered
Director of Aitken Spence Hotel Holdings spanning over three decades with Aitken Accountants of both Sri Lanka and England
PLC with effect from 15th March 2019. He Spence and is the Joint Managing Director and Wales.
is also the Deputy Chairman and Managing of Aitken Spence Hotel Managements
Director of Aitken Spence PLC. (Private) Limited, which manages all hotels
MR. R.N. ASIRWATHAM
of the Group.
Prior to this appointment, he was Secretary Independent, Non-Executive Director
to the Cabinet Ministry of Ports, Shipping Mr. Jayawickrama serves on the Aitken
Spence Group Management Council and Appointed in September 2009
and Southern Development.
on the Boards of most hotel companies in
Mr. Asirwatham was appointed to the Board
He was appointed as the first non-British the Group including that of Aitken Spence
of Aitken Spence Hotel Holdings PLC, in
International President of the Institute of Hotel Holdings PLC. He is a Fellow of
September 2009. At present, he is the
Chartered Shipbrokers U.K. founded in the Chartered Institute of Management
Chairman of the Audit Committee, Related
1911, and Royal Charter conferred in 1920. Accountants UK. He has more than three
Party Transactions Review Committee,
decades of experience in senior management Remuneration Committee and the
Dr. Dissanayake has also held positions in positions in the Group’s hotel sector and the Nomination and Governance Committee.
the past that include, Chairman – Sri Lanka tourism industry in Sri Lanka and overseas.
Ports Authority (two stints), Chairman He was the Senior Partner and Country Head
– Chartered Institute of Logistics and Mr. Jayawickrama is a past Vice President of of KPMG from 2001 to 2008. Further, he was
Transport (Sri Lanka), Board Director Urban the Tourist Hotels Association of Sri Lanka the Chairman of the Steering Committee for
Development Authority and Board Director (THASL). the Sustainable Tourism Project funded by
of Ceylon Shipping Corporation. the World Bank for the Ministry of Tourism
and was also a member of the Presidential
MR. J.M.S. BRITO
During the period June 2004 to May Commission on Taxation, appointed by His
Independent, Non-Executive Director
2017, he served as a Director of Aitken Excellency the President of Sri Lanka. He is
Spence PLC and the Chairman & CEO of its a member of the Board of Trustees of the
Appointed in July 2001
Maritime & Freight Logistics sector. Lakshman Kadirgamar Institute of Strategic
Studies.
Mr. Rajan Brito joined the Board of Aitken
Dr. Dissanayake is an Alumni of the Spence PLC in April 2000, with a multi- Mr. Asirwatham is a Fellow of the Institute of
University of Sri Jayewardenepura, NORAD, discipline academic background and a wealth Chartered Accountants of Sri Lanka. He also
JICA, Business Alumni of the University of experience from a career counting over 40 serves on the Boards of Dilmah Ceylon Tea
of Oxford (UK) and a Fellow of Harvard years that includes experience working with Company PLC, Royal Ceramics Lanka PLC,
Business School USA (EEP) and University of several international organisations. He was Browns Beach Hotels PLC, Vallibel One PLC,
Cambridge UK (EEP). then appointed as the Managing Director Ceylon Grain Elevators PLC and several other
of Aitken Spence PLC, in December 2001 companies.
He was inducted as a “Legend of Logistics”
and Deputy Chairman in April 2003 which On the 3rd of October 2023, he was
by the Prime Minister of Sri Lanka at the
position he held until his retirement on 15th conferred the Lifetime Achievement Award
National Logistics Awards Ceremony.
March 2019. After retirement, Mr. Brito 2023 by the Council of The Institute of
continues to be a Non-Executive Director of Chartered Accountants of Sri Lanka in
He is also the Chairman of Elpitiya
Aitken Spence Hotel Holdings PLC. recognition and honour of his outstanding
Plantations PLC, Aitken Spence Plantation
contribution to the accounting profession and
Managements PLC, Co-Chairman/Professor Mr. Brito is an acclaimed senior professional society.
CINEC Campus, Hon. Consul of Fiji Islands in both the private and the public sector
and serves as a Professor in Maritime industries in Sri Lanka. He is a former
Studies (visiting) at Shanghai Maritime Chairman of DFCC Bank, Employers’
University, Dalian Maritime University.

29
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
BOARD OF DIRECTORS

MR. N.J. DE SILVA DEVA ADITYA MR. C.H. GOMEZ Lanka. He is also a Certified Management
Independent, Non-Executive Director Independent, Non-Executive Director Accountant and has other qualifications
and exposure to investment and financial
Appointed in July 2010 Appointed in July 2010 strategy, risk management and international
tax planning.
The Honourable N. J. de Silva Deva Aditya Mr. Charles Gomez is a former Banker with
(Nirj Deva) DL FRSA, Presidential Envoy of over 40 years of experience in the finance Having started his UK career with PWC-
Sri Lanka to the EU and the Commonwealth industry. He has worked for major financial London, he spent close to two decades in
of 56 Nations and Senior Advisor to the institutions including Barclays Bank PLC, London’s financial and technology hub.
President of Sri Lanka, former Member of Lloyds TSB Bank PLC and SG Hambros. During this time, he led and contributed
Parliament in the British House of Commons He brings to the Company a wealth of to strategic projects with global top tier
and Member of the European Parliament, experience in regard to international banks such as JP Morgan, ING, Bank of
joined the Board of Directors of Aitken financial markets, financial services Montreal, National Australia Bank, and BNP
Spence in September 2006. regulations, compliance and controls and Paribas. Notably, he played a crucial role in
it was through his intervention that major establishing two international investment
He was the first Post War Asian born
investors were brought into Aitken Spence banks and a FinTech banking institution
Conservative Member of the British House
PLC and to other business sectors in Sri in London. During his tenure, he assumed
of Commons and served in Government as
Lanka. Mr. Gomez is a Director as well as a various leadership positions including
the Parliamentary Private Secretary to the
part owner of regulated financial services Finance Director, Chief Financial Officer,
Scottish Office after which he was elected
companies based in Gibraltar. He also serves Head of Strategy, and part-time Chief Risk
as the first Asian born British Member of the
on the Boards of foreign companies which Officer.
European Parliament representing over
have investments worldwide.
8 Mn, British people in Berkshire, Mr. Perera possesses extensive experience
Hampshire, Buckinghamshire, Oxfordshire, Mr. Gomez was appointed to the Board of in financial and investment strategy,
Surrey, Sussex and Kent for 20 years. Aitken Spence PLC, in 2002 and to the Board specialising in restructuring, turnaround,
of Aitken Spence Hotel Holdings PLC, in mergers and acquisitions, and leading
He was the Vice President of the
International Development Committee 2010. His role in these companies is that of strategic and economic research initiatives.
for 15 years, overseeing the Euro 25 Bn an Independent Non-Executive Director. He His professional endeavours have taken
European Budget. He was the Chairman also serves in the Audit Committee, Related him across Europe, Asia, the Americas,
of the EU Korean Peninsula Delegation Party Transactions Review Committee, and the Middle East, and Southern Africa,
working towards a lasting peace with North the Remuneration Committee. accumulating over 25 years of international
Korea, Chairman of the EU China, EU expertise.
Bangladesh, EU Indonesia, EU Myanmar MR. M.A.N.S. PERERA
and EU India Friendship Groups in the Non-Independent, Non-Executive Director DR. R. A. FERNANDO
EU Parliament and was nominated by his Independent, Non-Executive Director
political group ECR to be the president Appointed in April 2023
of the European Parliament and was the Appointed in January 2024
Chairman of the EU Delegation to the UN Mr. Perera is an experienced professional
General Assembly. with a diverse background in finance, Dr. Fernando was appointed to the Board
investment, and strategic leadership. He of Aitken Spence Hotel Holdings PLC, in
For his Tsunami Relief work, he was made a joined the Board of Aitken Spence Hotel January 2024.
Chevalier of the Catholic Church and Vishwa Holdings PLC in April 2023 and holds the
Keerthi Sri Lanka Abhimani by the Buddhist position of Managing Director at Melstacorp He is an Alumni of the University of
Clergy of Sri Lanka. He is the Publisher PLC. He also serves as a Board member for Cambridge having completed both a Post
of the http://www.commonwealthunion. Aitken Spence PLC, Distilleries Company of Graduate Certificate and Master of Studies
com the global media platform, the first Sri Lanka PLC and Browns Beach Hotels PLC. in Sustainability Leadership in 2014. He
Commonwealth wide news and TV media holds a Doctor of Business Administration
reaching out to 2.4 Bn people and seen Mr. Perera holds an MBA from the Degree from the European Business School
regularly by 12 Mn. He was appointed University of Cambridge and is a Fellow of in 2016. He completed the Advanced
Presidential Envoy and Senior Advisor in the Institute of Chartered Accountants, Sri Management Program at the INSEAD
August 2022.

30
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Business School (France) and is an Executive
in Residence since 2010. He also has an
MBA from the University of Colombo.

In April 2020, he created the ‘21st Century

Board Leadership Model-MasterClass’©
for the Institute of Directors of Luxembourg
which ran between 2020-2023. In
February 2023, he published ‘21st Century
Leadership to Fight the Code Red for
Business’ Archway Publishing.

He is the Chairman/CEO of Global Strategic

Corporate Sustainability Pvt. Ltd. His career
with Multinationals spanned 1981-2007
with Unilever, Reckitt Benckiser, Smithkline
Beecham International covering Africa,
Middle East and Asia. He was the first CEO
of the Sri Lanka Institute of Nanotechnology
2008-2011 and Operations Director of
the Malaysia Blue Ocean Strategy Institute
2011- 2016. He was the first UN Global
Compact Focal point 2007 and set up the
UNGC Sri Lanka Network.

He also serves on the Board of Study

at the PIM (Post Graduate Institute of
Management) and is a visiting faculty
member.

He serves on the Boards of LOLC Holdings

PLC, Ceylon Graphene Technologies Ltd,
Melstacorp PLC, Aitken Spence Plantation
Managements PLC, Distilleries Company of
Sri Lanka PLC, Dilmah Ceylon Tea Company
PLC, UN Global Compact and Ceylon Asset
Management Ltd.

In 2007, he won the “Global Strategy

Leadership award”, presented to him by
Professor Renee Mauborgne of INSEAD at
the World Strategy summit.

31
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE MANAGEMENT TEAM

MS. D.S.T. JAYAWARDENA MR. C. M. S. JAYAWICKRAMA MR. S. N. DE SILVA

MR. M. D. B. J. GUNATILAKE MR. D. J. DE CRUSZ MS. D. R. ALEXANDER

MR. P. G. S. PEREIRA MR. R. KOHLER

32
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
MR. M. MAHDY MR. S. DISSANAYAKE MR. D. KUMARASINGHE

MRS. N. M. PELPOLA MR. C. ATHAPATTU MRS. L DIAZ

MR. P. L. WIJERATHNE MS. N. MOHAMED

33
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE MANAGEMENT TEAM

MR. R. J. HASSIM MR. S. M. A. L. GUNASEKARE

MR. K. A. KODIPPILIGE

34
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
MS. D.S.T. JAYAWARDENA Mr. De Crusz holds an MBA from the Open beverage and hospitality experience from
See Board of Directors profile University of Sri Lanka, MA in International across Europe, Middle East, South-East Asia,
Relations from the University of Colombo, and South Asia. Mr. Kohler has previously
MR. C.M.S. JAYAWICKRAMA Sri Lanka and a Bachelor’s Degree in held high profile roles in F&B Management in
See Board of Directors profile Management from the Open University of global chains such as the Shangri-La Group,
Sri Lanka. Starwood Hotels and Steigenberger Hotels
MR. S. N. DE SILVA and in privately managed luxury hotels.
Mr. Srinith De Silva is the Chief Executive MS. D. R. ALEXANDER
Officer / Vice President of Aitken Spence Ms. Dinali Alexander is the Vice President of He has read for a degree in Hospitality
Hotels Oman Sector. He is a Graduate of the Supply Chain for operations in Sri Lanka, the Management from the Hospitality
Victoria University, Melbourne, and counts Republic of Maldives, India and the Sultanate Management School, Munich, Germany
many years of experience in international of Oman, corporate merchandising and and has a Master’s Degree in Business
hotel chains such as Raffles Singapore, exports operations. She serves as a Director Administration from the Edinburgh Napier
Sheraton and Stamford Hotels and Resorts. of Aitken Spence Hotels Ltd and Hethersett University, UK.
He has over 28 years of experience in the Hotels Limited. Ms. Alexander counts
hospitality industry in senior managerial over 20 years of management experience MR. M. MAHDY
positions handling operations and marketing covering procurement, administration, Mr. Mohamed Mahdy serves as the Assistant
in Singapore, Saudi Arabia, Australia, India human resources and sustainability, across Vice President Administration in the
and Sri Lanka. multiple industries. Maldives Sector of Aitken Spence Hotels.
Mr. Mahdy began his career with Aitken
MR. M. D. B. J. GUNATILAKE MR. P. G. S. PEREIRA Spence in 1993 at Bathala Island Resort,
Mr. Badhiya Gunatilake is the Chief Mr. Patrick Pereira serves as the Vice Maldives and has since held various senior
Operating Officer/ Vice President of Aitken President of Learning & Development and positions in the resorts in the Maldives and
Spence Hotels Maldives Sector, operating Rooms Division at Aitken Spence Hotels. In at the corporate office in Male’. He holds
Heritance Aarah, and the Adaaran Resorts. this role, he is responsible for overseeing a Bachelor of Philosophy and a Master
He also serves as a Director of Unique all organisational development initiatives of Arts in Hospitality Management from
Resorts Private Ltd. and providing strategic leadership for the Birmingham University, UK, and an MBA
Rooms Division function across all hotels from the Open University of Malaysia.
He is a Graduate of the Ceylon Hotel School
and management offices in Sri Lanka, India,
and a professional hotelier counting over
Oman, and Maldives. Mr. Pereira holds MR. S. DISSANAYAKE
two decades of experience in the hospitality Mr. Suresh Dissanayake brings 19 years of
an MBA from Anglia Ruskin University in
industry, including senior managerial experience in the hospitality industry, having
the UK and is a graduate of the Sri Lanka
positions, handling hotel operations in Sri worked in Sri Lanka, the Maldives, and India.
Institute of Tourism and Hotel Management.
Lanka, the Sultanate of Oman, and the As the Assistant Vice President of Sales
With over 20 years of senior leadership
Republic of Maldives. and Marketing for the Maldives sector, he
experience in hotel operations, talent
development, organisational development, has been instrumental in driving the sales
MR. D. J. DE CRUSZ strategic management, and brand and marketing strategies for numerous
Mr. Darell De Crusz has had a career deployment, he brings a wealth of expertise pre-opening projects, including Heritance
spanning over three decades with Aitken to his current position. Mr. Pereira is the Aarah. His career includes a significant tenure
Spence, joining Aitken Spence Travels President of Sri Lanka Hospitality Graduates heading sales and marketing efforts in India
Limited initially in 1989, thereafter Association and a Management Board from 2009 to 2013. After a brief period in
transferring to set up Ace Travels & member of Sri Lanka Institute of Tourism and Sri Lanka, he assumed leadership of the sales
Conventions in 1993. He continued his Hotel Management. initiatives for Aitken Spence Hotels in the
career at Aitken Spence Travels Limited till Maldives. Mr. Dissanayake holds an MBA from
2018 and re-joined the Company in 2019 as Buckinghamshire New University, UK and a
MR. R. KOHLER
the Vice President – Sales & Marketing for Bachelor’s degree in Business Administration
Mr. Ralf Kohler joined Aitken Spence Hotels
Aitken Spence Hotel Managements (Private) from the Open University of Sri Lanka. He is
in July 2023 as the Corporate Food and
Limited. With over 34 years of experience also a postgraduate of The Chartered Institute
Beverage Director, bringing with him over
in the tourism sector, he possesses a wide of Marketing and the Institute of Certified
two decades of international food and
knowledge of the travel and hotel industry.

35
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE MANAGEMENT TEAM

Management Accountants, Australia. His Travels and Shipping sectors within the MR. P. L. WIJERATHNE
professional excellence has been recognised Aitken Spence Group. Thereafter in 2008, Mr. Priyan Wijerathne is the Assistant
with several prestigious awards. In 2018, he she transferred to Aitken Spence Hotel Vice President Operations of the Sri
was honoured as the Most Influential Sales Managements (Private) Limited overseeing Lanka Sector of Aitken Spence Hotels.
and Marketing Professional in the Maldives. the HR and Legal functions for all the hotels He serves as a Director of Aitken Spence
Most recently, he was awarded the title of in the Group. Mrs. Pelpola is an Attorney- Hotels Ltd/Amethyst Leisure Limited /
Sales Personality of the Year at the Hotelier at- Law by profession and a Graduate of Hethersett Hotels Limited and Paradise
Maldives Awards 2024. the Institute of Chartered Secretaries Resort Passikudah (Private) Limited. He is a
and Administrators (UK), with experience Graduate of the Ceylon Hotel School, holds
MR. D. KUMARASINGHE in Property Acquisitions and Sales, Joint a Master of Business Administration offered
Mr. Dimuthu Kumarasinghe has been Ventures and Shareholder Agreements, by the Cardiff Metropolitan University and
with the Company for over 23 years and Human Resource Functions and Company is a professional hotelier counting over two
is the Assistant Vice President for Food & Secretarial Practice. decades of experience in the hospitality
Beverage of Aitken Spence Hotels in Sri industry, including senior managerial
Lanka, India, the Republic of Maldives and MR. C. ATHAPATTU positions.
the Sultanate of Oman. He is a world record Mr. Chula Athapattu is the Assistant Vice
holder at the Culinary World Olympic President of Engineering for Aitken Spence MS. N. MOHAMED
Championship held in 2004 and the Culinary Hotel Managements with responsibilities in Ms. Nashitha Mohamed is the Assistant
World Cup held in 2006. He secured 29 local and overseas properties of the Group. Vice President Finance for Overseas Hotels
Gold, 5 Silver and 12 Bronze medals for He has over two decades of experience in of Aitken Spence and is responsible for the
Sri Lanka through International Culinary the hotels engineering sector. Mr. Athapattu Finance of the Maldives, Oman and India
Competitions. Mr. Kumarasinghe holds the is a Chartered Engineer and a Member sector. She Joined the organisation in 2008.
title of President - Chefs Guild of Sri Lanka of the Institution of Engineers, Sri Lanka. She holds a Masters in Applied Finance
since 2012 to 2023 and has lead more than He holds a B.Sc. Engineering Degree from from the University of Sri Jayawardenapura,
77 participants to secure 68 Gold medals the University of Peradeniya and an MBA is a Fellow of the Chartered Institute of
along with many Silver and Bronze medals in Infrastructure from the University of Management Accountants (FCMA), a
at the Culinary Olympics and World Cup. Moratuwa. Chartered Global Management Accountant
Mr. Kumarasinghe is a jury member for (CGMA), a Member of CPA Canada, a
the World Culinary Competitions and a MRS. L DIAZ Certified Management Accountants (CMA)
recipient of the Presidential Award in 2007, Mrs. Lucille Diaz is the Assistant Vice Sri Lanka and a Fellow of the Association of
2017 and 2018 for outstanding culinary President for Branding and PR at Aitken Accounting Technicians (AAT) of Sri Lanka.
contribution. He holds honorary distinctions Spence Hotels, where she draws upon her
including, Honorary Life Member and Head extensive experience of over two decades MR. R. J. HASSIM
Coach of the Golden Horseshoe Culinary in travel & hospitality, financial services, Mr. Ramish Hassim serves as Assistant Vice
Team Canada, Vatel Club Luxembourg, advertising, and publishing. She holds an President – Culinary Operations for the
South Indian Culinary Association, Saudi MBA in Marketing with a specialisation Sri Lankan Sector of Aitken Spence Hotels
Arabian Chefs Association, Turkey Chefs in Project Management from the Cardiff Managements Pvt Ltd and overlooks the
Association, Emirates Culinary Guild and Metropolitan University, a Postgraduate Sri Lanka sector culinary operations. He has
Ukraine Culinary Union. Diploma in Marketing from the Sri Lanka been with Aitken Spence for nearly 25 years
Institute of Marketing and has achieved the and contributed towards the culinary sector
MRS. N. M. PELPOLA Passed Finalist status with the Chartered of Aitken Spence Hotels.
Mrs. Namalee Pelpola is the Assistant Vice Institute of Management Accountants.
President Corporate Affairs & Compliance Additionally, Mrs. Diaz holds a Certificate Mr. Hassim graduated from the Ceylon
of Aitken Spence Hotels. She joined the in Design Thinking from the Massachusetts Hotel School in 1996 specialising in
Company Secretarial division of Aitken Institute of Technology (MIT) and is a Professional Cookery and completed his
Spence Corporate Finance (Private) Limited Certified Practitioner of Design Thinking, industrial training at the Colombo Hilton.
in 2003 and has handled the Company which she employs as a framework for His experience thereafter included a stint at
is secretarial function and corporate creative problem-solving. the Dubai Intercontinental, following which
compliance for the companies in the Hotels,

36
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
he joined Heritance Kandalama in 1999 as a
Junior Sous Chef and progressed within the
Group.

He has travelled to many countries for skills

training as well as to participate in Sri Lankan
food festivals; he has also won awards
and accolades for Aitken Spence Hotels at
Culinary World Cup competitions.

MR. S. M. A. L. GUNASEKARE
Mr. Lalith Gunasekera, a graduate of the
Ceylon Hotel School Graduate Association
is the Assistant Vice President for Culinary
Operations of Aitken Spence Hotels in the
Maldives. He has been with the Company
for over 30 years and led the Heritance
Aarah team in 2019 to win Best Hotel
Culinary Team awards in Sri Lanka &
Maldives, held by the Chef’s Guild of Sri
Lanka. In 2020 he was a Gold Medal winner
at the Culinary Olympics which was held
in Stuttgart Germany & in 2022, he gave
leadership to the Adaaran Prestige Vadoo
team to win the Best Hotel Culinary Team
award in Maldives by FHAM.

MR. K. A. KODIPPILIGE
Mr. Krishan Kodippilige a graduate of the
Sri Lanka Institute of Tourism & Hotel
Management and joined Aitken Spence
Hotels in January 2024 in the capacity of
the General Manager/Director of Turyaa
Chennai.

He has a high level of exposure to both

the Sri Lankan and Bangladesh leisure
markets and was honoured with the Best
Emerging General Manager’s Award by
the International GM Awards, Bangladesh
in 2023. He currently serves as the
Director of International Affairs and is an
Executive Committee Member at the World
Association of Master Chefs - Sri Lankan
Chapter. He has also been recognised as an
International Culinary Judge by both the
World Association of Master Chefs and the
Royal Bengal Master Chef Association.

37
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 MANAGEMENT DISCUSSION & ANALYSIS

AN EXPERIENTIAL JOURNEY
Armed with countless decades of knowledge and expertise,
we are guiding our people to discover their own path of
prosperity and seek out a future of abundance.

38
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
THE STRATEGIC REPORT

GRI 2-6

HOW WE CREATE VALUE

While using our financial capital to purchase goods and services required to make the guest experience a pleasant one, the Group relies
on several other inputs to create value. These include the physical infrastructure comprising of our collection of distinctive properties,
strategic relationships with business partners who promote our properties among tourists, intellectual capital which represent the
Group’s ratings and certifications, our human capital as well as natural resources such as energy and water as well as biodiversity and
natural habitats.

Value is generated by transforming these capital inputs through a holistic strategy underpinned by sound corporate governance practices
and a robust risk management framework, coupled with a commitment towards impacting the communities in which we operate in, in a
positive manner.

The capital inputs are nurtured and eroded through the value transformation process through our actions, which in turn creates positive
and negative outputs and outcomes. Our value creation model demonstrates how these long-term outcomes are linked to stakeholder
value creation, including shareholders, customers, employees, business partners, the government, and the communities we operate in.

OUR PRESENCE

The Value
Chain
Value Chain Key Local
Hotels
Partners Enablers Communities

Travel Agents, Tour Airline Operators, Aitken Spence Hotels Tour Guides and Operators,
Operators, Online Cruise Lines, Other is among the largest Transport Providers,
Aggregators and Transport Providers operators in Sri Lanka, Nature Parks & Cultural
Direct Bookings with Hotels and Sites, Café & Restaurants,
Resorts in three other Local Craftsman, Farmers,
countries (Maldives, Food Manufacturers,
Oman and India) Service Providers

While using our financial capital to purchase Value is generated by transforming how these long-term outcomes are linked
goods and services required to make the these capital inputs through a holistic to stakeholder value creation, including
guest experience a pleasant one, the Group strategy underpinned by sound corporate shareholders, customers, employees,
relies on several other inputs to create value. governance practices and a robust risk business partners, the government, and the
These include the physical infrastructure management framework, coupled with communities we operate in.
comprising of our collection of distinctive a commitment towards impacting the
properties, strategic relationships with communities in which we operate in, in a
business partners who promote our positive manner.
properties among tourists, intellectual
capital which represent the Group’s ratings The capital inputs are nurtured and eroded
and certifications, our human capital as well through the value transformation process
as natural resources such as energy and through our actions, which in turn creates
water as well as biodiversity and natural positive and negative outputs and outcomes.
habitats. Our value creation model demonstrates

39
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
OUR BUSINESS MODEL

CAPITAL INPUTS VALUE TRANSFORMATION

FINANCIAL CAPITAL
Our financial resources which are
key to carrying out business activities
and reaching strategic goals. Hotel
Support
RS. 30.86 Bn RS. 39.83 Bn Services
Shareholders’ Long Term
Funds Interest Bearing
Borrowings

SOCIAL AND Maintenance

Administration Finance
RELATIONSHIP CAPITAL & HR
The mutually beneficial
relationships we have nurtured
with our stakeholders
963
1,214 Tour operators
Travel agents Housekeeping
1,334
21 Suppliers
Country
representatives
The surrounding community
Hotel
Operations
INTELLECTUAL CAPITAL
Robust systems and processes, Food & Front
tacit knowledge and the Aitken Beverages Office
Spence Brand which underpins
our performance.

HUMAN CAPITAL
Attitude and experience of our Revenue
workforce who supports the Growth
delivery of our strategic objectives.
2,823 Customer Portfolio
Employees in 4 countries Centricity Management

Talent Sustainable
MANUFACTURED CAPITAL Development Operations
The physical infrastructure in place
which enables the delivery of our
services at high levels of standards. STRATEGIC
Property Plant and Equipment: PRIORITIES
Rs. 66.2 Bn Over 2,330 rooms
across 15 owned properties

GROUP SUPPORT
NATURAL CAPITAL SERVICES
The natural resources we consume
in the value creation process.
423,550 GJ 813,444 m3
Energy Water
consumption consumption Reservations Sales & Central Engineering & Corporate
Marketing Purchasing Projects Finance
Ecological system

40
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 OUTPUTS OUTCOMES

Rs. 47.2 Bn SHAREHOLDERS

Generating sustainable shareholder value.
Revenue Generated
Rs. 1.86 Bn Rs. 3.35

1,064,058 Profit After Tax

5.42%
Earnings per Share

Guest Nights
Return on Equity

92.22 %
*Page 168 for more details*

Average Guest Satisfaction

Score (owned)
CUSTOMERS
Rs. 7.47 Bn • Offering unique guest experiences
Payments to Employees • Promoting sustainable tourism

86,104 Hours
Employee Training GOVERNMENT
Generating foreign exchange inflows

Rs. 1.1 Mn
into the country while contributing towards
Government’s tax revenue.
Investment in
CSR initiatives
EMPLOYEES
Rs. 26.2 Bn Provided competitive rewards and
opportunities in a conducive and
Payments to Suppliers dynamic work environment.
*Page 82 for more details*
IMPACTS

BUSINESS PARTNERS
2,381 tons Nurtured sustainable business growth
Solid waste generated through mutually beneficial relationships.
*Page 103 for more details*

683,586 m3
Effluents generated COMMUNITIES
Driving meaningful change and
socioeconomic empowerment while

34,433 tCO2e reducing the adverse environmental

effects of our operations.
Carbon footprint *Page 104 for more details*

41
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
RESPONDING TO OUR STAKEHOLDERS

GRI 2-29 GRI 207-3

We consider what is meaningful and valuable to our stakeholders in every aspect of our value creation process. The uncertain operating
conditions during the year necessitated a proactive and deeper understanding of the concerns of our stakeholders. As such, ASHH identified and
prioritised stakeholders who have the most significant impact on the value creation process and those who are affected most by our activities
through a robust stakeholder engagement process. A summary of our stakeholder engagement for 2023/24 is presented below:

Customers Business Partners Employees

1,064,058 963 tour operators 2,823 employees

guest nights 1,214 travel agents
We keep our employees happy and
1,334 suppliers
Regular engagement with customers motivated as they are key to driving us
helps us meet their evolving needs 21 country representatives towards our goals.
while ensuring business growth.
We select suppliers and service High influence/ High interest
High influence/ High interest providers who are reliable in order to
Stakeholder Concerns & Expectations
ensure the continuity of our operations.
Stakeholder Concerns & Expectations • Remuneration and Other benefits to
• Political uncertainty High influence/ High interest support increased cost of living
• Rising prices and costs Stakeholder Concerns & Expectations • Safe and conducive workplace
• Value for money • Opportunities for economic • Opportunities for training and
• Environmental footprint development development
• Service delivery • Sustainable and profitable • Job security
• Employee awareness on health and relationships • Diversity and equal opportunity
safety • Ease of transaction and Method of Engagement
professionalism
Method of Engagement • Performance appraisals (bi-annual and
• Ethical business conduct annual)
• Feedback form (upon departure)
• Constructive feedback • Regular meetings (ongoing)
• Through channel partners
• Through front line staff (ongoing) Method of Engagement • Trade unions (ongoing)
• Customer satisfaction surveys • Site visits and direct dialogue • Grievance mechanisms (ongoing)
(periodic) (ongoing) • Satisfaction surveys (periodic)
• Online reviews (ongoing) • Contracts and agreements (ongoing) • Intranet and social media
• Website and social media (ongoing) • Supplier performance reviews
Our Response
(periodic)
Our Response Strategic management of HR processes.
• Seminars and workshops (periodic)
Ensured customer needs were met while
providing best in class service through Our Response
ongoing engagement. Leveraging synergies with channel
partners while focusing on the
development of local suppliers.

Refer Page 99 Social & Relationship Capital Refer Page 103 Social & Relationship Capital Refer Pages 82 to 91 Human Capital

42
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 205-1

Shareholders Government & Regulators Communities

Aitken Spence PLC and subsidiaries Rs. 8.3 Bn Paid Rs. 1.4 Mn Investment in community
74.49% development initiatives
Institutional investors 17.29% Engagement with the Government
and regulator ensures our operations Nurturing healthy relationships with the
Retail shareholders 8.22%
are compliant with all regulatory surrounding communities.
We manage the business to provide requirements.
High influence/ High interest
returns that correspond to risks High influence/ High interest
Stakeholder Concerns & Expectations
undertaken by these stakeholders.
Stakeholder Concerns & Expectations • Employment opportunities
High influence/ High interest • Compliance to all relevant regulations, • Empowering livelihoods
Stakeholder Concerns & Expectations directions and guidelines
• Infrastructure development
• Ethical business conduct • Timely payments of taxes/ fees/ levies
• Environmental sustainability
• Return on investment etc.
• Environmental and social Method of Engagement
• Growth prospects
sustainability • Engagement with community
• Environment & social impact representatives (ongoing)
• Job creation
• Business continuity • Workshops (periodic)
• Compliance Method of Engagement
• CSR programmes (ongoing)
• Corporate governance and risk • Visits to premises (periodic)
• Direct dialogues (ongoing) Our Response
management framework
Operating responsibly and sustainably,
• Regulatory reporting (ongoing)
Method of Engagement and addressing issues that are material
• Interim financial statements • Participation in forums (ongoing)
for the surrounding communities through
(quarterly) Our Response continuous engagement.
• Annual General Meeting and Annual Proactive engagement with the
Report (annually) authorities to support the revival of the
• Press releases (quarterly) tourism industry.
• CSE announcements (continuous basis)
• Corporate website (continuous basis)
• One to one engagement (periodic)

Our Response
Maintained transparent communication
with all shareholders.
Refer Pages 71 to 73 Financial Capital Refer Pages 114 to 132 Corporate Governance Refer Page 104 Social & Relationship Capital

43
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
STRATEGY AND RESOURCE ALLOCATION

GRI 2-22
Our corporate strategy was formulated by taking into consideration operating challenges and risks, emerging opportunities, stakeholder needs
and our impact on society and the environment. Although the operational challenges that were prevalent during the year necessitated a shift in
focus to address immediate issues. In general the Group’s activities were aligned to its four strategic pillars.

Having reviewed our strategy during the year, we are confident that it remains relevant in achieving our long-term targets and vision.
The subsequent pages provide an overview of resource allocation, initiatives pursued and the measurements of our progress towards these
objectives. Relevance to our business clusters and capitals are shown through navigation icons in the respective sections of the report.

REVENUE OPTIMISATION
Leveraging our collection of properties and unique
propositions to optimise revenue and minimise
costs.

OPERATIONAL EXCELLENCE
Driving growth and stability by adopting a proactive
Our business approach which is capable of navigating
market uncertainties.
Strategy
DEVELOPING THE TALENT POOL
Proactive engagement and value addition to
employees to enhance the Group’s competitive
advantage and strengthen our ability to adapt, grow
and succeed in the long term.

SUSTAINABILITY
Carrying out our operations responsibly to minimise
harmful impacts to the environment and attain
sustainable growth for all stakeholders.

45
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
STRATEGY AND RESOURCE ALLOCATION

Our Strategic Pillars Highlights Measuring Progress

Revenue • Pursuing growth in new source markets and acquiring new

Revenue
Optimisation customers
Rs.Mn
• Offered targeted promotions and pricing adjustments
during the off-peak season to maintain occupancy levels 50,000

• Maintained flexibility in cancellation policies 40,000

• Offering distinctive experiences by leveraging our

30,000
collection of properties
• Re-opening of restaurants to provide guests a variety 20,000

• Investments in improving the website in order to build our 10,000

brand presence and increase direct bookings
0
2021/22 2022/23 2023/24

66%
Average occupancy rate

Operational • Continuous focus on improving margins through cost 14%

Excellence savings, automation and efficiency improvements increase in operating profit
• Optimising group synergies
• Providing guests with authentic local menus incorporating 19%
locally sourced ingredients Points increase in occupancy levels

• Implemented a food waste monitoring system to reduce

85%
wastage
increase in website traffic
• Increasing our online presence through digital media
platforms 92.22%
Customer satisfaction rate

Developing the • Supporting employees with adjusted salaries and benefits 86,104
Talent Pool due to increased cost of living and taxation Total training hours
• Emphasis on learning and development interventions in
order to upskill and re-skill young blood Rs. 2.64 Mn
• Driving talent retention by showcasing opportunities for Average benefits per employee
career progression
48%
• Inclusive culture promoting work life balance
Retention rate

Sustainability • Elimination of single use plastics at all resorts in the Maldives 17%
along with the establishment of glass bottled water plants Reduction in water consumption per guest night
• Investments in renewable energy sources
20%
• 100% of wastewater is recycled and re-used in our
Reduction in energy consumption per guest night
operations
• Commitment to reduce environmental impacts of our 33%
operations Reduction in carbon footprint per guest night

46
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Resource Allocation Capital Trade-offs Way Forward

Rs. 200 Mn investment in digital • Investments in enhancing our digital Short to Medium term
marketing capabilities have led to higher direct • Emphasis on maintaining quality standards
bookings
• Switching to paperless processes
2,653 channel partners
• Prioritised financial resources to
Long term
maintain physical infrastructure
which will in turn elevate the guest • Emphasis on branding to capitalise on the
experiences demand for established hotels

Rs. 22.4 Bn payments to local suppliers • Prudent allocation of financial Short to Medium term
resources ensures our continued • Undertake proactive measures to ensure guest
growth and supports our ability to add satisfaction
value to all other capitals
• Realignment of overhead cost structures to
rationalise costs
• Shift focus to acquiring customers from new
source markets

Long term
• Carrying out property refurbishments and
upgrades
• Growth through pursuit of management of
properties
Rs. 14 Mn investment in training and • Investments in motivating and Short to Medium term
development propositions developing our human capital allows • Continuous focus on training and development
us to benefit from higher productivity propositions
Rs. 7.47 Bn payments to employees levels.
• Focus on strategies to increase talent retention
64 students in hotel school in Ahungalla • Increasing female recruitment
and Kandalama
Long term
• Elevating the employer brand

Rs. 1.4 Mn investment in community • Utilising financial capital to protect Short to Medium term
engagement initiatives and environmental natural resources which will ensure • Establish glass water bottling plants at the Sri
initiatives the sustainability of our business and Lankan properties
availability for future generations.
• Investing in a solar grid at Heritance Negombo

Long term
• Achieve net zero emission status

47
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
DETERMINING MATERIAL ISSUES

GRI 3-1 GRI 3-2 GRI 3-3

Material matters are matters that could support or deter ASHH from achieving its strategic goals and creating value over the short,
medium and long term. These topics are important to stakeholders and are a key input in strategy formulation and risk management.
Our process for determining materiality is graphically presented below.

1 Identification of Material Issues

Our Material Topics

1. Health and safety

• Assessment of external environment
• Stakeholder engagement
2. Macro-economic conditions
• Evaluation of internal strengths and weaknesses
3. Cost management
• External stakeholder engagement
4. Financial performance and preserving liquidity
• Internal assessments

5. Service and operational excellence

2 Evaluation of Material Topics 6. Customer satisfaction

• Each issue is evaluated and scored based on

the impact and significance to the Group and its
7. Talent management
stakeholders.

3 Prioritisation

• The top material topics have been prioritised and 8. Property portfolio
plotted onto the materiality matrix. These material
topics are continuously assessed in order to ensure 9. Brand and reputation
our strategy remains relevant.

Our Material Matters 10. Product responsibility and responsible business

12
Customer
satisfaction 11. Carbon footprint (energy, emissions)
Health and Safety
10
Brand and Financial 12. Water and biodiversity
reputation performance
Service and and preserving
Talent Management operational
8 liquidity
excellence
13. Effluents and waste
Impact to Stakeholder

Good governance 14. Raw material consumption

Local
6 communities
Macro-economic
15. Procurement practices
conditions Procurement Cost management
practices

4 Water and Carbon footprint

biodiversity (energy. emissions) 16. Local communities
Product
Effluents
responsibility
and waste
and responsible
2
business 17. Good governance
Raw material
consumption

0
0 2 4 6 8 10 12
Impact to ASHH

48
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Strategic Priority SDG Relevant GRI Topic

Operational Excellence GRI 403: Occupational Health and Safety

GRI 416: Customer Health and Safety
Operational Excellence
Operational Excellence GRI 207: Tax
Operational Excellence GRI 416: Customer Health and Safety

Operational Excellence
Portfolio maintenance and GRI 410: Security Practices
upgrade
Operational excellence
Developing talent GRI 401: Employment
GRI 402: Labour management relations
GRI 404: Training and education
GRI 405: Diversity and equal opportunity
GRI 407: Freedom of Association and Collective Bargaining

Portfolio maintenance and GRI 202: Market Presence

upgrade
Operational Excellence GRI 206: Anti-competitive Behaviour
Sustainability GRI 415: Public Policy

Operational Excellence GRI 418: Customer Privacy

Sustainability GRI 302: Energy
GRI 305: Emissions

Sustainability GRI 303: Water & Effluents

GRI 304: Biodiversity

Sustainability GRI 306: Waste

Sustainability
Operational Excellence GRI 204: Procurement practices
GRI 308: Supplier Environmental Assessment
GRI 414: Supplier Social Assessment
Sustainability GRI 203: Indirect Economic Impacts
GRI 413: Local Communities

Sustainability GRI 205: Anti-corruption

GRI 406: Non-discrimination
GRI 408: Child labour
GRI 409: Forced labour

49
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING RISKS AND OPPORTUNITIES

The past few years have demonstrated the wisdom of institutionalising risk management systems that
look through multiple lenses at various factors that shape our operating environment. Tourism has
been one of the most vulnerable sectors during the pandemic and is forecast to recover only next year.
Geopolitics, health and safety, civil protests and extreme weather events are some of the events that
affect the industry as authorities in source markets issue travel advisories to their citizens. Consequently,
managing risk is a key priority to ensure the continuity of business engaging everyone across all
operations. The opportunities are also numerous and needs prioritising to determine resource allocation
in a capital-intensive sector.
RISK ENVIRONMENT IN 2023/24
As markets consolidated their post pandemic recovery, the risks became more market specific although many inherent risks in the industry
remain global in nature. The key risks are summarised below.

Divergent recovery across markets with

the Middle East sector moving beyond
pandemic levels while South Asia lagged.
Recovery rates for 2023 compared to
2019 levels were:

• Middle East 124% • Europe 94%

• Asia & Pacific 65% • Americas 90%
Geopolitical conflicts are a • Africa 96% Affordability of air travel,
critical concern particularly particularly long haul flights is
as the Middle East is an a concern as cost of air travel
international hub for long haul increased considerably, adding
flights as well as being a key pressure to budgets stressed due
source market to inflation in most countries.

Overcrowding in tourist hot Increasing competition from

spots leading to increasing informal sector exerting
attempts to control pressure on price
concentration

Digitalisation, technology and AI Climate change impacting

provide both opportunities and tourist experiences with extreme
risks as they can be utilised to weather events which can have a
effectively disrupt supply chains severe impact on destinations
and business models

50
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
RISK GOVERNANCE
Aitken Spence Hotel Holdings Risk Management functions come within the purview of the Aitken Spence Group Risk Management functions. Risk
Management at Aitken Spence Group aims to combine the principles of sustainable growth and economic value creation while balancing adequate
risks and opportunities. Since risk management is a vital part of how we design and carry out our business strategies, our risk management policy
is established by the Board. Further, the Aitken Spence Group has established a range of risk management and control systems that help us to
identify early signs of developments that could threaten the survival of our businesses. The most crucial of these systems are our enterprise-wide
processes for strategic planning and risk management reporting. Strategic planning aims to help us to anticipate potential risks and opportunities
before making significant business decisions, while management reporting aims to help us to track such risks more closely as our business evolves.

The Group approach to risk management is based on the Three Lines of Defence model. The framework facilitates segregation of
responsibilities, objective oversight by the Board, high levels of risk awareness by business owners.

1st Line of Defence 2nd Line of Defence 3rd Line of Defence

Business Management Units Group Strategic Risk Unit Internal Audit

Heads of business units are Implementing the Group’s Risk Provides an independent
responsible for identifying, Management Framework and Policy assessment of the adequacy and
measuring, monitoring, reporting review and constructive challenge effectiveness of the overall risk
and managing risks relevant to their of business unit risk reviews and management framework, reporting
businesses reporting concerns independently independently to the Audit
to the Audit Committee Committee

Audit Committee Internal Audit

Corporate Management
Board of
Managing Director
Directors
General Managers of
Each Property

51
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING RISKS AND OPPORTUNITIES

OVERVIEW OF RISKS
Aitken Spence Group has adopted a structured approach to identifying and classifying risk to facilitate reporting across 16 business
segments. These are as follows:

Excha

of Em & Safety
nal
Intere

es &
patio

rs
Credit

nge R
Liquid

holde
ploye
st Rat

Occu
h
Healt
ate

Stake
&
ity

e
Ec

&
on

n
tio ns
om

c
n ow
ic

fu
Fin al akd
M re
B
anc
ial

Reg
Ris

ul
Co atory
k

mp al
lian & on
ce r ati
e sk
Op Ri urity
r Sec
Cybe

Geopoli
tical
Risk
PRINCIPAL
RISKS
Political
Supply C
hain
ge te l
an ma nta
e

Str

Lo
& ronm

sk

s
Pe s of
Ri

nic
ate

ro
Ch Cli

r Ke
vi

Hi so
gic

Ch ate gh n y
En

im Em nel &
Ris

Cl nges Tu pl
rn oyee
k

a
Ch ov
er
Co
ts
ven

mp
e
We xtrem

Reputati

eti
er E

tor
E
ath

onal

Environmental & Climate Change Risk

Financial Risk

Geopolitical Risk

Operational Risk

Strategic Risk

52
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
RISK ASSESSMENT
The risk heat map below provides a high-level view of the principal risks the Group is exposed to.

2.50
Chronic Climate Changes
Exchange Rate
Interest Rate
Ageing Infrastructure Credit &
Extreme Weather Events Cashflow Risks
2.00
Economic Risk
Occupational Health
& Safety Risks
Competitor Risk
of Employees &
Reputational Risk Stakeholders
Probability

1.50
Supply Chain Risk
Cyber Security Risk
Loss of Key Personnel
& High Employee Political Risks

1.00 Turn-over
Legal Risk Regulatory & Compliance
Risk

0.50

5.00 10.00 15.00 20.00 25.00

Severity of Impact

53
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING RISKS AND OPPORTUNITIES

RISK/ OPPORTUNITIES

Risk Category /Risk Subcategory Mitigation Plan

Exchange Rate Risk, Interest Rate Risk, Credit & Liquidity Risks
Exchange Rate Risk ASHH has a net foreign exchange surplus and is negatively correlated to appreciation/depreciation of the Rupee.
• Close monitoring of the forex fluctuations
• Fixing the exchange rate in contract
• Explore methods of managing foreign exchange risk
Interest Rate Risk ASHH has significant borrowings and will be adversely affected by upward movement of interest rates.

KRI • Cost of capital and investments are managed by the ASP Group Treasury, leveraging expertise in the segment

• AWLR
Liquidity Risk ASHH maintains a cautious approach to managing liquidity and leverage which provides for significant headroom
in case of need.
KRI
• Agile and proactive management of working capital
• Quick asset ratio
• Ensure adequate bank facilities and aim for shorter working capital cycles
• Debt equity ratio
Extreme Weather Events
KRI The impact of extreme weather events is different for each location. Therefore, each location has been separately
• Average assessed and mitigation and disaster recovery plans made are sector specific.
temperature • Sustainability measures aim to reduce carbon and water footprints
• Average annual • Inventory and PPE are insured for natural disasters
rainfall • The Group assesses vulnerabilities, strengthens disaster preparedness, and enhances sustainability efforts
• Number of rainy • Disaster recovery plans are in place for cyclones, drought, high winds, earthquakes, forest fires, high winds,
days landslides, lightning strikes and tsunamis as relevant to the business
Chronic Climate Changes
Global Warming • Higher energy costs due to need for air conditioning

KRI • Impact of rising sea levels necessitates increased maintenance costs, particularly to water villas
• Rising temperatures can alter the biodiversity of locations which can change demand dynamics for locations
• Temperature
• Rise in sea levels
Toxic Smog/Smoke • Implement air quality monitoring systems

KRI • Conduct regular maintenance of ventilation systems

• Air quality
Economic Risk
Inflation Inflation has a significant impact as it reduces consumer purchasing power and also increases our cost profiles

• Global consumer • Impacts affordability of travel

price levels - inflation • Impacts demand for domestic tourism which supports off-peak demand which may need discounting, exerting
• Sri Lanka - NCPI pressure on margins
• Cost optimisation measures
Changes in Visa Diplomacy amongst countries have a significant effect as it can increase or decrease entry barriers to markets and
Arrangements with change a country’s competitiveness as a destination significantly
Different Countries • Work with the governments to promote destinations and urge for favourable arrangements

54
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Risk Category /Risk Subcategory Mitigation Plan

Economic Instability & Economic or political instability results in travel advisories for fear of civil unrest, discouraging tourists and
Down Turns increasing employee migration

• NCPI • Carry out joint promotions with government to allay concerns

• GDP Growth • Evacuation plans in place to ensure safety of guests

• Months of Foreign • Enhance employer brand

Exchange Reserves
Political Risks
Geopolitical Risk The Russian-Ukraine and the Israel-Palestine wars continue to elevate geopolitical risks. Additionally, almost half
the world will be conducting elections which can shape geopolitics
• Close monitoring of both domestic and global operating environments, to swiftly identify early warning signs of
risks and opportunities
• Maintain continuous interaction with regulatory authorities, trade chambers, and associations to stay abreast
of new laws and regulations, and advocate for changes that may negatively affect the economy and business
environment
Domestic Political • Election year for Sri Lanka
Risk
Civil Unrest • Develop crisis management plans and establish communication channels with local authorities
• Conduct significant CSR projects and building a rapport with the community
• Maintain open communication with community leaders and stakeholders to address grievances proactively
Terrorism & • Strong security culture within the premises by regularly emphasising the importance of security measures
Insurrections • Display telephone numbers to call immediately at security points
• Training for security personnel according to a monthly manual
• Insuring the property, lives, and business against losses due to terrorism
Regulatory & Compliance Risk
KRI • Awareness and strict adherence to timelines and requirements
• Number of fines • Training/SOP on segregation/recycle, zero plastic policy to implement
• Amount of fines • Regular updates on compliance register to be updated on any changes to create actions accordingly
• Number of fraud • Stay informed about legislative changes and adapt business practices accordingly through consultation with
incidents legal experts
• Amount of loss • Work with tax professionals to ensure compliance with tax regulations and explore tax planning opportunities
• Number of • Incorporating a fraud risk policy
regulatory issues
raised
• Number of licenses
lapsed
Legal Risk
KRI • Centralised legal function
• Number of pending • All major contracts are vetted by the Group Legal Division prior to sign off
litigation • The Legal Department retains external counsel at need for litigation or advice on transactions
• Well developed processes in place for disciplinary inquiries and HR related issues
• Processes in place to investigate theft or losses following due legal process
• Avoidance of encroachment with demarcations of boundaries on properties where feasible

55
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
MANAGING RISKS AND OPPORTUNITIES

Risk Category /Risk Subcategory Mitigation Plan

Supply Chain Risks

KRI • Ensure adequate inventory levels of frequently needed items including fuel
• Number of stock out • Collaborate with suppliers to minimise lead times
incidents • Proactively communicate any potential delays to customers and provide regular progress updates
• Number of late • Build relationships with multiple suppliers and create contingency plans for sourcing materials from different
deliveries regions
• Average lead times • Monitoring / understanding of market changes / challenges
Occupational Health & Safety Risks of Employees & Stakeholders
KRI This is a key risk for the Group and stringent measures have been put in place to mitigate, which has significantly
• Injury rates reduced the associated risks

• Absenteeism • strengthen health and safety measures at identified high-risk locations

• Epidemic statistics Implement Occupational Health and Safety (OHS) policies throughout the Group. Hotels and Resorts businesses
are certified for ISO 45000
• Usage of PPE
• Continuous training and awareness sessions
• Robust Safety Procedures for Operations
• Regular site inspections and hazards spotting exercises
• ISO 22000 food safety management system. Food handlers’ medical check-ups
• Proper cleaning, sanitisation, and pest control
• Availability of Doctor / Nurse inhouse
• Pandemic protocols documented for activation at need
• Proper fire prevention mechanism

Cyber Security Risk

KRI • Conducted group-wide staff awareness programs on information security and overseeing sensitive data
• Number of breaches • Implemented various protection technologies to manage network perimeter defence, data loss prevention,
• Number of near cybersecurity threats like cyber-spoofing and distributed denial of service (DDoS) attacks, and secure mobile
misses devices
• Regularly monitor suspicious cyber activities and conduct testing and verification of controls by third-party
entities
• Centralised control over application installation and configuration
• Always use the latest & updated version of software and applications
• Adhered with the benchmarked IT system related security measures and frequent update on the same
• Utilise firewalls and intrusion detection systems
• Implement endpoint detection and response and device encryption
• Employ identity and access management, including multifactor authentication
• Educate employees on threat identification and prevention techniques to maintain awareness
• Business continuity plan for Disaster Recovery- Computer virus server malicious
• Ensure regular data backups are available
• Implement firewalls and virus protection measures
• Apply role-based access controls on systems
• Provide user awareness training

56
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Risk Category /Risk Subcategory Mitigation Plan

Malfunction & Breakdowns

KRI • Implement regular servicing schedules
• Downtime • Consult engineering experts to address issues
• Number of • Maintain sufficient spare parts inventory
breakdown incidents • Provide comprehensive training to employees in machine operation and handling
• Adhere to operating manual instructions consistently
• Source all machinery from reputable suppliers or agents

Reputational Risk
KRI • The Code of ethics and professional conduct applies to all directors and employees
• Injury rates • Established sound governance and comprehensive policy framework to articulate management approach on
• Absenteeism material topics

• Epidemic Statistics • Implemented integrated sustainability management policy with a resolute team overseeing implementation
• Standard operating procedures for key business processes are established
• Voluntarily adopted the ESG framework
• Aligned with international best practices through certification on quality, environment, and social management
• Develop a crisis communication plan to address negative publicity promptly and transparently
• Implement reputation management strategies, including initiative-taking communication and swift resolution of
issues
• Customer satisfaction is maintained. Customer comments are taken into consideration in every point
Loss of Key Personnel & High Employee Turn-over
KRI • Implement comprehensive talent management programs to cultivate talent pipelines, including succession
• Attrition Rates planning

• Attrition within one • Offer job rotation and overseas assignments to employees to foster leadership development
year of Recruitment • Ensure the credibility of grievance mechanisms by Management
• Regularly update Human Resources policies and practices to align with industry trends
• Formulating HR Strategies to retain employees and Management Intervention to ensure such strategies are
implemented
Competitor Risk
KRI • Each sector conducts regular and systematic competitor analysis, implementing measures to sustain the Group’s
• Market Share competitiveness

• Market Share • Group Supervisory Board closely monitors strategy implementation

Growth • Continued efforts to develop new markets and market segments
• Monitor market dynamics and conduct quarterly competitor analysis
• Leverage strategic partnerships and Group synergies
• Group-wide initiative focuses on customer centricity
• Invest in branding
• Introduce innovative products & adopt new business strategies
• Loyalty programs, value added services, product, and service differentiation
• Renovate the property as per the market demand

57
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
OPERATING ENVIRONMENT

The concluding year was a year of recovery from the lingering effects of the pandemic and the cost-of-
living crisis, both in Sri Lanka and globally. Recognising the importance of adaptation and resilience, at
ASHH we closely monitored developments and proactively managed risks and opportunities, to deliver
on our strategy.

GLOBAL TOURISM
The international tourism industry
continued its recovery reaching 88% of
pre-pandemic levels in 2023, fuelled by 1,286 Mn
pent-up demand, increased air connectivity
Tourist arrivals in 2023
and a strong recovery of Asian markets and
destinations. The recovery had a significant
impact on economies, jobs, growth and 33.9% 12%
opportunities for the communities. Increase over lower arrivals
previous year compared to
The industry is expected to fully recover 2019
and return to pre-pandemic levels in 2024,
despite the ongoing geopolitical challenges.

International Tourist Arrivals

Rs.Mn

150

120

International Tourist Arrivals World & Regions

90
Rs.Mn

60 1,500

1,200
30
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

900

600
2023 2022

300

Regional Share 0
World Europe Asia and the Pacific Americas Middle East Africa

60 2019 2022 2023

50
Middle East led the recovery, overcoming pre-pandemic levels with arrivals 22% above 2019.
40

30 Recovery in Europe was supported by intra-regional demand.

20 Asia and the Pacific showcased mixed performance, reaching 65% of pre-pandemic levels.
10 South Asia however recovered to 89% of the pre-pandemic numbers. following the reopening
of several markets.
0
Europe

Pacific

Americas

Middle East

Africa
Asia and the

58
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
SRI LANKAN TOURISM SECTOR Top 10 Source Markets in 2023
Along with the revival of the tourism
industry, there was a significant growth in
tourist arrivals throughout 2023, compared 25

to the corresponding months of the previous 20

year, reflecting a heightened interest in Sri
Lanka as a tourist destination. 15

10
The quick recovery of the tourism sector is
expected to support the country’s economic 5

revival and growth momentum with positive 0

spillover effects on other related sectors. India Russia UK Germany China Australia France USA Canada Maldives

The industry is a vital component of India emerged as the top source market for Sri Lanka, accounting for 20.3% of arrivals
the country’s economy, contributing a in 2023.
significant portion to its GDP and providing
employment to a large number of people. Russia was the only market from which arrivals surpassed pre-pandemic levels. This
As such, the Government has placed could be attributed to the Russia-Ukraine conflict and the growing popularity of Sri
emphasis on reviving the tourism industry Lanka among Russians.
by promoting the country as an ideal tourist
Meanwhile, border closures, sluggish recovery in outbound travel and diverse travel
destination.
preferences contributed to the slow recovery of the Chinese market.
However, the expected surge in tourism
should also accompany alignment with 2022/23 2023/24
international standards and sustainable Total rooms available 48,120 53,229
tourism measures in order for the country to
Average length of stay 9.3 8.44
reap the full benefits.
Receipt per tourist day US $ 164.4 US $ 164.4

Total arrivals in 2023 amounted to The Domestic Economic Environment

1,487,303 compared to 719,978 in The Sri Lankan economy contracted
2022, which is a 106% growth year- Economic Growth Rate by 2.3% for the full year, due to the
on-year. %
significant reduction in Q1 and Q2 of
6
2023. (Source: DCS)

3
Tourist Arrivals by Month Having contracted in the first half of the year
0

-3 as the country struggled to recover from

250,000 -6
its worst economic crisis and the resultant
political and social turmoil, the economy
-9
200,000 showed signs of recovery during the second
-12
half of 2023 with all three key sectors
150,000
-15 recording growth in Q3 and Q4.
2022 Q1

Q2

Q3

Q4

Q2

Q3

Q4
2023 Q1

100,000
Although volatility and uncertainty remain,
50,000
the myriad of stability-oriented policy
0
measures undertaken to steer the economy
and the approval of the Extended Fund
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Facility of the International Monetary Fund

2022 2023
sheds a positive light on the outlook for the
country.

59
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
OPERATING ENVIRONMENT

The External Sector and the Exchange rate Inflation

Exchange Rate The normalisation of domestic supply side bottlenecks, appreciation
of the domestic currency and the downward adjustment of global
USD/Rs
commodity prices resulted in a downward movement of inflation from
400
the historical highs witnessed in 2022,
330 CCPI which peaked at 69.8% in September 2022, reached single digits
by July 2023, remaining relatively stable for the rest of 2023.
260

190 Inflation YOY % Change

60
120

50
50
40
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

30
Along with the approval of the IMF-EFF and budgetary support
20
from Asian Development Bank and World Bank, there was an
easing of the foreign currency shortage experienced in 2022. 10

Increased inflows through export proceed conversions, workers’ 0

remittances and tourist earnings as well as restrictions on imports

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
in 2023, contributed towards easing liquidity conditions in the NCPI CCPI
domestic foreign exchange market.

MALDIVIAN TOURISM SECTOR

Maldives is renowned for its exquisite resorts that offer an unparalleled experience of luxury and natural beauty. In 2023, the country
welcomed 1.87 Mn tourists reflecting the country’s enduring appeal as a premier tourist destination.

In the recent past, there has been an increase in guest houses numbers which could lead to Maldives becoming an affordable market.

The Government has intensified efforts to attract more tourists to the Maldives with the redevelopment of Velana International Airport,
which is poised to enhance the country’s tourism infrastructure significantly. The Government’s proactive measures and strategic
investments are expected to fuel continued growth in the years to come.

Tourist Arrivals in Maldives

Tourist arrivals increased by 12.1% to
Rs.Mn
1.879 Mn in 2023, compared to 1.675
200,000 Mn in 2022.

150,000

100,000

50,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 2023

2022/23 2023/24
Total beds in operation 57,254 61,562
Average length of stay 8 7.6
Occupancy rate 58.9 57.6

60
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
INDIAN TOURISM SECTOR
The Indian tourism sector experienced significant growth in 2023, with foreign tourist arrivals surging 64% to 9,236,108 compared to
2022. An analysis of the purpose of visits revealed a shift towards business and professional travel during the year. Delhi, Chennai, Mumbai,
Bangalore and Hyderabad held the top five entry ports for foreign tourists while the leading source markets were the United States,
Bangladesh, United Kingdom, Australia and Canada.

Focusing on technological integration, sustainable practices, and innovative thinking, the Indian travel industry is poised to contribute
significantly to the country’s economic growth and development.

OMAN TOURISM SECTOR

Oman is an emerging destination in the tourism market with tourist arrivals reaching approximately 3.5 Mn during the year, marking a
38% increase from 2022.

Although the tourism sector of Oman was supported by infrastructure investments and tourism friendly policies in line with the Government’s
Oman 2040 vision, the geopolitical tensions in the region caused by the Israel-Palestine conflict impacted the industry to an extent during the
year.

However, the future of Oman’s tourism sector looks promising, with an anticipated annual growth of 7.4% from 2023 to 2027.

TRENDS SHAPING THE INDUSTRY

The tourism industry is constantly evolving, driven by changing consumer preferences, emerging technologies, and global trends. Some of the
key trends shaping our industry are discussed below:

Sustainable Tourism Digitisation and Automation

With travellers becoming increasingly conscious of their impact on the environment and Technology plays a crucial role in enhancing
local communities there is an increased focus by hotels, tour operators and destinations on the overall travel experience, from the
eco-friendly practices, such as reducing carbon footprints, supporting local economies, and planning stage to the journey itself. With
promoting conservation efforts. customers increasingly booking directly
through website or other channels,
hospitality businesses have started investing
in systems that offer value to customers.

Workation
Professionals are seeking opportunities to mix business trips with leisure activities along
with the continuation of remote working arrangements. Requires strong Wifi connections,
charging facilities and comfortable working atmospheres.

Wellness Tourism Authentic and Immersive Experiences Personalised Experiences

With people prioritising their health in the There is an upward trend in travellers Travellers are seeking recommendations,
post-pandemic environment, they tend seeking authentic experiences that allow offers, and experiences tailored to their
to seek experiences that offer relaxation, them to connect with local cultures and specific interests and preferences.
rejuvenation and self-care. traditions.

61
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
OPERATING ENVIRONMENT

SWOT ANALYSIS

STRENGTH WEAKNESS
• Multi-destination portfolio • Sensitivity of the market
• Authentic experiences • Dependence on employee skills and
• Experienced team attitude
• Unique architecture • Need for constant refurbishment and
• Group synergies upkeep of properties
• The Aitken Spence Brand

OPPORTUNITY THREAT
• Airline connectivity to destinations • Increase in competition
• Preference amongst travellers for • Geopolitical instability
reputed hotel chains • Climate change
• Growth in regional tourism • Increasing cost of airfares
• New source markets • Expiration of debt moratoriums
• Promotion of tourism by the respective provided to the tourism sector
governments

62
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
SUSTAINABILITY AT AITKEN SPENCE HOTELS

Tourism has been identified as a sector that could make a considerable impact towards addressing global economic, social and environmental
sustainability issues facing the world today. As part of the Aitken Spence Group which is recognised as a pioneer in sustainable tourism in
Sri Lanka, the Group has long since embraced the principles of sustainability, embedding social and environmental consciousness into its
corporate strategy, operations and processes. The Group’s approach to sustainability is aligned to the Integrated Sustainability Framework
of the parent entity and comprises the following key pillars. Please refer to the full Policy at https://d3a2q5al71qg9.cloudfront.net/2017/04/
ASH-Integrated-Sustainability-Policy.pdf

SUSTAINABILITY PILLARS

Business Environmental Supply Chain Human

Ethics Management and Community Resources
Development
INTEGRATED
SUSTAINABILITY UNDERLYING POLICY FRAMEWORK
FRAMEWORK
Energy Policy GSTC (Global Sustainable Tourism
Provides guidance on Council) Criteria
Framework implemented
ensuring the long-term
in accordance with the ISO UNWTO Global Code of Ethics for Tourism
viability, profitability
50001:2011 standards, focuses
and integrity of the Principles and guidelines for stakeholders
on enhancing energy efficiency
business through the in the tourism sector including
and managing energy resources
adoption of a proactive governments, travel industry, communities
within the Group
approach to corporate and tourists.
sustainability.

RELEVANT SDG’S

Please refer to the full

Integrated Sustainability
Policy by scanning the QR
Code

63
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
OUR SOCIO-ECONOMIC IMPACT

Our socio-economic impact is significant given the geographical spread of our operations across four countries. As part GRI 202-2
of the Aitken Spence Group, we are cognizant of the socioeconomic responsibility we hold and make a conscious effort to
actively facilitate sustainable growth for stakeholders.

A brief overview of our socio- economic impact is illustrated below:

Developing Local Supply Generating Foreign

Chains Currency
The Group procures locally whenever Earnings from tourist arrivals brought
possible, supporting local suppliers in much-needed foreign exchange into
in the vicinity of the hotels as well as Sri Lanka as the country recovers from
SME’s. a critical shortage of foreign currency
reserves.
- Rs. 22.4 Bn was made as payments to
local suppliers during the year. - Rs 9.9 Bn inflow of foreign currency
- 324 new local suppliers added during
the year

Payments to Local Suppliers Meaningful Tourist Arrivals - Sri Lanka

Rs.Mn Investment in
Developing
25 1,500,000

20 Communities 1,200,000

15 900,000
- Rs 1.4 Mn investment in
10 community development Initiatives 600,000

5 300,000

0 0
2021 2022 2023
2021/22 2022/23 2023/24

Preserving Biodiversity
and Natural Habitats
The Group drives concerted efforts to
211 acres 500+
preserve biodiversity and regenerate of Natural Trees Planted
the natural environment around us. Preservation

- Native Flora: 128 species

- Birds: 173 species
- Natural Streams: 11
- Reptiles and Amphibians: 19 species 61.4 m2 9.2 Mn
- Mammals: 17 species Coral Trays Invested in
- Butterflies and Dragonflies: 82 species Sustainability

64
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Total Employees Contribution of Supporting Employment
Tax Revenue to the and Uplifting
Government of Livelihoods
Sri Lanka Opportunities for direct and indirect
employment are provided with preference
Non-executives 12% 33% Supporting the Government’s fiscal given to people from the surrounding
Executives 82% 60% policy by paying taxes in compliance community, thereby promoting
Managers & above 6% 7% with relevant regulations. community relationships.

- 2,823 direct employment opportunities

- Rs 8.3 Bn was paid as taxes during
- Rs. 7.47 Bn as payments to employees
the year.
- Rs. 14 Mn investment in training

Promoting Responsible
Consumption of Resources
We encourage our guests to be responsible in the
consumption of resources in line with the integrated
sustainability framework of the parent entity.

19.7% 16.7%
reduction in energy reduction in water
intensity intensity

Resource Consumption (Per Guest Night) Carbon Footprint

Litres MJ tCO2e kgtCO2e

1,000 600 40,000 50

35,000
500 40
800
30,000
400 25,000
600 30
300 20,000
400 15,000 20
200
10,000
200 10
100 5,000

0 0 0 0
2021/22 2022/23 2023/24 2021/22 2022/23 2023/24

Water Intensity Carbon Footprint

Energy Intensity Emissions Per Guest Night

65
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
PERFORMANCE ANALYSIS

SRI LANKAN CLUSTER

Our Key Differentiators

Portfolio of iconic Most number of

Rich in culture and
properties in scenic properties designed Strong value chain Reputed for
offering of authentic
locations across the by iconic Deshmanya partnerships excellence in cuisine
experiences
country Geoffrey Bawa

Capital Value Creation

Total Asset Growth

561,247 80%
2% Guest Nights Wastewater recycled & reused
Net Book Value of PPE
1,107 211+ Acres
Rs. 15 Bn Suppliers Conservation of forest areas
Total Equity within our properties
Rs. 0.2 Mn
Rs. (0.5) Bn Investment in CSR

Properties owned by the Group

44 Over 1900
8 Certifications & Awards Employees
Properties managed by the Well-established systems
Group and processes
1.3 Bn
Payments to Employees
1
Room Inventory
43,146 Hours of Training
1,411 195 Female Representations

Operating Environment Risks & Opportunities

• Positive travel sentiments among people led to the + Enhancing revenue streams by re-opening restaurants
recovery of the tourism industry in the country. + Increased airline connectivity
• Although the economy showed signs of recovery, volatility + Experimenting with new menus using locally
of the exchange rate, rising operational costs and shortage sourced ingredients
of imported raw materials are challenges that remain. - Travel advisories issued by certain markets
• There is a shortage of manpower due to increased labour due to political instability
migration in search of better opportunities abroad. - Intensification of competition
- Rising implications of climate change

66
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
STRATEGY & PERFORMANCE REVIEW The biggest challenge facing the segment

Revenue from the Sri Lankan cluster

during the year, was the migration of HIGHLIGHTS
manpower in search of better opportunities
experienced remarkable growth of 91%
during the year, as occupancy levels
abroad and the reluctance amongst the
youth to join the hospitality industry. We
Rs. 1 Bn
increased along with the recovery of Profit from Operations
focused on mitigating this through targeted
international tourist arrivals to the country.
The domestic customers also contributed
learning and development propositions and
creating pathways for career
Rs. 454 Mn
significantly to the increased occupancy Capital Expenditure
levels at our hotels with the stabilisation
OUTLOOK
of macro-economic conditions within the
Although rising costs, adverse weather
63%
country. Average Occupancy
conditions and an uncertain political and

Sri Lankan Cluster - Performance

economic environment remain as clear
challenges to the tourism industry, the
Rs. 23 Bn
Total Assets
outlook for the segment looks promising
LKR Mn LKR Mn

12,000 -500
with the Government anticipating tourist
numbers to increase to the country given
18
Certifications
10,000 the heightened interest in Sri Lanka as a

14,272 tCO2e
-1000
8,000
preferred tourist destination.

6,000 -1500 Carbon Footprint

Our properties are well equipped to
4,000 capitalise on these numbers underpinned
-2000 by our strong brand presence, distinct
2,000
positioning in the market and synergies with
0 -2500 channel partners.
2022 2023 2024

Revenue There is also a growing popularity for niche

Pre-tax profit/loss
tourism experiences such as wellness
tourism, experiential tourism and remote
Although certain properties went on to working tourists for which we cater to
record profits for the year, the overall through customised packages. We will also
profitability of the sector was impacted due increase our focus on promoting sustainable
to the rapid fluctuations of the cost base, tourism measures such as reducing carbon
rising energy costs and increased taxation. footprints, supporting local economies, and
However, the cluster recorded a profit from promoting conservation efforts.
operations of Rs. 1 Bn while the loss after
tax for the year reduced by 65% to Rs. 1.28
Bn, compared to last year.

Against this backdrop, the segment focused

on enhancing revenue streams, preserving
liquidity, and optimising resources while
sharpening the value proposition to the
customer.

Meanwhile, our cost management strategy

focused on driving efficiencies through
innovation, halting all discretionary expenses
and finding alternative local suppliers from
the surrounding community,

67
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
PERFORMANCE ANALYSIS

SOUTH ASIAN AND MIDDLE EAST CLUSTER

Our Key Differentiators

Our resorts in the

Properties that cater Operations across The relationships we
Maldives are mature The reputation of the
to different segments the Maldives, Oman have nurtured with
products, with years Aitken Spence Brand
of the market and India Channel Partners
of continued success

Capital Value Creation

Total Equity
502,811 80%
Rs. 31 Bn Guest Nights Wastewater Recycled & reused
Total Asset Growth Conservation of
227 coral reefs
-13% Suppliers
Diverse eco-systems
Net Book Value of PPE
Rs. 1 Mn of hotels
Rs. 51 Bn Investment in CSR

Properties owned by the Group

47 Over 1300
7 Certifications & Awards Employees
Properties managed by the Well-established systems and
Group processes
Rs. 6.2 Bn
Payments to Employees
2
Room Inventory 42,958 Hours of Training
1228 80 Female Representations

Operating Environment Risks & Opportunities

• Maldives continued to be a key market for tourists + Growth in regional tourism
reflecting the Government’s efforts to enhance + Strong growth potential in Oman and India
the tourism infrastructure. + opportunities in outdoor catering and banquet services
• Geopolitical tensions in the region caused by the Palestine-
- Rise in the guest house market could lead to Maldives
Israel conflict affected tourism numbers to Oman.
becoming an affordable market
• The Indian market experienced significant growth in
- Increased competition from cheaper travel destinations
tourist arrivals as the Government focused on
technological integration, sustainable practices,
and innovative thinking to drive the industry.

68
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
STRATEGY & PERFORMANCE REVIEW bringing in approximately 40% of the traffic. Comprehensive Income on the translation
Operations in Oman was badly affected due of a foreign operation (Maldives) to the
South Asian and Middle
to geo-political tensions in the region caused reporting currency. This loss arises due to
East Cluster - Performance
by the conflict between Israel and Palestine. the appreciation of the Rupee against the US
LKR Mn LKR Mn With airlines reducing flights to the region Dollar. The Sri Lanka Rupee appreciated from
50,000 4,500 due to the conflict, tourist numbers recorded Rs. 327.14 as of 31.03.2023 to Rs. 300.44 as
a drastic decline with revenue decreasing by of 31.03.2024
40,000 3,600
27%, to Rs. 1.1 Mn compared to last year.
30,000 2,700
The outlook for Oman looks somewhat
Disruptions to shipping lines led to a sharp positive with the resumption of travel to
20,000 1,800 rise in food prices and a shortage of imported the region, although an element of volatility
items. We had to be proactive in managing our remains due to the ongoing conflict between
10,000 900
operations by experimenting with new menus Israel and Palestine. The Sultanate of Oman
0 0
and looking for alternative suppliers. continued its tourism development plan,
2022 2023 2024 Oman Vision 2040, undertaking several
We managed to bring occupancy levels
Revenue infrastructure development plans towards
Pre-tax profit/loss up to 51% during the year, by conducting
making Oman a tourism hub, which provides
promotions and targeted marketing to
a host of growth opportunities for the hotel
drive domestic resident numbers as well as
Maldives sector. We will continue to explore new means
corporates. The sales team was clustered
The Maldives sector performed reasonably of revenue generation and tap into new source
and centralised during the year, in order to
well during the year, capitalising on the markets in order to drive revenue growth.
market all 3 properties together and benefit
positive travel sentiments displayed by
from synergies. We also explored alternative The Indian segment looks promising,
tourists from key market segments and going
means of revenue generation including showing potential for growth against a
onto record Rs. 37 Bn in revenue. However,
outdoor catering, local food promotions and
there was a drop in occupancy levels at the buoyant economy. Having mainly focused on
banqueting services.
resorts mainly due to the rise in the number accommodation revenue in the past, we are
of tourists seeking affordable accommodation hoping to explore opportunities in food and
India
options such as guest houses. The segment beverage revenue as well as banqueting.
Our hotel in India primarily caters to the
was able to manage overhead costs quite well business segment of the market. The hotel
by driving operational efficiencies, resulting in recorded a revenue growth of 9% during
profit for the year amounting to Rs. 3.1 Bn. the year with a profit after tax of Rs. 0.14 HIGHLIGHTS
Mn and an average room occupancy rate of
For Maldives, airline accessibility is the
biggest challenge as the renovation work
81%. During the year, we mainly focused on 70%
optimising our resources to ensure guest Average Occupancy
at Velana International Airport is yet to be satisfaction.
Rs. 6.2 Bn
completed. The country continued to attract
new investments resulting in increased OUTLOOK
Payments to Employees
competition for our resorts. However, the The outlook for Maldives is stable with the
expertise of our team and brand name
differentiated us from the competition. We
government investing significantly in tourism
infrastructure in an effort to attract and
Rs. 7.3 Bn
Profit from Operations
are also very conscious of our impact on the cater to more tourists. The election of the
environment, conducting regular programmes
to protect coral reefs, conducting coral
new government will also bring in political
stability, thereby ensuring smooth operations
Rs. 1.4 Bn
Capital Expenditure
planting sessions, establishing our own glass for the next 5 years. We plan on carrying out
bottled water plant as well as investing in
solar power.
refurbishments at several of our properties
while also expanding our solar power
11
Certifications
generation capacity.
Oman
The Omani segment is mainly dependent on The Group recognised an exchange loss
20,161 tCO2e
Carbon Footprint
the European market, with tour operators of Rs. 2.590 Mn in the Statement of

69
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ECONOMIC VALUE-ADDED STATEMENT

201-1 202-2

2023/24 2022/23 2021/22 2020/21 2019/20

Net Profit Attributable to Shareholders 1,864,687 46,809 1,034,305 (7,253,215) (895,724)

Add:
Depreciation and Amortisation 5,125,872 5,385,799 3,433,486 3,338,451 2,846,879
Non Cash & Non operational adjustments 367,110 530,128 79,730 625,038 448,912
Total Interest on debt 5,666,668 5,809,973 2,278,833 2,173,971 1,861,353
Adjusted Profit After Tax 13,024,337 11,772,709 6,826,354 (1,115,755) 4,261,420

Total Investment Capital

Total Equity 30,864,692 30,180,271 28,141,058 21,962,720 29,150,430
Add:
Total Long Term Debt to banks 28,562,441 36,588,535 38,596,278 28,147,885 24,890,820
Total Short Term Debt to banks 11,311,701 14,060,753 10,591,516 7,300,993 5,250,363
Lease Liability 12,483,509 15,010,510 14,689,882 11,033,234 9,133,386
Cumulative Depreciation 36,434,294 35,369,760 29,439,940 20,117,354 16,918,951
Adjusted Investment Capital 119,656,637 131,209,829 121,458,674 88,562,186 85,343,950

Economic Value Added

Weighted Average Cost of Capital 9.5% 10.9% 6.3% 5.2% 6.6%
Cost of Average Investment 11,336,024 14,355,860 7,700,513 4,621,421 5,640,720
Economic Value Added 1,688,313 (2,583,151) (874,159) (5,737,176) (1,379,300)

70
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
CAPITAL REPORTS

KEY DRIVERS + Surge in tourist arrivals to Sri Lanka

OF REVENUE - Appreciation of the Sri Lankan Rupee against US Dollar
during the year masked revenue growth from the South
Asian and Middle East sector, particularly the Maldivian
segment.
Financial
Capital
the US Dollar during the year resulted in the
Breakdown of Revenue Composition
The Group’s ability to create revenue figure for Maldives decreasing by
value for its financial capital 9.27% in Rupee terms. 1.35
1.12
2024
is largely dependent on its 1.54 10.32
The Indian sector continued to perform
financial performance. In this reasonably well, recording an 8.52% growth
1.24 5.45

section of the report, we look in revenue during the year. Average room 2023
at how the Group managed its occupancy during the year was above 80% 33.42 36.83

financial resources to create supported by 41,600 hotel room nights

sustained value for shareholders, sold mainly to the business segment of the
market.
despite the volatile operating
Sri Lanka
Maldives

environment exerting pressure The Omani segment on the other hand

India
Oman
on the tourism industry. experienced a turbulent year with
geopolitical tensions in the region due to Cost Management
FINANCIAL PERFORMANCE the escalation of the Middle East conflict Other direct operating expenses arising from
resulting in a drastic decline in leisure tourist the Sri Lankan sector increased by 91.91%
Revenue
arrivals. However, we managed to limit driven by the increased activity levels at
Consolidated revenue increased marginally the decrease in revenue to 27.3% through our properties along with the resumption
by 3% to Rs. 47 Bn during the year, targeted initiatives aimed at attracting of tourist arrivals to the country. Indirect
underpinned by strong performance of domestic travellers as well as expansion operating expenses increased by 66.61%
the Sri Lankan sector. The Sri Lankan of alternative revenue sources including amidst inflationary pressures on food and
sector performed well along with the outdoor catering and local food promotions. rising energy costs, while staff costs related
increase in tourist arrivals to the country, to the Sri Lankan sector also increased
with occupancy levels averaging 63%,
Revenue Trends by 28%, as we adjusted remuneration of
in comparison to the previous year’s employees to reflect market adjustments in
level of 30%. The Group’s marketing and LKR Mn Growth y-o-y
view of the tough economic conditions.
sales strategy which included targeted 40,000 350
promotions, particularly during the off 35,000 300 The Group placed strategic emphasis on
season aimed at attracting domestic tourists 30,000 250
managing the cost base given the volatile
200
also contributed towards the increase 25,000 operating conditions that prevailed during
150
in occupancy levels at our Sri Lankan 20,000 the year. Group wide cost management
100
properties. 15,000 initiatives are indicated below.
50
10,000 0
Meanwhile, revenue from the South Asian 5,000 Discretionary expenses continued to be
-50
and Middle East sector which accounted for 0 -100 deferred as we focused on rationalisation of
77.7% of consolidated revenue, decreased 2020 2021 2022 2023 2024 costs in order to preserve liquidity.
by 9.41% to Rs. 36.73 Bn, mainly reflecting
Sri Lankan Sector
exchange rate fluctuations. Although South Asia and Middle East Sector
Sri Lankan Sector - growth Overhead costs of the Group was
revenue from our Maldivian resorts which
South Asia and Middle East Sector - growth Rs. 37.91 Bn, compared to Rs. 37.94 Bn
is the largest contributor to the Group
of last year.
revenue increased in dollar terms, the
appreciation of the Sri Lankan Rupee against

71
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
FINANCIAL CAPITAL

Driving energy savings FINANCE EXPENSES While our Maldivian operations continued
The gradual easing of the monetary policy to be profitable, stiff competition and rising
Optimising resource usage by the Central Bank of Sri Lanka led to a costs exerted pressure on margins.
Streamlining and automating processes decrease in market interest rates towards
the latter part of 2023, resulting in finance Meanwhile, losses arising from equity
Driving a cost conscious culture expenses of the Group decreasing by 2.47% accounted investees reduced by 90.87% to Rs.
throughout our operations to Rs. 5.67 Bn. Finance income for the year 36 Mn compared to the previous year 397 Mn.
amounted to Rs. 399 Mn consisting mainly Income tax expenses for the year amounted
Preference to local suppliers in close to Rs. 1.14 Bn which resulted in Group profit
of returns made on financial investments.
proximity to our properties in a bid after tax increasing to Rs. 1.86 Bn compared
The Group’s net finance expense decreased
to manage high cost of imported raw to Rs. 46.81 Mn recorded last year.
marginally by 0.01% to Rs. 5.27 Bn during
materials.
the year, reflecting a decrease in both
long-term and short-term interest-bearing Profitability- Sri Lankan Cluster
Group profit from operations increased by
liabilities. Rs.Mn
13.67% to Rs. 8.31 Bn during the year driven
by strong performances from the Sri Lankan, Interest Rates 2,000

Maldivian and Indian sectors. The Sri Lankan Rs.Mn

1,000
sector bounced back during the year to 0
30
record a profit from operations of Rs. 1 Bn -1,000
compared to the loss from operations of Rs.
25 -2,000
0.45 Bn recorded last year. The South Asian
-3,000
and Middle East sector contributed Rs. 7.3
20 -4,000
Bn to operating profits which is a decrease of
5.8% compared to last year. -5,000
15 2022/23 2023/24

Overhead Costs PAT

10 Tax
Rs.Mn
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

40,000

35,000 AWLR 365 TB

30,000 Profitability- South Asia & Middle
25,000 East Cluster
PROFITABILITY
20,000 Rs.Mn
The management demonstrated resilience in
15,000
navigating volatile market conditions, going 5,000
10,000
on to strengthen the Group’s profitability
5,000 4,000
during the year. The pre-tax profitability
0
2022/23 2023/24
of the Group increased by 82.75% to Rs. 3,000

Staff Costs
3.01 Bn during the year, with the strong
2,000
Depreciation performance of the Maldivian and Indian
Amortisation & Impairment
Other Operating Expenses- Direct
sectors offsetting losses from the Sri Lankan 1,000
Other Operating Expenses- Indirect and Omani operations.
0
Although the Sri Lankan operations 2022/23 2023/24

recorded a pre-tax loss of Rs. 658 Mn, it is PAT

Tax
a remarkable improvement from the loss of
Rs. 2,417 Mn recorded last year, reflecting
the substantial increase in revenue earned
during the year along with the revival of the
tourism industry in the country.

72
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
FINANCIAL POSITION AND STABILITY Gearing Ratio
Key Driver
Assets Rs.Mn
Total assets of the Group declined by Consciously reduced exposure to
interest bearing liabilities. 80
10.06% to Rs. 97.08 Bn by the end of March
2024. As the hotel sector is a capital-
intensive industry, the asset composition 70
201-4
weighs heavily on non-current assets, which
account for 85.15% of the total assets. Funding: Capital and Liabilities
Although there was a loss on foreign 60

68.17% of total assets account for property, currency translation which had a negative
plant and equipment which declined by impact on the foreign currency translation
reserve, shareholders’ funds increased by 50
8.89% to Rs. 66.18 Bn by the end of the
2.27% to Rs. 30.86 Bn, supported by profits 2021/22 2022/23 2023/24
financial year. The decline in PPE can be
mainly attributed to the decline in the Rupee generated during the year. Resultantly
value of assets, as the Sri Lankan Rupee equity funded 31.79% of total assets of the
CASHFLOWS AND LIQUIDITY
appreciated significantly against the US Group, compared to 27.96% the previous
During the year, cashflows generated from
Dollar during the year. year.
operating activities amounted to an inflow of
Rs. 7.77 Bn reflecting increased operational
Meanwhile, current assets of the Group Total liabilities decreased by 14.85% at
activity. Given the volatile operating
accounted for 14.85% of total assets. the end of the year as the Group sought to
conditions that were prevalent during the
Current assets declined by 9.6% during curtail borrowings in an effort to strengthen
year, the Group’s approach to managing
the year as inventories (-15.6%), other its financial resilience. Along with the
cashflow and liquidity included negotiations
financial assets (-11.49%) and cash and repayment of long-term debt settlements
with suppliers for favourable settlement
cash equivalents (-56.35%) contracted the Group’s gearing ratio (debt/debt +
terms, rationalising costs, close follow up on
during the period. However, trade and other equity) decreased to 56.47% from 62.65%
debt collection and effective management of
receivables increased by 30.8% to Rs. 3.3 Bn, of the previous year. Despite persistent
working capital.
reflecting increased operating levels. challenges, the Group successfully met all
its financial commitments when they fell
Cashflows used in investing activities
Asset Composition due. Aitken Spence Hotel Holdings PLC did
amounted to Rs. 0.96 Bn as the Group
not receive Financial Assistance from the
Rs.Mn invested in routine maintenance and
government during the year under review.
120,000 replacement of property, plant and
100,000
equipment to ensure guest satisfaction.
Funding Net cash outflow from financing activities
80,000 Rs.Mn amounted to Rs. 7.52 Bn, mainly reflecting
60,000 100,000 the repayments of interest-bearing
40,000
liabilities. Overall, the Group’s cash and cash
80,000
equivalents recorded a net outflow of Rs.
20,000
60,000
3.32 Bn compared to an outflow of Rs. 2.68
0 Bn during the previous year.
2021/22 2022/23 2023/24 40,000

PPE, Right of Use and Leasehold

Other NCA 20,000
Inventories and Receivables
Analysis of Cash and Cash Equivalents at
Other CA 0 the year end
Cash & Cash Eqquivalents 2022/23 2023/24
• Cash at bank and in hand Rs. 1.85 Bn
Equity
Interest bearing liabilities- banks • Short-term deposits Rs. 449 Mn
Interest bearing liabilities- leases
Bank Overdrafts and other short-term • Bank overdraft Rs. 5.62 Bn
Borrowings

73
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS

GRI 203-1

OUR MANUFACTURED VALUE

CAPITAL INPUTS DRIVERS

Manufactured
Capital
Room inventory: Rs 1,838 Mn investment on
The Group’s manufactured refurbishments, renovations and
- Sri Lanka: 1,295
capital investments across our
capital comprising of its - South Asia & Middle East: 1,035 property portfolio
portfolio of properties, physical
Property, plant and equipment of • Strengthening mechanisms to measure
infrastructure and technology Rs. 66.1 Bn customer satisfaction
plays a pivotal role in attracting
Digital infrastructure of Rs. 324 Mn • Improving efficiency levels through
customers, ensuring satisfaction automation and process improvements
and enhancing brand value.
• Investments in enhancing our
Continued investments in digital capabilities including website
manufactured capital nurtures enhancements, social media presence
our competitive advantage, and digital marketing
enhances the overall guest
experience and supports
increased capacity.

VALUE CREATED

92.22% 85% 44%

Customer satisfaction score increase in website traffic through increase in direct bookings
on facilities social media through website

STRATEGIC FOCUS AREAS 2023/24

Utilising digital infrastructure to

enhance customer engagement and
relationship management
Safeguarding our manufactured
capital through regular maintenance
Improving our environmental
footprint through efficient resource
consumption
Optimising capacity utilisation

74
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
1.1.1 MANAGEMENT APPROACH
Nurturing manufactured capital requires significant allocation of resources, particularly financial. Major investment proposals undergo
assessment based on multiple criteria to ensure alignment with the Group’s overall strategic objectives and goals.

However, given the volatile operating environment and macroeconomic challenges faced in the last few years, major renovations were put on
hold during the year and refurbishments were carried out only where necessary to ensure guest satisfaction.

1.1.2 OUR PROPERTY PORTFOLIO

Our collection of properties offers diverse and varied experiences to guests. From iconic properties renowned for their architecture and
gastronomy, to retreats in unique locations, each property boasts a distinct character. This has helped us to successfully deliver distinction
despite encountering intense competitive pressures.

*Map shows only owned properties

India
1 property
140 rooms
Rs. 6.4 Bn in Manufactured Capital

Sri Lanka
8 properties
Oman Maldives 1,295 rooms
1 property 5 properties Rs. 15.2 Bn in Manufactured Capital
150 rooms 745 rooms
Rs. 12.1 Bn in Manufactured Capital Rs. 32.4 Bn in Manufactured Capital

Number of available room-nights 850,450

Total area of lodging facilities 316,423 m2
Number of lodging facilities that are:
(1) managed 3
(2) owned 14
(3) Owned and Franchised 1
Number of (1) entity-owned and (2) franchise restaurants Nil

75
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
MANUFACTURED CAPITAL

Heritance Ahungalla Heritance Kandalama

Heritance Ahungalla, the first five-star beach resort in the country was designed This 152-room property in Dambulla, envisioned and created by renowned
by the legendary architect Deshamanya Geoffrey Bawa. With 152 rooms, it boasts architect Deshamanya Geoffrey Bawa, is a merging of design and the natural
the world’s first infinity pool, inviting guests to experience southern charm and environment.
tranquillity.
Emphasising the preservation of the natural habitat, the hotel seamlessly blends
The resort’s theme revolves around peace and serenity, with breathtaking views of into the landscape, offering picturesque views of Dambulla lake, the rolling hills
the blue sky and sea combined with the symphony of modern comforts, making the beyond and Sigiriya. Top-notch cuisine and convenient access to cultural and natural
hotel the ultimate beach getaway. wonders will ensure your stay here will be unforgettable.

Heritance Ahungalla also serves as a canvas for Sri Lanka’s renowned artists with Setting a precedence in eco-design, the hotel was the first in Asia to achieve Green
their arts and crafts adorning the walls and ceilings, promoting local talent and Globe 21 certification and the first in the world to receive the esteemed LEED
enhancing the guest experience. Green Building certification.

Sentido Heritance Negombo Heritance Ayurveda

Sentido Heritance Negombo caters to the modern traveler, offering an iconic Heritance Ayurveda, the first property launched by Aitken Spence Hotels and
location just minutes away from the airport and other cultural sites. This 139-room reopened in 2011, offers a unique and authentic ayurveda wellness experience.
city resort seamlessly blends inventiveness and grandeur, creating the perfect The resort has revolutionised the delivery of professional ayurvedic treatments
holiday and banquet space that celebrates the spirit of Sri Lanka. without compromising on comfort, making it a favourite among wellness enthusiasts
worldwide.
Sprawling across 6.5 acres of beachfront land, every room boasts a signature
view of the sea. The hotel draws inspiration from Negombo’s violet sunsets, Situated in Beruwala, this 64-room hotel is another masterpiece designed by
incorporating primary colours and brassware into its design. Geoffrey Bawa, seamlessly blending architecture with nature, an aspect vital for the
balance of body, mind and soul. The resort also provides a cultural experience, as
Inspired by the popular street dining concept of the city, the resort features an
local residents showcase their crafts and traditions.
outdoor dining area giving diners a front row view of the busy city.

76
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Heritance Tea Factory Hotel Riu Sri Lanka

Originally a 19th-century tea factory, Heritance Tea Factory is now a tranquil Hotel Riu Sri Lanka, situated on a magnificent beach in Ahungalla, offers stunning
escape a featuring a 50-room hotel that embodies local hospitality and up-country ocean views, diverse menus and a wide range of entertainment options. As part of
charm. Notably, it was the first tea factory in Sri Lanka to be converted into a hotel, the international RIU chain of hotels, this 501-room property provides a variety of
earning it a UNESCO Merit Award for meticulous restoration. services and amenities on an all-inclusive basis.

Guests can participate in tea plucking activities on the estate, explore a mini tea Guests can enjoy a relaxing stay while immersing themselves in Sri Lanka’s rich
factory, and indulge in professional tea-tastings. The vibrant tea menu caters to culture and natural beauty. Whether you’re a couple, a family, or a group of friends,
connoisseurs from around the world, making Heritance Tea Factory a unique tea the hotel caters to everyone. From the mini club for kids to ample entertainment
destination. choices, Hotel Riu Sri Lanka ensures a memorable vacation.

Turyaa Kalutara Amethyst Resort

Nestled on six acres of sandy beaches, dotted with striking green coconut palms, Surrender to the beach vibes as you unwind on one of Sri Lanka’s longest shorelines.
this 199-room resort celebrates the vibrancy of life. Inspired by the Sri Lankan word This unassuming resort stretches across ten acres of bay, with 38 rooms designed to
for ‘melody,’ the resort is designed to create a perfect synergy of peace, comfort, escape the mundane. The large open spaces create a sense of calm and relaxation,
celebration, and delight. offering incomparable peace of mind.

Turyaa Kalutara is conveniently located just 37 km away from the island’s Uniquely positioned to offer views of two water bodies, a stream and the Indian
commercial hub. Bright spaces and an array of spacious accommodation options, Ocean, the resort is a perfect holiday retreat to be immersed in relaxation, culture
dining spaces, entertainment areas, banquet facilities, and conference spaces make and adventure.
this an ideal resort in proximity to the city for a variety of activities from leisure to
business.

77
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
MANUFACTURED CAPITAL

Earl’s Regency Hotel Heritance Aarah

Experience regal living in Sri Lanka’s last kingdom, where culture and nature The 150-villa resort extends the ‘Heritance’ brand beyond Sri Lanka’s borders. With
harmonise. Located at the heart of Kandy, our 116-room hotel combines royalty its Premium All-Inclusive offering, guests can enjoy gastronomic delights, cultural
with innate hospitality. Earl’s Regency epitomises elegance, inviting you to unravel immersion, and exhilarating activities. Upholding the Heritance promise, the resort
Sri Lanka’s hidden marvels while enjoying comfort and indulgence. embraces local culture with a unique in-resort Maldivian Village that celebrates
the archipelago’s rich history. As pioneers in Maldivian hospitality, the resort is
Our premier five-star property exceeds expectations with professional service, distinguished as the first LEED-certified building in the Maldives, underscoring its
award-winning cuisine, and a wide range of accommodation options – perfect for an commitment to sustainability.
unforgettable vacation.

Adaaran Prestige Vadoo Adaaran Select Meedhupparu

This overwater adults-only villa resort, comprising 50 villas, is an oasis for those Nestled in the Raa Atoll, this Premium-All-Inclusive resort offers 221 villas,
seeking ultimate relaxation and seclusion amidst stunning natural surroundings. including beachside and overwater options, on a lush island adorned with pristine
beaches and swaying palm trees. The island provides the idyllic setting for a dream
Strategically positioned at the gateway to the South Atolls, the resort boasts its vacation, complete with exhilarating activities, rich marine life, a variety of dining
own exotic reef teeming with vibrant aquatic flora and fauna. As a honeymooners’ options, and ample opportunities for relaxation.
paradise, Adaaran Prestige Vadoo offers secluded villa designs with breathtaking
views of the Indian Ocean. The vast private island is also perfect for celebrating special occasions, offering a
romantic and picturesque backdrop for unforgettable moments.

78
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Adaaran Club Rannalhi Adaaran Select Hudhuran Fushi

Situated at the tip of the South Male Atoll, this All-Inclusive resort is enveloped by Renowned as the ‘surf island,’ this 192-villa resort features a fantastic left-breaking
stunning tropical surroundings. With 122 rooms and overwater villas, each offering wave on one side and six other world-class waves accessible via a short boat ride.
direct access to the ocean akin to a private pool, it is ideal for those seeking a quick Located in the North Malé Atoll, it caters to surfers of all skill levels, from beginners
escape from everyday life. At Adaaran Club Rannalhi, guests can enjoy convenient to professionals. The resort’s Premium All-Inclusive package is designed to
access to the capital city, pristine beaches, water sports, and a tranquil environment. accommodate families, honeymooners, adventure seekers, and friends, ensuring an
Whether seeking self-discovery, relaxation, or a cosy retreat, our island haven unforgettable experience for all.
provides a private space for everyone.

Al Falaj Hotel Muscat Desert Nights Resort

Conveniently located in the heart of Muscat, this 150-room hotel caters to both Discover the epitome of glamping in Oman at this unique 88-bed Bedouin-style
business and leisure travellers. Seamlessly blending business and relaxation, it tent camp situated in the silky Wahiba Sands. The resort combines the authenticity
offers easy access to the business district and numerous tourist attractions. of desert camps with luxurious facilities, surrounded by picturesque dunes and
crystalline wadis.
With newly refurbished rooms, spacious meeting venues, and thoughtful service, Al
Falaj is among Oman’s finest business hotels. An award-winning resort, it creates a mystical atmosphere that transports guests to
days gone by, allowing them to sleep under the twinkling stars.

79
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
MANUFACTURED CAPITAL

Sur Plaza Hotel Turyaa Chennai

Located in the picturesque city of Sur, which is famous for its old fishing village Conveniently located in the IT corridor of OMR, Chennai, Turyaa Chennai is a five-
and traditional manufacturing of dhows, Sur Plaza Hotel creates a relaxing and star deluxe hotel that seamlessly blends business and leisure. With 140 rooms, it
unforgettable experience for guests. With 105 rooms, this three-star property sits caters to both tourists and business travellers.
on the eastern shores of the Arabian Peninsula, making it one of the first places in
The hotel offers personalised amenities and services, creating a trendy yet exclusive
the region to witness the Middle Eastern sunrise.
space for stays, high-powered business meetings, intimate weddings, or family time.

CAPITAL EXPENDITURE IN 2023/24 Capital Expenditure by Category BreakDown of Capital Expenditure

The Group’s capital expenditure during
Rs.Mn
the year primarily focused on routine
600,000
maintenance and replacements. Additionally,
500,000
we continued to invest in safety protocols
and enhance energy efficiency across our 400,000
properties.
300,000

Key Capex during the year is mentioned 200,000

below: 100,000

• Upgrade of the front façade and car park 0 Capacity enhancement

Product enhancement
Buildings

P&M

Motor
Vehicles
Furniture &
Fittimgs

Soft furnishing,
Cutlery

Capital WIP

at Al-Falaj Hotel Muscat. Operational Capex

• Invested in a new bar concept at Adaaran

Select Meedhupparu Maldives.

• Ongoing upliftment of rooms at

Heritance Ahungalla and Heritance
Kandalama.

• Upliftment of the restaurants at Turyaa

Kalutara.

• Undertook repairing of part of the roof at

Heritance Ahungalla.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
LONG-TERM ASSET MANAGEMENT During the year, the Group focused on
STRATEGY enhancing the functionality of the hotel We have planned refurbishments and
The Group’s asset management strategy websites, its visual appeal as well as utilising repairs at a few properties in Sri Lanka
revolves around striking a balance between digital marketing tools to boost direct and the Maldives during the upcoming
short-term and long-term interests, bookings, improve property management financial year.
funding needs, and asset life cycles. The systems, and streamline processes.
core objective is to optimise the trade-off
between risk and return while ensuring The adoption of a multi-channel approach by OUTLOOK
sustained growth, preservation, and optimising the use of social media platforms In the short term, the Group will continue to
diversification of our manufactured capital. also proved successful for the Group, adopt a wait and see approach on large-scale
resulting in increased direct bookings during investments and capital expenditure due to
Our long-term asset development strategy the period. the sensitivity of the tourism industry and
also seeks to identify new destinations the volatility in the operating environment.
through joint ventures and opportunities in However, we remain optimistic that
We are looking at upgrading our
property management, contributing to low normalcy will soon be restored, considering
websites with a new look to support
intensity capital growth. Regular review of the inherent resilience of the tourism
growth from this segment.
our strategy ensures alignment with market industry. This optimism fuels our efforts
conditions and the goals of the Parent Entity. to invest in upgrading our properties and
undertaking significant refurbishments, all
OUR DIGITAL INFRASTRUCTURE aimed at elevating the guest experience.
Along with the significant changes in the
industry landscape in recent years, the
Group continued to leverage its digital
infrastructure to engage with customers,
employees, and business partners, ensuring
seamless continuity of essential business
functions.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS

OUR HUMAN VALUE

CAPITAL INPUTS DRIVERS

Human
Capital
Our team of 2,823 passionate Rs 13.6 Mn investment in learning and
The skills, experience and and committed employees is a key development propositions
dedication of our team is key to differentiator for the Group. Remuneration, bonuses and
driving our operations, facilitating - 1,355 employees in Sri Lanka increments were safeguarded in full
and adjusted to compensate for the
excellence in customer service - 1,468 employees in South Asia and increase in cost of living.
and ensuring the sustainability of the Middle East
Ongoing efforts to nurture a diverse,
our business. In turn, we remain equitable and inclusive organisational
0.7% female representation at the
steadfast in our commitment to culture.
management level, 3.1% at executive
supporting them with a holistic level and 5.8% at non-executive level Showcasing tangible pathways for
value proposition, aligned to career progression.
both personal and organisational The combined expertise and experience Cross functional and cross cultural
goals. of our team is a key component of our exposure.
competitive advantage.

VALUE CREATED

Rs 7.47 Bn 86,104 258 1,008

paid as Employee Salaries training hours promotions employees from the local
and Benefits community

STRATEGIC FOCUS AREAS 2023/24

Upskilling and reskilling of talent

through structured learning and
development initiatives
People enablement in management
and leadership development
Developing cross functional
efficiencies
Enhancing proactive engagement
Focused talent acquisition strategies
for creating pipelines for leadership
positions

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
OUR MANAGEMENT APPROACH
Management of human capital is underpinned by a comprehensive suite of HR policies and All employees are required to adhere
procedures which are aligned to the HR policies of the parent entity. Given the diversity of to the Group Code of Conduct and
businesses within the Holding Company, each sector operates its own HR department, which Ethics which sets out the professional
is supported by services from the Group’s centralised HR function, ensuring adherence to and ethical conduct expected from
Aitken Spence Group standards. our employees when engaging with
internal and external stakeholders.
GRI 2-7 GRI 2-8 GRI 202-2 GRI 405-1
Key elements of the Group Code of
GRI 408-1 GRI 409-1 GRI 410-1 Conduct and Ethics include:

• Ethics and Conduct

The suite of HR policies is further supported by the HR reporting and governance structure in
place, in managing this key capital. • Principles of Conduct
• Ethical Decision Making Framework
TEAM PROFILE
Our talent pool comprises of 2,823 employees representing different religious, geographic • Conflict of Interest
and cultural backgrounds. As an equal opportunity employer, we do not discriminate against • Healthy Work Environment
employees, thereby allowing them to build fulfilling careers with us. The profile of our team is • Corporate Gifts
presented below:
• Entertainment
Employee Contract Type Permanent Contract Casual Total • Self-Dealing

Total 1,081 1,647 95 2,823 • Confidentiality

Gender • Fair-Dealing
Male 961 1,500 87 2,548 • Protection and Proper Use of
Female 120 147 8 275 Company Assets-Compliance
Region
with Laws, Rules and Regulations
Sri Lanka 610 745 0 1,355
(including Insider Trading Laws)
Maldives 295 902 0 1,197
Oman 85 0 37 122 • Substance Abuse - Illegal Drugs and
India 91 0 58 149 Controlled Substances

All figures are given as a head count • International Relationships

% of Managers from the Local Community

% Employees by Staff Category & Gender
10

8
Managers &
6 above

4
Non-
2 executives

0
Heritance
Ahungalla

Heritance
Ayurveda

Kandalama

Tea Factory

Negombo

Kalutara

Passikudah

Maldives

India
Heritance

Heritance

Heritance

Turyaa

Amethyst Resort

Oman

Executives

0 500 1,000 1,500 2,000 2,500

Male
• 38.2% of the talent pool is engaged on a permanent basis, 58.3% on a contract basis and Female
the remainder on a casual basis.
• There are no part-time employees.
• Only security personnel are outsourced by the Group. All (100%) security personnel
have received training on the Group’s human rights policies and procedures.
• Zero incidents of child labour or forced labour were reported during the reporting year.

83
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
HUMAN CAPITAL

GRI 401-1

A STRONG TEAM
Our talent pool was refreshed
The Group’s recruitment policy ensures that individuals with the right talent are identified
with infusing 1,090
and recruited through a comprehensive process that seeks to provide equal opportunity.
new recruits in 2023/24.
Internal career advancement of our employees is given high prominence as we continue
to mentor them for higher responsibilities. Fresh talent is also tapped through external
sources such as SLITHM, universities, vocational training centres and other professional
Changes to the Recruitment Policy
organisations.
• Re-commenced the engagement
Apart from the Group Orientation Program, all new recruits undergo the ‘Foundation of of trainees in response to rising
Success’ induction programme which is designed to help new recruits transition into the occupancy levels.
Spensonian Team. The programme provides insight into the Code of Conduct and Ethics,
• Strengthening collaborations
policies related to anti-bribery and anti-corruption and other Company Policies as well as
with educational institutions and
essential administrative procedures.
hotel schools to source potential
candidates.

Recruitment by Age Recruitment by Gender Recruitment by Region

61 3 128 21 43

208

449

590

831
975

35 years & below

Male Sri Lanka
36- 45 years
Female Maldives
46- 55 years
Oman
56 years & above
India

Turnover by Age Turnover by Gender Turnover by Region

55 5
111 24 59

230 329

742 620
921

35 years & below Male Sri Lanka

36- 45 years Female Maldives
46- 55 years Oman
56 years & above India

84
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
OUR HR STRATEGY
Along with the revival of the tourism industry within the country, we needed to strengthen our team. However, recruitment and retention of
skilled employees was a challenge amidst the high levels of labour migration in search of better opportunities overseas.

We took a proactive approach in addressing this challenge, by strengthening our talent attraction, retention and development strategies.
Emphasis was also placed on ensuring financial security for all employees through various relief measures, given the broad-based impacts on
the quality of life of our people.

Our talent retention strategies placed Strengthening employee

emphasis on enhancing employee engagement efforts based
motivation through monetary and non- on the four key areas of
monetary benefits, establishing clear Motivation, Inspiration,
career pathways and creating a positive Talent Recognition and Visibility.
Employee
work environment which fosters a culture Retention
Engagement
of recognition and appreciation.

Supported the mental and physical Created talent pipelines to

wellbeing of our employees through Employee fulfil the needs of the Group,
health insurance, reimbursement of Welfare Employee while providing employees
medical bills, telemedical facilities, holiday & Wellbeing Development with opportunities for career
vouchers, sports and welfare societies. progression.

GRI 202-1 GRI 410-1

REMUNERATION, RECOGNITION AND REWARDS

Our rewards and remuneration policies are in line with the parent entity and customised to
reflect industry-specific elements. In addition to the basic remuneration, we provide a host Staff cost amounted to
of statutory and other benefits designed to retain and motivate our employees. Rs 7.47 Bn during the year.
There were no penalties due to
All standard entry level wages are paid in accordance with the local minimum wage
non-compliance with labour laws
legislation of the respective country of operation irrespective of gender.
and regulations.

Rewards and Benefits

• Reimbursement of medical bills Additional Support given due to the Economic

Reimbursable • Annual subscriptions for professional memberships Crisis
Expenses • Supporting continuous professional development
• Transport and travel reimbursements • For identified talent pool, remuneration
Subsidised Loan and benefits were adjusted to align with the
• Housing loans
Schemes current market conditions.
• Holiday bungalows for executives
• Vouchers were given to non-executive staff
• Free holiday vouchers at Aitken Spence Hotels
through a special financial grant in partnership
• Special rate for hotel staff
• Health insurance with “DEG Impulse GmbH” (Initiative of the
• Aitken Spence Sports & Welfare Society Group).
Other Benefits
• Tele medical facility
• Online sessions related to employee wellbeing
• Enhanced parental leave
were conducted by the Group.
• Wedding gifts
• Death donations • Extension of temporary crisis allowance.
• Child care facilities

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
HUMAN CAPITAL

GRI 404-3
PERFORMANCE MANAGEMENT
Our performance management process is aligned to the Group’s competency framework with The performance appraisal is
all (100%) employees being subject to a performance appraisal. Individual performance is a three-step process of goal
recognised and rewarded through performance-based increments and bonuses. The appraisal planning, mid-year review
provides insight for employee development and facilitates career progression. and annual goal evaluation,
facilitated by the online Human
Resources Information System
GRI 404-1 GRI 404-2
(HRIS).
OPPORTUNITIES FOR TRAINING AND DEVELOPMENT
The surge in tourist arrivals posed a significant demand on the existing labour force, requiring
strategic learning and development interventions to meet and exceed visitor expectations. The total investment in training
amounted to LKR 13.6 Mn, with 52%
Accordingly, the L & D strategy for the year focused on fortifying the Company’s processes of our employees undergoing 86,104
through the implementation of a comprehensive program. hours of training during the year.

Average training hour per employee is

Enhancing foundational skills
1.83.
Competency
based Talent Fostering a culture of continuous learning

Empowering employees to deliver exceptional service

consistently

Management training comes within the purview of the Aitken Spence School of Management (ASSM), the learning and development sector
of the parent entity. During the year, the training needs identification process was refined and optimised. The new process allowed training
requirements to be identified monthly, following which customised training was carried out to suit individual needs.

Our learning and development efforts were directed towards the following areas during the year:

Process Development Strengthening the Brilliance in Basics

We prioritised the refinement and optimisation of our learning We invested in training programs to equip our workforce with essential
processes to ensure efficiency and effectiveness in meeting the evolving competencies required to excel in their roles. Emphasis was placed on
needs of our guests by streamlining workflows and implementing best elevating standards of service excellence and attention to detail. The
practices. This enhanced service delivery across all touchpoints. same was strengthened with a newly developed Departmental Trainer
Development programme - Heritance LEAD, thus, ensuring training is
available on demand with professionally trained trainers in all departments.

Employee Retention through Motivation and Engagement Leadership Development

We implemented initiatives aimed at boosting employee morale, Invested in leadership development programs to nurture and empower our
fostering a sense of belonging, and promoting a positive work current and emerging leaders. These initiatives focused on honing leadership
environment conducive to growth and development through multiple competencies, fostering strategic thinking, and cultivating a culture of
learning interventions which enabled teams to come together and innovation and collaboration.
engage in solving day to day problems and be a part of meaningful work.

The Heritance Rise Management Trainee Development Program

A prestigious 18-month initiative designed to equip aspiring hospitality professionals with the necessary skills and competencies to advance in their
careers. Tailored for individual growth, the program combines theoretical knowledge enhancement with hands-on learning, coaching, and mentoring by
industry leaders, complemented with training at one of the Group’s international properties. The current program has commenced with six enthusiastic
individuals following a strenuous selection process.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
AITKEN SPENCE INSTITUTE OF HOTEL
MANAGEMENT
The Aitken Spence Institute of Hotel
Management has played a pivotal role in
meeting the growing demands for skilled
employees within our hotels. Through
targeted training programs, we have
empowered underprivileged youth with the
necessary skills and knowledge to pursue
fulfilling careers in the tourism trade. By
providing employment opportunities within
our hotels, we not only contribute to their
socio-economic upliftment but also foster
positive change within the communities
where we operate.
Hotel School Graduation Batch of 23/24
Operating in partnership with TUI Care
Foundation and Sustainable Hospitality
Alliance, the institute has been instrumental GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-4 GRI 403-5
in nurturing talent and facilitating career GRI 403-6 GRI 403-7 GRI 403-8 GRI 403-9 GRI 403-10
opportunities in the hospitality industry.

EMPLOYEE HEALTH, SAFETY AND WELL-BEING

The Group operates two hotel schools
We are committed to ensuring health and safety, reducing workplace risks and creating a
at Heritance Kandalama and Heritance
conducive work environment for our employees through stringent policies, ongoing training,
Ahungalla which provides technical training
Health and Safty (H & S) steering committees and internal audits.
in a number of areas. This has enabled us
to reach out to marginalised communities
where youth have limited opportunities for Our Health and safety practices are guided Each of our properties has a Health and
personal and professional growth, thereby by the requirements of the Travelife Safety representative and a steering
facilitating livelihood upliftment. Graduates certification which provides guidelines committee made up of elected employees
completing the course have the opportunity on safety training, fire drills and use of that conduct H & S internal audits and
to apply for vacancies within the Group or protective equipment (OHSAS) among training for the prevention of potential
seek employment in other hotels. others. hazards and risks.

The SpenceSafe safety protocols based on There were no reported incidents of

In line with our commitment to diversity
local and international health guidelines non-compliance with health and safety
and inclusion, we have intensified our focus
and best practices also ensures the safety regulations during the year
on female students, with nearly 30% of
of both guests and employees through its
our student body comprising women. This
precautionary mandates
deliberate effort reflects our commitment
to gender equality and empowerment,
providing equal opportunities for all aspiring The Group also prioritised employee well-being by creating work-life balance and optimising
hospitality professionals. workplace environments.

Health and Safety Record in 2023/24

44 graduates from the hotel school in

Ahungalla
45 76 0 0
Workplace related No. of lost working No. of Fatalities due
32 graduates from the hotel school in accidents & incidents days due to work occupational to Accidents
Kandalama related injuries diseases

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
HUMAN CAPITAL

ACTIVE ENGAGEMENT
Various formal and informal communication mechanisms are established to address employee concerns and maintain engagement. These
efforts help motivate employees and boost morale, particularly in the challenging operating environment.

Providing opportunities
Open communication Regular staff and for employee feedback The Group grievance
channels to address team meetings to and suggestions through handling, whistle
concerns and facilitate ensure effective Voice of Spensonians blowing, and
collaboration. communication. an employee survey disciplinary process.
conducted by the Group.

The initiatives for employee engagement were based on four key areas:

Motivation Inspiration Recognition Visibility

Celebration of festivals such as Spensonian Conventions Selection of the Diamond of Talent shows, Women’s and
Vesak, Sinhala and Tamil New the month (for the face and Men’s Day celebrations
Team building activities
Year, Eid, Pongal and Christmas heart of the house) through
Beach clean-ups Sports Tournaments
Chillax Evening which two individuals are
Invoking religious blessings selected for the year as
Staff Get-together
Diamond of the Year
Quiz Competitions Blood Donation Campaigns
Medical Clinics Monetary reward given to
executives who complete 25
Celebrating commemorative years of service,
days

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-30 GRI 402-1 GRI 407-1
During the year, we launched the
Trade Union Relationships Heritance Enable programme for Aitken
The Group acknowledges the rights of our employees to freedom of speech, expression Spence Hotels which seeks to provide
and association. Approximately 17% of our employees across three (03) properties are job opportunities for persons with
represented by Trade Unions, namely the Nidahas Sevaka Sangamaya and the Food, disability.
Beverages & Tobacco Industry Employees’ Union. Additionally, 11.5% of our employees are
Persons with disability in 2023/24
covered by Collective Agreements.
Hearing disability 01
Cordial relationships were maintained with the Trade Unions during the year, obtaining Speech disability 01
support for the implementation of new work practices and the determination of Mobility & Physical impairments Nil
remuneration. Employees are able to escalate workplace issues to their respective General
Managers, Head of HR and subsequently to the Parent Union as a part of the well-established
grievance mechanism.
OUTLOOK
A minimum notice period of four weeks is in place for significant changes in working We will continue our employee value
conditions, providing employees adequate time to adapt and adjust. There were no instances proposition in line with the overall Group
of disruptions to work due to industrial disputes during the year. strategy. With the anticipated growth in
the tourism sector, the Group will focus on
DIVERSITY, EQUITY AND INCLUSION
facilitating this growth by placing emphasis
We believe that a diverse and inclusive work environment enriches decision making through
on enhancing employee engagement,
the combination of different skills, ideas, and perspectives. As such, the Group is committed to
remuneration and benefits, development,
ensuring a conducive work environment free from discrimination for all our employees. Our policy
mobility and creating a more conducive
framework provides equal opportunity to individuals regardless of age, gender, race or religion.
environment thereby building a team that is
skilled, motivated and well equipped to drive
our growth plans.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
HUMAN CAPITAL

GRI 202-1 GRI 401-3 GRI 405-2 GRI 406-1

GENDER PARITY AT ASHH

We strive for gender parity in our organisation and the wider society by….

…developing policy and structural enablers to promote gender parity.

Our policy framework, HR practices and organisational culture drives gender parity across the organisation. Through the
#SpenceWomenAtWork initiative, we have committed to enhancing gender equality and women empowerment throughout the lifecycle
of an employee – from recruitment to retention, engagement, career progression and building capabilities.

There is also a formal system and well-organised process to handle employee grievances relating to sexual harassment at the workplace.
During the year, there was only one substantiated incident of harassment reported for which appropriate action was taken. There was no
instance of discrimination reported.

CONDUCIVE POLICY FRAMEWORK

Diversity & Inclusion Sexual Harassment Remuneration Parental Leave

The Aitken Spence Group’s Open door policy Our compensation policy Maternity leave of upto 100
Diversity and Inclusion focuses on gender pay equity. working days
(D&I) Policy was revised and Grievance handling policy The basic salary levels for Five days of paternity leave
relaunched last year . This both men and women at for fathers
included the establishment Sexual harassment entry level are at parity (ratio
prevention policy During the year, 32
of the main committee and 1:1) and discrimination in any
employees utilised the
subsidiary D&I committees. form is not tolerated.
parental leave facility. 30 of
32 employees returned to
work within 12 months of
utilising parental leave.

HR PRACTICES
The Semi-Virtual Mobility (SVM) Policy enhances work life balance for both men and women, by enabling remote working. Employees are
provided with the necessary infrastructure, technology and training for this.

Gender Representation by Grade

Board of
Directors

Senior
Management 975 128
& above
New Recruits New Recruits
Middle (88.3%) (11.6%)
Management

Other 227 31
Promotions Promotions
0 5,00 1,000 1,500 2,000 2,500 3,000
(87.9%) (12.1%)
Male

111
Female

921
Exits Exits

(89.2%) (10.7%)

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-7

Gender Representation by Location …ensuring females are represented at every level

Rs.Mn We actively work towards dispelling common misconceptions and social stigma on women
1,500 working in the hotel industry through continuous engagement with potential female
employees and their families, inviting them to observe our working environments and
1,200 actively addressing concerns through awareness programmes for school leavers.

900

600 Total Males Total Females

300
2,548 275
Total Males Promoted Total Females Promoted
0 227 31
Sri Lanka Maldives India Oman

Male 8.9% 11.2%

Female

…and communicating a positive gender narrative throughout the

organisation and the wider community.
We actively encourage female participation in the work force and is mindful to ensure that we do not indicate any gender bias in our
advertising and communications.

All figures are given as a head counts

Definition Used for ‘Senior Management’: The Organisation’s Geographical Definition Used for ‘Significant Locations
Senior Management at Aitken Spence Definition of ‘Local’: of Operation’:
Hotel Holdings PLC is defined as individuals For the purposes of this disclosure, ‘local’ Significant locations of operation for Aitken
who hold executive positions such as refers to individuals who are native to or Spence Hotel Holdings PLC are defined as
General Managers, Directors, and Heads of have permanent residency in the regions the primary geographic areas where the
Departments. These roles are responsible where Aitken Spence Hotel Holdings PLC company has substantial business activities.
for strategic decision-making and overseeing operates its hotels and business units. This These areas include countries where the
major functions within the organisation. includes specific countries such as Sri Lanka, Company has multiple operational units or
the Maldives, Oman and India as well as local where the business impact is considerable.
communities within these countries. For this disclosure, significant locations
include Sri Lanka, India, and the Maldives,
among others.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS

OUR INTELLECTUAL VALUE

CAPITAL INPUTS DRIVERS

Intellectual
Capital
Our Brands Unique selling points and destination
Our intellectual capital is what - Heritance Hotels and Resorts experiences
sets us apart and remains a key - Adaaran Resorts Streamlining systems and processes to
driver of our growth. Ongoing - Turyaa drive efficiency and productivity levels

efforts to nurture intellectual Unique base of tacit knowledge and Nurturing a culture of learning,
capital enables us to deliver experience of our team knowledge-sharing and continuous
growth
unmatched guest experiences
Robust systems, standards and Extensive experience of the Board and
by consistently enhancing our processes the Management team
offerings, refining our services,
Proactive engagement with industry
and adapting to evolving needs External certifications and accreditations
counterparts to support the revival of
and market trends. the tourism industry.

VALUE CREATED

92.22% 5.2 Years 62 29

Guest satisfaction rate (owned Average length of service Awards received during Certifications complied with
properties) of an employee the year during the year

STRATEGIC FOCUS AREAS 2023/24

Enhancing brand identity and

reputation through a strategic focus
on social media, online platforms, and
sponsorships
Driving service excellence
Providing customers with distinctive
and varied experiences

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
OUR MANAGEMENT APPROACH
The Management continued to nurture ASHH’s intellectual capital by strengthening the brand, retaining, and harnessing organisational tacit
knowledge and driving service excellence across all aspects of operations.

THE STRENGTH OF OUR BRANDS

Our unique brands are a key element in attracting and retaining guests, and remain a vital component of the Group’s intellectual capital,
which we continually nurture. The three brands- Heritance Hotels and Resorts, Adaaran Resorts and Turyaa – offer distinctive experiences
to our guests by integrating the authentic essence, warm hospitality, and cultural abundance of the destination, with deep roots in sustainable
tourism. All operational aspects of the hotels are designed to align with the attributes and personality of the respective brands, focusing on
creating unforgettable experiences for guests.

Heritance Hotels and Resorts Adaaran Resorts Turyaa

The ‘Heritance’ brand combines The ‘Adaaran’ brand conveys the Turyaa, is a unique brand of hotels that
elements of heritage and inheritance, quintessential flavour of the Maldives reflects the vibrancy and character
celebrating natural beauty and by offering abundant comforts and of its destination. The brand was
authenticity of place. It offers a unique hospitality, heartfelt service with conceptualised to appeal to the
and immersive proposition that ‘obligations fulfilled in gold’ through a changing lifestyles of the modern
highlights local traditions, hospitality, range of experiences tailored to different traveller offering affordable travel,
warmth and culture. price points. great food and excellent service.

Adaaran Prestige - five-star boutique

Adaaran Select - five-star
Adaaran Club - four-star

The brand strategy for the year centered on strengthening our online presence while seeking to capitalise on the increase in demand arising
from the revival of the tourism industry through targeted initiatives. Key brand building interventions carried out during the year include:

• Embarked on a co-branding venture with Der Touristik hotels, bringing Heritance Negombo on to the Sentido brand board
• Heritance Kandalama was the primary sponsor of the ‘Geoffrey Bawa’: It is Essential to be There’ architectural and photographic installation
held at the National Gallery of Modern Art (NGMA) Delhi. At this event, Trails of Bawa by Heritance Hotels and Resorts was launched to
the Indian market. This tour takes architecture enthusiasts on a journey through some of Bawa’s greatest designs in Sri Lanka.
• Heritance Hotels and Resorts was a session sponsor at the Galle Literary Festival 2024. During the sponsored session ‘preservation and
re-narration of Sri Lankan cultural histories,’ the Trails of Bawa tour was launched to the Sri Lankan market.
• Strengthening our digital presence through improvements to the websites, enhancing web experiences and visual appeal to improve direct
bookings.
• Increasing social media penetration to create visibility in new markets through paid campaigns and influencer collaborations
• Establishing our reputation in banqueting and destination weddings

• Celebrating special days and festivities such as, Christmas, Easter, Eid, Mother’s Day and Father’s Day across the hotels and resorts in all
destinations.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
INTELLECTUAL CAPITAL

Our Social Media Footprint across all Platforms

783K 23M 56M

Followers Reach Impressions

Growth across all channels and destinations below:

145%
10%

8% 27%

45% 14%

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Awards and accolades further strengthen the brand, reflecting our unwavering commitment to pursuing excellence in what we do.

Awards and recognitions during the year

Overall Excellence Corporate Reporting, Customer Review
• South Asian Travel Awards Sustainability and CSR • Booking.com Traveller Review Awards
Gold, Leading Resort/ Hotel Brand, Maldives • TAGS Awards 2023 Heritance Aarah
Aitken Spence Resorts, Maldives Gold, Hospitality Sector Adaaran Select Meedhupparu
Aitken Spence Hotel Holdings PLC Adaaran Prestige Water Villas
• Forbes
Adaaran Club Rannalhi
Best Beachfront All-Inclusive Resort For • Sustainability Reporting Awards 2023
Adaaran Prestige Vadoo
Families Runner Up, Leisure & Connected Services
Adaaran Select Hudhuran Fushi
Heritance Aarah Category
Heritance Kandalama
Aitken Spence Hotel Holdings PLC
• Travel Trade Maldives Heritance Tea Factory
• Sri Lanka Tourism Alliance Sentido Heritance Negombo
Winner, Editor’s Choice: Best All-Inclusive
Resort Top 20 Sustainability Champions Heritance Ahungalla
Heritance Aarah Heritance Kandalama Amethyst Resort
Earls Regency
• Meedhoo Council and the island
• Condé Nast Traveler Readers’ Choice Desert Nights Resort
community
Awards 2023
Winner, Best CSR Resort • TripAdvisor, Best of the Best 2023
Winner, Resorts
Adaaran Select Meedhupparu Heritance Aarah
Adaaran Select Meedhupparu
• Meedhoo Council and the island • TripAdvisor Traveller’s Choice 2023
• DER Touristik
community Heritance Aarah
Winner, Red Star Quality Award 2024
Fannuveri Award’ long time service skilled Adaaran Select Meedhupparu
Adaaran Select Meedhupparu
award to the tourism industry Adaaran Club Rannalhi
• Travel Trade Maldives Adaaran Select Meedhupparu Heritance Kandalama
Winner, Best City Hotel Heritance Tea Factory
Winner, Adults Only Resorts 2023 Activities & Experience Sentido Heritance Negombo
Adaaran Prestige Vadoo • South Asian Travel Awards
• Agoda Gold Circle Award 2023
Best Dive Resort
• LMD Customer Excellence survey Heritance Kandalama
Gold, Adaaran Select Meedhupparu
No 01 ranking
Leading Eco - Friendly Resort • Agoda Customer Review Award 2023
Heritance Kandalama
Gold, Heritance Kandalama Heritance Aarah
• Studiosus Reisen Adaaran Club Rannalhi
Leading Designer Hotel/Resort
Studiosus Quality award 2023 Adaaran Prestige Vadoo
Silver, Heritance Tea Factory
Winner, Desert Nights Resort Adaaran Select Hudhuran Fushi
Leading Luxury Hotel/Resort Heritance Kandalama
Culinary Expertise Silver, Sentido Heritance Negombo Sentido Heritance Negombo
• The Great Indian Food Festival in Leading Wellness & Spa Resort • Holiday Check 2023
Singapore - Indian Chef Association Gold, Heritance Ayurveda Listing among world best-rated hotels
Winner - Three-course Indian menu Leading Meeting and Conference Hotel/ Adaaran Select Meedhupparu
Heritance Ahungalla Resort Adaaran Club Rannalhi
Silver, Turyaa Chennai
Certifications
• Travel Trade Maldives
• Travelife Gold
Winner, Best Surf Resort
Adaaran Select Hudhuran Fushi Heritance Kandalama
Heritance Ahungalla
• 9th FIT Health & Wellness Awards Heritance Negombo
Best Ayurveda Resort in Sri Lanka Heritance Tea Factory
Heritance Ayurveda Heritance Ayurveda
• Luxury Lifestyle Awards • SHe Travel Club
Winner, Best Luxury Desert Resort Gold Certification
Desert Nights Resort Heritance Aarah

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS
INTELLECTUAL CAPITAL

CA Sri Lanka TAGS Awards 2023

GRI 416-1

SYSTEMS AND PROCESSES

Ongoing investments to strengthen our systems and processes through the implementation of Standard Operating Procedures (SOPs) for key
functions including F&B, Front Office and Housekeeping have enabled the Group to achieve consistency across the portfolio while sharpening
the invaluable base of intellectual capital.

Meanwhile, the domestic and international accreditations and certifications we have obtained encompass different aspects of operations such as
food safety, sustainability and, occupational health and safety among others. These certifications facilitate benchmarking with industry best practice
while ensuring that our processes continuously evolve to the highest standard, enabling us to deliver an exceptional experience to our customers.

Certifications ISO 22000: 2018 ISO 14001: 2015 LEED Organic Tea Certification Travelife Gold Dive Center
Heritance Ahungalla  
Heritance Kandalama    
Heritance Tea Factory    
Heritance Ayurveda 
Sentido Heritance
  
Negombo
Heritance Aarah   
Adaaran Prestige Vadoo  
Adaaran Select
 
Meedhupparu
Adaaran Select Hudhuran
 
Fushi
Adaaran Club Rannalhi  
Turyaa Kalutara 
Earl’s Regency  
Hotel RIU Sri Lanka 

ORGANISATIONAL TACIT KNOWLEDGE

The tacit knowledge and experience we have fostered over the years through optimised operations and the combined expertise of our team
enables us to understand market dynamics, drive strategy and nurture relationships with various stakeholders. Ongoing efforts to nurture a culture
of learning and knowledge sharing with continued investments in learning propositions will allow us to further enhance this knowledge base.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-28

INDUSTRY ENGAGEMENT
We collaborate with industry stakeholders to address issues facing the tourism industry. Active involvement in industry dialogue helps us
stay informed and enables us to influence decision-making processes, advocate for the interests of the sector and work towards creating a
sustainable value chain.

Given the key role the tourism industry plays towards Sri Lanka’s economic development, we sought proactive engagement with relevant
authorities, industry associations/ bodies and counterparts aimed at industry growth, development and resilience during the year in concern.

Signatory to the United Nations World Tourism Organisation (UNWTO) Global

Code of Ethics for Tourism (GCET)
Sri Lanka Tourism Development Authority
Maldives Association of Tourism Industry
Ministry of Heritage and Tourism Oman
Hotel Association of India
SHIRA -The South Indian Hotels and Restaurant Association
FHRAI -The Federation of Hotel & Restaurant Association of India
The Pacific Asia Travel Association (Sri Lanka Chapter)
The Ceylon Chamber of Commerce
Oman Chamber of Commerce & Industry
As a leading player in the The Madras Chamber of Commerce & Industry
hospitality sector, the Group holds
The Hoteliers’ Association of Sri Lanka
memberships in the associations
mentioned alongside The Employers’ Federation of Ceylon
The Field Ornithological Group of Sri Lanka
The Environmental Management System Users and Promoters Association
Biodiversity Sri Lanka
Sri Lanka Bureau of Foreign Employment
Institute of Supply and Materials Management Sri Lanka
Exporters’ Association of Sri Lanka
Lanka Fruits & Vegetables Producers, Processors and Exporters Association
Responsible Tourism Partnership
SKAL International
Sri Lanka Bottled Water Association
Sri Lanka Tourism Alliance

OUTLOOK
We are committed to enhancing our intellectual capital base, recognising its crucial role
in driving value creation. A primary objective of the Group is to fortify our brand presence
in today’s fiercely competitive and intricate business environment. Additionally, we will
prioritise the cultivation of service excellence by refining our processes and fostering a
customer-centric ethos among our team members.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CAPITAL REPORTS

OUR SOCIAL AND VALUE

RELATIONSHIP CAPITAL INPUTS DRIVERS

Social and
Relationship Capital
Customer Relationships Customer relationships and
We continue to nurture strong 551,509 Total Room Nights
satisfaction
relationships with customers, Established brand reputation and
2,653 Channel Partners
channel partners, suppliers - Including Tour operators,
recognition
and the community, actively Travel Agents and Corporate Collaborations with a range of channel
engaging with them to retain Clients partners and suppliers
their trust and confidence 1,334 Suppliers Employee engagement and wellbeing
- Consisting of local and international
Propagating sustainable business
supply chain partners
practices with support for local
86,104 Training Hours communities and compliance with
- Impacted through learning and sustainability standards
development initiatives
The Surrounding Community

VALUE CREATED

92.22% 66% 22% Rs. 13.6 Mn Rs 1.1 Mn

Customer Satisfaction Average Occupancy Procurement from Investment in Employees Investment in CSR
Rate Rate Local Suppliers

STRATEGIC FOCUS AREAS 2023/24

Enhancing the guest experience

Strengthening guest engagement
Ensuring guest safety
Developing local supply chains
Community empowerment

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-27

OUR MANAGEMENT APPROACH There were no reported

Nurturing manufactured capital requires significant allocation of resources, particularly incidents of corruption and/or
financial. Major investment proposals undergo assessment based on multiple criteria to fraud; and no fines/penalties for
ensure alignment with the Group’s overall strategic objectives and goals. non-compliance with laws and
regulations pertaining to socio-
However, given the volatile operating environment and macroeconomic challenges faced in
economic compliance during the
the last few years, major renovations were put on hold during the year and refurbishments
year.
were carried out only where necessary to ensure guest satisfaction.

CUSTOMER RELATIONSHIPS
Our customers are at the heart of what we do. Understanding and effectively responding Guests to Sri Lanka and Maldives
to customer needs remains an integral part of maintaining our competitive advantage. We predominantly travel for leisure
continued to improve the value proposition to our customers through customised solutions purposes and India mainly for business
and services that meet their evolving needs. purposes. Oman is a blend of business
and leisure travel.
CUSTOMER PROFILE
Sri Lanka’s endeavours to draw international visitors have proven fruitful, with the country’s
tourism sector rebounding in 2023 and subsequently witnessing a surge in arrivals of The key areas of focus were as follows:
international tourists. The country is becoming increasingly popular among tourists as an
appealing choice for budget-conscious travellers seeking authentic experiences. • Driving direct bookings through our
website

Tourist Arrivals Top 5 Source Markets in 2023 • Participation in numerous roadshows and
trade fairs in key source markets
Rs.Mn Source: SLTDA
4.6
250,000 • Deploying representatives in strategic
6.8 markets to advocate for our properties
200,000 20.3
• Offered flexible rates to stimulate the
150,000 market when the demand was low
8.7
100,000 • In the Maldives, systems were put in
place for the online booking system to
50,000
13.2 provide tour operators with real-time
0 India visibility on room availability, streamlining
Russia the booking process.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

UK
Germany
China
• In Oman, we diversified revenue streams
2022 2023
by offering banqueting, outdoor catering
and destination weddings services.
Following India, Russia remains a pivotal source market for us, consistently attracting
• Introduced group packages tailored for
numerous charter groups from the region. Other key source markets are China, UK, Germany
corporate clients.
and Australia. We aim to broaden our customer base by exploring new source markets, rather
than relying solely on established traditional ones. • Enhanced our online visibility through
social media optimisation
At Aitken Spence Hotels, we adopted a robust sales and marketing strategy during the
• Strengthening online voucher purchases
year, targeting optimum growth out of the Maldives and Sri Lanka. Along with the increase
by introducing special packages and
in tourist numbers globally, the Group’s targeted initiatives to drive guest nights led to an
experiential offers
increase in the footfall of both domestic and international tourists at our properties.

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CAPITAL REPORTS
SOCIAL AND RELATIONSHIP CAPITAL

OUR HOLISTIC VALUE PROPOSITION TO GUESTS

Flexibility Guest Experience

We offer flexible cancellation Our unique propositions ensure

policies and transparent pricing an authentic experience is
to ensure customer satisfaction. provided to guests.

Engagement Customer Safety

Multiple formal and informal Stringent health and safety

customer engagement guidelines which safeguard the
mechanisms in place. health and wellbeing of guests.

Customer Experience Customer Engagement

As the demand for authentic experiences that foster connections with local cultures and Ongoing engagement is carried out with
traditions rises, we have consistently improved our value proposition by offering curated customers through a range of activities
experiences that cater to this trend. We also promoted the diversity of our properties to cater and events both online and offline. These
to varying customer interests including wellness, yoga and fitness, experiential tourism and include festival celebrations, sustainability
other niche markets. Our key propositions to enhance the customer experience include: awareness events and fun events for kids.

Heritance Hotels launched the Trails of Bawa In line with Heritance Ararah’s
tour, covering some of Sri Lanka’s iconic spaces extensive dining offering and
designed by Deshamanya Geoffrey Bawa. This promise of a culinary journey
immersive experience spans four nights and five like no other, the resort hosted
days, The tour showcases the innovative use of Michelin star Chef Pascal
open spaces, natural light, and local materials, Aussignac who presented
creating an ambiance that embodies the essence curated dinners to guests during
of Modern Tropicalism. the stay.

Offering authentic Sri Lankan food and Operated Framissima Clubs

beverage options by incorporating locally in Sri Lanka and the Maldives
sourced ingredients into our menus. by tying up with a French tour
operator.

Re-opening of restaurants and enriching our offerings to bolster revenue and broaden
our range of services to customers.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Customer Feedback and Satisfaction
We monitor guest satisfaction consistently through multiple tools including ReviewPro,
in-house hotel surveys, social media and business channels. The findings from these
monitoring tools help us to drive continuous improvements and ensure customer
satisfaction through quality service.

ReviewPro allows us to analyse aggregated Implementation of real time

reviews from online platforms such as feedback through QR code
TripAdvisor, Booking.com and social media based surveys at key guest
channels in real time by monitoring guest touchpoint in Sri Lankan
reviews and experiences. We have benchmarked properties
a ReviewPro score of at least 95% for each
property in our portfolio.

Actively soliciting feedback while customers are Implementation of Whatsapp for

on site. Business to provide responses
to customers in real-time.

Summary of Key Properties 2023/24

Heritance Ahungalla 94.9% Travellers’ Choice Award
06 properties
Heritance Ayurveda 90.2%
Heritance Kandalama 92.8%
Traveller Review Award
Heritance Negombo 91.2%
17 properties
Heritance Tea Factory 96.0%
Turyaa Kalutara 93.0% HolidayCheck Awards
Adaaran Club Rannalhi 94.0% 02 properties
Adaaran Select Hudhuran Fushi 92.7%
Adaaran Select Meedhupparu 94.8%
Adaaran Prestige Vadoo 97.0%
Heritance Aarah 98.7%
Al-Falaj Hotel 84.2%
Turyaa Chennai 88.0%

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CAPITAL REPORTS
SOCIAL AND RELATIONSHIP CAPITAL

GRI 416-2 Customer Privacy

We monitor guest satisfaction consistently
Customer Safety through multiple tools including ReviewPro,
We monitor guest satisfaction consistently through multiple tools including ReviewPro, in- in-house hotel surveys, social media and
house hotel surveys, social media and business channels. The findings from these monitoring business channels. The findings from these
tools help us to drive continuous improvements and ensure customer satisfaction through monitoring tools help us to drive continuous
quality service. improvements and ensure customer
satisfaction through quality service.

Security of Food & Epidemics & Third Party

Premises Beverages Pandemics Providers
Significant investments in IT
infrastructure and process
controls to ensure customer
privacy.

The Group continues to prioritise customer safety, making significant investments to ensure
the well-being of guests. Throughout the year, there were no instances of non-compliance
related to health and safety impacts of our products and services. Channel partners encompass a diverse
array of third-party organisations and
platforms with whom we collaborate.
Coexisting with wildlife is an integral part of the guest
These partners include Online Travel
Co-existing with the experience as our properties are typically located in areas of
Agencies (OTAs), Corporate Travel
environment high biodiversity. Guests are informed about safety measures
Management Companies, Destination
to be taken within the premises or while exploring the
Management Companies, Tour
surroundings
Operators, and Online Platforms.

11 of our properties have obtained the ISO 22000: 2018

HACCP Certification, affirming compliance with global RELATIONSHIPS WITH CHANNEL
standards related to food safety. PARTNERS
Food Safety
Aitken Spence Hotels maintains strong
All properties comply with local operating license relationships with channel partners,
requirements and are subject to inspection from local tourism attracting a significant portion of arrivals
authorities and local government authorities through these partnerships.

Although online and social media platforms

We ensure that all partners authorised to provide are increasingly becoming crucial channels
Third Party Service transportation, excursions, and experiences within our for bookings and promotions, a significant
Providers properties possess the necessary license to offer their services portion of customers still prefer placing
while regularly informing them about our commitment to bookings through reliable tour operators
maintaining high standards of customer safety. in the backdrop of global and domestic
economic volatility. As a result, our strategy
during the year focused on expanding the
contributions from the tour operators we
work with.

The Group also leveraged relationships

with Destination Management Companies
to bring in tour groups from key markets
including Russia, Kazakhstan and Uzbekistan.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Partnered with new tour operators targeting the Working with advances in order to guarantee their
luxury segment from countries such as USA commitment to fulfil numbers

Offering flexible rates in periods of low demand in Strengthening the offline and online channel
order to stimulate the market partnerships

Additionally, we enhanced our partnerships with online travel agents, implementing targeted promotions and dynamic pricing strategies to
optimise demand-supply dynamics.

Sri Lanka Maldives Oman India

112 tour operator contracts 794 tour operator contracts 57 tour operator contracts 250 registered corporate clients
1,055 registered local travel agents 102 registered local travel agents 57 registered local travel agents
150 registered corporate clients 12 country representations 76 registered corporate clients
09 country representations

GRI 204-1 GRI 308-1 GRI 414-1 GRI 414-2

A RESILIENT SUPPLY CHAIN

F & B Suppliers Furniture Suppliers Linen and Bedding Suppliers IT
The Group’s Procurement Policy sets the guidelines for selecting the right suppliers with potential vendors identified through a supplier assessment
which considers factors beyond cost, such as quality, reliability and sustainability.

The mutually advantageous partnerships cultivated with our suppliers are integral to the seamless operation of our business. While our
supplier network spans both local and international entities, recent disruptions to global supply chains prompted us to place greater emphasis
on local suppliers situated in close proximity to our resorts. This strategic shift not only enhances operational resilience but also fosters socio-
economic empowerment within the local communities we serve.

Summary of Key % of Procurement Expenditure All (100%) our suppliers were screened using environmental, social
Properties to Local Suppliers and child labour criteria in compliance with local laws and practices.
Heritance Ahungalla 55%
Heritance Ayurveda 50% Key developments during the year from a supply chain perspective include:
Heritance Kandalama 45% • Integration of 324 new local and international suppliers, paralleled by
Heritance Tea Factory 28% advancements in the business landscape.
Turyaa Kalutara 46% • Access to high-quality imported goods at more affordable prices
Hotel RIU 25% compared to the previous year.
Maldives 3% • Ongoing enhancement of suppliers focusing on the utilisation of local
Oman 95% raw materials.
India 96% • Emphasis placed on supporting local entities engaged in importing raw
materials and adding value locally, thereby bolstering local communities.

• Unforeseen price hikes in fruits and vegetables were experienced due to

adverse weather conditions. To mitigate this, some properties-initiated
efforts to cultivate their own herbs, fruits, and vegetables.

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CAPITAL REPORTS
SOCIAL AND RELATIONSHIP CAPITAL

GRI 203-2 GRI 205-3 GRI 206-1 GRI 208-2 GRI 413-1 GRI 413-2

UPLIFTED COMMUNITIES
The Group’s CSR activities are designed to uplift society’s most vulnerable segments and build impactful relationships by delivering economic,
environmental and social benefits to the wider community. Core areas of focus are as follows:

Community Development Protection and conservation of the Employee Welfare & Development
environment

Disaster Relief and Emergency Response Ethical Business Practices Sustainable Tourism Practices

Throughout the year, our hotels have welfare through various donations, including sports activities and supported study tours
actively participated in numerous corporate covering medical expenses and providing for local school students to gain insight
social responsibility (CSR) activities aimed meals for community events like the Life into the hospitality industry ensuring a
at supporting and uplifting our communities. Saving & Aquatic Sports Club in Dambulla well-rounded and impactful presence in the
We made several contributions to death and continuous beach, riverbed and tank communities we serve.
benevolent societies, assisting with funeral area cleaning programs.
expenses for members. Additionally, we Throughout the year, our operations
supported local educational institutions We celebrated important days and organised remained fully compliant with all applicable
by providing school stationery and activities for local schools and communities, laws and regulations, with no reported
footwear to School children and assisting including New Year programs, International incidents of non-compliance or significant
Moragalla Kanishta Vidyalaya with grounds Children’s Day, International Nurses Day, adverse impacts on local communities.
maintenance. and World Teachers’ Day. Our involvement
also included logistical support such as
Our contributions extended to religious and arranging seaplane transfers for medical and
cultural events, including donations to local educational purposes and dhoni transfers
temples for their development and festivals. for community needs. We facilitated water
We also supported community health and

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OUTLOOK
With the gradual normalisation of economies
worldwide and the resumption of tourist
arrivals, the outlook for the sector appears
promising. We aim to leverage these positive
trends by enhancing our operations and
guest experiences.

Key priorities in the short-term include:

• Enhancing guest relationships through
refinement of our customer value
proposition.

• Expanding into new markets and market

segments while reinforcing existing ones.

• Implementing standardised hotel

operating equipment and linen across all
properties (both Local and Overseas) to
achieve economies of scale.

• Fostering SME growth in local

communities through supplier
development programs.

• Sustaining investments in community

engagement and development initiatives.

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CAPITAL REPORTS

OUR NATURAL VALUE

CAPITAL INPUTS DRIVERS

Natural
Capital
Energy Consumption Efficient allocation of resources to
Electricity consumption manage energy consumption and
We are aware of our enhance energy efficiency
from the National Grid
environmental impact and are 98,106.24 GJ
constantly exploring avenues Diesel
Automation and digitisation of
processes to increase efficiencies and
to preserve and rejuvenate the 289,180.37 GJ reduce paper consumption
natural environment around our LPG
properties, while minimising the 22,071.18 GJ Generation of renewable energy
through investments in solar and wind
environmental footprint of our Biomass
13,099.79 GJ power
operations. We drive concerted
efforts to safeguard both land Water Consumption Reduction of single use plastics in our
and underwater biodiversity. As operations
1,425,916 m3
part of the hospitality industry, of water withdrawn Engaging employees in emission
we recognise the significance reduction efforts through training
Rich Biodiversity
of involving tourists in these Surrounding Our Properties
programmes, awareness campaigns
and incentive schemes.
environmental sustainability Over 400 documented
efforts for long term impact. species in Sri Lanka
Over 1100 in the Maldives

VALUE CREATED

19.7 % 16.8% 32.5% 21,333 GJ

Reduction in Energy Reduction in Water Reduction In Carbon Renewable Energy
Intensity Intensity Intensity Generated

STRATEGIC FOCUS AREAS 2023/24

Climate action
Material and waste management
Preserving biodiversity
Drive increased efficiency in the usage
of energy, water and raw materials

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
MANAGEMENT APPROACH
As a pioneer in sustainable tourism in Sri Lanka, Aitken Spence Hotels is dedicated to minimising its environmental footprint. Aligned with the
parent entity’s guidelines we track, monitor, and optimise natural resource usage to positively impact the environment and ecosystems. Our
environmental strategy is further guided by national and international environmental certifications which enhance accountability and provide
stakeholder assurance.

SUSTAINABILITY GOVERNANCE

Dedicated
Board of Directors Sustainability
Environmental
set the strategic Committees at our
Management Teams
direction and ensure properties are responsible
drive sustainability
sustainability goals align for developing and
initiatives within each
with our over implementing strategies
property.
all strategy. to effectively manage
natural capital.

We actively seek input from stakeholders to ensure Regular communication of our environmental
alignment with their expectations. performance to stakeholders through various
channels, including sustainability reports, websites,
Annual environmental goal setting to track our
social media posts and stakeholder meetings.
performance and progress.

A comprehensive Environmental Management System (EMS) is implemented across the Group’s properties through which material
environmental impacts such as water, energy, waste, emissions and chemical usage are tracked. Regular reporting to the Group Head of
Sustainability ensures transparency is maintained. The key elements of the Group’s EMS as illustrated below drive the progress of our
environmental commitment.

Identify significant
environmental impacts Appoint and provide
and agree on targets training to environmental
and action plans based representatives.
on legal requirements,
voluntary standards Document and implement
and our sustainability Plan programmes and establish
Do controls.
strategy.

Conduct management Monitor and measure

reviews to discuss areas performance, conduct
for improvement and to audits and analyse
take corrective action. performance against
Act Check targets on a
continuous basis.

Group Integrated Energy ISO 14001: 2015- Environmental Travelife Gold or Green Globe
Sustainability Policy Policy Management (3 properties) Certification (11 properties)

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CAPITAL REPORTS
NATURAL CAPITAL

GRI 302-1 GRI 302-3 GRI 302-4 GRI 302-5

ENERGY MANAGEMENT
Our energy requirements are primarily fulfilled through electricity sourced from the national
Energy Consumption - GJ
grid, diesel, LPG and biomass.
2023/24 423,550
GJ 2023/24 2022/23 2021/22 387,032
2022/23
Sri Lanka 132,844 114,522 79,971 2021/22 344,350
Maldives 263,762 243,767 241,087 2020/21 188,582

Oman 15,025 16,800 13,734 2019/20 372,105

India 11,919 11,944 9,558

Total 423,550 387,032 344,350 Energy Consumption per guest night- MJ

2023/24 376.8
Despite an overall increase in energy usage by 9.44% to 423,550 GJ due to the increase in
occupancy levels, the energy intensity levels of the Group decreased from 469.24 MJ to 2022/23 469.24

376.80 MJ per guest night compared to the last financial year 2022/23. 2021/22 487.82

2020/21 1153.06
• Conducted educational programmes and campaigns for guests and staff on energy
conservation practices and encouraging sustainable behaviour. 2019/20 415.35

• Upgraded to energy-efficient lighting systems such as LED (Light-Emitting Diode) bulbs

and fixtures throughout our properties. Electricity from grid, diesel fuel, LPG gas,
renewable energy sourced from solar,
• Installation of occupancy sensors in some guestrooms, corridors, and other areas to
wind and biomass, are included when
automatically adjust lighting and HVAC (Heating, Ventilation, and Air Conditioning)
calculating the energy intensity ratio.
settings based on occupancy levels.
It covers the entire organisation and its
• Invested in energy-efficient HVAC systems and equipment, including high-efficiency air direct operations.
conditioners, heat pumps, and boilers.

• Increasingly investing in renewable energy sources such as solar photovoltaic (PV) panels
to generate clean energy.
We conduct regular energy
audits to assess the performance
of our properties and identify
opportunities for energy
efficiency improvements.

Power Wheeling Agreement Floating Solar Project

Turyaa Chennai, our property in India, has implemented a Power Our premier resort in the Maldives, Heritance Aarah has
Wheeling Agreement as part of its renewable energy strategy. pioneered a floating solar project by installing photovoltaic
(PV) panels on floating platforms on the surface of the ocean
Under this agreement, Turyaa Chennai has partnered with a
surrounding the island.
renewable energy developer who owns and operates a solar power
plant located offsite. The property purchases renewable energy The floating solar project takes advantage of the abundant sunlight
credits or units generated by the solar plant through the grid, in the Maldives to generate clean electricity while conserving
offsetting a portion of its electricity consumption with clean energy. precious land resources.

By participating in the Power Wheeling Agreement, Turyaa Chennai This project not only reduces the resort’s reliance on diesel
not only reduces its dependence on grid-supplied electricity generators for power generation but also contributes to the
generated from conventional sources but also contributes to the Maldives’ efforts to transition to renewable energy and mitigate
growth of renewable energy capacity in the region, aligning with the effects of climate change, demonstrating our commitment to
our commitment to environmental sustainability. environmental stewardship.

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 GRI 305-1 GRI 305-2 GRI 305-4 GRI 305-5 Carbon footprint - tCO2e

CARBON FOOTPRINT 2023/24 34,433

By harnessing renewable energy, we reduce our reliance on fossil fuels, contribute to 2022/23 37,437
lowering greenhouse gas emissions, and support the transition to a sustainable energy future.
2021/22 32,905
The energy efficiency measures mentioned above have also contributed towards managing
2020/21 20,073
our carbon footprint.
2019/20 38,726

In addition, we have implemented transportation efficiency measures to reduce emissions

from guest and staff travel, shuttle services and logistics. This includes promoting public
Carbon footprint per guest night - kg CO2e
transportation, carpooling, and cycling among guests and staff, as well as offering electric
vehicle charging stations and incentives for eco-friendly transportation options. 2023/24 30.63

2022/23 45.39
The Group’s carbon footprint for the year is given below: 2021/22 46.61

tCO2e 2023/24 2022/23 2021/22 2020/21 122.73

2019/20 43.23
GHG emissions Scope 1 and 2 Group 34,433 37,437 32,905
GHG emissions Scope 1 and 2 SL 14,272 15,666 12,221
GHG emissions Scope 1 and 2 Maldives 16,550 16,163 15,985 The Group ensures compliance with
GHG emissions Scope 1 and Scope 2 Oman 2,867 3,367 2,868 local, regional, and national regulations
GHG emissions Scope 1 and Scope 2 India 744 2,241 1,831 governing emissions, including air quality
standards and emission limits.
GRI 303-1 GRI 303-2 GRI 303-5

WATER AND EFFLUENTS

Water Consumption - m3
We rely on surface water, municipal water (sea), ground water and harvested rainwater to
meet our water requirements. Water audits are conducted regularly to identify areas of high 2023/24 813,444

consumption. 2022/23 717,252

2021/22 639,029
We strive to gradually reduce the water withdrawn for our operations and prevent water
stress in the areas of operations through ongoing efforts to optimise water usage. These are 2020/21 368,115

mentioned below: 2019/20 794,119

We have installed water-efficient Rainwater harvesting systems

fixtures such as low-flow faucets, capture rainwater from rooftops Water Consumption - per guest night (liters)
showerheads, and toilets and other surfaces and is used for
throughout our properties. non-potable purposes 2023/24 723.65

2022/23 869.59

2021/22 905.27

2020/21 2,250.79
Smart irrigation systems Encouraging guests
equipped with weather to participate in our 2019/20 886.4
sensors and soil moisture conservation initiatives
monitors optimises through signage in guest
irrigation schedules and rooms, educational
minimise water waste materials and interactive
programs

Training sessions and awareness programs

for our staff to promote water-saving
practices and ensure that they understand the
importance of water conservation

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CAPITAL REPORTS
NATURAL CAPITAL

GRI 303-3 GRI 303-4

Water Withdrawal by Source

m3 2023/24 2022/23 2021/22 Grey Water Recycling
Ground water 167,872 200,986 154,353 • We have implemented greywater
Municipal water 237,521 135,013 155,123 recycling systems to capture and treat
Sea water 1,020,523 953,133 823,883 wastewater from sinks, showers, and
laundry facilities.
Data is collected from flow meters at respective sites, volume calculations based from
installed tank capacity and invoice data in case of municipal water withdrawn. no water source • Treated greywater is reused for
was significantly affected by withdrawal. purposes such as irrigation, flushing
toilets, and cooling systems, reducing
Water Recycled/ Reused/ Discharged our reliance on freshwater resources.
m3 2023/24 2022/23 2021/22
Sri Lanka 275,377 212,090 167,459
Maldives 408,209 381,253 329,553 Due diligence frameworks

Total 683,586 593,343 497,012

Inclusion of ESG into contracts
Wastewater discharged from our properties is either pre-treated and purified on site or
channelled to local wastewater treatment plants. We persistently monitor the quality of the
water discharged from our operations, abiding by local standards or limits or the International Onsite inspections
Finance Corporation’s Environmental, Health, and Safety (EHS) Guidelines for pollutants
released to surface water (Whichever is more stringent).
Educating suppliers on our
benchmarks for quality
RAW MATERIAL CONSUMPTION
Aitken Spence Hotels is committed to responsible consumption of resources, including
reducing the usage of plastic to minimise our environmental footprint. Our key raw materials
include F&B inputs, food packing materials, linen and consumable room amenities.

When selecting and dealing with raw material suppliers, we screen them for quality as well as
environmental criteria to ensure ethical and sustainable business practices are maintained.

Key initiatives to reduce material consumption include:

Elimination of single use plastics Encouraging guests and staff to Transitioning to plastic-free Working with suppliers to
by offering biodegradable, use reusable water bottles by amenities in all guestrooms and minimise plastic packaging by
compostable or reusable providing water refill stations bathrooms, replacing single- sourcing products in bulk, opting
alternatives made from materials throughout our properties. use plastic toiletry bottles for eco-friendly packaging
like paper, bamboo, or stainless with refillable dispensers or materials and encouraging
steel. biodegradable alternative. suppliers to adopt plastic-free
packaging alternatives.

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 GRI 306-1 GRI 306-2 GRI 306-3 GRI 306-4 GRI 306-5

WASTE
The Group engages in the segregation and disposal of waste at source, in compliance with
regulatory requirements and industry best practice. We have adopted the 7R approach to
waste management, ensuring responsible disposal of all types of waste including food, kitchen Total volume of waste generated
and human waste. This approach aims to achieve zero waste to landfill status by actively amounted to 2,453 MT
promoting increased efficiencies in material consumption, recycling, and resource reuse.

Our waste management initiatives include:

Waste per guest night - kg
• Providing clear signage, colour-coded
2023/24 2.12
bins, and educational materials to
2022/23
facilitate proper waste sorting and 1.47
disposal. 2021/22
1.96
2020/21
• Managing organic waste through
2019/20 2.62
composting initiatives and food for waste
Recycle programmes with local farms.
Recycle all materials that cannot be Waste - kg
• Food waste composting machine in
rejected, reduced, reused, reclaimed, Maldives that converts 100% of wet 2023/24 2,381,384
replaced, or repaired so that nothing garbage into eco-friendly fertiliser. 2022/23 1,209,723
goes to waste. This includes wastewater,
2021/22 1,381,524
cooking oil, engine oil, metal cans, plastic • Hazardous waste such as plastic waste
2020/21 428,749
containers, PET bottles, etc. is diverted from disposal in compliance
with the stipulations of the country of 2019/20 2,381,938
Reject operation.
All non-biodegradable items such as
plastic and packaging materials to be Food for Waste Programme
rejected wherever possible.
Through this programme food scraps,
Reduce garden trimmings, and other organic
materials are collected and composted
Reduce the use of resources including
onsite or through partnerships with local
energy, water and non-bio-degradable
farms as animal feed.
material.

Reuse
Details of waste and disposal methods are as follows:
Reuse resources such as paper, plastic
packaging materials, construction Waste by Type and Disposal Method (tons) 2023/24 2022/23
material etc. Solid waste (hazardous) 27 50
Reclaim Solid waste (non-hazardous) 2447 1157

Reclaim what cannot be totally reused. Total number and volume of significant spills or
None None
adverse impacts from the waste generated
Replace

Replace what cannot be rejected, reused

or reduced with more environmentally
friendly materials.

Repair

Broken items to be repaired, where

possible, instead of purchasing new items.

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CAPITAL REPORTS
NATURAL CAPITAL

GRI 304- 1 GRI 304- 2 GRI 304- 3 GRI 304- 4

BIODIVERSITY PRESERVATION
The rich biodiversity surrounding our resorts in both Sri Lanka and the Maldives is a key differentiator that
significantly enhances our ability to attract and delight guests. We are fully committed to operating our resorts in
harmony with the natural ecosystem, from design and architecture to operations and waste management, through
well-managed nature conservation programs and initiatives.

Eco Park at Heritance Kandalama Other initiatives carried out to

preserve biodiversity includes:
We continued to preserve the lush flora and fauna surrounding Heritance Kandalama
by maintaining 211 acres of land adjacent to the thoughtfully designed hotel building • Collaborating with local schools and
as a conservation forest. The area also serves as a rich habitat for a number of endemic universities on biodiversity research
species. The hotel building itself occupies only eight acres of the entire 200-acre property, and conservation projects
which is utilised for research purposes and guided nature tours for guests. Within the • Partnering with local environmental
Eco Park, you will find a wildlife orphanage and rehabilitation centre for injured animals, organisations for ongoing
compost fertiliser pits, wet and solid waste recycling facilities, wastewater recycling plant conservation projects
and a herbal garden. The hotel has also actively engaged in a community tree-planting
campaign using saplings from its own nursery. • Conducting educational programs
on biodiversity and nature for
associates and guests

• Planting native species to support

local ecosystems

211 acres 11 128 • Creating butterfly and pollinator

gardens/areas
of Conservation Forest Protected origins of Species of Native Flora
Natural Streams • Reducing the use of pesticides and
fertilisers to prevent harm to local
flora and fauna

• Supporting local wildlife

173 17 8 rehabilitation centers
Species of Birds Species of Mammals Species of Dragonflies • Offering educational programs and
tours about local ecosystems and
biodiversity to guests

• Organising beach clean-up events

4 6 13
Species of Butterflies Species of Amphibians Species of Reptiles

QR Code and Access page 124 of 2017/18 Annual report for IUCN Red list species and
national conservation list species with habitats in areas affected by operations via QR code

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GOVERNANCE

A HERITAGE OF EXCELLENCE
Our vibrant legacy and longstanding commitment towards excellence
positions us to safeguard every stakeholder, by offering them
a sense of tranquillity.
CORPORATE GOVERNANCE
GRI 2- 16 GRI 2- 22 GRI 2- 23 GRI 2- 24 GRI 2- 25 GRI 2- 26

CHAIRMAN’S STATEMENT ON Sustainability Standards and the European I am pleased to note that Aitken Spence Hotel
GOVERNANCE Sustainability Reporting Standards were Holdings PLC had many of the governance
introduced. Both standards underscore the requirements of the IFRS Sustainability
Dear Stakeholders,
necessity of robust governance structures Standards in place even before they were
It is my pleasure to present to our
to manage sustainability related risks and formally articulated. This is a key differentiator,
stakeholders the Corporate Governance
opportunities. Additionally, the Colombo as sustainability at Aitken Spence has been
Report of Aitken Spence Hotel Holdings
Stock Exchange introduced Section 9 of the driven from the top, reflecting our belief that
PLC for the Financial Year 2023/2024. At
Listing Rules, which strengthens governance it supports corporate longevity and growth,
Aitken Spence Hotel Holdings PLC we are
and underscores the need for formal policies enabling value creation in harmony with our
committed to achieving the highest standards
and governance processes. This was followed values. Globally renowned certifications
of corporate governance and to conducting
by the revision of the Code of Best Practice provide assurance on compliance with key
its operations and corporate activities safely
on Corporate Governance, which now places operational aspects of each business segment
and in accordance with all applicable laws
greater emphasis on sustainability reporting. within a “Must Do, Shall Do, and Can Do”
and regulatory obligations. Our governance
Aitken Spence Group has begun complying structure, offering additional assurance to the
framework is designed to promote
with these regulatory requirements and is Board that policies, systems, and processes are
transparency, accountability, and continuous
also embarking on the implementation of in place to manage critical sustainability issues.
improvement, ensuring that we meet the
the IFRS Sustainability Standards, aiming These efforts are driven by a knowledgeable
expectations of our stakeholders and operate
for full compliance by the next financial year. and inspired Sustainability Council, who
sustainably and ethically. Our framework
The Board remained vigilant in adapting to coordinate sustainability reporting for the
on Corporate Governance is not limited to
new regulatory mandates, promptly aligning Group.
mere compliance but is more reflective of a
the Company’s practices with the latest
comprehensive and dynamic approach. As we move forward, Aitken Spence Hotels
Corporate Governance Rules mandated
by the Colombo Stock Exchange. This reaffirms its unwavering commitment to the
The last year was significant for the Tourism
proactive approach reflects our unwavering principles of corporate governance. We extend
and Hospitality sector in Sri Lanka, marked
commitment to strengthening our our sincere gratitude to our stakeholders for
by a series of challenges and recovery efforts.
governance frameworks as required. their continued trust and support. Together,
The industry faced repercussions from
we remain steadfast in our pursuit of
previous crises, including the 2019 Easter
Our enduring history of strong governance excellence, transparency, and ethical conduct.
Sunday attacks, the Covid 19 pandemic
structures and processes, combined with Corporate governance will continue to serve
and the economic crisis in Sri Lanka which
our hallmark professionalism, serves as as our guiding light, ensuring that we uphold
severely impacted tourism. However,
the cornerstone for institutionalising these the highest standards of integrity and deliver
despite the resultant cash flow challenges,
changes. Teams at the parent company sustainable value to all stakeholders. We look
the Sri Lankan hotel industry demonstrated
have been diligently undertaking training to forward to the opportunities and challenges
resilience and adaptability in 2023, striking
understand the new requirements, setting ahead, as we continue to lead and innovate in
a delicate balance between recovery efforts
up processes to ensure that necessary the hotel and tourism sector.
and leveraging new opportunities to attract
changes are implemented across the Group,
tourists. In this context, Aitken Spence
and rolling out the necessary training to
Hotels played a multifaceted role in shaping
facilitate this implementation. Notable
Sri Lanka’s hotel industry towards growth,
progress has been made in Risk Management
sustainability, and resilience amidst adversity.
within the Group, and there has been a Deshamanya D.H.S. Jayawardena
This accomplishment was made possible by
significant enhancement in our non-financial Chairman
the robust corporate governance framework
information reporting systems. A structured
of Aitken Spence Hotel Holdings, ensuring
process has been put in place to obtain
ethical business conduct and the delivery of
information from all business segments
enduring value to stakeholders, all aligned with
in a formal manner to prepare the Annual
its strategic objectives.
Report, ensuring accountability across the Ms. D.S.T. Jayawardena
Group for the statements contained in the Joint Deputy Chairperson and
During the reporting year, there were
Report. All business segments have reviewed Joint Managing Director
significant changes in the sustainability
and signed off on their respective reports,
landscape emphasising the evolving nature
further strengthening the process. 15th July 2024
of corporate governance and the urgency of
addressing these issues. In 2023, the IFRS

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
CORPORATE GOVERNANCE RECAP 2023/2024

Modifications/alterations Re-designation of Mr. J.M.S. Brito as an Independent Non-Executive Director with effect from 8th
to existing Directors/ September 2023 by nevertheless determination
Committees
Appointment of Ms. D.S.T. Jayawardena to the office of Joint Deputy Chairperson and Joint Managing
Director with effect from 14th September 2023

Renaming the existing Nomination Committee as Nominations and Governance Committee in compliance
with the Section 9 of the Listing Rules of the Colombo Stock Exchange
COMPOSITION

Re-designation of Deshamanya D.H.S. Jayawardena, Chairman of the Company, as a Non-Executive

Director in compliance with Rule 9.6.1 of the Listing Rules of the Colombo Stock Exchange with effect
from 30th October 2023

New appointments to Appointment of Mr. C R Jansz, Non-Independent Non-Executive Director of Aitken Spence PLC, the
Committees/Board and parent company, as a member of the Remuneration Committee with effect from 8th September 2023
Cessation of holding
office Mr. G.P.J. Goonawardena, Independent Non-Executive Director demised on 18th November 2023

Appointment of Dr. R. A. Fernando as an Independent Non-Executive Director with effect from 10th
January 2024

Amendments to existing Introduction of Section 9 of the CSE Listing Rules on Corporate Governance with effect from 01st
REGULATIONS

rules October 2023

Release of the revised Code of Best Practice on Corporate Governance by the Institute of Chartered
Accountants of Sri Lanka 2017 (as amended) in December 2023

New procedures Introduction of Fit and Proper Criteria for Directors and CEOs in compliance with Rule 9.7 of the Listing
PROCEDURES

implemented Rules of the Colombo Stock Exchange

Disclosure of whether either the Director or close family members have any material business
relationships with other Directors of the Listed Entity in compliance with Rule 9.10.4 of the Listing Rules
of the Colombo Stock Exchange

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CORPORATE GOVERNANCE

GRI 2-9

CORPORATE GOVERNANCE FRAMEWORK

Shareholders
Internal Audit/
Audit Committee Corporate Management
Risk Management
Team at the Hotel
Related Party Transactions Management Company
Review Committee Chairman and
Managing
the Board of Sustainability Council
Director
Remuneration Committee Directors
Corporate Services of the
Nomination and parent Company
Governance Committee
• Corporate Finance
• Group Legal
• Corporate Secretarial
• Group Human Resources
• Group IT
• Business Transformation
Unit
• Financial Shared Services
• Group Security
• Corporate Strategy&
Sustainability

Board Composition, Skills and Diversity

Board Composition Board Balance

3
5

No. of Executive Directors

No. of Non-Executive Directors
1 5
No. of Independent Directors
Non Independent Directors
9 7

Board of Director’s Industry

Age Diversity Tenure on the Board
Background and Expertise

Business Leadership 10 Below 40 1 Less than 05 years 3

40 to 55 1 6 to 15 years 4
Marketing 3
55 to 70 4 16 to 20 years 1
Hoteliering 1
Above 70 4 Above 21 years 2
Accounting and Finance 5

Investment and Banking 2

Law 1

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Director Disclosures in terms of Rule 9.10.4(e) of the Listing Rules on Corporate Governance issued by the CSE*
Name of the Director Directorate Status Company

Deshamanya D. H. S. Jayawardena Non-Executive Chairman Aitken Spence PLC

Melstacorp PLC
Browns Beach Hotels PLC
Distilleries Company of Sri Lanka PLC
Madulsima Plantations PLC
Balangoda Plantations PLC
Lanka Milk Foods (CWE) PLC
Lanka Dairies Limited
Chairman Stassen Exports (Pvt) Ltd
Stassen Natural Foods (Pvt) Ltd
Stassen International (Pvt) Ltd
Stassen Foods (Pvt) Ltd
Milford Exports (Ceylon) (Pvt) Ltd
Milford Developers (Pvt) Ltd
CBD Exports (Pvt) Ltd
Ceylon Garden Coir (Pvt) Ltd
Ambewela Products (Pvt) Ltd
Ambewela Livestock Company Ltd
Pattipola Livestock Company Ltd
United Dairies Lanka (Pvt) Ltd
Directors McSen Range (Pvt) Ltd.
Ms. D.S.T. Jayawardena Joint Deputy Chairperson and Aiken Spence PLC
Joint Managing Director
Executive Director Browns Beach Hotels PLC
Lanka Milk Foods (CWE) PLC
Lanka Dairies Limited
Non-Executive Director Melstacorp PLC
Distilleries Company of Sri Lanka PLC
Director Stassen Exports (Pvt) Ltd
Stassen Natural Foods (Pvt) Ltd
Stassen International (Pvt) Ltd
Stassen Foods (Pvt) Ltd
Milford Exports (Ceylon) (Pvt) Ltd
Milford Developers (Pvt) Ltd
CBD Exports (Pvt) Ltd
Ceylon Garden Coir (Pvt) Ltd
Ambewela Products (Pvt) Ltd
Ambewela Livestock Company Ltd
Pattipola Livestock Company Ltd
United Dairies Lanka (Pvt) Ltd
Dr. M.P. Dissanayake Deputy Chairman Aitken Spence PLC
Chairman Elpitiya Plantations PLC
Aitken Spence Plantation Managements PLC
Executive Director Browns Beach Hotels PLC

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Name of the Director Directorate Status Company

Mr. J.M.S. Brito Non-Executive Director Aitken Spence Hotel Holdings PLC
Mr. C.H. Gomez Non-Executive Director Aitken Spence PLC
Mr. N.J. de S. Deva Aditya Non-Executive Director Aitken Spence PLC
Melstacorp PLC
Browns Beach Hotels PLC
Distilleries Company of Sri Lanka PLC
The Kingsbury PLC
Director Serene Residencies (Pvt) Ltd
Mr. R.N. Asirwatham Non-Executive Director Aitken Spence PLC
Browns Beach Hotels PLC
Royal Ceramics Lanka PLC
Dilmah Ceylon Tea Company PLC
Three Acre Farms PLC
Ceylon Grain Elevators PLC
Vallibel One PLC
Renuka Hotels PLC
Director Mercantile Merchant Bank Limited
Yarl Hotels (Private) Limited
Mr. M.A.N.S. Perera Managing Director Melstacorp PLC
Executive Director Distilleries Company of Sri Lanka PLC
Balangoda Plantations PLC
Madulsima Plantations PLC
Non-Execuitve Director
Aitken Spence PLC
Browns Beach Hotels PLC
Dr. R A Fernando Non-Executive Director Aitken Spence Plantation Managements PLC
Melstacorp PLC
Distilleries Company of Sri Lanka PLC
Dilmah Ceylon Tea Company PLC
LOLC Holdings PLC
Director Ceylon Graphene Technologies Ltd
Ceylon Asset Management Ltd
Mr. C M S Jayawickrama He holds directorships in companies within the Group.
Mr. G P J Goonawardena Mr. G. P. J. Goonewardena who was a Director of the Company at the beginning of the financial
year 2023/2024, passed away on 18th November 2023.

*Excluding Directorships held in Group Companies.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-12 GRI 2-14

Roles and Responsibilities Chairman Company Secretaries

• Leading the Board, preserving good • Ensuring the conduct of Board and
Board
corporate governance and ensuring that General Meetings are in accordance with
• Providing directions and guidance to the
the Board works effectively the Articles of Association and relevant
Group in formulating and implementing
legislation
the corporate strategy for value creation • Setting the Board’s annual work plan and
in short, medium and long terms and the agendas • Maintaining statutory registers and the
monitoring the implemented strategies
minutes of Board Meetings, General
• Ensuring that the Board is in control of
Meetings and of the Sub-Committee
• Making decisions on Board appointments the affairs of the Company
Meetings
and evaluating Board performance and
ensuring succession planning and the • Ensuring effective participation of all
Board members during Board meetings • Prompt communication to regulators and
continued ability of the Company to
and ensuring efficient conduct of Board shareholders
operate without any disruption
Meetings
• Filing statutory returns and facilitating
• Overseeing Company’s financial
• Building and maintaining stakeholder access to legal advice in consultation with
performance and adopting appropriate
trust and confidence the Board, where necessary
accounting policies
Managing Director • Advising and assisting the Directors
• Ensuring that the Company adheres to
• Implementing strategy and driving with respect to their duties and
best practices in corporate governance
performance responsibilities in particular compliance
including ethical business practices
with company law and other relevant
and compliance with rules, regulations • Ensuring succession planning of the legislations and regulations including but
and internal policies of the Group corporate management team and not limited to SEC and CSE.
including concerns on ethics, bribery and assessing their performance
corruption All Directors have access to the advice and
• Developing the Company/Group strategy services of the Secretaries as necessary.
• Establishing and overseeing systems of for consideration and approval by the The Secretaries maintain minutes of Board
internal control and risk management to Board in line with guidance provided by meetings, which are open for inspection by
ensure that the Company has effective the Board any Director. Appointment and removal of
risk management systems in place to
• Developing and recommending to the the Company Secretaries is a matter for the
identify, assess and mitigate risks
Board, budgets supporting the Company/ Board as a whole.

• Ensuring that business operations Group long-term strategy

Role Segregation
are conducted with adherence to
• Setting the Board agenda in consultation The Board has taken further steps to
environmental, social and governance
with the Chairman and assisted by the balance decision making power, authority
(ESG) considerations
Company Secretaries and accountability by separating the roles of
Chairman and Managing Director.
• Building and improving stakeholder • Monitoring and reporting to the Board
relationships on the performance of the Company and
its compliance with applicable laws and
• Reviewing and approving major
Corporate Governance principles
investments, acquisitions, disposals
and capital expenditure subject to legal • Establishing an organisational structure
requirements whilst considering their for the Company which is appropriate for
impacts on society and the environment the execution of strategy

• Ensuring a culture that is based on the

Company’s values

• Ensuring that the Company operates

within the approved risk appetite

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Independence of Directors
At the beginning of the financial year 2023/2024, there were four Independent Non-Executive Directors. On 8th September 2023, Mr. J.M.S.
Brito was re-designated as an Independent Non-Executive Director, bringing the total count to five. On 18th November 2023, Mr. G. P. J.
Goonewardena passed away. Subsequently, on 10th January 2024, Dr. R.A. Fernando was appointed to the Board as an Independent Non-
Executive Director. Therefore, at the close of the financial year 2023/2024, there were five Independent Non-Executive Directors.

Independence of Directors is determined by the Board, based on annual declarations submitted by the Directors in compliance with the Listing
Rules of the CSE and in line with Schedule C of the Code of Best Practice on Corporate Governance issued by the Institute of Chartered
Accountants of Sri Lanka.

Whilst Dr. R.A. Fernando who was appointed as an Independent Director fully meets the criteria for determining Independence, the Board
determined the below mentioned Directors as nevertheless independent under the exception provided in Rule 9.1.4(3) of the Listing Rules of
the CSE.

Mr. R.N. Asirwatham

The Board is of the view that the period of service of Mr. R.N. Asirwatham which exceeds nine years does not compromise
his independence and objectivity in discharging his functions as a Director. Therefore, the Board determined that Mr.
Asirwatham is nevertheless Independent of Aitken Spence Hotel Holdings PLC as per the Listing Rules of the Colombo Stock
Exchange.

Mr. C.H. Gomez

The Board is of the view that the period of service of Mr. C.H. Gomez as a Board Member, which exceeds nine years does not
compromise his independence and objectivity in discharging his functions as a Director. Therefore, the Board determined
that Mr. Gomez is nevertheless Independent of Aitken Spence Hotel Holdings PLC as per the Listing Rules of the Colombo
Stock Exchange.

Mr. N.J. de S. Deva Aditya

The Board is of the view that the period of service of Mr. N.J. de S. Deva Aditya as a Board Member, which exceeds nine
years does not compromise his independence and objectivity in discharging his functions as a Director. Therefore, the Board
determined that Mr. Deva Aditya is nevertheless Independent of Aitken Spence Hotel Holdings PLC as per the Listing Rules
of the Colombo Stock Exchange.

Mr. J.M.S. Brito

The period of service of Mr. J.M.S. Brito as a Board Member exceeds nine years. Additionally, Mr. Brito was an Executive
Director on the Board of the Company prior to his assumption of duties as a Non-Executive Director. However, his period
of service and his appointment as an Executive Director prior to his assumption of duties as a Non-Executive Director of the
Company do not compromise his independence and objectivity in discharging his functions as a Director of the Company.
Therefore, the Board determined that Mr. J.M.S. Brito is nevertheless Independent of Aitken Spence Hotel Holdings PLC as
per the Listing Rules of the Colombo Stock Exchange.

All five Directors have submitted the annual declaration of independence in 2023.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 GRI 2-10 GRI 2-11

Board Subcommittees
The Board has delegated certain functions to Board sub-committees. Through the sub-committees, the Board is able to deal effectively with
complex or specialised issues with strong governance.
Aitken Spence PLC, the parent company is fully compliant with the requirements of having sub-committees. As permitted by 9.1.4 (4) of the
Listing Rules of the Colombo Stock Exchange Audit Committee, Remuneration Committee and Related Party Transaction Committee of the
parent company oversee the functions of the relevant committees. The Company will be compliant with the requirements of having sub-
committees by the stipulated deadlines provided by the Colombo Stock Exchange.

Board Committee Composition Members Areas of Oversight

Nomination and Governance Two Independent Non- R.N. Asirwatham - Evaluate and recommend the appointment/re-
Committee Executive Directors including Chairman appointment/election/re-election of Directors
Report of the Nominations and the Chairman of the to the Board
J.M.S Brito
Governance Committee is given Committee and the Chairman
Evaluate and recommend suitable internal
on pages 150 to 151 of the Board (Non-Executive Deshamanya D.H.S.
and external candidates to higher levels of
Director) Jayawardena
management
Succession planning
Effectiveness of the Board and its Sub-
Committees
Remuneration Committee Two Independent Non- R.N. Asirwatham - Determine the remuneration policy of the
Report of the Remuneration Executive Directors including Chairman Directors and the KMPs
Committee is given on pages the Chairman of the
J.M.S. Brito Determine the overall individual remuneration
148 to 149 Committee and one Non-
packages which includes compensation on
Executive Director C.H. Gomez
termination of employment
C.R. Jansz Evaluate the performance of the Managing
Directors, Executive Directors as well as
the individual and collective performance
of Directors and Senior Management of the
Strategic Business Units
Audit Committee Four Independent Non- R.N. Asirwatham - Risk management and internal control
Report of the Audit Committee Executive Directors including Chairman
Financial reporting and financial control
is given on pages 143 to 145 the Chairman of the
J.M.S. Brito Internal audit
Committee
C.H. Gomez External audit including assessing the
N.J. de S. Deva Aditya independence of External Auditor
Compliance with legal and regulatory
requirements
Related Party Transactions Three Independent Non- R.N. Asirwatham - Recommend appropriate actions for
Review Committee Executive Directors including Chairman compliance in respect of proposed Related
Report of the Related the Chairman of the Party Transactions or post quarter
J.M.S. Brito
Party Transactions Review Committee and one Non- confirmations as applicable
Committee is given on pages Executive Director C.H. Gomez
Annual Review of thresholds of transactions
146 to 147
N.J. de S. Deva Aditya falling under the ambit of Rule 9.14.8 of the
Listing Rules based on the available Audited
Financial Statements
Set out criteria to determine key management
personnel

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Board Meetings & Minutes

The Board of Directors convene Board Meetings where they may bring their diverse knowledge and experience to bear on various topics
under discussion.

The Managing Director in consultation with the Chairman sets the Board agenda, with the assistance of the Company Secretaries. The
Chairman ensures that Directors have sufficient information on matters included in the agenda to facilitate effective participation of all
Directors. Additionally, all Directors have access to the Managing Director and the Senior Management of the Company to clarify any matter
and they are available for clarification of matters during the meeting. In an instance of a Director’s non-attendance at the meetings, he/she
is provided with briefing material for discussion with the Chairman or the Managing Director on a later date, through formally documented
minutes of meetings, by clarifying matters from the Company Secretaries or through separate discussions prior to the meeting regarding
matters arising from the previous meeting.

Board papers (Board packs) are circulated one week prior to the meeting to allow adequate time for preparation of the same. Minutes of
meetings are circulated within 10 days of the meeting to Board members and included in the subsequent Board pack. Company Secretaries
maintain all past minutes and board papers and are accessible at the convenience of the Directors. Directors’ concerns regarding matters
which are not resolved unanimously (if any) are recorded in the minutes.

Attendance at Meetings throughout the financial year 2023/2024

Name of Director Director Meeting Attendance

Status Board Audit Nomination & Remuneration Related Party
Committee Governance Committee Transactions
Committee Review
Committee

Deshamanya D.H.S. Jayawardena Chairman 3 - 1 - -

NED
Ms. D.S.T. Jayawardena EXE 3 - - - -
Dr. M.P. Dissanayake EXE 3 - - - -
Mr. C.M.S. Jayawickrama EXE 3 - - - -
Mr. J.M.S. Brito INED 3 13 1 1 4
Mr. N.J. de Silva Deva Aditya INED 3 10* - - 3*
Mr. R.N. Asirwatham INED 3 13 1 1 4
Mr. C.H. Gomez INED 3 7 - 1 2
Mr. G.P.J. Goonawardene INED 0 - - - -
(demised on 18.11.2023)
Mr. M.A.N.S. Perera NED 3 - - - -
Dr. R.A. Fernando INED 1 - - - -
(Appointed w.e.f. 10.01.2024)
Total No. of Meetings 3 13 1 - 4

EXE - Executive Director NED - Non-Executive Director INED - Independent Non-Executive Director

* Attendance through Mr. M.A.N.S. Perera (Mr. M.A.N.S. Perera served as an Alternate Director to Mr. N.J. de Silva Deva Aditya in the parent
company Aitken Spence PLC and he ceased to be an Alternate Director to Mr. N.J. de S Deva Aditya w.e.f. 01.01.2024)

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
CORPORATE GOVERNANCE PRACTICES model, Group policies, governance notified to the CSE in accordance with Rule
Appointment, Re-election and election of framework and processes, Group Code 7.8 of the Listing Rules and, accordingly,
Directors of Ethics and Professional Conduct, and the relevant entries have been made in
The Nomination and Governance Committee operational strategies of the Group. the Company’s Interests Register which
assists the Board in reviewing the structure Directors are availed the opportunity to have has been maintained as required by the
and composition of the Boards of Aitken one-on-one meetings with the management Companies Act.
Spence Hotel Holdings PLC and make of each subsidiary, visit sites/factories/hotels
where appropriate. Annual declarations on Independence - In
recommendations to the Board on all Board
compliance with the principles of corporate
appointments. The Board considers the
Presentations are made to the Board on governance stipulated the Listing Rules
recommendations of the Nominations and
new developments in corporate governance of the CSE and in line with Schedule C of
Governance Committee and recommends
and the operating environment. In addition, the Code of Best Practice on Corporate
suitable candidates for appointment or re-
Board members are encouraged to Governance, 2023, Independent Directors
election by the shareholders at the Annual
participate in seminars/webinars conducted submit signed declarations annually
General Meeting. The Nominations and
by professional institutions to enhance confirming their independence or non-
Governance Committee prudently assesses
their knowledge which would aid and independence against the specified criteria
the fitness and propriety of Directors when
assist the Directors in discharging their given under Rule 9.8.3 of the Listing Rules of
considering appointments to the Board
duties in a more effective and efficient the CSE.
and during the annual assessment of the
manner. Directors undertake training and
continuation of directorships.
professional development as they consider Disclosure of Interest in Related Party
necessary, in their personal capacity. Other Transactions - Declarations from Key
The Company obtained annual declarations
training and continuous professional Management Personnel of Aitken Spence
from the Directors confirming that they
development undertaken includes attending (Board of Directors of the Company,
have continuously satisfied the specified Fit
seminars/ workshops/conferences and Directors, Vice Presidents and Assistant
and Proper Assessment Criteria. Therefore,
reading regulatory updates etc. Vice Presidents of subsidiary companies)
no Director was identified as a person who
and from the Group companies are obtained
has failed to fulfil the required assessment
Identifying & Managing Conflicts quarterly for the purpose of identifying
criteria during the year under review.
The Group has processes in place to identify proposed Related Party Transactions and
As required by the Listing Rules, new and manage conflicts of interest which are post quarter confirmations of Related Party
appointments to the Board are promptly listed below: Transactions and to determine Related Party
communicated to the CSE through Transactions which ensures the compliance
Directors’ interest in transactions - All with the disclosure requirements of the
announcements. The announcements
the Directors of the Company and its Listing Rules of the CSE.
typically include a brief details of expertise,
Subsidiaries are required to make the general
key appointments, shareholdings, the names
disclosures annually as provided for in Related Party Transactions Review
of companies where the Director holds
section 192(2) of the Companies Act. Note Committee - The Board has appointed
directorships or memberships in Board
44 to the Financial Statements dealing with a Related Party Transactions Review
Committees and status of independence.
related party disclosures includes details of Committee comprising of three Independent
The resignations of directors need to be their interests in transactions. Non-Executive Directors and a Non-
informed in writing by the Director and are Independent Non-Executive Director who
Directors’ interests in shares - Directors meet quarterly to review Related Party
communicated immediately to the CSE upon
of the Company and its subsidiaries who Transactions during each quarter in line with
acceptance by the Board together with any
have relevant interests in the shares of the Continuing Listing Requirements of the
shareholding in the Group.
the respective companies have disclosed CSE. The Committee met quarterly and their
Director Induction & Training their shareholdings and any acquisitions/ report is given on page 146.
On appointment, Directors are taken disposals to their Boards, in compliance with
through a formal and tailored induction section 200 of the Companies Act. Further, Annual Disclosure on Material Business
programme coordinated by the Managing the relevant interests of each Director Relationships with other Directors of the
Director, where they are apprised of the in the securities of the Company and any Company - In keeping with Rule 9.10.4(c) of
Group values and culture, its operating acquisition/disposals of same have been the Listing Rules of CSE, Declarations were

123
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

obtained from the Directors of the Company deviations undergo further investigation and The Board, as a whole, determines the
for the purpose of identifying material root cause analysis, with disciplinary action remuneration of the Non-Executive
business relationships, if any, which they or initiated as necessary. Internal Audit Reports, Directors (NED’s). NEDs are remunerated
their close family members have with the encompassing audit findings, risk ratings and based on their attendance at Board and/
other Directors of the Company. management explanations are reviewed by or Committee meetings. Remuneration for
the Audit Committee, which recommends NEDs reflects the time commitment and
Risk Management further action to strengthen controls as responsibilities of their role, taking into
The Board is responsible for setting in place needed. consideration market practices. They do not
a system to identify, measure, monitor and receive any performance related incentive
manage the principal risks of the Group The Audit Committee assists the Board payments. Professional advice is sought by
and determining the level of risk it is willing in fulfilling its responsibilities regarding the Board and Remuneration Committee in
to accept in relation to its strategic goals. financial reporting and audit oversight. The discharging their responsibilities. Further
The Group implemented a centralised risk Committee reviews performance, internal details are provided in the Remuneration
management process using a central risk audit reports and risk management reports Committee Report on page 148)
register which will be updated on a quarterly regularly. Additionally, it assesses the
basis by the business segments to enable the adequacy of internal controls. Employee Remuneration
preparation of a consolidated risk register Aitken Spence’s remuneration policy is
for the Group. This was further strengthened (Further details are provided in the Audit designed to incentivise employees in
with training and obtaining additional Committee Report on page 143) creating long-term value for the Group and
information to support the Group’s journey aligning their interests with the Group’s
to adopt IFRS Sustainability Standards. Board Performance Evaluation strategic direction. This policy ensures
This also ensures that business segments Performance of the Managing Director and effective utilisation of Group resources and a
take a holistic approach in identifying and other Executive Directors are assessed continued focus on sustainability, growth and
assessing risks from a continuously updated at the end of each financial year against long-term value. The Group has established
risk universe and a common taxonomy financial and non financial objectives set policies to ensure that remuneration and
and classification is followed facilitating out in consultation with the Board at the benefits are fair, transparent, competitive
consolidation. commencement of every financial year. The and cost-effective while also aligning with the
evaluation is carried out by the Chairman, Group’s business goals. The implementation
Additionally, specialised central services such against the backdrop of the operating of this policy is overseen by the Group Chief
as HR and IT assess the specialised risks for environment. Remuneration is revised Human Resource Officer.
the Group, ensuring that the risks capture based on performance. Areas identified
issues related to subsidiaries as well through for improvement are communicated to the Employee remuneration remained a
regular meetings with Business Segment respective Director, including training needs focal point throughout the year, with pay
heads. The Group Internal Audit division and skills and knowledge gaps. increases granted to non-executive staff to
reviews the risk management processes and aid them during the economic challenges.
moderates the same prior to reporting to the Director’s Remuneration All staff members received increments to
Board on Group risks. The Remuneration Committee is responsible accommodate the elevated cost of living.
for making recommendations to the Board
(For more details, please refer Risk regarding the remuneration of the Executive A total reward philosophy is maintained
Management on pages 50 to 57 of this Directors and Key Management Personnel within the Group, encompassing both
Annual Report) (KMPs). The compensation for Directors monetary and non-monetary rewards. In
and KMPs is aligned with objectives for order to position the group as an employer of
Internal Controls, Accountability and Audit sustainable value creation that are consistent choice, new rewards have been introduced to
Standard Operating Procedures (SOPs) with the Group’s strategy. It is determined provide staff with a unique value proposition.
prepared by subsidiary companies within based on well-defined performance goals
the Group undergo review by Internal that are appropriately challenging and (For more details, please refer Human
Audit, with all Group employees required to benchmarked against the industry standards. Capital on pages 82 to 91 of this Annual
adhere to these SOPs. Any deviations are For further information, please refer Report)
reported and appropriate remedial action Remuneration Committee Report on page
is agreed upon with management. Serious 148 of this Annual Report.

124
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Shareholder Communications
Shareholder communications are managed by the Company Secretarial division. The Annual General Meeting (AGM) is the main platform
which provides forum for all shareholders to directly communicate with the Board of the Company and participate in the decision making
process reserved for the shareholders as defined in the Articles of Association and the Companies Act No.07 of 2007. Shareholders also have
the opportunity to ask questions, comment or make suggestions to the Board through the Company Secretaries. All significant issues and
concerns of shareholders are referred to the Board with the views of the Management. Shareholder queries are responded to by the Company
Secretaries for an on behalf of the Management. Opportunity is also provided to address the Board directly at AGMs.

The Board approves the quarterly Financial Statements for dissemination to shareholders through the CSE in a timely manner. All other price
sensitive information such as major acquisitions or disposals and share transaction dealings are also notified promptly to the CSE.

Engagement Mechanism Frequency of Engagement

Annually Quarterly Periodically Regularly 24 Hours As and when
7 days Required

General meetings 
Annual Report 
Interim Financial Statements 
Disclosures and announcements to the CSE  
Corporate website 
General correspondence 
CSR projects 

GRI 205-2 GRI 418-1 2023/2024. The certification is a testament

of our conformance to the highest
Anti-Bribery & Corruption Approach Internet of Things and Cybersecurity information systems practices and protocols
Group Code of Ethics and Professional The Group’s emphasis on Internet of Things in accordance with global standards. The
Conduct prohibits the acceptance or offer (IoT) and cybersecurity aligns with the certification supports the Company in
of gifts in order to receive preferential increasing trend of digital transformation identifying the risks to the security of
business treatment. Any non-compliance and the necessity for businesses to information. Identified risks will be evaluated
related to code concerning bribery & adjust to the ever-changing technological and proper measures are taken by the Group
corruption reported will be investigated and environment. Our investment in these areas IT Services team to mitigate or minimise the
appropriate course of action will be taken underscores the commitment to innovation threats. The Board of Directors are regularly
so that it serves as a forewarning to others and our efforts to safeguard the businesses updated regarding the controls in place to
to desist from engaging in such activities. against cyber threats. The Board has the mitigate cyber risks, and on possible cyber
Any complaint of non-compliance is ultimate responsibility for establishing the risks that the Company is exposed to by the
channelled to the Internal Audit division for required infrastructure, organisational Group IT Services team which also reports
investigation and the Internal Audit Report structures, policies, and procedures for more frequently to the Management Council
is placed before the Audit Committee to effective governance over our digital and the Group Supervisory Board.
consider and recommend the appropriate infrastructure, systems, and information
action to be taken in respect of controlled assets. Given the emergence of regulations such as
persons who will be subjected to disciplinary European Union General Data Protection
The globally recognised ISO/IEC Regulation (GDPR) and the Sri Lankan
action whereas non-controlled persons
27001/2013 Information Security Personal Data Protection Act No. 9 of
will be subjected to appropriate actions as
Standards was recertified at Aitken 2022 (PDPA), Aitken Spence Group has
suggested by the Audit Committee.
Spence for the ninth consecutive year in

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

given its utmost attention to data security, working conditions. Few examples of such smart initiative are the use of digital twins in the
integrity and information management. mechanised spaces such as elevators, use of Advance Virtual Assistance in the hotel sector for
Though the Group has yet to specifically sentiment analysis, visitor guiding etc., use of Generative Artificial Intelligence (AI) to improve
adopt measures catering to PDPA, it has quality of images for printing sector, Robotic Process Automation (RPA), collaborative
put in place the policies, procedures and ecosystem product development, self-supervised learning and Low Code Application
frameworks such as ISO/IEC 27001/2013 Platforms (LCAP) such as app development enabling the sectors to develop their own home
Information Security Standards to ensure grown solutions.
data security, integrity and information
management. Environment, Society and Governance Reporting (ESG Reporting)
The Board places significant emphasis on sustainable development ensuring that the
Further, Aitken Spence Group has Company creates value, both for the organisation and its key stakeholders. The Board
implemented robust Data Loss and satisfies itself that Environmental, Social and Governance (ESG) metrics are incorporated
Prevention policies (DLP) associated with into the business model and the creation of value as disclosed in the following sections of the
all platforms and dual layers of security in Annual Report.
preventing any breaches of information
security. Additionally, the application Environmental, Social and Governance Reporting
platforms used by the Group have the ESG Factors Reference
embedded platforms to comply with the
international standards of information Environmental Natural Capital - pages 106 to 112 of this Annual Report
protection such as GDPR. With the factors
implementation of the Semi Virtual Mobility Social factors Human Capital - pages 82 to 91 of this Annual Report
programme, the Group has implemented
Social & Relationship Capital - pages 98 to 105 of this Annual Report
a remote working policy which required
Governance Financial Capital - pages 71 to 73 of this Annual Report
employees to take necessary steps to
protect Company data and any other Corporate Governance Report - pages 114 to 142 of this Annual Report
information that is accessible from their
home office. The policy outlines the best
practices for remote working and provides
guidelines for maintaining a secure work
environment.

In the aftermath of the pandemic that

devastated the businesses, the Company
has adopted a unique set of smart initiatives
to ensure resilience and to maintain a
robust environment that caters to increase
productivity in conventional and semi virtual

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
CORPORATE GOVERNANCE COMPLIANCE
Mandatory External Governance Voluntary External Governance Internal Governance
Benchmark Benchmark Benchmark

• Companies Act No. 7 of 2007 and the • Code of Best Practice on Corporate • Articles of Association
amendments thereto Governance 2017, as amended in 2023,
• Group Code of Ethics and Professional
issued by the Institute of Chartered
• Sri Lanka Accounting and Auditing Conduct
Accountants
Standards Act No. 15 of 1995 (SLFRs/
• Terms of Reference of Subcommittees
LKASs) • Codes of regulatory authorities,
professional institutions and Trade • Policy on Whistleblowing
• Listing Rules of the CSE
Associations
• Policy on Anti-Bribery and Corruption
• Securities and Exchange Commission
• United Nations Global Compact (UNGC)
of Sri Lanka Act No. 19 of 2021 and the • Policy on Environmental, Social and
amendments thereto • Global Reporting Initiative’s (GRI) Governance Sustainability
Universal Standards 2021
• Inland Revenue Act No. 24 of 2017 and
the amendments thereto • Integrated Reporting Framework

• Foreign Exchange Act No. 12 of 2017 and • Women’s Empowerment Principles

the amendments thereto
• Social and Environmental Certification
• The Anti-Money Laundering Laws and Requirements
Regulations and Financial Transaction
• UN Guiding Principles on Business and
Reporting Act No. 6 of 2006 and the
amendments thereto • SASB® Standards, IFRS Sustainability
Disclosure Standards
• Industrial laws

• Personal Data Protection Act. No. 9 of

2022

• Anti-Corruption Act, No. 9 of 2023

• Online Safety Act No.9 of 2024

The Compliance levels with the Code of Best Practice on Corporate

Governance 2017, issued by the Institute of Chartered Accountants
of Sri Lanka are available on Company’s website at https://www.
aitkenspencehotels.com/about-us/investor-relations/corporate-governance.
html?remove and forms a part of this Corporate Governance Report.

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CORPORATE GOVERNANCE

Compliance with the Companies Act No. 7 of 2007

Section Requirement Disclosure Reference for Compliance Compliance Status

168 (1)(a) Any change during the accounting period in the Refer Annual Report of the Board of Directors Compliant
nature of business of the Company or any of its of this Annual Report
subsidiaries and the classes of business in which the
Company has an interest
168 (1) (b) Financial Statements of the Company and the Group Refer Financial Statements and Annual Report Compliant
for the accounting period completed and signed of the Board of Directors of this Annual Report
168 (1) (c) Auditors Report on Financial Statements of the Refer Financial Statements of this Annual Compliant
Company and the Group Report
168 (1) (d) Change of accounting policies during the accounting Refer Annual Report of the Board of Directors Compliant
period of this Annual Report
168 (1) (e) Particulars of entries in the interest register made Refer Annual Report of the Board of Directors Compliant
during the accounting period of this Annual Report
168 (1) (f) Remuneration and other benefits paid to the Refer Annual Report of the Board of Directors Compliant
Directors during the accounting period of this Annual Report
168 (1) (g) Total amount of donations made by the Company Refer Annual Report of the Board of Directors Compliant
and the Group during the accounting period of this Annual Report
168 (1) (h) Directorate of the Company and the Group as at Refer Annual Report of the Board of Directors Compliant
the end of accounting period along with the changes of this Annual Report
occurred during the accounting period
168 (1) (i) Amounts payable to the Auditors as audit fees and Refer Annual Report of the Board of Directors Compliant
fees payable for other related services provided by of this Annual Report
them
168 (1) (j) Relationship or interest of the Auditors with the Refer Annual Report of the Board of Directors Compliant
Company or any of its subsidiaries of this Annual Report
168 (1) (k) Annual Report of the Board of Directors signed on Refer Annual Report of the Board of Directors Compliant
behalf of the Board of this Annual Report

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Compliance with the Continuing Listing Requirements - Section 7.6 on the Content of Annual Report Issued by the
Colombo Stock Exchange

CSE Rule Requirement Disclosure Reference for Compliance Compliance Status

7.6 i) Names of Directors of the entity Refer Corporate Information of this Annual Compliant
Report
7.6 ii) Principal activities of the entity and its subsidiaries Refer Annual Report of the Board of Directors Compliant
during the year under review and the Group Directorate of this Annual Report
7.6 iii) 20 largest holders of voting and non-voting shares Refer Investor Information of this Annual Report Compliant
and the percentage of shares
7.6 iv) The float adjusted market capitalisation, Public Refer Investor Information of this Annual Report Compliant
Holding percentage (%), number of public
shareholders and under which option the Listed
Entity complies with the Minimum Public Holding
requirement
7.6 v) Directors and CEO’s holding in shares of the entity at Refer Investor Information of this Annual Report Compliant
the beginning and end of reporting year
7.6 vi) Information pertaining to material foreseeable risk Refer Risk Management of this Annual Report Compliant
factors
7.6 vii) Details of material issues pertaining to employees and Refer Human Capital of this Annual Report Compliant
industrial relations
7.6 viii) Extents, locations, valuations and the number of Refer Note 16.3 to the Financial Statements of Compliant
buildings of the entity’s land holdings and investment this Annual Report
properties
7.6 ix) Number of shares representing the stated capital Refer Investor Information of this Annual Report Compliant
7.6 x) Distribution schedule of the number of holders and Refer Investor Information of this Annual Report Compliant
the percentage of their total holding
7.6 xi) Ratios and market price information Refer Investor Information of this Annual Report Compliant
7.6 xii) Significant changes in the entity’s or its subsidiaries Refer Note 16 to the Financial Statements of Compliant
fixed assets and the market value of land this Annual Report
7.6 xiii) Funds, (if any) raised either through a public issue, The Company had no public issue, rights issue or N/A
rights issue and private placement private placement during the year under review
7.6 xiv) Employee share option/purchase schemes As at date, the Company has no share option/ N/A
purchase schemes made available to its
Directors or employees
7.6 xv) Corporate Governance Disclosures Refer Corporate Governance Report of this Compliant
Annual Report
7.6 xvi) Related Party Transactions Refer Note 44 to the Financial Statements Compliant
and the declaration of the Board of Directors
embodied in the Annual Report of the Board of
Directors of this Annual Report

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Compliance with Section 9 of the Listing Rules Issued by the Colombo Stock Exchange
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.1 Corporate Governance Rules

9.1.1 Statement confirming the extent of compliance with the 01st October The extent of compliance with Section 9 of the
Corporate Governance Rules 2023 Listing Rules of the Colombo Stock exchange on
9.1.3
Corporate Governance Rules is tabulated in the
table given below

Also refer ‘Chairman’s Statement on Governance’

in the Corporate Governance Report of this Annual
Report
9.2 Policies
9.2.1 Listed Company shall establish and maintain the 01st October Policies referred to in h, k and l have been uploaded
following policies and disclose the fact of existence of 2024 in the corporate website of the Company
such policies together with the details relating to the
The Company is in the process of developing the
implementation of such policies by the Company on its
policies referred to in a, b, c, d, e, f, g, i and j and the
website;
said polices will be made available on the corporate
a) Policy on the matters relating to the Board of website on or before the effective date
Directors
b) Policy on Board Committees
c) Policy on Corporate Governance, Nominations and
Re-election
e) Policy on Remuneration
f) Policy on Internal Code of Business conduct and
Ethics for all Directors and employees, including
policies on trading in the Entity’s listed securities
g) Policy on Risk management and Internal controls
h) Policy on Relations with Shareholders and Investors
i) Policy on Environmental, Social and Governance
Sustainability
j) Policy on Control and Management of Company
Assets and Shareholder Investments
k) Policy on Corporate Disclosures

Policy on Whistleblowing
l) Policy on Anti-Bribery and Corruption
9.2.2 Any waivers from compliance with the Internal Code of 01st October N/A
business conduct and ethics or exemptions granted 2024
9.2.3 i) List of policies in place as per Rule 9.2.1, with 01st October Refer ‘How We Comply’ under Rule 9.2.1 above
reference to website 2024

ii) Any changes to policies adopted

9.2.4 Listed Company shall make available all such policies to 01st October Refer ‘How We Comply’ under Rule 9.2.1 above
shareholders upon a written request being made for any 2024
such Policy

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.3 Board Committees

9.3.1 Listed Company shall ensure that the following Board 01st October Compliant
committees are established and maintained at a 2023
Aitken Spence PLC, the parent company is fully
minimum and are functioning effectively. The said Board
compliant with the requirements of having
committees at minimum shall include:
sub-committees. As permitted by 9.1.4 (4) of the
a) Nominations and Governance Committee Listing Rules of the Colombo Stock Exchange
Audit Committee, Remuneration Committee and
b) Remuneration Committee
Related Party Transaction Committee of the parent
c) Audit Committee company oversee the functions of the relevant
committees. The Company will be compliant with
d) Related Party Transactions Review Committee
the requirements of having sub-committees by
the stipulated deadlines provided by the Colombo
Stock Exchange.

The existing Nomination Committee has been

renamed as the Nominations and Governance
Committee during the year under review in
accordance with the revised Listing Rules of the CSE
9.3.2 Listed Company shall comply with the composition, 01st October Refer ‘How We Company’ under Rules 9.11, 9.12,
responsibilities and disclosures required in respect of the 2023 9.13 and 9.14 below
above Board committees as set out in these Rules
9.3.3 The Chairperson of the Board of Directors of the 01st October Compliant
Company shall not be the Chairperson of the Board 2024
Committees referred to in Rule 9.3.1 above
9.4 Principles of democracy in shareholder dealings
9.4.1 Listed Company shall maintain records of all resolutions 01st October The Company Secretaries maintain records of all
and the following information upon a resolution being 2023 resolutions of General Meetings and information
considered at any General Meeting of the Company. The related thereto
Company shall provide copies of the same at the request
of the Exchange and/or the Securities and Exchange
Commission (SEC).

The number of shares in respect of which proxy

appointments have been validly made;

The number of votes in favour of the resolution;

The number of votes against the resolution; and

The number of shares in respect of which the vote was

directed to be abstained
9.4.2 Listed Company should have a policy on effective 01st October This will be compliant with the establishment of
communication and relations with shareholders and 2024 the Policy on Relations with Shareholders and
investors Investors

Listed Company should disclose the contact person for

such communication

The policy on relations with shareholders and investors

on the process to make all Directors aware of major
issues and concerns of shareholders

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.5.1 Listed Company shall establish and maintain a formal 01st October This will be compliant with the establishment of the
policy governing matters relating to the Board of 2024 Policy on matters relating to Board of Directors
Directors and such policy shall include the matters listed
under this Rule
9.5.2 Confirmation on compliance with the requirements of 01st October This will be compliant with the establishment of the
the Policy on matters relating to the Board of Directors. 2024 Policy on matters relating to Board of Directors
If non-Compliant reasons for the same with proposed
remedial action
9.6 Chairperson and CEO
9.6.1 The Chairperson of every Listed Company shall be a Non- 01st October Compliant
Executive Director and the positions of the Chairperson 2023
Chairman is a Non-Execuitve Director
and CEO shall not be held by the same individual, unless
otherwise a SID is appointed by such Entity in terms of
Rule 9.6.3 below
9.6.2 Where the Chairperson of a Listed Company is an 01st October N/A
Executive Director and/or the positions of the Chairperson 2023
and CEO are held by the same individual, such Entity shall
make a Market Announcement within a period of one (1)
month from the date of implementation of these Rules
or an Immediate Market Announcement if such date of
appointment and/or combination of the said roles falls
subsequent to the implementation of these Rules
9.6.3 Report of Senior Independent Director demonstrating 01st October N/A
the effectiveness of duties 2023
9.6.4 Rationale for appointing Senior Independent Director 01st October N/A
2023
9.7 Fitness of Directors and CEOs
9.7.1 Listed Company shall take necessary steps to ensure 01st October The Company Secretaries obtain annual
that their Directors and the CEO are, at all times, fit and 2023 declarations from the Directors of the Company
proper persons as required in terms of the Listing Rules to ensure that they are at all times fit and proper
persons as specified in the criteria given in Rule
In evaluating fitness and propriety of the persons
9.7.3 of the Listing Rules of the CSE
referred in these Rules, the Company shall utilise the ‘Fit
and Proper Assessment Criteria’ set out in Rule 9.7.3 of
the Listing Rules
9.7.2 Listed Company shall ensure that persons recommended 01st October Compliant
by the Nominations and Governance Committee as 2023
Directors are fit and proper as required in terms of these
Rules before such nominations are placed before the
shareholders’ meeting or appointments are made
9.7.3 A Director or the CEO of a Listed Company shall not be 01st April Refer ‘How We Comply’ under Rule 9.7.1 above
considered as ‘fit and proper’ if she or he does not meet 2024
with the fit and proper assessment criteria specified
under “Honesty, Integrity and Reputation”, “Competence
and Capability” and “Financial Soundness” as set out in
Rule 9.7.3 (a), (b) and (c) respectively

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.7.4 Listed Company shall obtain declarations from its 01st October Annual declarations from Directors confirming
Directors and CEO on an annual basis confirming that 2023 that each of them has continuously satisfied the
each of them have continuously satisfied the Fit and fit and proper assessment criteria set out in the
Proper Assessment Criteria set out in the Listing Rules CSE revised Listing Rules were obtained as at 31st
during the financial year concerned and satisfies the said March 2024
criteria as at the date of such confirmation
9.7.5 a) Statement on Directors and CEO satisfying Fit and 01st October Compliant
Proper Assessment Criteria 2023
Refer the ‘Annual Report of the Board of Directors’
b) Any non-compliance/s and remedial action taken of this Annual Report

N/A
9.8 Board Composition
9.8.1 The Board of Directors of a Listed Company shall, at a 01st October As of the date of the publication of this Annual
minimum, consist of five (05) Directors 2024 Report, the Company consists of 10 Directors,
thereby complying with the requirement stipulated
under Rule 9.8.1 of the Listing Rules of the CSE

However, the Articles of Association of the

Company will be amended at the forthcoming
Annual General Meeting to increase the minimum
number of Directors from two (02) to five (05)
9.8.2 Minimum Number of Independent Directors: 01st October Compliant
2024
a) The Board of Directors of a Listed Company shall
include at least two (2) Independent Directors or
such number equivalent to one third (1/3) of the total
number of Directors of the Company at any given
time, whichever is higher

b) Any change occurring to this ratio shall be rectified

within ninety (90) days from the date of the change
9.8.3 A Director shall not be considered independent if he/she Criteria 9.8.3 Compliant in terms of Rule 9.1.4(3)
does not meet the criteria for determining independence (i) to (viii) -
as set out in Rule 9.8.3 of the Listing Rules October 01,
2023

Criteria 9.8.3
(ix) - January
01, 2025.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.8.5 Each Independent Director to submit a signed and dated 01st October The Independent Directors submit signed
declaration annually of his or her “independence” or “non- 2023 declarations annually with regard to their
independence” against the criteria specified herein and in independence/non-independence against the
the format in Appendix 9A, containing at a minimum the specified criteria stipulated under Rule 9.8.3 of the
content prescribed therein Listing Rules of the CSE

Make an annual determination as to the “independence”

or “non-independence” of each Independent Director
Refer ‘Independence of the Directors’ in the
based on the Directors’ declaration and other
Corporate Governance Report of this Annual
information available to it and shall set out the names of
Report
Directors determined to be ‘independent’ in the Annual
Report

If the Board of Directors determines that the

independence of an Independent Director has been
impaired against any of the criteria set out in Rule 9.8.3, it
shall make an immediate Market Announcement thereof
9.9 Alternate Directors
9.9 If a Listed Company provides for the appointment of 01st January The Articles of Association of the Company will
Alternate Directors, it shall be required to comply with 2024 be amended at the forthcoming Annual General
the requirements set out in Rule 9.9 of the Listing Rules Meeting of the Company to incorporate the
and such requirements shall also be incorporated into the requirements referred to in this Rule
Articles of Association of the Company

9.10 Disclosures Relating to Directors

9.10.1 Listed Company shall disclose its policy on the maximum 01st October This will be compliant with the establishment of the
number of directorships it’s Board members shall be 2024 Policy on matters relating to Board of Directors
permitted to hold in the manner specified in Rule 9.5.1.
In the event such number is exceeded by a Director(s),
the Company shall provide an explanation for such non-
compliance in the manner specified in Rule 9.5.2 of the
Listing Rules
9.10.2 Listed Company shall, upon the appointment of a new 01st October Compliant
Director to its Board, make an immediate Market 2023
Announcement setting out the following:
Refer ‘Appointment, Re-election and election of
i) a brief resume of such Director;
Directors’ in the Corporate Governance Report of
ii) his/her capacity of directorship; and, this Annual Report

iii) Statement by the Company indicating whether such

appointment has been reviewed by the Nominations
and Governance Committee of the Company
9.10.3 Listed Company shall make an immediate Market 01st October Will comply if a need arise
Announcement regarding any changes to the 2023
composition of the Board of Directors or Board
Committees referred to in Rule 9.3 of the Listing Rules
containing, at minimum, the details of changes including
the capacity of directorship with the effective date
thereof

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.10.4 Directors details 01st October

2023
a) name, qualifications and brief profile a), b) and d) - refer ‘Board profiles’ of this Annual
Report
b) nature of his/her expertise in relevant functional areas
c) - Based on the individual declarations obtained
c) whether either the Director or Close Family Members
from the Directors, it was evident that none
has any material business relationships with other
of the Directors or their close family members
Directors
have material business relationships with other
d) whether Executive, Non-Executive and/or Directors of the Company. A Statement to this
independent Director effect will be included in the ‘Annual Report of the
Board of Directors’ of this Annual Report
e) total number and names of companies in Sri Lanka in
which the Director concerned serves as a Director e) - Refer ‘Corporate Governance Report’ of this
and/or KMP stating whether listed or unlisted, Annual Report
whether functions as executive or non-executive (If
f), g) and h) - refer ‘Composition of the Board’
the directorships are within the Group, names need
and ‘Details of Directors’ Attendance held during
not be disclosed)
the Financial Year 2023/2024’ in the Corporate
f) number of Board meetings attended Governance Report of this Annual Report
g) names of Board Committees in which the Director i) – N/A
serves as Chairperson or a member

h) Attendance of board committee meetings

i) Terms of Reference and powers of Senior

Independent Directors
9.11 Nominations and Governance Committee
9.11.1 Listed Company shall have a Nominations and 01st October Compliant
Governance Committee that conforms to the 2024
The Nomination & Governance Committee
requirements set out in Rule 9.11 of the Listing Rules
of Aitken Spence PLC acts as the Nomination
Committee of Aitken Spence Hotel Holdings PLC.

However, the Company will be compliant with the

requirement of having a separate Committee by
the stipulated deadline issued by the Colombo
Stock Exchange.

The existing Nomination Committee has been

renamed as the Nomination and Governance
Committee during the year under review in
accordance with the revised Listing Rules of the CSE
9.11.2 Listed Company shall establish and maintain a formal 01st October Will be fully compliant on or before the effective
procedure for the appointment of new Directors and 2024 date
re-election of Directors to the Board through the
Nominations and Governance Committee
9.11.3 The Nominations and Governance Committee shall have 01st October Will be fully compliant on or before the effective
a written terms of reference clearly defining its scope, 2024 date
authority, duties and matters pertaining to the quorum of
meetings

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.11.4 (1) The members of the Nominations and Governance 01st October Compliant
Committee shall; 2024
Refer ‘Composition of the Committee’ in the
a) comprise of a minimum of three (03) Directors Nominations and Governance Committee Report
of the Listed Company, out of which a minimum
of two (02) members shall be Independent
Directors of the Company

b) not comprise of Executive Directors of the

Listed Company.

(2) An Independent Director shall be appointed as the

Chairperson of the Nominations and Governance
Committee by the Board of Directors

(3) The Chairperson and the members of the

Nominations and Governance Committee shall
be identified in the Annual Report of the Listed
Company
9.11.5 The functions of the Nominations and Governance 01st October Will be fully compliant on or before the effective
Committee 2024 date

Refer ‘Nomination and Governance Committee

Report’ of this Annual Report
9.11.6 The Annual Report of a Listed Company shall contain a 01st October Will be compliant on or before the effective date
report of the Nominations and Governance Committee 2024
Nominations and Governance Committee Report
signed by its Chairperson
containing the requirements stipulated under this
Nominations and Governance Committee Report shall Rule will be included in the Annual Report of the
include the following: Company for the Financial Year 2024/2025

a) Names of chairperson and members with nature of

directorship

b) Date of appointment to the committee

c) Availability of documented policy and processes when

nominating Directors

d) Requirement of re-election at regular intervals at least

once in 3 years

e) Board diversity

f) Effective implementation of policies and processes

relating to appointment and reappointment of
Directors

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.11.6 g) Details of directors re-appointed

- Board Committees served
- Date of first appointment
- Date of last re-appointment
- Directorships or Chairpersonships and other
principal commitments, present and held over the
preceding three years
- Any relationships – close family member, more
10% shareholding
h) Performance of periodic evaluation of board
i) Process adopted to inform independent directors of
major issues.
j) Induction / orientation programs for new directors on
corporate governance, Listing Rules, securities market
regulations or negative statement
k) Annual update for all directors on corporate
governance, Listing Rules, securities market
regulations or negative statement
l) Compliance with independence criteria
m) Statement on compliance with corporate governance
rules, if non- compliant reasons and remedial actions

9.12 Remuneration Committee

9.12.2 Listed Company shall have a Remuneration Committee 01st October Compliant
that conforms to the requirements set out in Rule 9.12 of 2023
The Remuneration Committee of Aitken Spence
the Listing Rules
PLC acts as the Remuneration Committee of
Aitken Spence Hotel Holdings PLC in terms of
Rule 9.1.4 (4) of the Listing Rules of the Colombo
Stock Exchange. The Company has complied with
the policies and procedures set out by the Group
Remuneration Committee.

However, the Company will be compliant with the

requirement of having a separate Committee by
the stipulated deadline issued by the Colombo
Stock Exchange.

Refer ‘Remuneration Committee Report’ of this

Annual Report
9.12.3 The Remuneration Committee shall establish and 01st October Compliant
maintain a formal and transparent procedure for 2023
Refer ‘Director Remuneration’ in the Corporate
developing policy on Executive Directors’ remuneration
Governance Report of this Annual Report and the
and for fixing the remuneration packages of individual
‘Remuneration Committee Report’ of this Annual
Directors. No Director shall be involved in fixing his/her
Report
own remuneration

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.12.4 Remuneration for Non-Executive Directors should be 01st October Refer ‘How We Comply’ under Rule 9.2.1 above
based on a policy which adopts the principle of non- 2023
discriminatory pay practices among them to ensure that
their independence is not impaired
9.12.5 Remuneration Committee shall have a written terms of 01st October Compliant
reference clearly defining its scope, authority, duties and 2023
Refer ‘Remuneration Committee Report’ of this
matters pertaining to the quorum of meetings
Annual Report
9.12.6 (1) The members of the Remuneration Committee shall; 01st October Compliant
2024
a) comprise of a minimum of three (03) Directors Refer ‘Composition of the Committee’ in the
of the Listed Company, out of which a minimum Remuneration Committee Report of this Annual
of two (02) members shall be Independent Report
Directors of the Company
b) not comprise of Executive Directors of the Listed
Company
(3) An Independent Director shall be appointed as the
Chairperson of the Remuneration Committee by the
Board of Directors. 01st October
2023
9.12.7 The functions of the Remuneration Committee 01st October Compliant
2023
Refer ‘Remuneration Committee Report’ of this
Annual Report
9.12.8 Remuneration Committee Report shall contain the 01st October Compliant
following: 2023
Refer ‘Remuneration Committee Report’ of this
a) Names of chairperson and members with nature of Annual Report
directorship
Refer Note 11 to the Financial Statements of this
b) Remuneration Policy Annual Report
c) The aggregate remuneration of the Executive and
Non-Executive Directors
9.13 Audit Committee
9.13.1 Where a Listed Company does not maintain separate 01st October Compliant
Committees to perform the Audit and Risk Functions, 2023
The Audit Committee of Aitken Spence PLC acts
the Audit Committee of such Company shall additionally
as the Audit Committee of Aitken Spence Hotel
perform the Risk Functions set out in Rule 9.13 of the
Holdings PLC as provided by Rule 9.1.4 (4) of the
Listing Rules
Listing Rules of the Colombo Stock Exchange.

However, the Company will be compliant with the

requirement of having a separate Committee by
the stipulated deadline issued by the Colombo
Stock Exchange.

The Audit Committee of the Company also

performs the risk functions
9.13.2 The Audit Committee shall have a written terms of 01st October Compliant
reference clearly defining its scope, authority and duties 2023

138
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.13.3 1) The members of the Audit Committee shall; 01st October Compliant
2024
a) comprise of a minimum of three (03) Directors Refer ‘Audit Committee Report’ of this Annual
of the Listed Company, out of which a minimum Report
of two (02) or a majority of the members,
whichever higher, shall be Independent
Directors.

a) not comprise of Executive Directors of the

Listed Company.

2) The quorum for a meeting of the Audit Committee

shall require that the majority of those in attendance
to be independent directors.

3) The Audit Committee may meet as often as required

provided that the Audit Committee compulsorily
meets on a quarterly basis prior to recommending
the financials to be released to the market.

5) An Independent Director shall be appointed as the

Chairperson of the Audit Committee by the Board of
Directors.

6) Unless otherwise determined by the Audit

Committee, the CEO and the Chief Financial Officer
(CFO) of a Listed Company shall attend the Audit
Committee meetings by invitation.

7) The Chairperson of the Audit Committee shall be

a Member of a recognised professional accounting
body
9.13.4 The functions of the Audit Committee 01st October Presently, the Company is compliant in terms of
2024 Rule 7.10.6(b)

Will be fully compliant on or before the effective

date
9.13.5 Disclosures in the Annual Report 01st October Presently, the Company is compliant in terms of
2024 Rule 7.10.6(c)
1) Listed Company shall prepare an Audit Committee
Report which shall be included in the Annual Report Will be fully compliant on or before the effective
date
1) The Audit Committee Report shall contain disclosures
set out in Rule 9.13.5 (2) Audit Committee Report containing the
disclosures referred to in this Rule will be included
in the Annual Report of the Company for the
Financial Year 2024/2025

139
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.14 Related Party Transactions Review Committee

9.14.1 Listed Company shall have a Related Party Transactions 01st October Compliant
Review Committee that conforms to the requirements 2023
The Related Party Transactions Review Committee
set out in Rule 9.14 of the Listing Rules.
of Aitken Spence PLC acts as the Related Party
Transactions Review Committee of Aitken Spence
Hotel Holdings PLC as provided by Rule 9.1.4
(4) of the Listing Rules of the Colombo Stock
Exchange. The Company has complied with the
policies and procedures set out by the Group
Related Party Transactions Review Committee.

However, the Company will be compliant with the

requirement of having a separate Committee by
the stipulated deadline issued by the Colombo
Stock Exchange.

Refer ‘Related Part Transactions Review

Committee Report’ of this Annual Report
9.14.2 (1) The Related Party Transactions Review Committee 01st April Compliant
shall comprise of a minimum of three (03) Directors 2024
Refer ‘Related Part Transactions Review
of a Listed Company, out of which two (02) members
Committee Report’ of this Annual Report
shall be Independent Directors of the Company. It
may also include Executive Directors, at the option
of the Company. An Independent Director shall be
appointed as the Chairperson of the Committee
9.14.3 The functions of the Related Party Transactions Review 01st October Compliant
Committee 2023
Refer ‘Related Part Transactions Review
Committee Report’ of this Annual Report

140
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Rule Ref. Disclosure Requirement Effective Date How We Comply

9.14.4 1) The Related Party Transactions Review Committee 01st October Compliant
shall meet at least once a calendar quarter. It shall 2023
Refer ‘Related Part Transactions Review
ensure that the minutes of all meetings are properly
Committee Report’ of this Annual Report
documented and communicated to the Board of
Directors.

2) The members of the Related Party Transactions

Review Committee should ensure that they have,
or have access to, enough knowledge or expertise
to assess all aspects of proposed Related Party
Transactions and where necessary, should obtain
appropriate professional and expert advice from an
appropriately qualified person.

3) Where necessary, the Committee shall request

the Board of Directors to approve the Related
Party Transactions which are under review by the
Committee. In such instances, the approval of the
Board of Directors should be obtained prior to
entering into the relevant Related Party Transaction.

4) If a Director of a Listed Company has a material

personal interest in a matter being considered
at a Board Meeting to approve a Related Party
Transaction as required in Rule 9.14.4(3), such
Director shall not:

a) be present while the matter is being considered

at the meeting; and,

b) vote on the matter

9.14.5 Review of Related Party Transactions by the Related 01st October Compliant
Party Transactions Review Committee 2023
Refer ‘Related Part Transactions Review
Committee Report’ of this Annual Report
9.14.6 Listed Company shall obtain Shareholder approval for 01st October There were no Related Party Transactions during
the Related Party Transactions set out in Rule 9.14.6 of 2023 the year which required shareholder approval
the Listing Rules
The Company will comply with this Rule should a
need arise
9.14.7 Listed Company shall make an immediate Market 01st October There were no Related Party Transactions during
Announcement to the Exchange for the Related Party 2023 the year which required an immediate Market
Transactions as set out in Rule 9.14.7 (a) and (b) Announcement

The Company will comply with this Rule should a

need arise
9.14.8 (1) Related Party Disclosures 01st October Compliant
2023
Non-recurrent RPT exceeding 10% of the Equity or 5% Refer ‘Related Party Transactions Review
of the Total Assets, whichever is lower (in the specified Committee Report’ and the ‘Annual Report of the
format) Board of Directors’ of this Annual Report

141
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
CORPORATE GOVERNANCE

Rule Ref. Disclosure Requirement Effective Date How We Comply

9.14.8 (2) Recurrent RPT exceeding 10% of the gross revenue/ 01st October Compliant
income (in the specified format) 2023
Refer ‘Related Party Transactions Review
Committee Report’ and the ‘Annual Report of the
Board of Directors’ of this Annual Report
9.14.8 (3) Related Party Transactions Review Committee Report 01st October Compliant
- Names of the Directors comprising the Committee 2023
Refer ‘Related Part Transactions Review
- Statement that committee has reviewed RPTs and Committee Report’ of this Annual Report
communicated comments/observations to the Board

- Policies and procedures adopted by the Committee

9.14.8 (4) Affirmative declaration by the Board of Directors on 01st October Compliant
compliance with RPT Rules or negative statement to that 2023
Refer ‘Annual Report of the Board of Directors’ of
effect
this Annual Report
9.14.9 Acquisition and disposal of assets from/to Related Parties 01st October N/A
2023
Except for transactions set out in Rule 9.14.10, Listed The Company has not acquired or disposed of any
Company shall ensure that neither the Company nor assets from/to Related Parties
any of its subsidiaries, acquires a substantial asset
The Company will comply with this Rule should a
from, or disposes of a substantial asset to, any Related
need arise
Party of the Company without obtaining the approval
of the shareholders of the Company by way of a Special
Resolution
9.16 Additional Disclosures
9.16 Additional disclosures by Board of Directors 01st October Compliant
2023
Declaration on following Refer ‘Annual Report of the Board of Director’ of
- All material interests in contracts and have refrained this Annual Report
from voting on matters in which they were materially
interested

- Reviewed the internal controls covering financial,

operational and compliance controls and risk
management and obtained reasonable assurance of
their effectiveness and successful adherence and, if
unable to make any of these declarations an explanation
on why it is unable to do so;

- Made themselves aware of applicable laws, rules and

regulations and are aware of changes particularly to
Listing Rules and applicable capital market provisions;

- Disclosure of relevant areas of any material non-

compliance with law or regulation and any fines,
which are material, imposed by any government or
regulatory authority in any jurisdiction where the
Entity has operations

142
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
AUDIT COMMITTEE REPORT

Aitken Spence Hotel Holdings PLC belongs to the tourism segment of the Aitken Spence Group under its parent company Aitken Spence PLC.
The Audit Committee of Aitken Spence PLC acts as the Audit Committee of Aitken Spence Hotel Holdings PLC as provided by Rule 9.1.4 (4) of
the Listing Rules of the Colombo Stock Exchange.

However, the Company will be compliant with the requirement of having a separate Committee by the stipulated deadline issued by the
Colombo Stock Exchange.

COMPOSITION OF THE COMMITTEE

Composition of the Committee

Mr. R.N. Asirwatham - Chairman

Mr. J.M.S. Brito
Mr. C.H. Gomez
Mr. N.J. de S. Deva Aditya/Mr. M.A.N.S. Perera (Mr. M.A.N.S. Perera served as an Alternate Director to Mr. N.J. de Silva Deva Aditya in the
parent company Aitken Spence PLC and he ceased to be an Alternate Director to Mr. N.J. de S Deva Aditya w.e.f. 01.01.2024)
Independent Non-Executive Director
The Committee’s composition complies with the requirements of Section 9.14.2 of the Listing Rules of the Colombo Stock Exchange.
Secretaries to the Committee - Mr. D.D.M.A. Saparamadu – Chief Internal Auditor, Aitken Spence PLC

The Committee is composed of four Independent Non-Executive Directors and is chaired by an Independent Non-Executive Director who is a
fellow of the Institute of Chartered Accountants of Sri Lanka. The profiles of the members are given on pages 28 to 31 of this Report.

COMMITTEE MEETINGS AND ATTENDANCE

The Audit Committee functioned throughout the financial year and held thirteen meetings in semi virtual mode. Dr. M.P. Dissanayake -
Managing Director, Ms. D.S.T. Jayawardena -Joint Deputy Chairperson and Joint Managing Director, Ms. N. Sivapragasam -Chief Financial
Officer attended the meetings by invitation. Further, Senior Officers of the Group as well as the partner of Messrs. KPMG, Chartered
Accountants responsible for the Group’s external audit attended the meetings by invitation as and when required. The attendance at the Audit
Committee meetings held during the year under review were as follows:

Audit Committee Members Date of Meeting (DD/MM/YYYY) and Attendance

02/05/2023

23/05/2023

19/06/2023

27/07/2023

06/11/2023

17/11/2023

08/12/2023

12/01/2024

26/01/2024

12/02/2024

21/02/2024

29/02/2024

15/03/2024

Attendance
Overall
Mr. R.N. Asirwatham - Chairman 13/13

Mr. J.M.S. Brito 13/13

Mr. C.H. Gomez Ex. Ex. Ex. Ex. Ex. Ex. 7/13
Mr. N.J. de S. Deva Aditya/
Ex. Ex. Ex. 10/13
Mr. M.A.N.S. Perera

In person participation
Virtual Participation
Ex. - Excused

143
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
AUDIT COMMITTEE REPORT

KEY RESPONSIBILITIES OF THE ACTIVITIES DURING THE FINANCIAL • Discussed with the management any
COMMITTEE YEAR 2023/2024 future accounting developments likely to
• Assisting the Board in carrying out its affect the Financial Statements.
Risk Management and Internal Control
overall independent oversight functions
• Monitored the Group’s risk management
in relation to the accuracy and integrity • Reviewed the budgets and strategic plans
and internal control processes
of the Financial Statements, internal of the Group to ensure that all forward-
through detailed discussions with the
control systems and compliance with looking statements in the Annual Report
management and Executive Directors.
Group policies, legal and regulatory accurately reflect the Group’s position
requirements with a view to safeguard • Assisted the Board in evaluating the
the interests of shareholders and other • Monitored the integrity of the Group’s
adequacy, robustness and effectiveness
stakeholders. The scope of functions published financial information and
of the Group’s management of risk,
and responsibilities is adequately reviewed all significant financial
in terms of identifying, managing and
outlined in the Terms of Reference of the judgements and estimates made by the
mitigating principal risks and emerging
Committee, which have been approved management.
risks.
by the Board and are regularly reviewed.
External Audit
• Ensured that the Group adheres to and
• Ensuring the effectiveness of the system • Reviewed and monitored the relationship
complies with all relevant laws, rules and
of internal controls, financial reporting, with the External Auditors including
regulations of the country, international
risk management, compliance with laws overseeing their appointment,
laws and codes of ethics and standards
and regulations, as well as the adequacy independence, remuneration, tenure,
of conduct required by regulatory
and effectiveness of the governance rotation of the engagement partner and
authorities, professional bodies and trade
processes of the Group. engagement for non-audit services.
associations.

• Exercising its independent oversight on • Assessed the effectiveness and the

Financial Reporting and Financial Control
internal and external assurance functions progress of the External Auditors and the
• Reviewed the Group’s quarterly and
and ensure both internal and external audit process.
annual Financial Statements, focusing on
auditor’s independence, objectivity and the following aspects: • Discussed the audited Financial
the effectiveness of the audit process.
- Adequacy of disclosures. Statements with External Auditors and
• Reviewing the internal audit reports and ensured that they were in conformity
- Uniformity and appropriateness of with the Sri Lanka Accounting Standards
maintaining healthy relationships with
the accounting policies adopted. and other regulatory requirements.
the sector senior management to ensure
that precautionary measures are taken to - Major judgemental areas to ensure
• Reviewed and discussed the
mitigate the risk that could arise due to compliance with the Companies Act
Management Letter and instructed the
reported control weaknesses, procedure No. 7 of 2007.
management to take appropriate follow
violations, frauds and errors.
- Adherence to applicable Sri Lanka up actions on matters highlighted therein.
Accounting Standards and other
• Examining all matters relating to the
Accounting Standards of jurisdictions Internal Audit
Group’s adopted accounting principles
in which each subsidiary operates. • Reviewed and approved the Annual
and practices and reviewing all material
Audit Plan after considering its depth and
financial, operational, and compliance - Compliance with the Listing Rules of
coverage in the Group.
controls; the Committee is provided with the Colombo Stock Exchange.
sufficient resources to perform its duties, • Reviewed the operation and
- Compliance with the Code of Best
including support as necessary, from the effectiveness of the Group Internal Audit
Practice on Corporate Governance
internal audit department, the external function in terms of its independence,
issued by the Institute of Chartered
auditor, and sector senior management. effectiveness and competency.
Accountants of Sri Lanka.

- Meeting requirements of other • Continued to ensure the coordination

regulatory bodies applicable to the between Group Internal Audit and
Group. External Auditors.

144
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
• Reviewed and discussed the periodic RE-APPOINTMENT OF EXTERNAL THE YEAR AHEAD
reports submitted by the Internal Audit AUDITORS – MESSRS. KPMG, Looking ahead to the financial year
Department with the management CHARTERED ACCOUNTANTS 2024/2025, the Committee’s key priorities
responses on financial and operational The Committee perused transactions with will include overseeing of the Group’s
audits, information security and risk the External Auditors and ensured that risk management and internal control
assessments carried out in line with there was no significant material transaction processes, sustaining a strong culture
approved Annual Audit Plan. between the External Auditors and the of risk management across the Group,
companies in the Group. Furthermore, the continuing to monitor the impacts of climate
Reporting Committee reassured that the External change and taking a proactive approach in
• The Chairman of the Audit Committee Auditors do not hold any shares in the anticipating and preparing for any legislative
reports to the Board at each meeting on Company. or regulatory changes.
the activities of the Committee. Minutes
of the Audit Committee meetings are also The Committee having considered
tabled at the Board Meetings. that there were no significant material
transactions between the External Auditors
• The Annual Report incorporates the and the Group companies, that there were R.N. Asirwatham
Audit Committee Report. no shares held by the External Auditors, the Chairman
confirmation received from the External Audit Committee
• The Chairman of the Audit Committee Auditors and the periodic rotation of the
attends the Annual General Meeting. Audit Partner, noted that KPMG, Chartered
Colombo
Accountants are independent and are
GRI 2-13 15th July 2024
eligible for re-appointment as the External
CONDUCT, ETHICS AND GOOD Auditors of the Group.
GOVERNANCE
The Audit Committee remains steadfast in Having noted the above, the Committee
its commitment to ensuring that the Group recommends to the Board that Messrs.
adheres to the highest ethical standards KPMG, Chartered Accountants be re-
in business dealings. In this regard, the appointed as the External Auditors of the
Group has a Code of Ethics & Professional Company for the current financial year,
Conduct, robust policies such as the subject to the approval of the Shareholders
Whistleblowing Policy and an Anti-Bribery at the forthcoming Annual General Meeting.
& Anti-Corruption Policy which ensure
and encourage all staff members to be
ethical, transparent and accountable and
resort to whistleblowing if they suspect any
wrongdoings or other improprieties. The
highest standards of corporate governance
and adherence to the Group’s Code of Ethics
& Professional Conduct were ensured.
All appropriate procedures are in place to
conduct independent investigations into
incidents reported through whistleblowing
or identified through other means. The
Whistleblowing Policy guarantees the
maintenance of strict confidentiality of the
identity of the whistleblowers.

145
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
RELATED PARTY TRANSACTIONS REVIEW
COMMITTEE REPORT
Aitken Spence Hotel Holdings PLC belongs to the tourism segment of the Aitken Spence Group under its parent company Aitken Spence PLC.
The Related Party Transactions Review Committee of Aitken Spence PLC acts as the Related Party Transactions Review Committee of Aitken
Spence Hotel Holdings PLC as provided by Rule 9.1.4 (4) of the Listing Rules of the Colombo Stock Exchange. The Company has complied with
the policies and procedures set out by the Group Related Party Transactions Review Committee.

However, the Company will be compliant with the requirement of having a separate Committee by the stipulated deadline issued by the
Colombo Stock Exchange.

ROLE OF THE RELATED PARTY TRANSACTIONS REVIEW COMMITTEE

The role of the Related Party Transactions Review Committee is to advise the Board in relation to transactions with related parties as defined
by Sri Lanka Accounting Standard - LKAS 24 and Listing Rules of the Colombo Stock Exchange. The Committee adheres to Rule 9.14 of the
updated Listing Rules of the Colombo Stock Exchange, ensuring that the Company considers the interests of shareholders collectively when
entering into Related Party Transactions.

COMPOSITION OF THE COMMITTEE

Composition of the Committee

Mr. R.N. Asirwatham - Chairman

Mr. J.M.S. Brito
Mr. C.H. Gomez

Mr. N.J. de S. Deva Aditya/Mr. M.A.N.S. Perera (Mr. M.A.N.S. Perera served as an Alternate Director to Mr. N.J. de Silva Deva Aditya in the
parent company Aitken Spence PLC and he ceased to be an Alternate Director to Mr. N.J. de S Deva Aditya w.e.f. 01.01.2024)
Independent Non-Executive Director

The Committee’s composition complies with the requirements of Section 9.14.2 of the Listing Rules of the Colombo Stock Exchange.

The Committee is composed of three Independent Non-Executive Directors and a Non-Independent Non-Executive Director as at the end
of the financial year 2023/2024 and is chaired by an Independent Non-Executive Director. Members of the Committee possess a wealth of
knowledge and experience.

RELATED PARTY TRANSACTIONS COMMITTEE MEETING ATTENDANCE

Related Party Transactions Review Committee Members Date of Meeting (DD/MM/YYYY) and Attendance
19/06/2023

06/11/2023

08/12/2023

15/03/2024

Attendance
Overall

Mr. R.N. Asirwatham - Chairman 4/4

Mr. J.M.S. Brito 4/4

Mr. C.H. Gomez Ex. Ex. 2/4

Mr. N.J. de S. Deva Aditya/Mr. M.A.N.S. Perera Ex. 3/4

In person participation
Virtual Participation
Ex. - Excused

146
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
KEY HIGHLIGHTS DURING THE • Review the criteria of Key Management Financial Statements of the previous
FINANCIAL YEAR 2023/2024 Personnel, year, if any, were communicated to
• Obtained quarterly disclosures from the Committee through the Group
the Key Management Personnel and • Regularly report to the Board on the Company Secretaries,
the Group related companies in relation Committee’s activities.
to proposed related party transactions Recurrent Related Party Transactions
and post quarter confirmations and the KEY MANAGEMENT PERSONNEL exceeding 10% of the gross revenue
Committee reviewed all such disclosures The members of the Board of the Company of the Group as per the Audited
at its quarterly meetings. are construed as the Key Management Financial Statements of the previous
Personnel (KMPs) of Aitken Spence Hotel year, if any, were communicated to
• Communicated Committee’s activities Holdings PLC. Further, Directors, Vice the Committee through the Group
to the Board by tabling the minutes of Presidents and Assistant Vice Presidents Company Secretaries.
the Committee meetings, at the Board of subsidiary companies are considered
meetings. as KMPs of such companies to establish • Review of Related Party Transactions:
greater transparency and governance.
• Fixed the thresholds at the first meeting - Reviewed all proposed Related Party
of the financial year for Related Party Declarations are obtained from each KMP Transactions as well as post quarter
Transactions which require either of the Company and its subsidiaries for the confirmations,
shareholders’ approval or immediate purpose of identifying any Related Party
market disclosures, as the case may be Transactions they intend to carry out on - Activities of the Committee were
for the financial year 2023/2024 based quarterly and annual basis to determine communicated to the Board by tabling
on the Audited Financial Statements of Related Party Transactions and to comply the minutes of the Related Party
the previous financial year. with the disclosure requirements, if any. Transactions Review Committee
Meetings,
RESPONSIBILITIES OF THE COMMITTEE KEY FUNCTIONS OF THE COMMITTEE
The Committee’s key focus is to review - Reviewed thresholds for Related
• Policies and Procedures:
all proposed Related Party Transactions Party Transactions which require
- Quarterly disclosures were obtained either shareholders’ approval or
prior to entering into or completion of the
from the Key Management Personnel immediate market disclosure based on
transaction according to the procedures
of any proposed Related Party the Financial Statements for the year
laid down by Rule 9.14 of the Listing Rules
Transactions and confirmations of any ended 31st March 2024.
of the Colombo Stock Exchange. The
post-quarter transactions. All such
responsibilities of the Committee are as
disclosures are tabled at each Related DECLARATION BY THE BOARD
follows:
Party Transactions Review Committee The Annual Report of the Board of Directors
• Evaluate any proposed Related Party meeting, embodies a declaration confirming the
Transactions on a quarterly basis and compliance with the requirements stipulated
- Quarterly disclosures were obtained in Section 9.14.8(4) of the Listing Rules of
recommend to the management and the
from all Group companies of any the Colombo Stock Exchange.
Board, the appropriate course of action
proposed Related Party Transactions
to be taken in order to be compliant with
and confirmations of any post-quarter
the regulations of the Listing Rules of the
transactions and all disclosures
Colombo Stock Exchange,
are tabled at each Related Party R.N. Asirwatham
• Review any post quarter confirmations Transactions Review Committee Chairman
on Related Party Transactions, Meeting,
Related Party Transactions Review
- Non-recurrent Related Party Committee
• Review the threshold for Related Party
Transactions which require either Transactions which in aggregate
value exceeding lower of 10% of Colombo
shareholders’ approval or immediate
the equity or 5% of the total assets 15th July 2024
market disclosures, as the case may be,
of the Group as per the Audited

147
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
REMUNERATION COMMITTEE REPORT

Aitken Spence Hotel Holdings PLC belongs to the tourism segment of the Aitken Spence Group under its parent company Aitken Spence PLC.
The Remuneration Committee of Aitken Spence PLC acts as the Remuneration Committee of Aitken Spence Hotel Holdings PLC in terms of
Rule 9.1.4 (4) of the Listing Rules of the Colombo Stock Exchange. The Company has complied with the policies and procedures set out by the
Group Remuneration Committee.

However, the Company will be compliant with the requirement of having a separate Committee by the stipulated deadline issued by the
Colombo Stock Exchange.

COMPOSITION OF THE COMMITTEE

Composition of the Committee

Mr. R.N. Asirwatham (Chairman)

Mr. J.M.S. Brito
Mr. C.H. Gomez

Mr. C. R. Jansz (Director of the parent Company Aitken Spence PLC and appointed as a member of the Remuneration Committee w.e.f.
08.09.2023)
Independent Non-Executive Director

Non-Executive Director

The Committee’s composition complies with the requirements of Section 9.12.6 of the Listing Rules of the Colombo Stock Exchange.

INDEPENDENCE OF THE COMMITTEE

The Committee is composed of three Independent Non-Executive Directors and a Non-Independent Non-Executive Director as at the
end of the financial year 2023/2024. They are independent of management and are completely free from any business, personal or other
relationships that may interfere with the exercise of their independent, unbiased judgement. The members of the Committee refrain from
taking part in determining their own remuneration.

COMMITTEE MEETINGS
The Committee met once during the year under review. Deshamanya D.H.S. Jayawardena, Group Chairman together with Dr. M.P.
Dissanayake - Managing Director, Ms. D.S.T. Jayawardena - Joint Deputy Chairperson and Joint Managing Director and Mr. S.N. Muttiah -
Group Chief Human Resource Officer attended the meeting by invitation.

Remuneration Committee Members Date of Meeting (DD/MM/

YYYY) and Attendance
14/09/2023

Mr. R.N. Asirwatham - Chairman

Mr. J.M.S. Brito

Mr. C.H. Gomez

Mr. C.R. Jansz

Virtual Participation

148
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
THE REMUNERATION POLICY FUNCTIONS OF THE COMMITTEE - Reviewed, monitored and evaluated
The Group follows a formal and transparent The Committee’s decisions were determined performance of Key Management
procedure to ascertain the remuneration based on the following principles and Personnel as well as their
packages for individual Directors, Key policies: management development and
Management Personnel (KMPs) and the succession planning.
Executives. The Committee recognises the • Remuneration Policy
importance of formulating remuneration • Performance Incentives
- Evaluated the Group Remuneration
packages that effectively motivate, attract Policy against the current market - Evaluated the achievements as well as
and retain the Directors, KMPs and trends and industrial norms. unaccomplished targets and results
Executives of the Company, taking into which are considered to determine
account the employment conditions of - Reviewed and ensured the performance-based incentives.
the Group Companies and the relevant implementation of the Group
industries. Remuneration Policy. • Remuneration of Managing Director

The Group remuneration policy which - Reviewed the policy of the - Evaluated the performance of the
was reviewed by the Committee remained remuneration package of the Managing Director and Joint Deputy
unchanged during the year under review. Directors and the Key Management Chairperson and Joint Managing
Personnel. Director.
RESPONSIBILITIES OF THE COMMITTEE
The Committee is responsible to the Board - Reviewed the specific application of
for: the Group Remuneration Policy to
the Managing Director, Joint Deputy
• Determine remuneration policy for R.N. Asirwatham
Chairperson and Joint Managing
Directors, Key Management Personnel Chairman
Director and Executive Directors
and Executives. and general application of the Group Remuneration Committee
Remuneration Policy to the Key
• Decide individual remuneration Colombo
Management Personnel below the
packages, including termination
Directorate of the Company. 15th July 2024
compensation.
• Performance Based Remuneration
• Evaluate performance of Managing
Directors, Executive Directors and Senior - Evaluated the performance of the
Management. Managing Directors, Executive
Directors as well as the individual and
• Review Committee’s Terms of Reference collective performance of Directors
regularly to ensure industry best and Senior Management of the
practices. Strategic Business Units.

149
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOMINATION & GOVERNANCE
COMMITTEE REPORT
Aitken Spence Hotel Holdings PLC belongs to the tourism segment of the Aitken Spence Group under its parent company, Aitken Spence
PLC. Therefore, the Nomination & Governance Committee of Aitken Spence PLC acts as the Nomination Committee of Aitken Spence Hotel
Holdings PLC.

However, the Company will be compliant with the requirement of having a separate Committee by the stipulated deadline issued by the
Colombo Stock Exchange.

COMPOSITION OF THE COMMITTEE

Composition of the Committee

Mr. R.N. Asirwatham (Chairman)

Deshamanya D.H.S. Jayawardena
Mr. J.M.S. Brito
Independent Non-Executive Director

Non Executive Director/Group Chairman

The Committee’s composition complies with the requirements of Section 9.11.4 of the Listing Rules of the Colombo Stock Exchange.

COMMITTEE MEETINGS • Evaluation of the performance • Reviewed and recommended necessary

The Committee met once during the year of the Board, its committees and appointments to the Boards of the Group
under review with the attendance of the Dr. individual Directors to ensure that companies whenever necessary,
M.P. Dissanayake, Managing Director on their responsibilities are satisfactorily
invitation. discharged. • Evaluated and recommended suitable
internal and external candidates to higher
RESPONSIBILITIES OF THE COMMITTEE • Reviewing the Charter for the levels of management,
• Evaluation of the quality and composition appointment, re-appointment, re-
of the Boards of Aitken Spence Hotel election, and election of Directors to • Evaluated the eligibility of the Directors
Holdings PLC and the subsidiary the Boards of the Group Companies, who have offered themselves for re-
companies. as well as their succession planning, appointment and re- election to the
and suggesting amendments where Board considering the performance
The Committee is responsible for ensuring necessary. and contribution made by the Director
that the Boards of Aitken Spence Hotel concerned towards the overall discharge
Holdings PLC and its Group companies KEY FUNCTIONS OF THE COMMITTEE of the Board’s responsibilities and made
are well balanced and diversified in terms The Committee reviews and makes necessary recommendations to the
of effectiveness and composition. Suitable recommendations that are fair, free from Board,
candidates are identified as Directors any bias and not influenced by personal or
whilst ensuring that Boards consist of business relationships, thereby enabling • Evaluated the combination of varied
Directors with vast knowledge, experience, the Company to make sound and measured skills, knowledge and experience of the
competency and entrepreneurial skills to judgments in order to attract the best talent Directors of the Company and of the
advance the effectiveness of the Boards. to the Group. During the financial year Group companies,
The Committee periodically reviews the 2023/2024 the Committee performed the
structure, size and composition of the following functions: • Ascertained that the competencies of
Boards of the Group Companies. Directors are adequate to meet the
• Ensured the diversity and effectiveness required strategic demands of the Group.
of the Board of Aitken Spence Hotel
Holdings PLC and the Boards of its
Group companies as well as the Key
Management Personnel (KMPs),

150
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
RE-APPOINTMENT, RE-ELECTION AND
ELECTION OF DIRECTORS
Deshamanya D.H.S. Jayawardena, Mr.
R.N. Asirwatham, Mr. J.M.S. Brito and Mr.
N.J. de S. Deva Aditya who retire from the
Board at the conclusion of the forthcoming
Annual General Meeting in terms of Section
210 and 211 of the Companies Act No. 7
of 2007, have offered themselves for re-
appointment.

In terms of Article 83 and 84 of the Articles

of Association, Mr. C.M.S. Jayawickrama
retires by rotation and has offered himself
for re-election at the forthcoming Annual
General Meeting.

In terms of Article 90 of the Articles of

Association, Dr. R.A. Fernando retires
and has offered himself for election at the
forthcoming Annual General Meeting.

Having given due consideration to each

Director’s performance, the Committee
believes that the said Directors are eligible
for re-appointment, re-election and election
as the case may be to continue as Directors
of the Company.

The members of the Nominations and

Governance Committee did not participate
in the decisions relating to their own re-
appointments.

R.N. Asirwatham
Chairman
Nomination & Governance Committee

Colombo
15th July 2024

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Companies Act No. 07 of 2007 The Directors having considered the The Directors confirm that to the best of
requires the Directors of the Company Group’s business plans, and a review of its their knowledge, all payments to employees,
to be responsible for the preparation and current and future operations, are of the regulatory and statutory authorities due and
presentation of the Financial Statements and view that the Company and the Group have payable by the Company and its Subsidiaries
other statutory reports. The responsibilities adequate resources to continue in operation. have been either duly paid or adequately
of the Directors, in relation to the Financial The Directors have adopted the going provided for in the Financial Statements. The
Statements of Aitken Spence Hotel Holdings concern basis in preparing the Financial Directors further confirm that they promote
PLC and the Consolidated Financial Statements. the highest ethical, environmental and safety
Statements of the Group are set out in this standards within the Group. The Directors
Report. The Financial Statements presented in this also ensure that the relevant national laws,
Annual Report for the year ended 31st international laws and codes of regulatory
The Directors confirm that the Financial March 2024, have been prepared based authorities, professional institutes and trade
Statements and other statutory reports of on the Sri Lanka Accounting Standards associations have been complied with by the
the Company and its Subsidiaries for the (SLFRSs/ LKASs). The Directors have Group.
year ended 31st March 2024 incorporated selected the appropriate accounting policies
in this Report have been prepared in and such policies adopted by the Group By order of the Board,
accordance with the Companies Act No. are disclosed and explained in the Financial Aitken Spence Hotel Holdings PLC
07 of 2007, the Sri Lanka Accounting and Statements.
Auditing Standards Act No. 15 of 1995
and the Listing Rules of the Colombo Stock The Board of Directors confirm that the
Exchange. Company and the Group’s Consolidated
Statements of Financial Position as at
The Directors have taken appropriate 31st March 2024 and the Comprehensive Aitken Spence Corporate Services (Private)
steps to ensure that the companies Income Statements of the Company and the Limited
within the Group maintain adequate and Group for the Financial Year ended 31st Secretaries
accurate records which reflect the true March 2024 reflect a true and fair view of
financial position of each such company the Company and the Group. 15th July 2024
and hence the Group. The Directors have Colombo
taken appropriate and reasonable steps to The Directors have provided the
safeguard the assets of the Company and Auditors with every opportunity to carry
the Group. The Directors have instituted out any reviews and tests that they
appropriate systems of internal control in consider appropriate and necessary for
order to minimise and detect fraud, errors the performance of their duties. The
and other irregularities. The Directors in responsibility of the Independent Auditors
maintaining a sound system of internal in relation to the Financial Statements is set
control and in protecting the assets of out in the Independent Auditors Report.
the Company and its Group have further
adopted risk management strategies to
identify and evaluate the risks which the
Company and its Group could be exposed
to and its impact to the Company and its
Group.

152
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
ANNUAL REPORT OF THE BOARD OF DIRECTORS

The Board of Directors of Aitken Spence Company and the Group during the year. The significant accounting policies adopted
Hotel Holdings PLC has pleasure in in the preparation of the Financial Statements of the Company and the Group and the
presenting the Annual Report and the changes made during the year are given on pages 176 to 271.
Audited Financial Statements for the year
ended 31st March 2024. The details set out 4. SYNOPSIS OF THE INCOME STATEMENT OF THE COMPANY AND THE GROUP
herein provide the pertinent information For the year ended 31st March 2024 2023
required by the Companies Act No. 07 of
2007, Listing Rules of the Colombo Stock Net profit before tax 3,006,151 1,644,950
Exchange and the best accounting practices. Provision for taxation including deferred tax (1,141,464) (1,598,141)
Net profit after tax 1,864,687 46,809
1. PRINCIPAL ACTIVITIES
Other comprehensive income/(expense) (1,131,524) 2,350,509
The principal activities of the
Total comprehensive income for the year 733,163 2,397,318
Company are that of an investment
holding company and hoteliering. Total comprehensive income attributable to 399,487 1,183,325
The subsidiary companies are also non-controlling interest
engaged in the business of hoteliering. Total comprehensive income attributable to equity 333,676 1,213,993
During the year, there were no shareholders
significant changes in the principal Transactions directly recognised in the equity - (14,288)
activities of the Company and the statement
subsidiaries. Balance brought forward from the previous year 17,486,669 16,316,664
Amount available for appropriations 17,820,345 17,516,369
2. REVIEW OF OPERATIONS
A review of operational and Preference dividends 14,850 29,700
financial performance, the future Total reserves and earnings 17,805,495 17,486,669
of the Company and the Group Stated capital 3,554,587 3,554,587
are described in greater detail
in the Chairman’s Statement, 4.1. Group Revenue and Profits
Managing Director’s Review and the Revenue generated by the Company during the year amounted to Rs. 1,232 Mn (2023-
Management Discussion and Analysis Rs. 759 Mn). The Group revenue was Rs. 47,259 Mn (2023 - Rs. 46,060 Mn) which
of the Annual Report. These Reports is a rise of 3% compared to the previous year. An analysis of Group revenue based on
together with the Audited Financial geographical and business segments is disclosed in notes 06 and 07 of the Financial
Statements of the Company and of the Statements on pages 196 and 197. The profit after tax of the Group was - Rs. 1,865 Mn
Group reflect the respective state of (2023– Rs.47 Mn). The Group’s profit attributable to the equity shareholders of the
affairs of the Company and the Group. parent company for the year was Rs. 1,140 Mn (2023 - loss of Rs. 288 Mn). The segmental
The Group consists of the subsidiaries profits/ losses are disclosed in note 06 of the Financial Statements on page 196.
and equity accounted investees of
Aitken Spence Hotel Holdings PLC 415-1

and details of the Group structure 4.2. Donations

is given on pages 10 and 11 of the During the year, no donations (2023 - Rs. 672,500/-) were made by the Company,
Annual Report. the donations made by the Group during the year amounted to Rs. 361,472 (2023 -
Rs. 2,125,783/-).There were no Political donations.
3. ACCOUNTING POLICIES AND
CHANGES DURING THE YEAR 4.3. Taxation
The Company and the Group A detailed statement of the income tax rates applicable to the individual companies
prepared the Financial Statements in in the Group and a reconciliation of the accounting profits with the taxable profits
accordance with Sri Lanka Accounting are given in note 13 of the Financial Statements on pages 202 to 207. It is the policy
Standards (SLFRSs/ LKASs). The of the Group to provide for deferred taxation on all known timing differences on the
Board of Directors wish to confirm liability method. The deferred tax balances of the Group companies are given in notes
that there were no changes to the 22 and 33 of the Financial Statements on pages 223 and 237. The deferred tax of the
accounting policies used by the Company and the Group are calculated based on the tax rates that are specified in the
Inland Revenue Act No. 24 of 2017 and its amendments thereto.

153
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ANNUAL REPORT OF THE BOARD OF DIRECTORS

4.4. Dividends 5.3. Market Value of Freehold Properties based on available information,
The Directors declared a preference Land recognised as property, plant the management has assessed the
dividend of cents 90 per share on the and equipment in the Financial prevailing macroeconomic conditions
cumulative preference shares for the Statements in the Group is recorded and its effect on the Group companies
financial year ended 31st March 2024. at either fair value or revalued and the appropriateness of the use of
The Directors are confident that the amounts. Revaluation of land is the going concern basis.
Company will meet the solvency test performed with sufficient regularity
requirement under section 56(2) so that the carrying value of the land The Management has formed
of the Companies Act No.7 of 2007 does not differ materially to its market judgment that the Company, its
immediately after the payment of value. Revaluation was performed by subsidiaries, associates, and joint
the said preference dividend. The professionally qualified independent ventures have adequate resources to
Directors did not recommend an valuers having appropriate experience continue in operational existence for
ordinary dividend for the financial in valuing properties in the locality the foreseeable future driven by the
year ended 31st March 2024. of the land being revalued. If the continuous operationalisation of risk
fair value of land does not change mitigation initiatives and monitoring
5. SYNOPSIS OF THE STATEMENT other than by an insignificant of business continuity and response
OF FINANCIAL POSITION OF THE amount at each reporting date the plans at each business unit level along
COMPANY AND THE GROUP Group revalues such land every five with the financial strength of the
years. Details of the revalued land, Group.
5.1. Stated Capital and Reserves
As at 31st March 2024, the Company revaluation surplus, and the original
cost are given in note 16.3.2 of the Based on the publicly available
had issued 336,290,010 ordinary
Financial Statements. The Group information at the date these financial
shares and 16,500,000 redeemable
records all other assets at cost and statements were authorised for issue,
cumulative preference shares. The
check for any impairment of these management considered a number
stated capital of the Company was
assets when the Group identifies any of severe but plausible scenarios
Rs. 3,555 Mn. The Company’s
trigger for impairment. with respect to possible impact of the
reserves as at 31st March 2024 were
downside economic scenarios and
Rs. 6,568 Mn (2023 - Rs. 6,891 Mn)
5.4. Contingent Liabilities climate related matters.
whereas the total Group’s reserves as
The details of contingent liabilities are
at 31st March 2024 were Rs. 17,805 Furthermore, the Management is not
disclosed in note 38 of the Financial
Mn (2023 - Rs. 17,487 Mn). The aware of any material uncertainties
Statements on page 244.
movement in these reserves is shown that may cast significant doubt upon
in the Statement of Changes in Equity the Group’s ability to continue as a
6. EVENTS OCCURRING AFTER THE
- Group on Pages 172 to 173. going concern.
REPORTING DATE
No event of material significance that
5.2. Property, Plant and Equipment Having presented the outlook of the
requires adjustments to the Financial
The carrying value of property plant Group to the Board, the Directors
Statements has arisen other than that
and equipment for the Company and are satisfied that the Group has
disclosed in note 46 to the Financial
the Group as at 31st March 2024 adequate resources to continue
Statements on page 271.
amounted to Rs. 1,911 Mn and Rs. in operational existence for the
66,183 Mn respectively. The total foreseeable future. Management
7. GOING CONCERN
expenditure on the acquisition of concluded that the range of possible
The Group has prepared the financial
property, plant and equipment during outcomes considered at arriving at
statements for the year ended 31st
the year in respect of new assets this judgment does not give rise to
March 2024 on the basis that it
acquired by the Company and the material uncertainties related to
will continue to operate as a going
Group amounted to Rs. 268 Mn and events or conditions that may cast
concern.
Rs. 1,838 Mn respectively. significant doubt on the Group’s ability
In determining the basis of preparing to continue as a going concern.
the financial statements for the
year ended 31st March 2024,

154
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
8. INFORMATION ON THE BOARD OF DIRECTORS AND THE BOARD SUB-COMMITTEES

8.1. Board of Directors

The names of the Directors of the Company who held office during the financial year 2023/2024 is given in the following table and
their brief profiles are given on pages 28 to 31 of the Annual Report. All of the below Directors held office during the entire year, with
the exception of Mr. G.P.J. Goonawardena who passed away on 18th November 2023 and Dr. R.A. Fernando who was appointed as
Independent Non-Executive Directors of the Company w.e.f 10th January 2024.

Executive Non-Executive Independent

Non-Executive

Deshamanya D.H.S. Jayawardena (Chairman) *

Ms. D.S.T. Jayawardena 
(Joint Deputy Chairperson and Joint Managing Director
Dr. M.P. Dissanayake (Managing Director) 
Mr. C.M.S. Jayawickrama 
Mr. J.M.S. Brito **
Mr. R.N. Asirwatham 
Mr. N.J. de Silva Deva Aditya 
Mr. C.H. Gomez 
Mr. G.P.J. Goonawardena 
Mr. M.A.N.S. Perera 
Dr. R.A. Fernando 

* with effect from 30th October 2023

** with effect from 8th September 2023

8.2. Board Sub-Committees Group Remuneration Committee Group Related Party Transactions
The following Committees of the Mr. R.N. Asirwatham -Chairman Review Committee
parent company namely Aitken Mr. J.M.S. Brito Mr. R.N. Asirwatham -Chairman
Spence PLC function as the Audit, Mr. C.H. Gomez Mr. J.M.S. Brito
Remuneration, Nomination and Mr. C. R. Jansz (Director of the parent Mr. C.H. Gomez
Governance and Related Party Company and appointed as a member Mr. N.J. de S Deva Aditya/Mr. M.A.N.S.
Transactions Review Committees as of the Remuneration Committee w.e.f. Perera (Mr. M.A.N.S. Perera served
permitted by the Listing Rules. 08.09.2023 ) as an Alternate Director to Mr. N.J.
de Silva Deva Aditya in the parent
Group Audit Committee Group Nomination and Governance company Aitken Spence PLC and he
Mr. R.N. Asirwatham – Chairman Committee ceased to be an Alternate Director
Mr. J.M.S. Brito Mr. R.N. Asirwatham -Chairman to Mr. N.J. de S Deva Aditya w.e.f.
Mr. C.H. Gomez Deshamanya D.H.S. Jayawardena 01.01.2024)
Mr. N.J. de Silva Deva Aditya/ Mr. J.M.S. Brito
Mr. M.A.N.S. Perera (Mr. M.A.N.S.
Perera served as an Alternate
Director to Mr. N.J. de Silva Deva
Aditya in the parent company Aitken
Spence PLC and he ceased to be an
Alternate Director to Mr. N.J. de S
Deva Aditya w.e.f. 01.01.2024)

155
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ANNUAL REPORT OF THE BOARD OF DIRECTORS

GRI 2-15 GRI 2-18 GRI 2-19 GRI 2-20

8.3. Recommendation for Re- 8.5. Interest Register under the ambit of Rule 9.14.8(1)
appointment and Re-election of An Interest Register is maintained by of the Listing Rules of the Colombo
Directors the Company as per the Companies Stock Exchange which were to be
Upon the recommendation of the Act No. 07 of 2007. Any interest in entered into with the Company and
Nominations and Governance transactions disclosed to the Board by or with another company within the
Committee, the Board resolved to a Director in accordance with Section Group and or with any other ‘Related
recommend that Deshamanya D.H.S. 192 of the Companies Act No. 7 of Party’ as defined in the Sri Lanka
Jayawardena, Mr. R.N. Asirwatham, 2007 is duly recorded in the Interest Accounting Standards (as applicable).
Mr. J.M.S. Brito and Mr. N.J. de S. Register. The disclosures so made were tabled
Deva Aditya who are over 70 years at the quarterly meetings of the
of age and vacate office in terms of 8.6. Directors’ Remuneration Related Party Transactions Review
Section 210(2) of the Companies Act, The Directors’ remuneration and fees Committee, in compliance with the
be re- appointed as Directors in terms in respect of the Company and the requirements of the above mentioned
of Section 211 of the Companies Act Group for the financial year ended Rule.
No. 7 of 2007, specially declaring that 31st March 2024 are disclosed on
the age limit stipulated in Section 210 page 201 of the Financial Statements. The Directors declare that the
of the Companies Act shall not apply Company is in compliance with
to the said Directors. Resolutions 8.7. Related Party Transactions Rule 9.14 of the Listing Rules of the
to this effect will be proposed at the Related Party Transactions of the Colombo Stock Exchange pertaining
forthcoming Annual General Meeting. Company and the Group are disclosed to Related Party Transactions during
in note 44 to the Financial Statements. the financial year ended 31st March
Upon the recommendation of the These are recurrent and non- 2024.
Nominations and Governance recurrent related party transactions,
Committee, the Board resolved which required disclosure in the 8.8. Board of Directors of the Subsidiary
to recommend that Mr. C.M.S. Annual Report in accordance with The names of Directors of the
Jayawickrama who retires by rotation the Sri Lanka Accounting Standard subsidiary companies who held office
in terms of Article 83 and 84 of No. 24 - Related Party Disclosures. as at 31st March 2024 and Directors
the Articles of Association of the However, there were no recurrent who ceased to hold office during
Company and being eligible offers related party transactions which in the accounting period are set out
himself for re-election be re-elected aggregate value exceeded 10% of the on pages 286 to 288 of this Annual
as a Director of the Company. consolidated revenue of the group as Report.
per the Audited Financial Statements
Upon the recommendation of the as at 31st March 2023. 9. HUMAN RESOURCES
Nominations and Governance The human resources strategies
Committee, the Board resolved to There were no non-recurrent related applied and practiced by the Group
recommend that Dr. R.A. Fernando party transactions which in aggregate in the regions we operate have
who retires by rotation in terms value exceeding lower of 10% of the translated into the creation of a
of Article 90 of the Articles of equity or 5% of the total assets of the dynamic and competent human
Association of the Company and being Group as per the Audited Financial resource team. The strategies
eligible offers himself for election Statements as at 31st March 2023, adopted in motivating and retaining
at the forthcoming Annual General which required additional disclosures our employees are discussed in
Meeting. in the Annual Report under Rule “Human Capital” on pages 82 to 91 of
9.14.8 (1) of the Listing Rules of the this Annual Report.
8.4. Directors’ Shareholding Colombo Stock Exchange.
The Directors’ shareholdings are 10. GOVERNANCE
provided on page 282 of the Annual The Key Management Personnel The Directors declare that:
Report. of the Group companies (including
• the Group has not engaged in any
the Company) have disclosed on a
activity, which contravenes the
quarterly basis, the proposed Related
national and international laws. The
Party Transactions (if any) falling
Group rigidly adheres to relevant

156
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 national and international laws • they have declared all material the Audit Committee. The Risk
and the regulations of Professional interests in contracts involving Management Report of the Group is
Institutes and Associations, the Company and the Group and on pages 50 to 57 of this Report
Industrial Associations, Chambers refrained from voting on matters
of Commerce and Regulatory in which they were materially 12. INTERNAL CONTROLS
Bodies. interested. The Board of Directors ensures that
the Group has an effective internal
• the Company complies with the • they have continuously satisfied control system which ensures that the
Corporate Governance Rules the Fit and Proper Assessment assets of the Company and the Group
contained in Section 9 of the Criteria set out in the Listing are safeguarded and appropriate
Listing Rules of the Colombo Stock Rules during the financial year systems are in place to minimise
Exchange and the Code of Best concerned and as at the date of and detect fraud, errors and other
Practice on Corporate Governance such confirmation. irregularities. The system ensures that
2017, as amended in 2023, issued the Group adopts procedures which
by the Institute of Chartered • none of the Directors or Close result in financial and operational
Accountants of Sri Lanka. The Family Members of the Directors effectiveness and efficiency.
measures taken and the extent to have had any material business
which the Company has complied relationships with other Directors Board of Directors’ Statement on
with the said Section and the of the Company. Internal Controls on pages 159 to
Code are given on page 130 of the 160, the Statement of Directors’
Corporate Governance Report of • they have conducted an evaluation Responsibilities on page 152 and
this Annual Report. of Group’s internal controls the Audit Committee Report set out
covering financial, operational on pages 143 to 145 of this Report
• the Group applies very high and compliance controls and risk provide further information in respect
standards to protect and nurture management and have obtained of the above.
the environment in which it reasonable assurance of their
operates and ensures strict effectiveness and successful 13. STATUTORY PAYMENTS
adherence to all environmental laws adherence therewith. The Directors to the best of their
and practices. The Group’s efforts to knowledge and belief are satisfied
conserve non-renewable resources, • they have made arrangements that all statutory financial obligations
as well as its environmental to make themselves aware to the Government and to the
objectives and key initiatives, are of applicable laws, rules and employees have been either duly paid
described in the Natural Capital on regulations and are aware of or adequately provided for in the
pages 106 to 112. changes particularly to Listing Financial Statements. A confirmation
Rules and applicable capital market of same is included in the Statement
• the Company has no restrictions provisions. of Directors’ Responsibilities on page
with regard to shareholders 152 of this Annual Report.
carrying out analysis or obtaining 11. RISK MANAGEMENT
independent advice of a non- The Directors have established and 14. CORPORATE SUSTAINABILITY
price sensitive nature regarding adhered to a comprehensive risk The Board of Directors guides and
their investment in the Company management framework at both supports the Group’s sustainability
and has made all endeavours to Strategic Business Units and Group strategy. It welcomes the
ensure the equitable treatment levels to ensure the achievement implementation of the structured
of shareholders. The Company’s of their corporate objectives. The and dynamic integrated sustainability
Corporate Governance practices categories of risks faced by the Group framework. Awards and recognition
are set out on pages 123 to 126 of are identified, the significance they received during the year and
this Annual Report. pose are evaluated and mitigating previous years are a testament to
strategies are adopted by the Group. our commitment as we continue to
The Board of Directors reviews the benchmark our practices against
risk management process through global standards and best practices

157
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
ANNUAL REPORT OF THE BOARD OF DIRECTORS

in a myriad of aspects that affect 16. AUDITORS The amount payable by the Group
or potentially affect delivery of The Independent Auditors’ Report to Messrs. KPMG, Chartered
growth. More details of the Group’s on the Financial Statements is given Accountants as audit fees was
sustainability efforts are included on pages 164 to 167 of this Annual Rs. 15,106,672/- (2023 -
in the Management Discussion and Report. The retiring Auditors Messrs. Rs. 16,082,379/-) while a further
Analysis of this Report. KPMG, Chartered Accountants Rs. 3,339,488/-(2023 - Rs. 5,077,433/-)
have expressed their willingness to was payable for permitted non audit
15. SHAREHOLDER INFORMATION continue in office and a resolution to related services including tax advisory
There were 3,732 shareholders re-appoint them as auditors and grant services.
as at 31st March 2024. The authority to the Board to determine
distribution schedule of the number of their remuneration will be proposed In addition to the above,
shareholders and their shareholdings at the Annual General Meeting of the Rs. 5,178,337/- (2023-Rs. 4,796,932/-)
are detailed on page 279 of this Company. The fees payable to the was payable to other auditors for
Annual Report. The names of the Company auditors Messrs. KPMG, carrying out audits in subsidiaries
twenty largest shareholders, together Chartered Accountants was and associates where the audits were
with their shareholdings as at 31st Rs. 1,386,000 (2023 - Rs. 1,260,000/-). conducted by them. The amount
March 2024 are given on page 281 of In addition to the above, Rs. 422,877/- payable to such other auditors
this Annual Report. The percentage (2023 - Rs. 148,611/-) was payable for non-audit related services
of the shares held by the public as at by the Company for permitted non including tax advisory services was
31st March 2024 was 25.44% and audit related services including tax Rs.14,587,865/- (2023 -
the number of shareholders who advisory services. Messrs. KPMG, Rs. 13,227,546/-). As far as the
held the public holding was 3,722. Chartered Accountants the auditors Directors are aware the auditors
Information relating to Earnings Per of the Company are also the auditors neither have any other relationship
Share and the Net Assets Per Share of certain subsidiaries and associate with the Company nor any of its
for the Company and the Group, the companies of the Group. The list subsidiaries and associates that would
Dividend Per Share and the Market of the subsidiaries and associate have an impact on their independence.
Price Per Share are given on pages 14 companies audited by them are
and 280 of this Annual Report. included on pages 286 to 288 of this
Annual Report.

Deshamanya D.H.S. Jayawardena Ms. D.S.T. Jayawardena Dr. M.P. Dissanayake

Chairman Joint Deputy Chairperson and Managing Director
Joint Managing Director

Aitken Spence Corporate Services (Private) Limited

Secretaries

Colombo
15th July 2024

158
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
THE BOARD OF DIRECTORS’ STATEMENT ON
INTERNAL CONTROLS
The Board of Directors present this These committees are chaired by controls or other matters within the Group
Statement on Internal control in accordance Independent Non-Executive Directors and to the notice of the higher management.
with principle D.1.5. of the Code of Best have the authority to examine particular
Practice on Corporate Governance issued issues and report back to the Board with Proper arrangements are in place to
by the Institute of Chartered Accountants of their recommendations. facilitate fair and independent investigation
Sri Lanka. for such matters, if any. The prevalence and
The Board is confident that the Internal effectiveness of this policy is monitored by
RESPONSIBILITY Controls are adequate to provide reasonable the Audit Committee from time to time.
The Board of Directors (“Board”) is assurance regarding the reliability of
responsible for the adequacy and financial reporting which are in accordance THE GROUP CODE OF ETHICS &
effectiveness of the internal control with acceptable accounting principles and PROFESSIONAL CONDUCT
mechanism in place at Aitken Spence Hotel the applicable regulatory requirements. The Group Code of Ethics and Professional
Holdings PLC (“Group”). Conduct which includes a strong set of
INTERNAL AUDIT corporate values and conduct, is circulated
The Board has established an ongoing The Internal Audit Department of the to Directors and all employees. The Board
process for identifying, evaluating and Group verifies compliance of operations ensures that Directors and all employees
managing the significant risks faced by the with policies and procedures and the strictly comply with the Code in exercising
Group. This process includes enhancing effectiveness of the Internal control systems their duties, communications, role modelling
the system of internal controls as and when and highlights significant findings in respect and in any other circumstance, so as to
there are changes to business environment of any non-compliance. uphold the Group’s integrity and image.
or regulatory guidelines. The process is Strict disciplinary actions are initiated for
regularly reviewed by the Board. Audits are carried out on all Strategic any violation of the Group Code of Ethics
Business Units (SBUs), the frequency and Professional Conduct.
The Board is of the view that the systems of which are determined by the level of
of Internal control over financial reporting risk assessed, to provide an independent CYBER SECURITY
in place is sound and adequate to provide and objective report on operational and The Board has taken necessary precautions
reasonable assurance regarding the management activities of SBUs. The annual to minimise the risk of a security breach.
reliability of financial reporting, and that audit plan is reviewed and approved by the During the year under review, necessary
the preparation of financial statements Audit Committee and the findings of the steps have been rolled out to curtail the
for external purposes is in accordance audits are submitted to the Audit Committee exposure to cyber-attacks by reducing
with relevant accounting principles and for review at their periodic meetings. the threat surface and any potentially
regulatory requirements. exploitable vulnerabilities.
POLICIES, PROCEDURES AND BUDGETS
The Board has delegated specific Policies and procedures to ensure the GOING CONCERN
responsibilities to the following four sub- compliance with internal controls and The statement of going concern is set out in
committees ensuring the effectiveness relevant laws and regulations are set out in the Annual Report of the Directors on page
of Group’s daily operations and to ensure operations manuals, which are updated from 154.
that these daily operations are within the time to time.
corporate objectives, strategies and annual RISK MANAGEMENT
budget ratified by the Board. Annual budgets are approved by the The Board has set up an ongoing process for
respective Boards and the subsidiaries’ identifying, monitoring and managing the
• Audit Committee performance are assessed against the principal and emerging risks faced by the
• Nominations and Governance budgets and explanations are provided for Group.
Committee significant variances periodically to the
respective Boards. An overview of the Group’s risk management
• Remuneration Committee
framework is set out on pages 50 to 57.
• Related Party Transactions Review WHISTLE BLOWING POLICY
Committee. The Group encourages a whistle-blowing
policy which enables employees to bring
irregularities in financial reporting, internal

159
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
THE BOARD OF DIRECTORS’ STATEMENT ON
INTERNAL CONTROLS

ANNUAL REPORT
The Board is responsible for the preparation
of the Annual Report and confirm that
the quarterly reports, annual financial
statements and the annual review of
operations of the Group and its equity
accounted investees that are incorporated in
this Annual Report have been prepared and
presented in a reliable manner based on a
balanced and comprehensive assessment of
the financial performance of the Group.

CONFIRMATION
Based on the above processes, the Board
of Aitken Spence Hotel Holdings PLC
confirms that the financial reporting
system of the Group has been designed to
provide reasonable assurance regarding
the reliability of financial reporting and
the preparation of Financial Statements
for external purposes and has been done
in accordance with Sri Lanka Accounting
Standards and all relevant regulatory
requirements.

Moreover, the Board has conducted an

evaluation of Group’s Internal Controls
encompassing financial, operational and
compliance controls, risk management and
have obtained a reasonable assurance of
their effectiveness and proper adherence.

Deshamanya D.H.S. Jayawardena Ms. D.S.T. Jayawardena Dr. M.P. Dissanayake R.N. Asirwatham
Chairman Joint Deputy Chairperson and Managing Director Chairman
Joint Managing Director Audit Committee

Colombo
15th July 2024

160
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 FINANCIAL REPORTS

AN INDELIBLE PERFORMANCE
Driven by a spirit of vitality and spurred onwards by an undying passion
to serve, our exploits and achievements over the years have seen us
deliver enduring results and a performance that is truly timeless.
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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
FINANCIAL CALENDAR

FINANCIAL CALENDAR

2023/2024 2022/2023
INTERIM FINANCIAL STATEMENTS CALENDAR
Interim Financial Statements for 1st quarter Approved on 09th August 2023 Approved on 10th August 2022
Interim Financial Statements for 2nd quarter Approved on 11th November 2023 Approved on 03rd November 2022
Interim Financial Statements for 3rd quarter Approved on 09th February 2024 Approved on 09th February 2022
Interim Financial Statements for 4th quarter Approved on 27th May 2024 Approved on 25th May 2023

AUDITED FINANCIAL STATEMENTS CALENDAR

Audited Financial Statements Approved on 15th July 2024 Approved on 06th June 2023

ANNUAL GENERAL MEETING (AGM) CALENDAR

Annual General Meeting On 06th August 2024 On 30th June 2023

162
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
INDEX TO THE FINANCIAL STATEMENTS

Page No. Notes to the Financial Statements - Statement of Financial

Independent Auditor’s Report 164 Position- Equity and Liabilities
Primary Financial Statements 29 Stated Capital 228
Statement of Profit or Loss and Other 168 30 Reserves 229
Comprehensive Income 31 Interest - Bearing Liabilities - Banks 230
Statement of Financial Position 170 32 Interest - Bearing Liabilities - Leases 236
Statement of Changes in Equity 172 33 Deferred Tax Liabilities 237
Statement of Cash Flows 174 34 Employee Benefits 239
35 Other Provisions and Payables 243
Notes to the Financial Statements 36 Amounts Due To Parent's Group Entities 243
Notes to the Financial Statements - General
1 Reporting Entity 176 Notes to the Financial Statements - Other Disclosures
2 Basis of Preparation 176 37 Foreign Currency Translation 244
3 Summary of Material Accounting Policies 179 38 Contingent Liabilities 244
4 Determination of Fair values 194 39 Financial Instruments 244
5 New Accounting Standards issued but not 194 40 Fair Value Measurement 249
effective as at the reporting date 41 Financial Risk Management 251
6 Operating Segments 196 42 Financial Capital Management 261
43 Director's Fees 262
Notes to the Financial Statements - Income Statement 44 Related Party Transactions 262
7 Revenue 197 45 Acquisition of non controlling shares 271
8 Other Income 200 46 Events After Reporting Date 271
9 Other Operating Expense - Direct 200 47 Capital Expenditure Commitments 271
10 Other Operating Expense - Indirect 200
48 Total Number of Employees 271
11 Profit/(Loss) from Operations 201
49 Comparative Information 271
12 Net Finance Expense 201
13 Income Tax (Expense)/Reversal 202
14 Earnings Per Share (EPS) 207 Quarterly Statistics 272
15 Dividends Per Share (DPS) 207
Indicative Consolidated Financial Statements in USD
Notes to the Financial Statements - Statement of Financial Consolidated Statement of Profit or Loss and Other 274
Comprehensive Income in USD
Position- Assets
Consolidated Statement of Financial Position in USD 276
16 Property, Plant and Equipment 208
17 Right of Use Assets 211
18 Intangible Assets 212
19 Investment in Subsidiaries 214
20 Investment in Equity Accounted Investees 218
21 Other Financial Assets - Non Current 222
22 Deferred Tax Assets 223
23 Inventories 225
24 Trade and Other Receivables 225
25 Amounts Due From Holding Company 226
26 Amounts Due From Parent's Group Entities 226
27 Other Financial Assets - Current 227
28 Cash and Cash Equivalents 227

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Aitken Spence In our opinion, the accompanying financial Accountants issued by CA Sri Lanka (Code of
Hotel Holdings PLC statements of the Company and the Group Ethics), and we have fulfilled our other ethical
give a true and fair view of the financial responsibilities in accordance with the Code of
Report on the Audit of the Financial position of the Company and the Group as Ethics. We believe that the audit evidence we
Statements of 31st March 2024, and of their financial have obtained is sufficient and appropriate to
performance and cash flows for the year provide a basis for our opinion.
OPINION
then ended in accordance with Sri Lanka
We have audited the financial statements Accounting Standards. KEY AUDIT MATTERS
of Aitken Spence Hotel Holdings PLC
(“the Company”) and the consolidated Key audit matters are those matters that,
BASIS FOR OPINION in our professional judgment, were of most
financial statements of the Company and its
subsidiaries (“the Group”), which comprise We conducted our audit in accordance significance in our audit of the consolidated
the statement of financial position as at 31st with Sri Lanka Auditing Standards (SLAuSs). financial statements of the current period.
March 2024, and the statement of profit Our responsibilities under those standards These matters were addressed in the context
and loss and other comprehensive income, are further described in the Auditor’s of our audit of the consolidated financial
statement of changes in equity and statement Responsibilities for the Audit of the Financial statements as a whole, and in forming our
of cash flows for the year then ended, and Statements section of our report. We are opinion thereon, and we do not provide a
notes to the financial statements, including independent of the Group in accordance separate opinion on these matters.
material accounting policies and other with the Code of Ethics for professional
explanatory information as set out on pages
168 to 271.

FINANCIAL INSTRUMENTS – CASH FLOW HEDGE

Refer Accounting Policies Note 3.3 (e) and Note 41.5.1.3 to the Financial Statements.
RISK DESCRIPTION OUR RESPONSE
The effective portion of a Cash Flow Hedge has been recognised under Our audit procedures included,
other comprehensive income amounting to Rs 1,501.5 Mn as at 31st
• Assessing the nature of the hedge relationships and testing
March 2024.
compliance with specific hedge accounting requirements for foreign
currency hedging.
Group is exposed to financial risks arising from exchange rates. A
subsidiary company has hedged its Euro currency revenue against • Examining the accounting treatment applied for Hedge, in particular
the contractual future loan repayments. Rules on hedge accounting when reclassifying gains and losses from reserves to the income
requirements and documentation can be complicated. Lack of statement and adjustments to the carrying value of the hedged item.
compliance with documentation rules, hedge effectiveness rules, and
probability criteria could lead to income statement volatility.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
FINANCIAL INSTRUMENTS - CASH FLOW HEDGE ( CONTD)
Refer Accounting Policies Note 3.3 (e) and Note 41.5.1.3 to the Financial Statements.
RISK DESCRIPTION OUR RESPONSE
Hedge relationships are formally documented and designated at • Assessing the adequacy of the disclosure in financial instruments
inception. The documentation includes identification of the hedged item by agreeing the financial statements to the underlying workings
and the hedging instrument and details of the risk that is being hedged prepared by management and ensuring classification is consistent
and the way in which effectiveness will be assessed at inception and with the accounting principles.
during the period of the hedge. If the hedge is not highly effective in
offsetting changes in fair values or cash flows attributable to the hedged
risk, consistent with the documented risk management strategy, hedge
accounting is discontinued.

We identified this as a key audit matter due to the complexities and

high level of judgment involved in determining the hedging item, hedge
instrument and the testing effectiveness as required by the accounting
standards.

IMPAIRMENT ASSESSMENT OF GOODWILL, INVESTMENTS IN SUBSIDIARIES AND INVESTMENTS IN EQUITY ACCOUNTED

INVESTEES
Refer Accounting Policies in Note 3.3 (d) and Note 3.5.3.1 and Financial Statements Note 18, Note 19 and Note 20.
RISK DESCRIPTION OUR RESPONSE
The Company hold investments in subsidiaries and investments in Our audit procedures included,
equity accounted investees amounting to Rs. 7,418 Mn and Rs. 993
• Assessing the impairment indications of investments made in
Mn respectively as at 31st March 2024.
subsidiaries and equity accounted investees and assessing the
reasonableness of the discounted cash flow model (Value in use
Further the Group holds investments in equity accounted investees
computations), key assumptions, principles and accuracy of the
amounting to Rs. 63 Mn and goodwill amounting to Rs. 782 Mn as at
forecasts.
31st March 2024.
• Comparing the actual results of the current year with management’s
The carrying amount of each investments in subsidiary and investments assumptions and estimates in the discounted cash flow forecast
in equity accounted investees have been tested for impairment as for the previous year to assess the historical accuracy of the
individual Cash Generating Units. The carrying amount of these management’s forecasting process.
investments could be materially misstated if inappropriate judgments
• Evaluating the discounted cash flow forecast prepared by
and estimates were used by the Directors in calculating the recoverable
management of the Group by comparing with the relevant data,
amount for each cash generating unit (‘CGU’) and recoverable amounts
including forecast revenue, cost of sales and other operating
of the identified CGUs have been determined based on the value-in-
expenses, contained in the financial budget of subsidiaries and
use calculation.
investment in equity accounted investees which was approved by
management and taking into account our understanding, experience
Investments which have not generated adequate returns may be an
and knowledge.
indication of impairment. Due to the investments being material it will
have a significant impact on financial performance of the Company/ • Assessing the adequacy of disclosures in the financial statements.
Group.

We have identified the impairment assessment of goodwill, investments

in subsidiaries and investments in equity accounted investees as a key
audit matter since that is based on forecasting and discounting cash
flows, which are inherently judgemental.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDEPENDENT AUDITOR’S REPORT

OTHER INFORMATION Those charged with governance are • Evaluate the appropriateness of accounting
Management is responsible for the other responsible for overseeing the Company’s and policies used and the reasonableness
information. The other information comprises the Group’s financial reporting process. of accounting estimates and related
the information included in the annual report, disclosures made by management.
but does not include the financial statements AUDITOR’S RESPONSIBILITIES FOR THE
• Conclude on the appropriateness of
and our auditor’s report thereon. AUDIT OF THE FINANCIAL STATEMENTS management’s use of the going concern
Our objectives are to obtain reasonable basis of accounting and, based on the audit
Our opinion on the financial statements does assurance about whether the financial evidence obtained, whether a material
not cover the other information and we do statements as a whole are free from material uncertainty exists related to events or
not express any form of assurance conclusion misstatement, whether due to fraud or error, conditions that may cast significant
thereon. and to issue an auditor’s report that includes doubt on the Group’s ability to continue
our opinion. Reasonable assurance is a high as a going concern. If we conclude that
In connection with our audit of the financial level of assurance, but is not a guarantee that a material uncertainty exists, we are
statements, our responsibility is to read the an audit conducted in accordance with SLAuSs required to draw attention in our auditor’s
other information and, in doing so, consider will always detect a material misstatement report to the related disclosures in the
whether the other information is materially when it exists. Misstatements can arise from financial statements or, if such disclosures
inconsistent with the financial statements fraud or error and are considered material if, are inadequate, to modify our opinion.
or our knowledge obtained in the audit or individually or in the aggregate, they could Our conclusions are based on the audit
otherwise appears to be materially misstated. reasonably be expected to influence the evidence obtained up to the date of our
If, based on the work we have performed, we economic decisions of users taken on the basis auditor’s report. However, future events or
conclude that there is a material misstatement of these financial statements. conditions may cause the Group to cease
of this other information, we are required to to continue as a going concern.
report that fact. We have nothing to report in As part of an audit in accordance with SLAuSs,
this regard. • Evaluate the overall presentation, structure
we exercise professional judgment and
and content of the financial statements,
maintain professional skepticism throughout
including the disclosures, and whether
RESPONSIBILITIES OF MANAGEMENT the audit. We also:
the financial statements represent the
AND THOSE CHARGED WITH
underlying transactions and events in a
GOVERNANCE FOR THE FINANCIAL • Identify and assess the risks of material
manner that achieves fair presentation.
STATEMENTS misstatement of the financial statements,
whether due to fraud or error, design and • Obtain sufficient appropriate audit evidence
Management is responsible for the preparation
perform audit procedures responsive to regarding the financial information of
of financial statements that give a true and fair
those risks, and obtain audit evidence the entities or business activities within
view in accordance with Sri Lanka Accounting
that is sufficient and appropriate to the Group to express an opinion on the
Standards, and for such internal control as
provide a basis for our opinion. The risk consolidated financial statements. We are
management determines is necessary to
of not detecting a material misstatement responsible for the direction, supervision
enable the preparation of financial statements
resulting from fraud is higher than for one and performance of the group audit. We
that are free from material misstatement,
resulting from error, as fraud may involve remain solely responsible for our audit
whether due to fraud or error.
collusion, forgery, intentional omissions, opinion.
misrepresentations, or the override of
In preparing the financial statements, We communicate with those charged with
internal control.
management is responsible for assessing the governance regarding, among other matters,
Group’s ability to continue as a going concern, • Obtain an understanding of internal control the planned scope and timing of the audit
disclosing, as applicable, matters related to relevant to the audit in order to design and significant audit findings, including any
going concern and using the going concern audit procedures that are appropriate in the significant deficiencies in internal control that
basis of accounting unless management either circumstances, but not for the purpose of we identify during our audit.
intends to liquidate the Group or to cease expressing an opinion on the effectiveness
operations, or has no realistic alternative but of the Company and the Group’s internal
to do so. control.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
We also provide those charged with
governance with a statement that we have
complied with relevant ethical requirements
regarding independence, and to communicate
with them all relationships and other matters
that may reasonably be thought to bear on
our independence, and where applicable,
actions taken to eliminate threats or safeguards
applied.

From the matters communicated with those

charged with governance, we determine those
matters that were of most significance in the
audit of the financial statements of the current
period and are therefore the key audit matters.
We describe these matters in our auditor’s
report unless law or regulation precludes
public disclosure about the matter or when, in
extremely rare circumstances, we determine
that a matter should not be communicated in
our report because the adverse consequences
of doing so would reasonably be expected to
outweigh the public interest benefits of such
communication.

REPORT ON OTHER LEGAL AND

REGULATORY REQUIREMENTS
As required by section 163 (2) of the
Companies Act No. 07 of 2007, we have
obtained all the information and explanations
that were required for the audit and, as far
as appears from our examination, proper
accounting records have been kept by the
Company.

CA Sri Lanka membership number of the

engagement partner responsible for signing
this independent auditor’s report is 2618.

CHARTERED ACCOUNTANTS

Colombo, Sri Lanka

15th July 2024

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Group Company
For the year ended 31st March 2024 2023 2024 2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Revenue 7 47,258,528 46,059,884 1,231,849 759,460
Revenue taxes (1,055,618) (1,000,584) (37,657) (15,020)
Net revenue 46,202,910 45,059,300 1,194,192 744,440

Other income 8 19,110 191,744 142,488 515,068

Staff costs (7,467,911) (7,957,453) (256,374) (203,162)
Depreciation (3,797,247) (3,890,512) (63,038) (61,496)
Amortisation and impairment (1,328,625) (1,495,287) (67,820) (343,797)
Other operating expenses - direct 9 (11,831,086) (11,371,496) (398,923) (254,328)
Other operating expenses - indirect 10 (13,486,890) (13,225,410) (699,303) (410,771)

Profit/(loss) from operations 11 8,310,261 7,310,886 (148,778) (14,046)

Finance income 398,872 541,596 134,912 60,331

Finance expenses (5,666,668) (5,809,973) (363,326) (299,770)
Net financing expense 12 (5,267,796) (5,268,377) (228,414) (239,439)

Share of loss of equity accounted investees (net of tax) 20 (36,314) (397,559) - -

Profit/(loss) before taxation 3,006,151 1,644,950 (377,192) (253,485)

Income tax (expense)/reversal 13 (1,141,464) (1,598,141) 73,370 2,583
Profit/(loss) for the year 1,864,687 46,809 (303,822) (250,902)

Attributable to:
Equity holders of the parent company 1,140,112 (287,893) (303,822) (250,902)
Non - controlling interests 724,575 334,702 - -
Profit/(loss) for the year 1,864,687 46,809 (303,822) (250,902)

Earnings/(loss) per ordinary share - Basic/Diluted (Rs. ) 14 3.35 (0.94) (0.95) (0.83)

Figures in brackets indicate deductions.

The notes on pages 176 to 271 form an integral part of these financial statements.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Group Company
For the year ended 31st March 2024 2023 2024 2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Profit/(loss) for the year 1,864,687 46,809 (303,822) (250,902)

Other comprehensive income/(loss)

Items that will never be reclassified to profit or loss
Revaluation of freehold land 16 - 818,850 - 133,200
Share of other comprehensive income of equity accounted
20 6,459 29,889 - -
investees (net of tax)
Actuarial losses on defined benefit obligations 34.4 (19,927) (8,597) (6,752) (4,177)
Income tax on other comprehensive income 13.8 6,405 (707,931) 2,026 (148,731)
(7,063) 132,211 (4,726) (19,708)

Items that are or may be reclassified to profit or loss

Foreign currency translation differences of foreign operations (2,626,011) 2,636,086 - -
Net movement in cashflow hedge 41.5.1.3 1,501,550 (417,788) - -
(1,124,461) 2,218,298 - -
Other comprehensive income/(loss) for the year net of tax (1,131,524) 2,350,509 (4,726) (19,708)
Total comprehensive income/(loss) for the year net of tax 733,163 2,397,318 (308,548) (270,610)

Attributable to:
Equity holders of the parent company 333,676 1,213,993 (308,548) (270,610)
Non - controlling interests 399,487 1,183,325 - -
Total comprehensive income/(loss) for the year net of tax 733,163 2,397,318 (308,548) (270,610)

Figures in brackets indicate deductions.

The notes on pages 176 to 271 form an integral part of these financial statements.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
STATEMENT OF FINANCIAL POSITION

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
ASSETS
Non - current assets
Property, plant and equipment 16 66,183,428 72,644,868 1,911,214 1,708,129
Right-of-use assets 17 14,282,682 16,888,712 - -
Intangible assets 18 804,588 889,049 - -
Investment in subsidiaries 19 - - 7,418,461 7,470,779
Investment in equity accounted investees 20 63,185 93,040 992,673 1,008,176
Other financial assets 21 975,778 998,018 725,524 725,524
Deferred tax assets 22 359,966 486,592 - -
82,669,627 92,000,279 11,047,872 10,912,608
Current assets
Inventories 23 1,426,110 1,690,992 40,408 44,024
Trade and other receivables 24 3,315,811 2,534,933 140,154 89,078
Amounts due from holding company 25 1,068,116 146,435 - -
Amounts due from parent's group entities 26 1,386,708 939,895 1,366,866 603,407
Deposits and prepayments 881,417 795,287 21,992 39,689
Current tax receivable 14,895 28,723 3,890 4,731
Other financial assets 27 4,029,660 4,552,709 260,371 431,668
Cash and cash equivalents 28 2,297,233 5,262,311 147,562 186,710
14,419,950 15,951,285 1,981,243 1,399,307
Total assets 97,089,577 107,951,564 13,029,115 12,311,915

EQUITY AND LIABILITIES

Total equity attributable to equity holders of the company
Stated capital 29 3,554,587 3,554,587 3,554,587 3,554,587
Reserves 30 9,515,479 10,305,604 689,177 689,177
Retained earnings 8,290,016 7,181,065 5,878,756 6,202,154
21,360,082 21,041,256 10,122,520 10,445,918
Non - controlling interests 9,504,610 9,139,015 - -
Total equity 30,864,692 30,180,271 10,122,520 10,445,918

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Non - current liabilities
Interest - bearing liabilities - banks 31 28,562,441 36,588,535 318,126 535,332
Interest - bearing liabilities - leases 32 11,104,238 13,588,054 - -
Deferred tax liabilities 33 3,290,299 3,014,059 149,087 229,170
Employee benefits 34 366,966 315,641 60,733 47,235
43,323,944 53,506,289 527,946 811,737
Current liabilities
Trade payables 1,503,995 1,559,571 42,572 26,772
Other provisions and payables 35 5,774,814 5,482,238 171,875 159,131
Amounts due to holding company 2,531,875 1,313,017 1,609,944 502,434
Amounts due to parent's group entities 36 75,377 204,269 - 19,830
Interest - bearing liabilities - banks 31 5,693,006 6,114,421 217,205 177,154
Interest - bearing liabilities - leases 32 1,379,271 1,422,456 - -
Current tax payable 323,908 222,700 - -
Bank overdrafts and other short term borrowings 28 5,618,695 7,946,332 337,053 168,939
22,900,941 24,265,004 2,378,649 1,054,260
Total liabilities 66,224,885 77,771,293 2,906,595 1,865,997
Total equity and liabilities 97,089,577 107,951,564 13,029,115 12,311,915

The above Statements of Financial Position are to be read in conjunction with notes to the financial statements on pages 176 to 271.

I certify that the financial statements for the year ended 31st March 2024 are in compliance with the requirements of the Companies Act No. 07 of
2007.

C.M.S. Jayawickrama
Director

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Approved and signed for and on behalf of the Board:

Deshamanya D.H.S Jayawardena Ms. D.S.T. Jayawardena Dr. M.P Dissanayake

Chairman Joint Deputy Chairperson and Managing Director
Joint Managing Director

15th July 2024

Colombo
Sri Lanka

171
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 For the year ended 31st March

172
Attributable to equity holders of the parent
Group Stated General Fair Value Foreign Cashflow Revaluation Retained Total Non - Total
Capital Reserve Reserve Currency Hedge Reserve Earnings Controlling Equity
Translation Reserve Interests
Reserve
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Balance as at 01st April 2022 3,554,587 22,929 20,414 8,533,719 (2,858,488) 3,073,205 7,524,885 19,871,251 8,269,807 28,141,058
Adjustment on Surcharge tax levied
under Surcharge Act - - - - - - (13,924) (13,924) - (13,924)
Balance as at 01 st April 2022 3,554,587 22,929 20,414 8,533,719 (2,858,488) 3,073,205 7,510,961 19,857,327 8,269,807 28,127,134
(Adjusted)
Profit/(Loss) for the year - - - - - - (287,893) (287,893) 334,702 46,809
Other comprehensive income/(loss)
for the year - - 42,212 1,647,312 (250,673) 74,974 (11,939) 1,501,886 848,623 2,350,509

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Total comprehensive income/(loss) for - - 42,212 1,647,312 (250,673) 74,974 (299,832) 1,213,993 1,183,325 2,397,318
the year
Share of net assets of equity accounted 20 - - - - - - (364) (364) - (364)
investees
Prefrence dividends for 2020/2021and 15 - - - - - - (29,700) (29,700) - (29,700)
2021/2022
Dividends paid to non-controlling - - - - - - - - (314,117) (314,117)
interests
Balance as at 31st March 2023 3,554,587 22,929 62,626 10,181,031 (3,109,161) 3,148,179 7,181,065 21,041,256 9,139,015 30,180,271

Profit for the year - - - - - - 1,140,112 1,140,112 724,575 1,864,687

Other comprehensive income/(loss) for - - 10,899 (1,701,954) 900,930 - (16,311) (806,436) (325,088) (1,131,524)
the year
Total comprehensive income/(loss) for - - 10,899 (1,701,954) 900,930 - 1,123,801 333,676 399,487 733,163
the year
STATEMENT OF CHANGES IN EQUITY

Prefrence dividends for 2022/2023 15 - - - - - - (14,850) (14,850) - (14,850)

Dividends paid to non-controlling - - - - - - - - (33,892) (33,892)
interests
Balance as at 31st March 2024 3,554,587 22,929 73,525 8,479,077 (2,208,231) 3,148,179 8,290,016 21,360,082 9,504,610 30,864,692

Dividend per ordinary share - (Note No.15) Nil. (2022/23-Nil)

Figures in brackets indicate deductions.

The notes on pages 176 to 271 form an integral part of these financial statements.
 For the year ended 31st March

Company Stated General Revaluation Retained Total

Capital Reserve Reserve Earnings Equity
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April 2022 3,554,587 22,929 683,032 6,499,604 10,760,152

Adjustment on Surcharge tax levied under Surcharge Act (13,924) (13,924)
Balance as at 01 st April 2022 (Adjusted) 3,554,587 22,929 683,032 6,485,680 10,746,228
Loss for the year - - - (250,902) (250,902)
Other comprehensive loss for the year - - (16,784) (2,924) (19,708)
Total comprehensive loss for the year - - (16,784) (253,826) (270,610)
Preference dividends for 2020/2021 and 2021/2022 15 (29,700) (29,700)
Balance as at 31st March 2023 3,554,587 22,929 666,248 6,202,154 10,445,918
Loss for the year - - - (303,822) (303,822)
Other comprehensive loss for the year - - - (4,726) (4,726)
Total comprehensive loss for the year - - - (308,548) (308,548)
Preference dividends for 2022/2023 15 - - - (14,850) (14,850)
Balance as at 31st March 2024 3,554,587 22,929 666,248 5,878,756 10,122,520

Dividend per ordinary share - (Note No.15) Nil. (2022/23-Nil)

Figures in brackets indicate deductions.

The notes on pages 176 to 271 form an integral part of these financial statements.

Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC

173
STATEMENT OF CASH FLOWS

Group Company
For the year ended 31st March 2024 2023 2024 2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Cash flow from operating activities
Profit/(loss) before taxation 3,006,151 1,644,950 (377,192) (253,485)
Adjustments for
Depreciation 11 3,797,247 3,890,512 63,038 61,496
Amortisation of right-of-use assets and intangible assets 11 1,328,625 1,495,287 - 179
Impairment/(reversal of impairment) of trade debtors 11 6,709 (90,680) 508 (708)
Impairment/(reversal of impairment) of financial assets 11 43 (3,280) (9) (3,354)
Impairment of investment in subsidiaries and equity accounted investees 11 - - 67,820 343,618
Interest expense 12 5,666,668 5,809,973 363,326 299,770
Interest income 12 (398,872) (541,596) (134,912) (60,331)
Loss on disposal of property, plant and equipment 8 15,722 23,715 2,298 32
Loss on retirement of assets held for sale 8 - 72,269 - -
Provision for retirement benefit obligations 34.3 83,970 49,353 12,275 7,776
Share of loss of equity accounted investees (net of tax) 20 36,314 397,559 - -
Effect of movement in exchange rates 8 224,352 153,461 111,940 (64,775)
Operating profit before working capital changes 13,766,929 12,901,523 109,092 330,218

(Increase)/decrease in inventories 264,882 (63,920) 3,616 (24,021)

(Increase)/decrease in trade and other receivables (777,278) (162,215) (51,805) 116,418
(Increase)/decrease in amounts due from holding company (916,404) 339,278 - -
(Increase)/decrease in amount due from parent's group entities (392,949) (319,591) (662,765) 32,820
(Increase)/decrease in deposits and prepayments (86,130) (241,835) 17,697 26,837
Increase/(decrease) in trade payables (55,576) 267,622 15,800 1,495
Increase/(decrease) in other provisions and payables 292,576 123,154 12,744 79,962
Increase/(decrease) in amounts due to holding company 1,069,653 111,160 1,081,926 92,447
Increase/(decrease) in amount due to parent's group entities (128,892) 116,163 (19,830) (544,277)
Cash generated from operations 13,036,811 13,071,339 506,475 111,899

Interest expenses paid (4,762,324) (4,464,564) (337,742) (247,148)

Retirement benefit obligations paid 34 (39,140) (21,082) (5,529) (2,783)
Income taxes paid (462,895) (77,315) (3,624) (7,993)
Surcharge tax paid - (13,924) - (13,924)
Net cash flow generated from/(used in) operating activities 7,772,452 8,494,454 159,580 (159,949)

(carried forward to next page)

Figures in brackets indicate deductions.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Group Company
For the year ended 31st March 2024 2023 2024 2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
(brought forward from previous page)
Net cash flow generated from/(used in) operating activities 7,772,452 8,494,454 159,580 (159,949)

Cash flow from investing activities

Acquisition of property, plant and equipment 16 (1,838,236) (2,019,885) (268,421) (101,579)
Purchase of intangible assets 18 (11,565) (1,330) - -
Proceeds from disposal of property, plant and equipment 3,961 1,223 - -
Proceeds on retirement of assets held for sale - 1,878,448 - -
Purchase of term deposits 579,062 (737,890) 174,501 (357,744)
Interest received 305,915 443,594 31,023 23,020
Net cash used in investing activities (960,863) (435,840) (62,897) (436,303)

Cash flow from financing activities

Repayment of interest bearing liabilities - banks 31 (5,811,807) (6,889,954) (177,155) (155,505)
Proceeds from interest bearing liabilities - banks 31 504,424 321,921 - -
Repayment of interest bearing liabilities - leases 32 (2,162,060) (2,422,018) - -
Dividends paid to equity holders of the parent 15 (14,850) (29,700) (14,850) (29,700)
Dividends paid to shareholders of non - controlling interests (33,892) (314,117) - -
Proceeds from redemption of preference shares 19 - - - 400,000
Net cash (used in)/generated from financing activities (7,518,185) (9,333,868) (192,005) 214,795

Net decrease in cash and cash equivalents (706,596) (1,275,254) (95,322) (381,457)

Cash and cash equivalents at the beginning of the year (2,684,021) (1,201,796) 17,771 334,453
Effect of movement in exchange rates 69,155 (206,971) (111,940) 64,775
Cash and cash equivalents at the end of the year 28 (3,321,462) (2,684,021) (189,491) 17,771

Analysis of cash and cash equivalents at the end of the year

Cash at bank and in hand 1,848,009 1,874,496 147,562 141,740

Short term deposits less than 90 days 449,224 3,387,815 - 44,970
Bank overdrafts and other short term bank borrowings (5,618,695) (7,946,332) (337,053) (168,939)
Cash and cash equivalents at the end of the year 28 (3,321,462) (2,684,021) (189,491) 17,771

Figures in brackets indicate deductions.

The notes on pages 176 to 271 form an integral part of these financial statements.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

1. REPORTING ENTITY 2.2. Components of Financial Statements

1.1. Corporate information The consolidated financial statements include the following
Aitken Spence Hotel Holdings PLC (the ‘Company’) is a components:
public limited liability company incorporated and domiciled - a Statement of Profit or Loss and Other Comprehensive
in Sri Lanka and listed on the Colombo Stock Exchange. The Income providing information on the financial performance
Company’s registered office and the principal place of business of the Group and the Company for the year under review.
is located at No. 315, Vauxhall Street, Colombo 02.
- a Statement of Financial Position providing information on
The immediate parent of Aitken Spence Hotel Holdings PLC the financial position of the Group and the Company as at
is Aitken Spence PLC and ultimate parent is Milford Exports the year end.
(Ceylon) (Pvt) Ltd. - a Statement of Changes in Equity depicting all changes in
shareholders’ funds during the year under review for the
1.2. Consolidated Financial Statements Group and the Company.
The consolidated financial statements of the Company as at - a Statement of Cash Flow providing information to users
and for the year ended 31st March 2024 comprise the financial on the ability of the of the Group and the Company to
statements of Company and its subsidiaries (together referred generate cash and cash equivalents and utilisation of those
to as the “Group” and individually as “Group entities”) and the cash flows.
Group’s interest in equity-accounted investees.
- notes to the financial statements comprising material
1.3. Principal activities and nature of operations accounting policies and other explanatory information.

The principal activities of the Company are that of an

2.3. Responsibility for financial statements
investment holding company and hoteliering, while the
principal activities of the subsidiary companies are to engage The Board of Directors of the Company acknowledges their
in the business of hotel operation and auxiliary services responsibility for the financial statements, as set out in the
(hoteliering). There was no change in the nature of the principal “Annual Report of the Board of Directors”, “Statement of
activities of the group entities during the year. Directors’ Responsibilities for Financial Statements” and the
“Certification on the Statement of Financial Position”.
2. BASIS OF PREPARATION
2.4. Reporting date
2.1. Statement of compliance
The financial statements of all companies in the Group are
The Consolidated financial statements of the Group and the
prepared for a common financial year, which ends on 31st
separated financial statements of the Company have been
March except for Jetan Travel Services Company Pvt Ltd, ADS
prepared in accordance with Sri Lanka Accounting Standards
Resorts Pvt Ltd, Unique Resorts Pvt Ltd, Cowrie Investment Pvt
(herein referred to as SLFRSs/LKASs), laid down by the
Ltd and Ace Resorts Pvt Ltd whose financial year ends on 31st
Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka)
December.
and in compliance with the requirement of the Companies
Act No. 07 of 2007 and Sri Lanka Accounting and Auditing
2.5. Approval of financial statements by Directors
Standards Act No.15 of 1995. These financial statements,
except for information on cash flows and items measured at The financial statements of the Group and the Company
fair value as described in Note No. 2.6, have been prepared for the year ended 31st March 2024 were approved and
following the accrual basis of accounting. authorised for issue by the Board of Directors on 15th July
2024.
The Group did not adopt any inappropriate accounting
treatment, which is not in compliance with the requirements of 2.6. Basis of measurement
the SLFRSs and LKASs regulations governing the preparation The financial statements of the Group and the Company have
and presentation of the Financial Statements. been prepared on the historical cost basis, except for the
following material items in the Statement of Financial Position.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Item Basis of Measurement Note Company Country of Functional
Incorporation Currency
Land Measured at cost at the 16.3
time of acquisition and ADS Resorts Pvt Ltd Maldives USD
subsequently at revalued Unique Resorts Pvt Ltd Maldives USD
amounts which are the
Jetan Travel Services Maldives USD
fair values at the date of
Company Pvt Ltd
revaluation
Ace Resorts Pvt Ltd Maldives USD
Financial assets Measured at fair Value 21
Cowrie Investment Pvt Ltd Maldives USD
classified as fair
Aitken Spence Resorts Oman Oman Riyal
value through other
(Middle East) LLC
comprehensive Aitken Spence Hotel India Indian Rupees
income Managements (South India)
Retirement benefit Measured at the present 34 Pvt Ltd
obligations value of the defined Aitken Spence Hotel Services India Indian Rupees
benefit obligation Pvt Ltd
P.R Holiday Homes Pvt Ltd India Indian Rupees
Interest bearing Measured at amortised 32
liabilities- leases cost using effective Perumbalam Resorts Pvt Ltd India Indian Rupees
interest method Crest Star (B.V.I.) Ltd British Virgin USD
Island
2.7. Functional and presentation currency Aitken Spence Hotel Sri Lanka USD
Items included in these financial statements are measured Managements Asia (Pvt) Ltd
using the currency of the primary economic environment in Aitken Spence Hotels Sri Lanka USD
which the Company operates (the Functional Currency), which International (Pvt) Ltd
is the Sri Lankan Rupees.
2.8. Use of accounting judgements, estimates and
These financial statements are presented in Sri Lankan Rupees. assumptions
All financial information presented has been rounded to The preparation of the financial statements of the Group
the nearest thousand except where otherwise indicated as and the Company in conformity with SLFRSs/LKASs requires
permitted by the Sri Lanka Accounting Standard – LKAS 1 on management to make judgments, estimates and assumptions
‘Presentation of Financial Statements’. that affect the application of accounting policies and the
reported values of assets, liabilities, income and expenses,
Each entity in the Group determines its own functional accompany disclosures (including contingent liabilities). Those
currency and items included in the financial statements of which management has assessed to have the most material
these entities are measured using that Functional Currency. effect on the amounts recognised in the consolidated financial
statements have been discussed in the individual notes of
There was no change in the Group’s Presentation and the related financial statement line items. The estimates and
Functional Currency during the year under review. The financial associated assumptions are based on historical experience
statements of the Group are presented in Sri Lankan Rupees and various other factors that are believed to be reasonable
(LKR) which is the functional currency of the Group entities under the circumstances, the results of which form the basis
other than for the companies listed below where the functional of making a judgment about the carrying values of assets and
currency is either based on the country of incorporation of liabilities that are not readily apparent from other sources.
the respective company or elements that could influence in Actual results may differ from these estimates.
determining its functional currency.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and
in any future periods affected.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

The key assumptions concerning the future and other key a net basis or to realise the assets and settle the liabilities
sources of estimation uncertainty at the reporting date that simultaneously. Income and expenses are not offset in the
have a significant risk of causing a material adjustment to income statement, unless required or permitted by Sri Lanka
the carrying amounts of assets and liabilities within the next Accounting Standards and as specifically disclosed in the
financial year are also described in the individual notes of the “Material Accounting Policies “of the Company.
related financial statement line items below. The Group based
its assumptions and estimates on parameters available when 2.11. Going concern
the consolidated financial statements were prepared. Existing
The Group has prepared the financial statements for the year
circumstances and assumptions about future developments,
ended 31st March 2024 on the basis that it will continue to
however, may change due to market changes or circumstances
operate as a going concern.
arising that are beyond the control of the Group. Such changes
are reflected in the assumptions when they occur.
In determining the basis of preparing the financial statements
for the year ended 31st March 2024, based on available
Items that have a significant effect on Judgements, estimates
information, the management has assessed the prevailing
and assumptions and the respective notes that they are
macroeconomic conditions and its effect on the Group
included in are as follows,
companies and the appropriateness of the use of the going
concern basis.
Item Note

Going concern 2.11 The management has formed judgment that the Company,
its subsidiaries, associates, and joint ventures have adequate
Valuation of property, plant and equipment 16
resources to continue in operational existence for the
Impairment of non-financial assets 3.3 (d) foreseeable future driven by the continuous operationalisation
Recognition of deferred tax assets 22 of risk mitigation initiatives and monitoring of business
continuity and response plans at each business unit level along
Measurement of fair value of unquoted 21
with the financial strength of the Group.
investment
Measurement of loss rate to compute ECL 3.3 (d) Based on the publicly available information at the date these
Allowance for trade receivables financial statements were authorised for issue, management
Measurement of defined benefit obligations: 34 considered a number of severe but plausible scenarios with
key actuarial assumptions respect to possible impact of the downside economic scenarios
and climate related matters.
Measurement of contingent liabilities 3.13 & 38

Furthermore, the Management is not aware of any material

2.9. Materiality and aggregation
uncertainties that may cast significant doubt upon the Group’s
Each material class of similar items is presented separately ability to continue as a going concern.
in the financial statements. Items of dissimilar nature or
function are presented separately unless they are immaterial as Having presented the outlook of the Group to the Board, the
permitted by the Sri Lanka Accounting Standard – LKAS 1 on Directors are satisfied that the Group has adequate resources
‘Presentation of Financial Statements’ and amendments to the to continue in operational existence for the foreseeable future.
LKAS 1. Management concluded that the range of possible outcomes
considered at arriving at this judgment does not give rise to
Notes to the financial statements are presented in a material uncertainties related to events or conditions that may
systematic manner which ensures the understandability and cast significant doubt on the Group’s ability to continue as a
comparability of financial statements of the Group and the going concern.
Company. Understandability of the financial statements is
not compromised by obscuring material information with 2.12. Changes in material accounting policies
immaterial information or by aggregating material items that
have different natures or functions. 2.12.1. Material accounting policy information
The Group adopted Disclosure of Accounting Policies
2.10. Offsetting (Amendments to LKAS 1 and SLFRS Practice Statement 2) from
1 April 2023. Although the amendments did not result in any
Financial assets and financial liabilities are offset, and the
changes to the accounting policies themselves, they impacted
net amount reported in the statement of financial position,
the accounting policy information disclosed in the financial
only when there is a legally enforceable right to offset the
statements.
recognised amounts and there is an intention to settle on

178
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 The amendments require the disclosure of ‘material’, rather 3.1.1. Business combinations
than ‘significant’, accounting policies. The amendments also Business combinations are accounted for using the acquisition
provide guidance on the application of materiality to disclosure method as at the acquisition date, which is the date on which
of accounting policies, assisting entities to provide useful, control is transferred to the Group.
entity-specific accounting policy information that users need
to understand other information in the financial statements. The Group accounts for business combinations under the
Management reviewed the accounting policies and made acquisition method when the acquired set of activities and
updates to the information disclosed in Note 3 Material assets meets the definition of a business and control is
accounting policies (2022/2023: Significant accounting transferred to the Group. In determining whether a particular
policies) in certain instances in line with the amendments. set of activities and assets is a business, the Group assesses
whether the set of assets and activities acquired includes, at a
2.12.2. Deferred tax related to assets and liabilities arising from a minimum, an input and substantive process and whether the
single transaction acquired set has the ability to produce outputs.
The Group has adopted Deferred Tax related to Assets and
Liabilities arising from a Single Transaction (Amendments The Group has an option to apply a ‘concentration test’ that
to LKAS 12) from 1 April 2023. The amendments narrow permits a simplified assessment of whether an acquired
the scope of the initial recognition exemption to exclude set of activities and assets is not a business. The optional
transactions that give rise to equal and offsetting temporary concentration test is met if substantially all of the fair value of
differences – e.g., leases. For leases, group is required to the gross assets acquired is concentrated in a single identifiable
recognise the associated deferred tax assets and liabilities from asset or group of similar identifiable assets.
the beginning of the earliest comparative period presented,
with any cumulative effect recognised as an adjustment to The Group measures goodwill at the acquisition date as the
retained earnings or other components of equity at that date. fair value of the consideration transferred plus the recognised
For all other transactions, the Group applies the amendments amount of any non-controlling interests in the acquiree plus if
to transactions that occur at or after the beginning of the the business combination achieved in stages, the fair value of
earliest period presented. the pre-existing interest in the acquiree less the net recognised
amount (generally fair value) of the identifiable assets acquired
The Group previously accounted for deferred tax on leases and liabilities assumed, all measured as of the acquisition date.
by applying the ‘integrally linked’ approach, resulting in a Transaction costs, other than those associated with the issue of
similar outcome as under the amendments, except that the debt or equity securities, that the Group incurs in connection
deferred tax asset or liability was recognised on a net basis. with a business combination are expensed as incurred.
Following the amendments, the Group has recognised a
separate deferred tax asset in relation to its lease liabilities Any contingent consideration payable is measured at fair
and a deferred tax liability in relation to its right-of-use value at the acquisition date. If the contingent consideration is
assets. However, there was no impact on the statement of classified as equity, then it is not re-measured, and settlement
financial position because the balances qualify for offset under is accounted within equity. Otherwise, subsequent changes in
paragraph 74 of LKAS 12. There was also no impact on the the fair value of the contingent consideration are recognised in
opening retained earnings as at 1 April 2022 as a result of the the income statement.
change. The key impact for the Group relates to the recognition
of a separate deferred tax asset in relation to its lease liabilities The goodwill arising on acquisition of subsidiaries is presented
and a deferred tax liability in relation to its right-of-use assets as an intangible asset.
as disclosed in Note 33.2.
After initial recognition, goodwill is measured at cost less any
3. SUMMARY OF MATERIAL ACCOUNTING POLICIES accumulated impairment losses. For the purpose of impairment
testing, goodwill acquired in a business combination is
3.1. Basis of consolidation
from the acquisition date, allocated to each of the Group’s
The Group’s financial statements comprise of the consolidation cash-generating units that are expected to benefit from the
of financial statements of the company its subsidiaries prepared combination, irrespective of whether other assets or liabilities
in terms of Sri Lanka Accounting standard (SLFRS -10) - of the acquiree are assigned to those units.
Consolidated Financial Statements and share of profit and loss
and net assets of equity accounted investees prepared in terms If the Group’s interest in the net fair value of the identifiable
of Sri Lanka Accounting standard (LKAS 28) - Investments in assets, liabilities and contingent liabilities of the entity acquired
Associates and Joint Ventures. exceed the cost of the acquisition of the entity, the surplus,
which is a gain on bargain purchase is recognised immediately
in the consolidated income statement.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Where goodwill has been allocated to a cash-generating unit When an investee’s purpose and design are considered, it
and part of the operation within that unit is disposed of, the may be clear that an investee is controlled by means of equity
goodwill associated with the operation disposed of is included instruments that give the holder proportionate voting rights,
in the carrying amount of the operation when determining the such as ordinary shares in the investee. In this case in the
gain or loss on disposal of the operation. Goodwill disposed of absence of any additional arrangements that alter decision
in this circumstance is measured based on the relative values making, the assessment of control focuses on which party, if
of the operation disposed of and the portion of the cash any, is able to exercise voting rights sufficient to determine the
generating unit retained. investee’s operating and financing policies. The investor that
holds a majority of those voting rights, in the absence of any
3.1.2. Non-controlling interests other factors, controls the investee.
The proportion of the profits or losses after taxation applicable
to outside shareholders of subsidiary companies is included Therefore, Group considers all relevant facts and circumstances
under the heading of “Non – controlling interest” in the in assessing whether it has power over an investee including:
Consolidated Income Statement. Losses applicable to the * The contractual arrangement with the other vote holders
non-controlling interests in a subsidiary is allocated to the non- of the investee
controlling interest even if doing so causes the non-controlling
interests to have a deficit balance. * Rights arising from other contractual arrangements

* The Group’s voting rights and potential voting rights

The interest of the minority shareholders in the net assets
employed of these companies are reflected under the heading The Group reassesses whether or not it controls an investee if
of “Non – controlling interest” in the Consolidated Statement of facts and circumstances indicate that there are changes to one
Financial Position. or more of the above.

Acquisitions of non-controlling interests are accounted for as Consolidation of a subsidiary begins when the Group obtains
transactions with equity holders in their capacity as owners control over the subsidiary and ceases when the Group
and therefore no goodwill is recognised as a result of such loses control of the subsidiary. Assets, liabilities, income and
transactions. Adjustments to non-controlling interest arising expenses of a subsidiary acquired or disposed of during the
from transactions that do not involve the loss of control are year are included in the consolidated financial statements from
based on a proportionate amount of the net assets of the the date the Group gains control until the date the Group
subsidiary. ceases to control the subsidiary.

Entities that are subsidiaries of another entity which is a

3.1.3. Subsidiaries
subsidiary of the Company are also treated as subsidiaries of
Subsidiaries are those entities that are controlled by the Group. the Company.
Control is achieved when the Group is exposed or has rights to
variable returns from its involvement with the investee and has
The accounting policies of subsidiaries have been changed
the ability to affect those returns through its power over the
when necessary to align them with the policies adopted by the
investee. The Group controls an investee if only if, the Group
Group.
has:

* Power over the investee (i.e., existing rights that give it 3.1.4. Loss of control
the current ability to direct the relevant activities of the When the Group loses control over a subsidiary, the Group
investee) derecognises the assets and liabilities of the subsidiary, any
* Exposure or rights to variable returns from its involvement non-controlling interests and the other components of equity
with the investee related to the subsidiary. Any surplus or deficit arising on
the loss of control is recognised in profit or loss. If the Group
* The ability to use its power over the investee to affect the retains any interest in the previous subsidiary, then such
amount of the investor’s returns interest is measured at fair value as at the date that control
When assessing control of an investee, an investor shall is lost. Subsequently, It is accounted for an equity accounted
consider the purpose and design of the investee in order to investee or as a FVOCI financial asset depending on the level
identify the relevant activities, how decision about the relevant of influence retained.
activities is made, who has the current ability to direct those
activities and who receives returns from those activities. A change in the ownership interest of a subsidiary, without a
loss of control, is accounted for as an equity transaction.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
3.1.5. Investments in equity accounted investees (investments in recognised directly in equity of the associate or joint venture
associates and joint ventures) the Group recognises its share of any changes when applicable
in the statement of changes in equity.
Associates are those entities in which the Group has significant
influence, but does not have control, over the financial and
operating policies. A significant influence is the power to The aggregate of the Group’s share of profit or loss of an
participate in the financial and operating policy decisions of associate and a joint venture is shown on the face of the
the investee but does not have the control or joint control over statement of profit or loss outside operating profit and
those policies. Significant influence is presumed to exist when represents profit or loss after tax and non-controlling interests
the Group holds between 20% - 50% of the voting rights of in the subsidiaries of the associate or joint venture.
another entity.
At each reporting date the Group determines whether there
Joint ventures are arrangements in which the Group has joint is an objective evidence that the investment in associate or
control and have rights to the net assets of the arrangement. joint venture is impaired. If there is such evidence that the
The Group has joint control in a venture when there is investment in associate or joint venture is impaired, the Group
contractually agreed sharing of control of the venture and the calculates the amount of impairment as the difference between
decisions about the relevant activities of the venture require the recoverable amount of the associate or joint venture and
the unanimous consent of the parties sharing control. its carrying values and then recognises the amount in share
of losses of equity accounted investees or joint venture in the
income statement.
The Group determines significant influence or joint control
by taking into account similar considerations necessary to
determine control over subsidiaries. The Group discontinues the use of the equity method from the
date it ceases to have significant influence over an associate
or joint control over the joint venture and accounts for the
The Group’s investment in associate and joint venture are
investment in accordance with the Group’s accounting policy
treated as equity accounted investees and accounted for
for financial instruments. Any difference between the carrying
using the equity method and are recognised initially at cost,
amount of the associate or the joint venture upon loss of
which includes transaction costs. The carrying amount of
significant influence or joint control and fair value of the
the investment is increased or decreased to recognise the
retained investment and proceeds from disposal is recognised
investor’s share of net assets of the investee after the date
in profit or loss.
of acquisition. The investor’s share of Investee’s profit or loss
is recognised in the investor’s profit or loss. Distributions
received from an investee reduces the carrying amount of 3.1.6. Intra-group transactions
the investment. Adjustment to the carrying amount may also Transfer prices between Group entities are set on an arms-
be necessary for changes in the investor’s proportionate length basis in a manner similar to transactions with third
interest in the investee arising from changes in investee’s other parties.
comprehensive income. Goodwill relating to the associate
or joint venture is included in the carrying amount of the 3.1.7. Transactions eliminated on consolidation
investment and not tested for impairment individually.
Intra-group balances and transactions, and any unrealised gains
and losses or income and expenses arising from intra-group
When the Group’s share of losses exceeds its interest in transactions, are eliminated in preparing the consolidated
an equity-accounted investee, the carrying amount of that financial statements. Unrealised gains arising from transactions
interest, including any long-term investments, is reduced with equity accounted investees are eliminated against
to nil and the recognition of further losses is discontinued the investment to the extent of the Group’s interest in the
except to the extent that the Group has an obligation or has investee. Unrealised losses are eliminated in the same way
made payments on behalf of the investee. If the Associate as unrealised gains, but only to the extent that there is no
subsequently reports profits, the Group resumes recognising evidence of impairment.
its share of those profits only after its share of the profits equal
the share of losses not recognised previously.
3.2. Foreign currency

The statement of profit or loss reflects the Group’s share of 3.2.1. Foreign currency transactions
the results of operations of the associates or joint venture. Transactions in foreign currencies are translated to the
Any changes in OCI of those investees is presented as part of respective functional currencies of Group entities at exchange
the Group’s OCI. In addition, when there has been a change rates at the dates of transactions. Monetary assets and
liabilities denominated in foreign currency at the reporting date

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

are retranslated to the functional currency at the exchange Foreign exchange gains or losses arising from a monetary
rate at that date. Non-monetary assets and liabilities that are items’ receivable from or payable to a foreign operation, the
measured at fair value in a foreign currency are translated into settlement of which is neither planned nor likely to occur in
the functional currency at the exchange rate when the fair the foreseeable future and which in substance is considered
value was determined. to form part of the net investment in the foreign operation,
are recognised in other comprehensive income in the foreign
Non-monetary assets and liabilities in a foreign currency that currency translation reserve.
are measured in terms of historical cost are translated using
the exchange rate at the date of transaction. Non-monetary 3.3. Financial instruments
assets and liabilities denominated in foreign currencies that are
(a) Recognition and initial measurement
measured at fair value are retranslated to reporting currency
using the exchange rate that was prevailing on the date the fair Trade receivables are initially recognised when they are
value was determined. originated. All other financial assets are initially recognised
when the Group becomes a party to the contractual provisions
Foreign currency differences arising on retranslation generally of the instrument.
are recognised in income statement. However, the following
items are recognised in the other comprehensive income. A financial asset (unless it is a trade receivable without a
significant financing component) is initially measured at fair
i. Differences arising on the retranslation of fair value value plus, for an item not at FVTPL, transaction costs that
through other comprehensive income equity investments are directly attributable to its acquisition or issue. A trade
which was recognised in other comprehensive income. receivable without a significant financing component is initially
Foreign currency gains and losses are reported on a net measured at the transaction price.
basis in the income statement.
(b) Classification and subsequent measurement
ii. Gains and losses arising from translating the financial On initial recognition, a financial asset is classified as measured
statements of foreign operations at: amortised cost; FVOCI – equity investment; or FVTPL.

iii. Qualifying cash flows hedges to the extent that the hedge Financial assets are not reclassified subsequent to their initial
is effective recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial
3.2.2. Foreign operations assets are reclassified on the first day of the first reporting
period following the change in the business model.
Subsidiaries incorporated outside Sri Lanka are treated
as foreign operations. The assets and liabilities of foreign
operations, including goodwill and fair value adjustments A financial asset is measured at amortised cost if it meets both
arising on acquisition, are translated at the rate of exchange of the following conditions and is not designated as at FVTPL:
prevailing on the reporting date. The income and expenses
of the foreign entities are translated at an exchange rate • it is held within a business model whose objective is to
approximating the actual rate at the time of the transaction. hold assets to collect contractual cash flows; and
For practical purposes this is presumed to be the average rate • its contractual terms give rise on specified dates to cash
for each month. flows that are solely payments of principal and interest on
the principal amount of outstanding.
Foreign currency differences are recognised in other
comprehensive income and presented in the foreign currency On initial recognition of an equity investment that is not
translation reserve in equity. When a foreign operation is held for trading, the Group may irrevocably elect to present
disposed of such that control, significant influence or joint subsequent changes in the investment’s fair value in OCI. This
control is lost, the cumulative amount in the translation reserve election is made on an investment-by-investment basis.
related to that foreign operation is reclassified to profit or loss All financial assets not classified as measured at amortised cost
as part of the gain or loss on disposal. On the partial disposal or FVOCI as described above are measured at FVTPL. This
of a subsidiary that includes a foreign operation, the relevant includes all derivative financial assets. On initial recognition,
proportion of such cumulative amount is reattributed to non- the Group may irrevocably designate a financial asset that
controlling interest, in any other partial disposal of foreign otherwise meets the requirements to be measured at
operation, the relevant proportion is reclassified to profit or amortised cost or at FVOCI as at FVTPL if doing so eliminates
loss. or significantly reduces an accounting mismatch that would
otherwise arise.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Financial assets - Business model assessment: • contingent events that would change the amount or timing
The Group makes an assessment of the objective of the of cash flows;
business model in which a financial asset is held at a portfolio • terms that may adjust the contractual coupon rate,
level because this best reflects the way the business is including variable-rate features;
managed, and information is provided to management. The
information considered includes: • prepayment and extension features; and

• the stated policies and objectives for the portfolio and • terms that limit the Group’s claim to cash flows from
the operation of those policies in practice. These include specified assets (e.g. nonrecourse features).
whether management’s strategy focuses on earning A prepayment feature is consistent with the solely payments
contractual interest income, maintaining a particular of principal and interest criterion if the prepayment amount
interest rate profile, matching the duration of the financial substantially represents unpaid amounts of principal and
assets to the duration of any related liabilities or expected interest on the principal amount outstanding, which may
cash outflows or realising cash flows through the sale of include reasonable additional compensation for early
the assets; termination of the contract. Additionally, for a financial asset
• how the performance of the portfolio is evaluated and acquired at a discount or premium to its contractual par-
reported to the Group’s management; amount, a feature that permits or requires prepayment at
an amount that substantially represents the contractual par
• the risks that affect the performance of the business model amount plus accrued (but unpaid) contractual interest (which
(and the financial assets held within that business model) may also include reasonable additional compensation for early
and how those risks are managed; termination) is treated as consistent with this criterion if the
• how managers of the business are compensated - e.g. fair value of the prepayment feature is insignificant at initial
whether compensation is based on the fair value of the recognition.
assets managed or the contractual cash flows collected;
and Financial assets - Subsequent measurement and gains and
losses:
• the frequency, volume and timing of sales of financial
assets in prior periods, the reasons for such sales and Item Basis of Measurement
expectations about future sales activity
Financial assets at These assets are subsequently measured
Transfers of financial assets to third parties in transactions FVTPL at fair value. Net gains and losses,
that do not qualify for derecognition are not considered including any interest or dividend
sales for this purpose, consistent with the Group’s continuing income, are recognised in profit or loss.
recognition of the assets. Financial assets that are held for
Financial assets at These assets are subsequently measured
trading or are managed and whose performance is evaluated
amortised cost at amortised cost using the effective
on a fair value basis are measured at FVTPL.
interest method. The amortised cost is
reduced by impairment losses. Interest
Financial assets –Assessment whether contractual cash
income, foreign exchange gains and
flows are solely payments of principal and interest:
losses and impairment are recognised
For the purposes of this assessment, ‘principal’ is defined as the in profit or loss. Any gain or loss on
fair value of the financial asset on initial recognition. ‘Interest’ derecognition is recognised in profit or
is defined as consideration for the time value of money and for loss.
the credit risk associated with the principal amount outstanding
Equity investments at These assets are subsequently measured
during a particular period of time and for other basic lending
FVOCI at fair value. Dividends are recognised
risks and costs (e.g. liquidity risk and administrative costs), as
as income in profit or loss unless the
well as a profit margin.
dividend clearly represents a recovery of
In assessing whether the contractual cash flows are solely part of the cost of the investment. Other
payments of principal and interest, the Group considers the net gains and losses are recognised in
contractual terms of the instrument. This includes assessing OCI and are never reclassified to profit
whether the financial asset contains a contractual term that or loss.
could change the timing or amount of contractual cash flows
such that it would not meet this condition. In making this
assessment, the Group considers:

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Financial liabilities - Classification, subsequent Loss allowance for debt instruments is measured at 12-month
measurement and gains and losses ECL unless credit risk (i.e. the risk of default occurring over the
expected life of the financial instrument) of the debt instrument
Financial liabilities are classified as measured at amortised.
has not increased significantly since initial recognition.
Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised When determining whether the credit risk of a financial
in profit or loss. Any gain or loss on derecognition is also asset has increased significantly since initial recognition and
recognised in profit or loss. when estimating ECLs, the Group considers reasonable and
supportable information that is relevant and available without
undue cost or effort. This includes both quantitative and
(c) Derecognition
qualitative information and analysis, based on the Group’s
Financial assets historical experience and informed credit assessment and
The Group derecognises a financial asset when the contractual including forward-looking information.
rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a The Group assumes that the credit risk on a financial asset has
transaction in which substantially all of the risks and rewards of increased significantly if it is more than 30 days past due.
ownership of the financial asset are transferred or in which the
Group neither transfers nor retains substantially all of the risks The Group considers a financial asset to be in default when:
and rewards of ownership and it does not retain control of the • the borrower is unlikely to pay its credit obligations to the
financial asset. Group in full, without recourse by the Group to actions
such as realising security (if any is held); or
The Group enters into transactions whereby it transfers assets
recognised in its statement of financial position but retains • the financial asset is more than 180 days past due.
either all or substantially all of the risks and rewards of the Lifetime ECLs are the ECLs that result from all possible default
transferred assets. events over the expected life of a financial instrument.

In these cases, the transferred assets are not derecognised. 12-month ECLs are the portion of ECLs that result from
default events that are possible within the 12 months after the
Financial liabilities reporting date (or a shorter period if the expected life of the
The Group derecognises a financial liability when its contractual instrument is less than 12 months).
obligations are discharged or cancelled or expire. The Group
also derecognises a financial liability when its terms are The maximum period considered when estimating ECLs is the
modified and the cash flows of the modified liability are maximum contractual period over which the Group is exposed
substantially different, in which case a new financial liability to credit risk.
based on the modified terms is recognised at fair value.
Measurement of ECLs
On derecognition of a financial liability, the difference between ECLs are a probability-weighted estimate of credit losses.
the carrying amount extinguished and the consideration Credit losses are measured as the present value of all cash
paid (including any non-cash assets transferred or liabilities shortfalls (i.e. the difference between the cash flows due to the
assumed) is recognised in profit or loss. entity in accordance with the contract and the cash flows that
the Group expects to receive).
(d) Impairment
Non-derivative financial assets ECLs are discounted at the effective interest rate of the
financial asset.
Financial instruments and contract assets
The Group recognises allowances for expected credit losses Credit-impaired financial assets
(ECLs) on financial assets measured at amortised cost.
At each reporting date, the Group assesses whether financial
assets carried at amortised cost are credit impaired. A financial
Loss allowances for trade receivables is always measured at an
asset is ‘credit-impaired’ when one or more events that have a
amount equal to lifetime ECLs.
detrimental impact on the estimated future cash flows of the
financial asset have occurred.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Evidence that a financial asset is credit-impaired includes the to the asset. For the purpose of impairment testing, assets
following observable data: that cannot be tested individually are grouped together into
the smallest group of assets that generates cash inflows from
• significant financial difficulty of the borrower or issuer; continuing use that are largely independent of the cash inflows
of other assets.
• a breach of contract such as a default or being more than
180 days past due; An impairment loss is recognised if the carrying amount of an
asset exceeds its estimated recoverable amount. Impairment
• the restructuring of a loan or advance by the Group on losses are recognised in profit or loss.
terms that the Group would not consider otherwise;
An impairment loss in respect of other assets, recognised
• it is probable that the borrower will enter bankruptcy or in prior periods, is assessed at each reporting date for any
other financial reorganisation; or indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change
• the disappearance of an active market to a security in the estimates used to determine the recoverable amount.
because of financial difficulties. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount
Presentation of allowance for ECL in the statement of that would have been determined, net of depreciation or
financial position amortisation, if no impairment loss had been recognised.

Loss allowances for financial assets measured at amortised cost

(e) Hedge accounting and cash flow hedge
are deducted from the gross carrying amount of the assets.
‘Hedging’ is a process of using a financial instrument to
Write-off mitigate all or some of the risk associated to a hedged item.
‘Hedge accounting’ changes the timing of recognising the
The gross carrying amount of a financial asset is written off
gains and losses on either the hedged item or the hedging
when the Group has no reasonable expectations of recovering
instrument so that both are recognised in profit or loss or other
a financial asset in its entirety or a portion thereof. For
comprehensive income in the same accounting period in order
individual customers, the Group has a policy of writing off
to record the economic substance of the relationship between
the gross carrying amount when the financial asset is 365
the hedged item and instrument.
days past due based on historical experience of recoveries of
similar assets. For corporate customers, the Group individually
At the inception of a hedge relationship, the Group formally
makes an assessment with respect to the timing and amount of
designates and documents the hedge relationship to which
writeoff based on whether there is a reasonable expectation of
the Group wishes to apply hedge accounting and the risk
recovery. The Group expects no significant recovery from the
management objective and strategy for undertaking the hedge.
amount written off. However, financial assets that are written
The documentation includes identification of the hedging
off could still be subject to enforcement activities in order to
instrument, the hedged item or transaction, the nature of
comply with the Group’s procedures to recovery of amounts
the risk being hedged and how the Group will assess the
due.
effectiveness of changes in the hedging instrument’s fair
value in offsetting the exposure to changes in the hedged
Impairment Policy: Non-financial assets item’s fair value or cash flows attributable to the hedged risk.
The carrying amounts of the Group’s non-financial assets, other Such hedges are expected to be highly effective in achieving
than deferred tax assets, are reviewed at each reporting date to offsetting changes in fair value or cash flows and are assessed
determine whether there is any indication of impairment. If any on a prospective basis according to SLFRS 09 requirements.
such indication exists, then the asset’s recoverable amount is
estimated. For intangible assets that have indefinite useful lives The Group holds derivative financial instruments to hedge its
or that are not yet available for use, the recoverable amount is foreign currency and interest rate risk exposures. Embedded
estimated each year at the same time. derivatives are separated from the host contract and accounted
for separately if the host contract is not a financial asset and
The recoverable amount of an asset is the greater of its value in certain criteria are met.
use and its fair value less costs to sell. In assessing value in use,
the estimated future cash flows are discounted to their present Derivatives are initially measured at fair value. Subsequent to
value using a pre-tax discount rate that reflects current market initial recognition, derivatives are measured at fair value, and
assessments of the time value of money and the risks specific changes therein are generally recognised in profit or loss.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

The Group designates certain derivatives as hedging Preference Shares

instruments to hedge the variability in cash flows associated Preference Share capital is classified as equity if it is non-
with highly probable forecast transactions arising from changes redeemable or redeemable only at the Company’s option
in foreign exchange rates and interest rates and certain and any dividends are discretionary. Dividends thereon are
derivatives and non-derivative financial liabilities as hedges recognised as distributions within equity upon approval by the
of foreign exchange risk on a net investment in a foreign Company’s shareholders.
operation.
Preference share capital is classified as a financial liability if
Cash Flow Hedge it is redeemable on a specific date or at the option of the
A hedge of an exposure to variability in cash flows that is shareholders, or if dividend payments are not discretionary.
attributable to a particular risk associated with a recognises Dividends thereon are recognised as interest expense in
asset, liability or a highly probable forecast transaction that income statement as accrued.
could affect the profit or loss is classified as a cash flow hedge.
3.5. Assets and bases of their valuation
When a non-derivative financial liability is designated as a
3.5.1. Property, plant and equipment
cash flow hedging instrument, the effective portion of changes
in the fair value of the non-derivative financial liability is 3.5.1.1. Recognition and measurement
recognised in OCI and accumulated in the hedging reserve. Items of property, plant and equipment other than land, are
The effective portion of changes in the fair value of the non- stated at costs less accumulated depreciation and accumulated
derivative financial liability that is recognised in OCI is limited impairment losses.
to the cumulative change in fair value of the hedged item,
determined on a present value basis, from inception of the The cost of property, plant and equipment comprises its
hedge. Any ineffective portion of changes in the fair value of purchase price and any directly attributable costs of bringing
the non-derivative financial liability is recognised immediately in the asset to working condition for its intended use. The cost
profit or loss. of self-constructed assets includes the cost of materials, direct
labour and any other costs directly attributable to bringing the
If the hedge no longer meets the criteria for hedge accounting asset to the working condition of its intended use. This also
(after taking into account any rebalancing of the hedging includes the costs of dismantling and removing the items and
relationship) or the hedging instrument is sold, expires, restoring the site on which they are located and borrowing
is terminated or is exercised, then hedge accounting is costs on qualifying assets.
discontinued prospectively. When hedge accounting for
cash flow hedges is discontinued, the amount that has been All items of property, plant and equipment are recognised
accumulated in the hedging reserve remains in equity until, initially at cost.
for a hedge of a transaction resulting in the recognition of a
non-financial item, it is included in the non-financial item’s cost The Group recognises land owned by them in the statement
on its initial recognition or, for other cash flow hedges, it is of financial position at their revalued amount. Revaluations
reclassified to profit or loss in the same period or periods as the are performed with sufficient regularity such that the carrying
hedged expected future cash flows affect profit or loss. amount does not differ materially from that which would be
determined using fair values at the end of each reporting
If the hedged future cash flows are no longer expected to period. If the fair values of land do not change other than by
occur, then the amounts that have been accumulated in a significant amount at each reporting period, the Group will
the hedging reserve and the cost of hedging reserve are revalue such land every five years.
immediately reclassified to profit or loss.
Any surplus arising on the revaluation is recognised in other
3.4. Stated capital comprehensive income except to the extent that the surplus
reverses a previous revaluation deficit on the same asset
Ordinary shares
recognised in income statement, in which case the credit to
Ordinary shares are classified as equity. Incremental costs that extent is recognised in income statement. Any deficit on
directly attributable to the issue of ordinary shares are revaluation is recognised in the income statement except to
recognised as a deduction from equity. the extent that it reverses a previous revaluation surplus on the

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 same asset, in which case the debit to that extent is recognised sale or on the date that the asset is disposed of. Leased assets
in other comprehensive income. Therefore, revaluation are depreciated over the shorter of the lease term and their
increases and decreases cannot be offset, even within a class useful lives unless it is reasonably certain that the Group will
of assets. obtain ownership by the end of the lease term.

External, independent qualified valuers having appropriate The estimated useful lives are as follows:
experience in valuing properties in locations of properties being
• Leasehold Premises Over the remaining lease
valued, value the land owned by the Group based on market
period
values, this is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between • Buildings 08- 50 years
market participants at the measurement date. The details of the
• Plant and Equipment 10-20 years
land valuation are disclosed in Note No. 16.3.2 to the financial
statements. • Kitchen Equipment 05 -15 years

• Office Equipment 03- 10 years

Upon disposal, any related revaluation reserve is transferred
from the revaluation reserve to accumulated profits and is not • Sports Equipment 05-10 years
taken into account in arriving at the gain or loss on disposal.
• Motor Vehicles 04-06 years
Gains and losses on disposal of an item of property, plant and • Motorboats 5 years
equipment are determined by comparing the proceeds from
• Swimming Pool and Equipment 15- 30 years
disposal of with the carrying amount of property, plant and
equipment and are recognised net within other income in • Furniture and Fittings 10- 20 years
income statement.
• Crockery, Cutlery and Glassware 03-05 years

3.5.1.2. Significant components of property, plant and equipment • Soft Furnishing 03-05 years
When parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items Depreciation is not provided on land and assets under
of property plant and equipment and depreciated separately construction.
based on their useful life.
The depreciation methods, useful lives and residual values are
3.5.1.3. Subsequent costs reviewed at each financial year end and adjusted if appropriate.

The cost of replacing a component of an item of property, plant

3.5.2. Leases
and equipment is recognised in the carrying amount of the item
if it is probable that the future economic benefits embodied At inception of a contract, the Group assesses whether a
with the item will flow to the Group, and the cost of the item contract is, or contains, a lease. A contract is, or contains,
can be measured reliably. The costs of the day-to-day servicing a lease if the contract conveys the right to control the use
and any other costs are recognised in the income statement as of an identified asset for a period of time in exchange for
and when incurred. consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Group uses the
3.5.1.4. Depreciation definition of a lease in SLFRS 16.

Depreciation is based on the cost of an asset less its residual

• As a lessee
value.
At commencement or on modification of a contract that
Depreciation is recognised in the income statement on a contains a lease component, the Group allocates the
straight-line basis over the estimated useful lives of each consideration in the contract to each lease component on
component of an item of property, plant and equipment. the basis of its relative stand-alone prices. However, for the
Depreciation of an asset begins when it is available for use and leases of property the Group has elected not to separate non-
ceases at the earlier date that the asset is classified as held for lease components and account for the lease and non-lease
components as a single lease component.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

The Group recognises a right-of-use asset and a lease liability the amount expected to be payable under a residual value
at the lease commencement date. The right of-use asset is guarantee, if the Group changes its assessment of whether it
initially measured at cost, which comprises the initial amount will exercise a purchase, extension or termination option or if
of the lease liability adjusted for any lease payments made at there is a revised in-substance fixed lease payment.
or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the When the lease liability is remeasured in this way, a
underlying asset or to restore the underlying asset or the site corresponding adjustment is made to the carrying amount
on which it is located, less any lease incentives received. of the right-of-use asset or is recorded in profit or loss if the
carrying amount of the right-of-use asset has been reduced to
The right-of-use asset is subsequently depreciated using the zero.
straight-line method from the commencement date to the end
of the lease term, unless the lease transfers ownership of the The Group presents right-of-use assets that do not meet the
underlying asset to the Group by the end of the lease term definition of investment property in ‘right of use assets and
or the cost of the right-of-use asset reflects that the Group lease liabilities in ‘interest - bearing liabilities - leases’ in the
will exercise a purchase option. In that case the right-of-use statement of financial position.
asset will be depreciated over the useful life of the underlying
asset, which is determined on the same basis as those of Lease modifications
property and equipment. In addition, the right-of-use asset is
The Group shall account for a lease modification as a separate
periodically reduced by impairment losses, if any, and adjusted
lease if both:
for certain remeasurements of the lease liability.
a. the modification increases the scope of the lease by adding
The lease liability is initially measured at the present value of the right to use one or more underlying assets; and
the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease b. the consideration for the lease increases by an amount
or, if that rate cannot be readily determined, the Group’s commensurate with the stand-alone price for the increase
incremental borrowing rate. Generally, the Group uses its in scope and any appropriate adjustments to that stand-
incremental borrowing rate as the discount rate. alone price to reflect the circumstances of the particular
contract.
The Group determines its incremental borrowing rate by
obtaining interest rates from various external financing sources For a lease modification that is not accounted for as a separate
and makes certain adjustments to reflect the terms of the lease lease, at the effective date of the lease modification the Group
and type of the asset leased. shall:

Lease payments included in the measurement of the lease a) allocate the consideration in the modified contract
liability comprise the following: b) determine the lease term of the modified lease
• fixed payments, including in-substance fixed payments; c) remeasure the lease liability by discounting the revised
• variable lease payments that depend on an index or a lease payments using a revised discount rate. The revised
rate, initially measured using the index or rate as at the discount rate is determined as the interest rate implicit in
commencement date; the lease for the remainder of the lease term, if that rate
can be readily determined, or the lessee’s incremental
• amounts expected to be payable under a residual value borrowing rate at the effective date of the modification,
guarantee; and if the interest rate implicit in the lease cannot be readily
• the exercise price under a purchase option that the Group determined.
is reasonably certain to exercise, lease payments in an
optional renewal period if the Group is reasonably certain For a lease modification that is not accounted for as a separate
to exercise an extension option, and penalties for early lease, the Group shall account for the remeasurement of the
termination of a lease unless the Group is reasonably lease liability by:
certain not to terminate early. a) decreasing the carrying amount of the right-of-use asset
to reflect the partial or full termination of the lease for
The lease liability is measured at amortised cost using the lease modifications that decrease the scope of the lease.
effective interest method. It is remeasured when there is a The lessee shall recognise in profit or loss any gain or loss
change in future lease payments arising from a change in an relating to the partial or full termination of the lease.
index or rate, if there is a change in the Group’s estimate of

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
b) making a corresponding adjustment to the right-of-use 3.5.3. Intangible assets
asset for all other lease modifications.
Initial Recognition and measurement
The Group recognises intangible assets if it is probable that the
Short-term leases and leases of low-value assets
expected future economic benefits that are attributable to the
The Group has elected not to recognise right-of-use assets and asset will flow to the entity and the cost of the asset can be
lease liabilities for leases of low-value assets and short-term measured reliably.
leases, including IT equipment. The Group recognises the lease
payments associated with these leases as an expense on a Separately acquired intangible assets are measured on initial
straight-line basis over the lease term. recognition at cost. The cost of such separately acquired
intangible assets includes the purchase price, import duties,
• As a lessor non-refundable purchase taxes and any directly attributable
At inception or on modification of a contract that contains a cost of preparing the asset for its intended use.
lease component, the Group allocates the consideration in the
contract to each lease component on the basis of their relative The cost of intangible assets acquired in a business
standalone prices. combination is the fair value of the asset at the date of
acquisition.
When the Group acts as a lessor, it determines at lease
inception whether each lease is a finance lease or an operating The cost of an internally generated intangible asset arising
lease. from the development phase of an internal project which is
capitalised includes all directly attributable costs necessary
To classify each lease, the Group makes an overall assessment to create, produce, and prepare the asset to be capable
of whether the lease transfers substantially all of the risks and of operating in the manner intended by the Management.
rewards incidental to ownership of the underlying asset. If Other development expenditure and expenditure on research
this is the case, then the lease is a finance lease; if not, then activities, undertaken with the prospect of gaining new
it is an operating lease. As part of this assessment, the Group technical knowledge and understanding is expensed in the
considers certain indicators such as whether the lease is for a income statement as and when incurred.
major part of the economic life of the asset.
Subsequent costs
When the Group is an intermediate lessor, it accounts for its Subsequent expenditure on intangible assets is capitalised only
interests in the head lease and the sub-lease separately. It when it increases the future economic benefits embodied in
assesses the lease classification of a sub-lease with reference the specific asset to which it relates.
to the right-of-use asset arising from the head lease, not with
reference to the underlying asset. If a head lease is a short-
Subsequent Measurement
term lease to which the Group applies the exemption described
above, then it classifies the sub-lease as an operating lease. After initial recognition an intangible asset is stated at its
costs less any accumulated amortisation and any accumulated
impairment losses.
If an arrangement contains lease and non-lease components,
then the Group applies SLFRS 15 to allocate the consideration
in the contract. The useful economic life of an intangible asset is assessed to
be either finite or indefinite.
The Group applies the derecognition and impairment
requirements in SLFRS 9 to the net investment in the lease. Intangible assets with finite lives are amortised over the useful
The Group further regularly reviews estimated unguaranteed economic life of the asset. The amortisation period and the
residual values used in calculating the gross investment in the amortisation method for an intangible asset with a finite useful
lease. life is reviewed at least at the end of each reporting date.
Changes in the expected useful life or the expected pattern
of consumption of future economic benefits embodied in the
The Group recognises lease payments received under
asset is accounted for by changing the amortisation period
operating leases as income on a straight-line basis over the
or method, as appropriate, and are treated as changes in
lease term as part of ‘other revenue’.
accounting estimates. The amortisation expense on intangible
assets with finite lives is recognised in the income statement.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Intangible assets with indefinite useful lives are not amortised, 3.5.3.3. Website costs
but are tested for impairment annually, either individually or at Costs incurred on development of websites are capitalised
the cash-generating unit level. The assessment of indefinite life when the entity is satisfied that the web site will generate
is reviewed annually to determine whether the indefinite life probable economic benefits in the future. The estimated useful
continues to be supportable. If not, the change in useful life lives for the current and comparative periods are three years.
from indefinite to finite is made on a prospective basis.
3.5.4. Inventories
3.5.3.1. Goodwill
Inventories are measured at the lower of cost and net
Goodwill that arises upon the acquisition of subsidiaries is releasable value. The cost of inventories is based on a weighted
included in intangible assets, the policy on measurement of average principle and includes expenditure incurred in
goodwill is at initial recognition. acquiring the inventories and bringing them to their existing
location and condition.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment Net realisable value is the estimated selling price in the ordinary
losses. In respect of equity accounted investees, the carrying course of business, less the estimated costs of completion and
amount of goodwill is included in the carrying amount of selling expenses.
the investment, and impairment loss on such an investment
is allocated to the carrying amount of the equity accounted 3.5.5. Cash and cash equivalents
investee. Cash and cash equivalents comprise cash in hand and short-
term deposits with original maturity of three months or less.
3.5.3.2. Computer software Bank overdrafts are shown within borrowings in current
All computer software cost incurred, licensed for use by liabilities. For the purpose of Cash Flow, Bank overdrafts that
the Group, which does not form an integral part of related are repayable on demand and form an integral part of the
hardware, and which can be clearly identified, reliably measured Group’s cash management are included as components of cash
and it is probable that they will lead to future economic and cash equivalent.
benefits are included under intangible assets and carried at
cost less accumulated amortisation and any accumulated 3.6. Liabilities and Provisions
impairment losses.
3.6.1. Liabilities
Liabilities classified as current liabilities on the statement of
Subsequent measurement
financial position are those which fall due for payment on
Expenditure incurred on software is capitalised only when
demand or within one year of the reporting date. Non-current
it is probable that this expenditure will enable the asset to
liabilities are those balances payable after one year from the
generate future economic benefits in excess of its originally
reporting date.
assessed standards of performance and this expenditure can be
measured and attributed to the asset reliably.
All known liabilities are accounted for in the statement of
financial position.
Amortisation
Amortisation is calculated over the cost of the asset, or other 3.6.2. Provisions
amount substituted for cost, less its residual value.
A provision is recognised if, as a result of a past event, the
Group has a present legal or constructive obligation that can
Amortisation is recognised in the income statement on a
be estimated reliably, and it is probable that an outflow of
straight-line basis over the estimated useful lives of intangible
economic benefit will be required to settle the obligation.
assets, other than goodwill, from the date that they are
available for use, since this most closely reflects the expected
Provisions are determined by discounting the expected
pattern of consumption of the future economic benefits
future cash flows at a pre-tax rate that reflect current market
embodied in the asset. The estimated useful lives for the
assessments of the time value of money and the risks specific
current and comparative periods are three years.
to the liability. The unwinding of discount is recognised as a
financial cost.
Amortisation methods, useful lives and residual values are
reviewed at each financial year end and adjusted if appropriate.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
3.7. Employee benefits The defined benefit plan is valued by a professionally qualified
external actuary.
3.7.1. Defined contribution plan
A defined contribution plan is a post-employment benefit plan
Provision has been made in the financial statements for retiring
under which an entity pays fixed contributions to a separate
gratuities from the first year of service for all employees.
entity and will have no legal or constructive obligations to
However, according to the Payment of Gratuity Act No. 12 of
pay further amounts. Obligations for contributions to defined
1983, the liability for payment to an employee arises only after
contribution plan, are recognised as an employee benefit
the completion of 5 years continued service.
expense in income statement in the periods during which
services are rendered by employees.
When the benefits of a plan are changed or when a plan
is curtailed, the resulting change in benefit that related to
3.7.1.1. Provident fund and trust fund – Sri Lanka past service or the gain or loss on curtailment is recognised
All employees in Sri Lanka are members of the Employees’ immediately in profit or loss. The Group recognises gains and
Provident Fund and Employees’ Trust Fund, to which employers losses on the settlement of defined benefit plans when the
contribute 12% - 15% and 3% respectively of such employees’ settlement occurs.
basic or consolidated wage or salary, cost of living and all other
allowances. The liability is not externally funded.

3.7.1.2. Contribution to Retirement Pension Scheme-Maldives The Group recognises all actuarial gains and losses arising
All Maldivian employees of the Group are members of the from defined benefit plans in other comprehensive income and
Retirement Pension Scheme established in the Maldives. Both all expenses related to defined benefit plans in staff cost in
employer and employee contribute 7% respectively to this income statement.
scheme of such employees’ pensionable wage. Employers’
obligations for contributions to pension scheme is recognised 3.7.2.2. Defined Benefit Plans – Oman
as an employee benefit expense in income statement in the Gratuity is provided as per the labour law of Sultanate of Oman
periods during which services are rendered by employees. due to expatriate employees upon termination/completion of
employment which is computed based on one month’s basic
3.7.1.3. Employee Provident Fund - India
salary for each year of employment.
Group companies in India contribute a sum of 12% of the basic
salaries of all employees as provident fund benefits to the 3.7.2.3. Defined Benefit Plans – India
Employee Provident Organisation of India.
A liability is provided for employees in India based on a
valuation made by an independent actuary using unit credit
3.7.1.4. Defined contribution Fund - Oman
method for payment of gratuity at the rate of 15/26 times the
Group companies in Oman contribute a sum of 12.5% of monthly qualifying salary for each year of service.
the Omani employee’s gross salary in accordance with Social
Security Insurance Law. Contributions to a defined contribution
3.7.3. Short-term employee benefits
retirement plan are recognised as an expense in the statement
of comprehensive income as incurred. Short-term employee benefit obligations are measured on an
undiscounted basis and are expensed as the related service
3.7.2. Defined Benefit Plans – retiring gratuities is provided. A liability is recognised for the amount expected
to be paid under short-term cash bonus if the Group has a
A defined benefit plan is a post-employment benefit plan other
present legal or constructive obligation to pay this amount
than a defined contribution plan.
as a result of past service rendered by the employee and the
obligation can be measured reliably.
3.7.2.1 Retiring Gratuity – Sri Lanka
The liability recognised in the statement of financial position 3.8. Revenue and Income
in respect of defined benefit plans is the present value of the
Group revenue represents sales to customers outside the
defined benefit obligation at the reporting date. The defined
Group and excludes value added tax.
benefit obligation is calculated annually using the Projected
Unit Credit method. The present value of the defined benefit
3.8.1. SLFRS 15- Revenue from contracts with Customers
obligation is determined by discounting the estimated future
cash flows using interest rates that are denominated in the SLFRS 15 established a comprehensive framework for
currency in which the benefits will be paid, and that have terms determining how much and when revenue is recognised.
of maturity approximating to the terms of the liability. Revenue is measured based on the consideration specified in a

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

contract with a customer. Under SLFRS 15, the Group revenue 3.9. Expenses
is recognise when a customer obtains control of the goods or All expenditure incurred in the running of the business and in
services – Determining the timing of the transfer of control – maintaining the property, plant and equipment in a state of
at a point in time or over time requires judgement. efficiency has been charged to income statement in arriving at
the profit for the year.
Under SLFRS 15, revenue is recognised to the extent that it
is highly probable that a significant reversal in the amount of
3.10. Finance Income/ (Expenses)
cumulative revenue recognition will not occur.
Finance income comprises interest income on funds invested,
The following specific criteria are used for the purpose of including the income from investment categorised under fair
recognition of revenue: value through other comprehensive income (FVOCI). Gains on
the disposal of interest generating investment classified under
• Apartment revenue is recognised for the rooms occupied financial assets measured at amortised cost is recognised under
on a daily basis. All revenues are recognised on an accrual finance income.
basis over the time of the duration of the stay of the
customer and matched with the related expenditure where Interest income is recognised as it accrues in the income
they simultaneously receive and consume the benefits of statement, using the effective interest method.
the services rendered.
Finance expenses comprise interest expenses on borrowings,
• Restaurant revenue includes the revenue recognised on the preference dividends of preference shares classified as
sale food and beverage. All revenue is accounted for at the debt and impairment losses recognised on financial assets.
time of sale. Borrowing costs that are not directly attributable to the
acquisition, construction or production of a qualifying asset are
• Bar revenue is accounted for at the time of sale. recognised in the income statement using the effective interest
method. However, borrowing costs that are directly attributable
• The spa is operated by a third party and invoices are to the acquisition, construction or production of a qualifying
raised together with the spa bills. Spa related revenue is asset that takes a substantial period of time to get ready for its
recognised gross after completion of service / treatments. intended use or sale, are capitalised as part of the asset.
• Transfers and excursions include the consideration earned
3.11. Income tax expenses
from providing excursions to customers that represents sea
plane and boat transfers services provided to customers Income tax expense comprises both current and deferred
who enter into contacts with Maldives Hotels. Revenue is tax. Income tax expense is recognised in income statement
recognised for at the time of rendering the service. except to the extent that it relates to items recognised directly
in equity, in which case is recognised in the statement of
• Telephone, laundry, diving and windsurfing represent the comprehensive income or statement of changes in equity,
services provided to customers which are implied as in which case it is recognised directly in the respective
business practice in the industry. All revenue is recognised statements.
at the time of rendering the service.
The Group determined that interest and penalties related
• Management fee represents the fees for managing to income taxes, including uncertain tax treatments, do not
hotels that are computed based on the industry norms. meet the definition of income taxes, and therefore accounted
All revenue is recognised at the time of provision of for them under LKAS 37 Provisions, contingent liabilities and
management services. contingent assets.

3.8.2. Other income 3.11.1. Current taxes

• Rent and shop income represents the rental income arising Current tax is the expected tax payable on the taxable income
from renting space on the hotel premises. All revenue is for the year, using tax rates enacted or substantially enacted at
recognised on a straight-line basis over the term of hire. the reporting date and any adjustment to tax payable in respect
of previous years.
• Dividend income is recognised when the right to receive
dividends is established, which is generally when the Taxation for the current and previous periods to the extent
dividend is declared. Dividend income is included under unpaid is recognised as a liability in the financial statements.
other operating income. When the amount of taxation already paid in respect of current
and prior periods exceeds the amount due for those periods,
the excess is recognised as an asset in the financial statements.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
3.11.2. Companies incorporated in Sri Lanka 3.11.6. Transfer Pricing
Provision for current tax for companies incorporated in Sri As prescribed in the Inland Revenue Act No. 24 of 2017 and
Lanka has been computed in accordance with the Inland the Gazette notifications issued on transfer pricing, companies
Revenue Act No. 24 of 2017 and its amendments thereto. in the Group have complied with the arm’s length principles
relating to transfer pricing.
3.11.3. Companies incorporated outside Sri Lanka
Provision for current tax for companies incorporated outside 3.12. Statement of cash flows
Sri Lanka have been computed in accordance to the relevant The cash flow statement has been prepared using the “Indirect
tax statutes as disclosed in Note No. 13.2 to the financial Method” of preparing cash flows in accordance with the Sri
statements. Lanka Accounting Standard – LKAS 7 on ‘Statement of Cash
Flow’, whereby operating activities, investing activities and
3.11.4. Deferred tax financing activities are separately recognised.
Deferred tax is recognised in respect of temporary differences
Cash and cash equivalents comprise of short-term, highly liquid
between the carrying amounts of assets and liabilities for
investments that are readily convertible to known amounts of
financial reporting purposes and the amounts used for taxation
cash and are subject to an insignificant risk of changes in value.
purposes.
3.13. Capital commitments and contingencies
Deferred tax is not recognised for temporary differences
Contingencies are possible assets or obligations that arise from
arising on initial recognition of goodwill, the initial recognition
a past event and would be confirmed only on the occurrence or
of assets or liabilities in a transaction that is not a business
non-occurrence of uncertain future events, which are beyond
combination and that affects neither accounting nor taxable
the Group’s control. Capital commitments and contingent
profits and differences relating to investment in subsidiaries
liabilities of the Group are disclosed in Note No. 47 and 38 to
and jointly controlled entities to the extent that they probably
the financial statements.
will not reverse in the foreseeable future.
3.14. Events occurring after the reporting date.
Deferred tax is measured at the tax rates that are expected to
All material post reporting date events have been considered
be applied to the temporary differences when they reverse,
and where appropriate adjustment to or disclosures have been
based on the laws that have been enacted or substantively
made in the financial statements.
enacted by the reporting date.
3.15. Comparative Information
A deferred tax asset is recognised for unused tax losses and
deductible temporary differences to the extent that it is The comparative information has been reclassified wherever
probable that future taxable profits will be available against necessary to confirm with the current years classification in
which they can be utilised. Deferred tax assets are reviewed at order to provide a better presentation.
each reporting date and are reduced to the extent that it is no
3.16. Earnings per share (EPS)
longer probable that the related tax benefit will be realised.
The Group presents basic and diluted earnings per share (EPS)
Deferred tax assets and liabilities recognised by individual for its ordinary shares. Basic EPS is calculated by dividing
companies within the Group are disclosed separately as assets the profit or loss attributable to ordinary shareholders of the
and liabilities in the Group statement of financial position and Company by the weighted average number of ordinary shares
are not offset against each other. outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares
3.11.5. Social Security Contribution Levy (SSCL)
outstanding for the effects of all dilutive potential ordinary
Social Security Contribution Levy shall be paid by any person
shares.
carrying on the business of providing a service, on the liable
turnover specified in the second schedule of the Social Security 3.17. Segmental Information
Contribution Levy Act No 25 of 2022 and its amendments
An operating segment is a component of the Group that
thereto, at the rate of 2.5%.
engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses
that relate to transactions with any of the Group’s other

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

components. All operating segments’ operating results are Fair values have been determined for measurement and
reviewed regularly by the Group’s Joint Deputy Chairperson/ disclosure purposes based on the following methods. Where
Joint Managing Director to make decisions about resources to applicable further information about the assumptions made in
be allocated to the segment and assess its performance, and determining fair value is disclosed in the notes specific to that
for which discrete financial information is available. asset or liability.

3.17.1. Primary and Secondary Segments Fair value of non-financial assets

The Group is in the hospitality industry and cannot segment The fair value used by the Group in the measurement of
its products and services. The Group manages hotels in two non-financial assets is based on the presumption that the
principal geographical areas, namely Sri Lanka sector and South transaction to sell the asset or transfer the liability takes place
Asia & Middle East sector. In presenting segmental information either in the principal market for the asset or liability, or in
segment revenue and assets are based on the geographical the absence of a principal market, in the most advantageous
locations of the assets. The primary segment is considered market that is accessible by the Group for the asset or liability.
to be the geographical segments based on the Group’s
management and internal reporting structure. The fair value of an asset or a liability is measured using
the assumptions that market participants would act in their
i) Segmental information analysed by geographical economic best interest when pricing the asset or liability.
segments is disclosed in Note No. 06 to the financial
statements. A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
ii) All transfers made between the hotels in the Group are
benefits by using the asset in its highest and best use or by
based on normal market price.
selling it to another market participant that would use the asset
4. DETERMINATION OF FAIR VALUES in its highest and best use.
A number of the Group’s accounting policies and disclosures
The Group uses valuation techniques that are appropriate in
require the determination of fair values, for both financial and
the circumstances and for which sufficient data are available to
non-financial assets and liabilities.
measure fair value, maximising the use of relevant observable
Fair value is the price that would be received to sell an asset inputs and minimising the use of unobservable inputs.
or paid to transfer a liability in an orderly transaction between
5. NEW ACCOUNTING STANDARDS ISSUED BUT NOT
market participants at the measurement date.
EFFECTIVE AS AT THE REPORTING DATE
When measuring fair value of an asset or liability, the Group A number of new accounting standards are effective for
uses observable market data as far as possible. Fair values are annual periods beginning after 1st January 2024 and earlier
categorised into different levels in a fair value hierarchy based application is permitted. However, the Group has not early
on the inputs used in the valuation techniques. adopted the new or amended standards in preparing these
financial statements.
Level 1 inputs are unadjusted quoted prices in active markets
for identical assets or liabilities. • Classification of liabilities as current or non-current
(Amendments to LKAS 01)
Level 2 inputs are inputs other than quoted prices included
within Level 1 that are observable for the asset or The amendments, as issued in 2020, aim to clarify the
liability either directly (i.e., as prices) or indirectly (i.e. requirements on determining whether a liability is current
derived from prices). or non-current, and apply for annual reporting periods
beginning on or after 1st January 2023. However, the
Level 3 inputs are inputs that are not based on observable IASB has subsequently proposed further amendments
market data (unobservable inputs). to LKAS 1 and the deferral of the effective date of the
2020 amendments to no earlier than 1st January 2024.
If inputs used to measure the fair value of an asset or liability Due to these ongoing developments, the Group is unable
fall into different levels of the fair value hierarchy, then the fair to determine the impact of these amendments on the
value measurement is categorised in its entirety in the same financial statements in the period of initial application. The
level of the fair value hierarchy as the lowest level input that is Group is closely monitoring the developments.
significant to the entire measurement.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 The amendments in classification of liabilities as current
or non-current (Amendments to LKAS 01) affect only
the presentation of liabilities in the statement of financial
position not the amount or timing of recognition of any
asset, liability income or expenses or the information that
entities disclose about those items.

• Supplier Finance Arrangements (Amendments to LKAS 7

and SLFRS 7)
The amendments introduce new disclosures relating
to supplier finance arrangements that assist users of
the financial statements to assess the effects of these
arrangements on an entity’s liabilities and cash flows and
on an entity’s exposure to liquidity risk. The amendments
apply for annual periods beginning on or after 1 January
2024.

• Other Accounting Standards

The following new and amended accounting standards
are not expected to have a material impact on the Group’s
financial statements.

- Lease Liability in a Sale and Leaseback (Amendments

to SLFRS 16)
The amendment is intended to improve the
requirements for sale and leaseback transactions in
SLFRS 16. It does not change the accounting for leases
unrelated to sale and leaseback transactions. The
amendment applies retrospectively to annual reporting
periods beginning on or after 1 January 2024.

- Lack of Exchangeability (Amendments to LKAS 21)

The amendments clarify how an entity should assess
whether a currency is exchangeable and how it should
determine a spot exchange rate when exchangeability
is lacking, as well as require the disclosure of
information that enables users of financial statements
to understand the impact of a currency not being
exchangeable. The amendments apply to annual
reporting periods beginning on or after 1 January
2025.

• General requirements for disclosure of sustainability-

related financial information (SLFRS S1) and climate-
related disclosures (SLFRS S2)

In June 2023 the International Sustainability Standards Board

(ISSB) released its first two sustainability disclosure standards,
IFRS S1 and IFRS S2. During the year, CA Sri Lanka issued the
localised standards based on these IFRSs designated as SLFRS
S1 SLFRS S2. These standards will become effective for the
Group from 1 April 2025. No financial impact is expected on
the Group except for additional disclosures.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 6 OPERATING SEGMENTS
The Group manages hotels in two principal geographical areas namely, Sri Lanka and South Asia & Middle East. In presenting segmental information, segment

196
revenue and segmental assets are presented based on the geographical location of the assets. The Group’s primary segment is considered to be the geographical
segments based on the Group’s management and internal reporting structure.

The following tables present revenue, profit information, assets and liabilities based on the Group’s operating segments.

South Asia and Middle East

Sri Lankan Sector Group
Sector
Resorts and Hotels Others Total
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Geographical segmental analysis of
Group revenue and profit
For the year ended 31 st March
- External revenue 10,458,584 5,435,272 74,407 85,678 10,532,991 5,520,950 36,725,537 40,538,934 47,258,528 46,059,884
- Intra group revenue 11,848 29,502 1,475,614 1,626,341 1,487,462 1,655,843 - - 1,487,462 1,655,843

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Total revenue 10,470,432 5,464,774 1,550,021 1,712,019 12,020,453 7,176,793 36,725,537 40,538,934 48,745,990 47,715,727
Less: Total Intra group revenue (11,848) (29,502) (1,475,614) (1,626,341) (1,487,462) (1,655,843) - - (1,487,462) (1,655,843)
Net segmental revenue (Revenue from
10,458,584 5,435,272 74,407 85,678 10,532,991 5,520,950 36,725,537 40,538,934 47,258,528 46,059,884
external customers)

Profit/(loss) from operations 1,136,442 (480,285) (134,270) 33,067 1,002,172 (447,218) 7,308,089 7,758,104 8,310,261 7,310,886
Finance income 138,757 100,364 60,966 107,390 199,723 207,754 199,149 333,842 398,872 541,596
Finance cost (1,331,754) (911,296) (491,644) (869,138) (1,823,398) (1,780,434) (3,843,270) (4,029,539) (5,666,668) (5,809,973)
Share of loss of equity accounted
(20,410) (373,163) (15,904) (24,396) (36,314) (397,559) - - (36,314) (397,559)
investees
Profit/(loss) before taxation (76,965) (1,664,380) (580,852) (753,077) (657,817) (2,417,457) 3,663,968 4,062,407 3,006,151 1,644,950
Income tax expense (453,556) (1,089,768) (172,414) (198,927) (625,970) (1,288,695) (515,494) (309,446) (1,141,464) (1,598,141)
NOTES TO THE FINANCIAL STATEMENTS

Profit/(loss) for the year (530,521) (2,754,148) (753,266) (952,004) (1,283,787) (3,706,152) 3,148,474 3,752,961 1,864,687 46,809

Capital expenditure 453,213 247,529 1,038 1,309 454,251 248,838 1,395,550 1,772,377 1,849,801 2,021,215
Depreciation and amortisation 734,474 739,762 2,028 4,167 736,502 743,929 4,389,370 4,641,870 5,125,872 5,385,799
Other non-cash expenses 45,121 14,949 (553) (37,040) 44,568 (22,091) 61,876 73,468 106,444 51,377

Geographical segmental analysis of

Group assets and liabilities
As at 31 st March

Segmental non - current assets 15,994,602 16,278,328 262,350 286,677 16,256,952 16,565,005 66,349,490 75,342,234 82,606,442 91,907,239
Segmental current assets 5,061,706 3,930,089 1,648,601 1,906,459 6,710,307 5,836,548 7,709,643 10,114,737 14,419,950 15,951,285
Equity accounted investees - 20,410 63,185 72,630 63,185 93,040 - - 63,185 93,040
Total Assets 21,056,308 20,228,827 1,974,136 2,265,766 23,030,444 22,494,593 74,059,133 85,456,971 97,089,577 107,951,564

Segmental non - current liabilities 12,128,977 14,584,555 1,589,368 3,095,104 13,718,345 17,679,659 29,605,599 35,826,630 43,323,944 53,506,289
Segmental current liabilities 7,327,184 5,556,960 2,546,022 2,990,260 9,873,206 8,547,220 13,027,735 15,717,784 22,900,941 24,265,004
Total Liabilities 19,456,161 20,141,515 4,135,390 6,085,364 23,591,551 26,226,879 42,633,334 51,544,414 66,224,885 77,771,293

Net Assets 1,600,147 87,312 (2,161,254) (3,819,598) (561,107) (3,732,286) 31,425,799 33,912,557 30,864,692 30,180,271
7 REVENUE
7.1 Revenue breakdown

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Total revenue 48,745,990 47,715,727 1,231,849 759,460
Intra group revenue (1,487,462) (1,655,843) - -
Revenue excluding intra group revenue 47,258,528 46,059,884 1,231,849 759,460
Revenue tax (1,055,618) (1,000,584) (37,657) (15,020)
Net revenue 46,202,910 45,059,300 1,194,192 744,440

7.2 Revenue streams

The companies in the Group are primarily involved in hoteliering and generate revenue from provision of accommodation, food, beverages
and other related services to customers. Other sources of revenue include income from renting the hotel spaces to provide other value
added services to customers.

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Revenue from contracts with customers 46,761,738 45,498,576 1,230,592 758,299

Other revenue
- Rent and shop income 496,790 561,308 1,257 1,161
47,258,528 46,059,884 1,231,849 759,460

7.3 Disaggregation of revenue from contracts with customers

7.3.1 Type of service rendered

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Apartment revenue 20,714,356 21,008,364 337,850 210,225
Restaurant revenue 11,978,393 11,270,303 768,461 478,093
Bar revenue 6,659,619 6,263,547 105,797 58,230
Spa related income 982,636 1,073,663 17,221 11,095
Transfers and excursions income 5,074,997 4,512,860 38 -
Telephone charges income 607 565 - -
Diving and windsurfing income 1,234,203 1,246,222 - -
Laundry revenue 42,520 37,373 1,225 656
Management fees income 74,407 85,679 - -
46,761,738 45,498,576 1,230,592 758,299
Rent and shop income 496,790 561,308 1,257 1,161
Total 47,258,528 46,059,884 1,231,849 759,460

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NOTES TO THE FINANCIAL STATEMENTS

7.3.2 Geographical markets

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
- Sri Lanka 10,532,991 5,520,950 1,231,849 759,460
- South Asia and Middle East 36,725,537 40,538,934 - -
47,258,528 46,059,884 1,231,849 759,460

7.3.3 Timing of revenue recognition

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
- Revenue recognised at a point in time 26,047,382 24,490,212 892,742 548,074
- Revenue recognised over time 21,211,146 21,569,672 339,107 211,386
47,258,528 46,059,884 1,231,849 759,460

7.4 Performance obligations

Performance obligations of a hotel entity mainly include promises which are carried out on a contractually agreed upon task.

Performance obligations of the Group could be mainly summarised as detailed below:

Type of service Nature and timing of the satisfaction of Significant payment terms
performance obligation

Provision of accommodation The main obligation in the customer contract is Due within 30 days from the date of
to provide rooms for guests accommodation. This invoice.
is represented in the apartment revenue reported
in the financial statements. This revenue category
is recognised when the rooms are occupied on
a daily basis over the stay. Invoice is raised to
customer on completion of the duration of the
stay.

Provision of food and beverages The following services are rendered under this Due within 30 days from the date of
performance obligation: invoice.
1. Provision of Bed and Breakfast (BB), Half Board
(HB) and Full Board (FB) meal for guests
occupying the hotels which is as per the
contract entered into. Revenue is recognised
at the time of the food sale and invoice to the
customers on the completion of the stay.

2. Provision of extra food and beverages revenue Due at the time of service is rendered.
is recognised at the time of sale and invoice to
the customers at the time of consumption.

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 Type of service Nature and timing of the satisfaction of Significant payment terms
performance obligation

Transfers and excursions This obligation is for customers entering into Due within 30 days from the date of
contract with hotels in the Maldives. Sea plane invoice.
and boat transfers are provided to customers to
reach the hotels and back as part of the contracts
entered into. Revenue is recognised at the time of
provision of service and invoiced to the customers
at the time of the completion of the stay.

Provision of laundry, telephone, water These services are provided to customers as they Due at the time of service is
sports , spa services etc. are implied as business practices in the industry rendered.
and create a valid expectation of the customer.
Revenue is recognised at the time of provision of
service and invoice is raised at the time of service
is consumed.

Management fees This obligation is for hotels entering in to contracts Due twice a year on completion of
with hotel management companies. Property first six months and on completion of
management services, handling of employees’ year end audit.
related activities, marketing and promotional
activities and other related management services
are mainly rendered under this performance
obligation. Revenue is recognised over the period
and invoiced on monthly basis.

Warranties and obligations to refunds and other similar obligations are handled on a case by case basis.

7.5 Allocating the transaction price to performance obligations

In allocating the transaction price to each performance obligation based on the amount that depicts the amount of consideration to which
the entity expects to be entitled in exchange for transferring of promised services to the customers.

7.6 Contract Assets and Contract Liabilities

The contract assets primarily relate to the Group’s right to consideration for work completed but not billed at the reporting date.

The contract liabilities primarily relate to the advance consideration received from customers for future stay in hotels, for which revenue is
recognised over the time.

However companies in the Group recognise considerations or payments received prior to transferring of services to customer against
what is rightfully due at the time of transferring the services. These amounts have been recognised as contractual liabilities in the financial
statements.

7.6.1 Contract balances

Group Company
As at Notes 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Trade receivables 24 3,017,520 2,289,251 132,069 83,077
Contract liabilities 7.6.2 2,418,761 2,143,152 19,737 33,664

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NOTES TO THE FINANCIAL STATEMENTS

7.6.2 Contract liabilities

Group Company
For the year 2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Contract liabilities balance as at 01st April 2,143,152 2,226,159 33,664 19,687
Revenue recognised in the reporting period that was included in (1,686,638) (2,190,639) (22,649) (17,897)
the contract liability balance at the beginning of the period
Advances received from customers during the reporting period 25,667,053 24,243,039 183,554 286,655
Revenue recognised in the reporting period from performance (23,512,050) (22,410,484) (174,832) (254,781)
obligations satisfied during current period
Write back of unutilised old reservation advances (14,030) - - -
Effect of movement in exchange rates (178,726) 275,077 - -
Contract liabilities balance as at 31st March (Note 35) 2,418,761 2,143,152 19,737 33,664

8 OTHER INCOME (NET)

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Recreation income 34,769 115,370 137 194
Dividends from Group subsidiaries and equity accounted - - 254,226 448,472
investees
Dividends from equity securities at FVOCI 1,344 - - -
Loss on disposal of property, plant and equipment (15,722) (23,715) (2,298) (32)
Loss on retirement of assets held for sale - (72,269) - -
Net foreign exchange gain / (loss) (224,352) (153,461) (111,940) 64,775
Insurance claims received 146,710 184,581 - -
Sundry income 76,361 141,238 2,363 1,659
Total 19,110 191,744 142,488 515,068

9 OTHER OPERATING EXPENSES - DIRECT

Other operating expenses - direct disclosed in the income statement refers to the cost of material and services other than staff costs, which
are directly related to revenue.

10 OTHER OPERATING EXPENSES - INDIRECT

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Administration and establishment 4,452,706 4,896,333 244,673 143,414
Repairs and maintenance 1,974,423 2,252,282 139,032 74,457
Energy 3,744,816 4,110,334 204,863 131,109
Selling and marketing 2,585,205 1,615,989 73,636 38,083
Management fees 729,740 350,472 37,099 23,708
Total 13,486,890 13,225,410 699,303 410,771

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11 PROFIT/(LOSS) FROM OPERATIONS
Profit/(loss) from operations is stated after charging all expenses including the following:

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Cost of inventories and services 11,831,086 11,371,496 398,923 254,328
Directors fees and emoluments Nil Nil Nil Nil
Auditors’ remuneration
- KPMG 15,107 16,082 1,386 1,260
- Other auditors 5,178 4,797 - -
Fees paid to Auditors for non audit services
- KPMG 3,339 5,077 423 148
- Other auditors 14,588 13,228 - -
Depreciation of property, plant and equipment 3,797,247 3,890,512 63,038 61,496
Amortisation and impairment
- Amortisation of right-of-use assets and intangible assets 1,328,625 1,495,287 - 179
- Impairment of investment in subsidiaries and equity - - 67,820 343,618
accounted investees
Donations 361 2,126 - 673
Defined contribution plan cost - EPF 75,947 60,702 16,337 13,019
Defined contribution plan cost - ETF 24,365 15,701 3,995 3,184
Defined contribution plan cost - India 14,555 15,088 - -
Defined contribution plan cost - Oman 16,806 22,943 - -
Defined contribution plan cost - Maldives 89,570 91,308 - -
Defined benefit plan cost - retirement benefit 83,970 49,353 12,275 7,776
Impairment / (reversal of impairment) of trade receivables 6,709 (90,680) 508 (708)
Impairment / (reversal of impairment) of financial assets 43 (3,280) (9) (3,354)
Legal expenses 6,478 3,928 2,056 1,146
Expenses relating to short-term leases and leases of low value 439,066 470,828 - -
assets

12 NET FINANCING EXPENSE

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Finance income
Interest income on financial assets measured at amortised cost 398,872 541,596 134,912 60,331
Total finance income 398,872 541,596 134,912 60,331

Finance expenses
Interest expense on financial liabilities measured at amortised (4,875,190) (4,834,909) (363,326) (299,770)
cost
Interest expense on lease liabilities (791,478) (975,064) - -
Total finance expenses (5,666,668) (5,809,973) (363,326) (299,770)
Net Finance expense (5,267,796) (5,268,377) (228,414) (239,439)

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

GRI 207-1 GRI 207-2

13 INCOME TAX EXPENSE

The income tax provision of Aitken Spence Hotel Holding PLC, its subsidiaries and equity accounted investees which are resident in Sri
Lanka is calculated in accordance with the Inland Revenue Act No. 24 of 2017 and its amendments thereto.

Aitken Spence Hotel Holdings PLC, being a Company engaged in the promotion of tourism is liable for tax at a standard rate of 30% in terms
of the Inland Revenue Act No. 24 of 2017 and its amendments thereto.

Income tax expense for the year includes, Advance Income Tax (AIT) / Withholding Tax (WHT) of 15% deducted on the dividend
distributions made by resident companies of the Group from their taxable profits.

The Group has adjusted any adjustments relating to income tax payable or receivable balances in respect of previous years.

The taxation details of the other companies in the Group are disclosed in Note 13.1, 13.2 and 13.3.

13.1 Sri Lankan operations

Companies incorporated in Sri Lanka and operating outside Sri Lanka
The business profits and income of Aitken Spence Hotel Managements Asia Pvt Ltd and Aitken Spence Hotels International (Pvt) Ltd are
exempt from income tax in terms of the Inland Revenue Act No. 24 of 2017 and its amendments thereto as service rendered in or outside
Sri Lanka to any person to be utilised outside Sri Lanka, where the payment for such services is received in foreign currency through a bank.
Management fee income and dividend income received from Republic of Maldives is subject to 10% withholding tax at source as per the
Income Tax Act of Republic of Maldives and the profits earned by the Company in Oman is taxed at 15%.

Companies liable to income tax at standard rate

The business profits and income of Hethersett Hotels Ltd , Aitken Spence Hotels Ltd, Kandalama Hotels (Pvt) Ltd, and Turyaa (Pvt) Ltd, being
companies engaged in the promotion of tourism are liable for tax at a standard rate of 30% in terms of the Inland Revenue Act No. 24 of
2017 and its amendments thereto.

The business profits and income of Neptune Ayurvedic Village (Pvt) Ltd arising from leasing out land, is liable for tax at a standard rate of
30% in terms of the Inland Revenue Act No. 24 of 2017 and its amendments thereto.

Companies exempt from income tax

The business profits of Ahungalla Resorts Ltd is exempt from income tax under section 17A of Inland Revenue (amendment) Act No. 8 of
2012 for a period of 12 years ending 2029/30.

13.2 Overseas operations

Companies incorporated and operating outside Sri Lanka are liable for income tax in accordance with the provisions of the foreign
jurisdictions applicable to overseas companies.

The business profits of Jetan Travel Services Company Pvt Ltd, Cowrie Investment Pvt Ltd, ADS Resorts Pvt Ltd, Unique Resorts Pvt Ltd,
Ace Resorts Pvt Ltd, Crest Star (BVI) Ltd, PR Holiday Homes Pvt Ltd, Perumbalam Resorts Pvt Ltd, Aitken Spence Hotel Services Ltd, Aitken
Spence Hotel Managements (South India) Pvt Ltd and Aitken Spence Resorts [Middle East] LLC, being non resident companies in Sri Lanka
and not deriving Income from Sri Lanka are out of the Scope of Income Taxation in Sri Lanka.

The business profits of Jetan Travel Services Company Pvt Ltd, Cowrie Investment Pvt Ltd, ADS Resorts Pvt Ltd, Ace Resorts Pvt Ltd and
Unique Resorts Pvt Ltd which are incorporated in the Republic of Maldives are liable for corporate tax in Maldives at a rate of 15% as per
Income Tax Act of Republic of Maldives.

Crest Star (BVI) Ltd, a company incorporated in the British Virgin Islands is exempt from Income Tax.

The business profits of PR Holiday Homes Pvt Ltd, Perumbalam Resorts Pvt Ltd and Aitken Spence Hotel Services Pvt Ltd; being Companies
incorporated in India is liable for tax at a rate of 25.17% in India, when the Company commences commercial operations.

The business profits of Aitken Spence Hotel Managements (South India) Pvt Ltd, being a Companies incorporated in India is liable to an
effective income tax rate of 25.17% as per the Indian tax law.

The business profits of Aitken Spence Resorts (Middle East) LLC, being a Company incorporated in Oman is liable for corporate tax rate of
15% as per the Oman tax law.

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13.3 Associate and joint venture companies
The business profits and income of Browns Beach Hotels PLC arising from leasing of land to Negombo Beach Resorts (Pvt) Ltd to
construct and operate a Hotel is liable for income tax at a standard rate of 30% in terms of the Inland Revenue Act No. 24 of 2017 and its
amendments thereto.

The business profits of Negombo Beach Resorts (Pvt) Ltd, is exempt from income tax under section 17 A of Inland Revenue (amendment)
Act No. 08 of 2012 for a period of 12 years ending 2029/30.

The business profits and income of Amethyst Leisure Ltd, is liable for income tax at a standard rate of 30% in terms of the Inland Revenue
Act No. 24 of 2017 and its amendments thereto.

The business profits and income of Paradise Resorts Passikudah (Pvt) Ltd, being a Company engaged in the promotion of tourism is liable to
income tax at a standard rate of 30% in terms of the Inland Revenue Act No. 24 of 2017 and its amendments thereto.

The business profits and income of Aitken Spence Hotel Managements (Pvt) Ltd, arising from management of Sri Lankan hotels and
exporting of goods to hotels in Maldives, is liable for income tax at a standard rate of 30% in terms of the Inland Revenue Act No. 24 of
2017 and its amendments thereto.

The business profits and income of Aitken Spence Resources (Pvt) Ltd, being a company involved in the business as agents for recruitment
and supply of human resources for employment in abroad, is liable for income tax at a standard rate of 30% in terms of the Inland Revenue
Act No. 24 of 2017 and its amendments thereto.

13.4 Deferred tax expense

Deferred tax expense on companies resident in Sri Lanka are calculated based on the tax rates specified in the Inland Revenue Act No. 24 of
2017 and its amendments thereto.

The deferred tax expense associated with the revaluation of non-depreciable assets, such as land, takes into account the tax implications
that would arise upon the sale of those assets. Furthermore, the Group recognises deferred tax expense for the taxes that are applicable to
the undistributed profits of its subsidiary companies.

The Group applied Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to LKAS 12) from 1 April
2023. Following the amendments, the Group has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax
liability in relation to its right-of-use assets as disclosed in Note 13.10 and 33.2.

IFRIC interpretation 23 - uncertainty over income tax treatment

IFRIC 23 “Uncertainty over income tax treatments” provides guidance on determining taxable profits, tax bases, unused tax losses, unused
tax credits and tax rates, when there is an uncertainty over the income tax treatment. The Group has applied significant judgement in
identifying uncertainties over income tax treatments for the year and the Group has determined that there were no uncertainties in tax
treatments that has an impact on the income tax expense or warrants any disclosure.

13.5 Tax losses carried forward

As per section 19 of the Inland Revenue Act No. 24 of 2017 and amendments thereto, any unclaimed tax losses incurred during the year
from business or investment could be carried forward for further six years. Companies in the Group have evaluated the recoverability of
unclaimed losses through taxable profit forecasts and deferred tax assets have been recognised accordingly. Deferred tax assets recognised
on tax losses would be reviewed at each reporting date based on the taxable profit forecasts and would be reduced to the extent of
recoverable amount.

13.6 In determining the arm’s length price, the Group has complied with the transfer pricing regulations prescribed in the Inland Revenue Act and
the Gazette notifications issued on transfer pricing.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

13.7 Tax recognised in income statement

Group Company
For the year ended 31st March 2024 2023 2024 2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Current tax expense
Tax on current year profits 13.9 756,994 444,192 - -
Changes in estimates related to prior years 5,652 7,592 4,687 (68)
762,646 451,784 4,687 (68)
Deferred tax expense/(reversal) 13.10
Impact of changes in tax rates 13.7.1 - 993,959 - (8,445)
Origination/(reversal) of temporary differences 378,818 152,398 (78,057) 5,930
378,818 1,146,357 (78,057) (2,515)
Total 1,141,464 1,598,141 (73,370) (2,583)

Effective tax rate (including deferred tax) 38.0% 97.2% 23.7% 1.0%
Effective tax rate (excluding deferred tax) 25.4% 27.5% 0.0% 0.0%

Income tax expense excludes, the Group’s share of tax expense of the equity-accounted investees recognised in profit/(loss) of
Rs. 3.0 Mn (2022/2023 - Rs. 123.7 Mn) which is included in ‘share of profit of equity-accounted investees (net of tax)’.

13.7.1 Impact of changes in tax rates

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Related to deferred tax assets/liabilities at the - 976,741 - (15,220)

beginning of the year
Related origination of temporary differences during - 17,218 - 6,775
the year
- 993,959 - (8,445)

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
13.8 Tax recognised in other comprehensive income
13.8.1 Group

For the year ended 31st March 2024 2023

Before Tax Tax reversal Net of Tax Before Tax Tax Net of Tax
(expense)/
reversal
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Items that will never be reclassified to profit or

loss
Revaluation of property, plant and equipment - - - 818,850 (710,167) 108,683
Share of other comprehensive income of equity 6,459 - 6,459 29,889 - 29,889
accounted investees (net of tax)
Actuarial losses arising from retirement benefit (19,927) 6,405 (13,522) (8,597) 2,236 (6,361)
obligations
(13,468) 6,405 (7,063) 840,142 (707,931) 132,211
Items that are or may be reclassified to profit or
loss
Foreign currency translation differences of foreign (2,626,011) - (2,626,011) 2,636,086 - 2,636,086
operations
Net movement in cash flow hedge 1,501,550 - 1,501,550 (417,788) - (417,788)
(1,124,461) - (1,124,461) 2,218,298 - 2,218,298
Total (1,137,929) 6,405 (1,131,524) 3,058,440 (707,931) 2,350,509

Tax recognised in other comprehensive income excludes, the Group’s share of tax expense of the equity-accounted investees recognised in
the other comprehensive income of Rs. 2.0 Mn (2022/2023 - Rs. 5.6 Mn) which has been included in ‘share of other comprehensive income
of equity-accounted investees (net of tax)’.

13.8.2 Company

For the year ended 31st March 2024 2023

Before Tax Tax reversal Net of Tax Before Tax Tax Net of Tax
(expense)/
reversal
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Items that will never be reclassified to profit or

loss
Revaluation of property, plant and equipment - - - 133,200 (149,984) (16,784)
Actuarial losses arising from retirement benefit (6,752) 2,026 (4,726) (4,177) 1,253 (2,924)
obligations
Total (6,752) 2,026 (4,726) 129,023 (148,731) (19,708)

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NOTES TO THE FINANCIAL STATEMENTS

13.9 Reconciliation of accounting profit and current year tax

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Profit/ (loss) before tax 3,006,151 1,644,950 (377,192) (253,485)
Consolidated adjustments 36,314 397,559 - -
Profit/(loss) after adjustments 3,042,465 2,042,509 (377,192) (253,485)
Income not liable for income tax (184,064) 39,098 (22,762) (22,965)
Effect of revenue subject to tax at source 1,710,446 1,840,448 - -
Adjusted profit/(loss) 4,568,847 3,922,055 (399,954) (276,450)
Non - taxable receipts / gains - - (254,226) -
Aggregate disallowed expenses 4,338,907 6,191,801 218,003 426,471
Capital allowances (4,541,156) (4,985,340) (64,284) (60,745)
Aggregate allowable deductions (1,168,298) (1,243,146) (15,044) (94,101)
Utilisation of tax losses (3,197,113) (4,199,005) (112,145) (485,784)
Current year tax losses not utilised 4,416,029 3,810,884 627,650 490,609
Taxable income 4,417,216 3,497,249 - -

Income tax charged at;

- Standard rate 30% 358,677 27,068 - -
- Standard rate 24% - 2,700 - -
- Concessionary rates - 50,057 - -
- Varying rates on off - shore profits 398,317 364,367 - -
Tax on current year profits 756,994 444,192 - -

Changes in estimates related to prior years 5,652 7,592 4,687 (68)

762,646 451,784 4,687 (68)

13.10 Deferred tax expense / (reversal)

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Origination / (reversal) of temporary differences
arising from:
Property, plant and equipment 262,472 1,543,325 (302) 113,393
Defined benefit obligations (7,155) (27,255) (2,024) (7,588)
Expected credit losses 5,275 4,485 (150) 514
Tax losses carried forward 163,446 (360,221) (33,105) (90,369)
Right-of-use assets (1,131) 5,052 - -
Unrealised exchange gain/(loss) (50,808) (38,209) (42,476) (18,465)
Lease liabilities 445 (4,378) - -
Undistributed profits of consolidated entities 6,274 23,558 - -
Total 378,818 1,146,357 (78,057) (2,515)

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13.11 Tax losses carried forward

Group Company
For the year ended 31st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Tax losses brought forward 15,305,036 14,532,847 1,494,251 1,487,014
Adjustments to prior year tax losses brought forward (727,347) 1,357,337 75,425 2,412
Tax losses arising during the year 4,416,029 3,810,884 627,650 490,609
Utilisation of tax losses (3,197,113) (4,199,005) (112,145) (485,784)
Write off of unclaimable tax losses (413,456) (197,027) - -
Total 15,383,149 15,305,036 2,085,181 1,494,251
Group tax expense is based on the taxable profit of individual companies within the Group.
As specified above, some companies in the Group have carried forward tax losses which are available to be set off against the future tax
profits of those companies. Deferred tax assets not accounted in respect of these losses amounted to Rs. 2,093,749,822 (2022/2023 -
Rs. 1,562,835,914) since utilisation against future taxable profits are not probable. For Aitken Spence Hotel Holdings PLC, deferred tax
assets unaccounted on losses as at 31.03.2024 amounted to Rs. 353,079,564 (2022/2023 - Rs. 208,906,556).

14 EARNINGS/(LOSS) PER ORDINARY SHARE

Basic earnings/(loss) per share is calculated by dividing the net profit/(loss) for the year attributable to the ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year.
The following reflects the net profit/(loss) and share data used in the basic earnings/(loss) per share computation.

Group Company
For the year ended 31st March 2024 2023 2024 2023
Amounts used as numerator
Profit /(loss) for the year attributable to equity holders of 1,140,112,345 (287,893,355) (303,821,973) (250,902,003)
the Company (Rs.)
Dividends on preference shares (Rs.) (14,850,000) (29,700,000) (14,850,000) (29,700,000)
Net profit/(loss) for the year attributable to ordinary
shareholders of the Company (Rs.) 1,125,262,345 (317,593,355) (318,671,973) (280,602,003)
Number of ordinary shares used as the denominator
Weighted Average number of ordinary shares in issue 336,290,010 336,290,010 336,290,010 336,290,010

Earnings/(loss) per ordinary share - (Rs.) 3.35 (0.94) (0.95) (0.83)

There were no potentially dilutive ordinary shares outstanding at any time during the year, hence the dilutive earnings/(loss) per share is
equal to the basic earnings/(loss) per share.

15 DIVIDENDS

Company
For the year ended 31st March 2024 2023
Rs. ’000 Rs. ’000
Preference dividend paid for 2022/2023 (2023 - paid for 2020/2021 and 2021/2022) 14,850 29,700
Final ordinary dividend paid - -

Final ordinary dividends proposed - -

Preference dividends proposed 14,850 14,850

Ordinary Dividend per Share - (Rs.) - -

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 16 PROPERTY, PLANT AND EQUIPMENT
16.1 Group

208
Land Buildings Plant Motor Furniture Soft Capital Total Total
(Freehold) (Freehold) Machinery and Vehicles and furnishing, work-in 2023/2024 2022/2023
Equipment Fittings Cutlery, progress
Crockery and
Glassware
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Cost or revaluation
Balance as at 01st April 12,195,395 70,965,131 14,778,647 1,062,924 5,714,427 3,007,497 290,607 108,014,628 96,803,729
Surplus on revaluation - - - - - - - - 818,850
Additions during the year - 406,938 470,039 65,808 106,298 203,117 586,036 1,838,236 2,019,885
Transfers during the year - 480,055 130,013 - 5,285 1,581 (616,934) - -
Disposal during the year - (3,936) (128,593) (126,615) (10,988) (79,246) - (349,378) (269,034)
Reclassified to intangible assets - - (10,650) - - - - (10,650) -

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Effect of movement in exchange (660,345) (4,691,605) (895,272) (75,067) (331,428) (194,515) (26,882) (6,875,114) 8,641,198
rates
Balance as at 31st March 11,535,050 67,156,583 14,344,184 927,050 5,483,594 2,938,434 232,827 102,617,722 108,014,628

Accumulated depreciation/
impairment
Balance as at 01st April - 18,776,121 10,150,876 829,761 3,450,158 2,162,844 - 35,369,760 29,439,940
Charge for the year - 1,928,310 1,045,769 93,941 450,142 279,085 - 3,797,247 3,890,512
Disposal during the year - (1,638) (126,481) (125,930) (9,857) (66,564) - (330,470) (245,260)
Reclassified to intangible assets - - (10,650) - - - - (10,650) -
Effect of movement in exchange
rates - (1,327,523) (638,716) (61,466) (206,191) (157,697) - (2,391,593) 2,284,568
Balance as at 31st March - 19,375,270 10,420,798 736,306 3,684,252 2,217,668 - 36,434,294 35,369,760
NOTES TO THE FINANCIAL STATEMENTS

Carrying value
As at 31.03.2024 11,535,050 47,781,313 3,923,386 190,744 1,799,342 720,766 232,827 66,183,428
As at 31.03.2023 12,195,395 52,189,010 4,627,771 233,163 2,264,269 844,653 290,607 72,644,868
16.1.1 The gross carrying amount of fully depreciated property, plant and equipment that are still in use for the Group as at 31st March 2024 was Rs. 10,790,774,347/- (as at
31.03.2023 - Rs.10,228,814,007/- ).
16.1.2 The exchange difference has arisen as a result of the translation of property, plant and equipment of foreign entities which are accounted for in United States Dollars,
Oman Riyal, Indian Rupees and translated to the reporting currency at the closing rate.
16.1.3 The value of the property, plant and equipment pledged as security against borrowings are disclosed in Note 31.
16.1.4 Capital work in progress represents the amount of expenditure recognised under property, plant and equipment during the construction of capital assets.
16.1.5 In compliance with the accounting policy, land owned by Group companies are revalued by independent professional valuers at least once in every five years unless there is
an indication of a significant change in the market rates. During the last financial year, lands of the Group have been revalued and details of the revalued lands are given in
the Note 16.3.2 to the financial statements. Tax impact on revaluation of land is given in note 13 to the financial statements.
16.1.6 On re-assessment of the fair value of the Group’s assets, it has been identified that there is no impairment of property plant and equipment which requires provision in the
financial statements
16.1.7 There were no borrowing costs capitalised on interest-bearing liabilities - loans and interest - bearing liabilities - leases by the Group on qualifying assets during the
financial years 2023/2024 and 2022/2023.
 16.2 Company

Land Buildings Plant Motor Furniture Soft furnishing, Capital Total Total
(Freehold) (Freehold) Machinery and Vehicles and Cutlery, work-in 2023/2024 2022/2023
Equipment Fittings Crockery and progress
Glassware
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Cost or revaluation
Balance as at 01st April 843,500 1,103,491 689,171 47 269,411 116,700 - 3,022,320 2,788,554
Surplus on revaluation - - - - - - - - 133,200
Additions during the year - 59,935 31,711 - 2,451 19,424 154,900 268,421 101,579
Disposal during the year - (3,936) (34) - - (1,377) - (5,347) (1,013)
Balance as at 31st March 843,500 1,159,490 720,848 47 271,862 134,747 154,900 3,285,394 3,022,320

Accumulated depreciation/impairment
Balance as at 01st April - 453,731 504,615 47 244,282 111,516 - 1,314,191 1,253,676
Charge for the year - 20,747 32,389 - 5,696 4,206 - 63,038 61,496
Disposal during the year (1,638) (34) - - (1,377) (3,049) (981)
Balance as at 31st March - 472,840 536,970 47 249,978 114,345 - 1,374,180 1,314,191

Carrying value
As at 31.03.2024 843,500 686,650 183,878 - 21,884 20,402 154,900 1,911,214
As at 31.03.2023 843,500 649,760 184,556 - 25,129 5,184 - 1,708,129

16.2.1 The gross carrying amount of fully depreciated property plant and equipment that is still in use for the Company as at 31st March 2024 was Rs. 820,622,704/-. (as
at 31.03.2023 -
Rs. 778,985,478/-)

16.2.2 The value of the property, plant and equipment pledged as security against borrowings are disclosed in Note 31.

16.3 Freehold land

16.3.1 Total carrying amount of land

Group
As at Notes 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000
Land carried at revalued amount 16.3.2 11,486,928 12,147,273
Land carried at cost (fair value) 16.3.3 48,122 48,122
11,535,050 12,195,395

Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC

209
 16.3.2 Land carried at revalued amounts

210
Company name Location Last Estimated price per Land extent Carrying Revaluation Carrying
revaluation perch (Significant amount as at surplus amount
date unobservable inputs) 31.03.2024 at cost

Rs. Rs. ’000 Rs. ’000 Rs. ’000

Aitken Spence Hotel Holdings PLC (i) * "Heritance Ahungalla"

Galle Road, Ahungalla 24.12.2022 475,000 11 A 3 R 34.02 P 825,000 806,798 18,202
Galle Road, Ahungalla 24.12.2022 475,000 0 A 0 R 39.26 P 18,500 13,293 5,207
Heritance (Pvt) Ltd (i) * Moragalla, Beruwala 13.12.2022 375,000 5 A 3 R 6.80 P 347,500 336,420 11,080
Meeraladuwa (Pvt) Ltd (i) * Meeraladuwa Island 27.12.2022 43,500 - 86,500 29 A 2 R 9.00 P 226,350 126,088 100,262
Balapitiya
Kandalama Hotels (Pvt) Ltd (i) * Kandalama , Dambulla 18.10.2022 370 169 A 2 R 22.00 P 10,000 2,616 7,384
Neptune Ayurvedic Village (Pvt) Ltd (i) * Ayurvedic Village, Moragalla, 13.12.2022 252,000 0 A 0 R 19.30 P 4,860 797 4,063
Beruwala

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Turyaa (Pvt) Ltd (i) * 418, Parallel Road 13.12.2022 550,000 5 A 1R 37.90 P 440,000 420,235 19,765
Kudawaskaduwa, Kalutara
49, Sea Beach Road, Kalutara 13.12.2022 700,000 0 A 1R 30.32 P 39,775 38,287 1,488
Kudawaskaduwa, Kalutara 13.12.2022 550,000 1 A 3 R 33.20 P 172,000 115,221 56,779
Kudawaskaduwa, Kalutara 13.12.2022 550,000 0 A 1 R 34.30 P 40,000 30,826 9,174
Ahungalla Resorts Ltd (i) * Galle Road, Ahungalla 24.12.2022 523,500 10 A 2 R 39.29 P 900,000 170,000 730,000
Galle Road Ahungalla 24.12.2022 600,000 2 A 0 R 35.92 P 213,500 43,623 169,877
Aitken Spence Hotel Managements 144/7, Rajiv Gandhi Salai, ,
11.11.2022 13,000,000 0 A 3 R 15.14 P 1,707,891 839,700 868,191
(South India) Pvt Ltd (iii) * Perungudi, Chennai, India
P.R. Holiday Homes (Pvt) Ltd (ii) Cochin - Kerala, India 22.01.2022 172,000 14 A 0 R 7.52 P 387,378 188,668 198,710
Perumbalam Resorts Pvt Ltd (ii) Cochin - Kerala 23.01.2022 171,000 4 A 0 R 9.00 P 111,065 96,852 14,213
Aitken Spence Resorts (Middle East) LLC (iv) Al Hamriya, Sultanate of Oman 15.02.2022 7,500,000 5 A 0 R 8.00 P 6,043,109 785,966 5,257,143
NOTES TO THE FINANCIAL STATEMENTS

Total 11,486,928 4,015,390 7,471,538

The above lands have been revalued on the basis of current market value by independent, qualified valuers who have recent experience in the location and category of property being
valued.
(i) Valuation of the land was carried out by Mr.K. C. B. Condegama, A.I.V. [Sri Lanka]
(ii) Valuation of the land carried out by Mr. T.T. Kripananda Singh B.S.C. (Eng.) MICA, F.I.E, F.I.V of Messers N. Raj Kumar and Associates [India]
(iii) Valuation of the land carried out by Messers CBRE South Asia Private Limited [India]
(iv) Valuation of the land carried out by Mr. Ishan Tulsian, F.C.A, A.C.S, L.L.B, Registered Valuer SFA (IBBI), Msc. In Applied Finance (Singapore), DIIT (ICAI), B.Com (H)for R. Tulsian Global
[Oman]
* All the lands except P.R. Holiday Homes (Pvt) Ltd, Perumbalam Resorts Pvt Ltd and Aitken Spence Resorts (Middle East) LLC were revalued during the last financial year ended 31st March
2023. The lands belonging to those three companies were revalued during the financial year ended 31st March 2022.
16.3.3 Land carried at cost (fair value)

Company Location Acquisition Land extent Carrying Carrying

date amount amount
as at 31.03.2024 as at 31.03.2023
Rs. ’000 Rs. ’000
Kandalama Hotels (Pvt) Ltd Kandalama ,Dambulla 17.11.2022 13A 3R 38.00P 48,122 48,122
48,122 48,122

17 RIGHT - OF - USE ASSETS

17.1 Movement during the year

Group
Right-of-use Right-of-use Total Total
Land buildings 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Cost or valuation
Balance as at 01st April 28,566,333 11,975 28,578,308 25,683,092
Impact on exchange rate fluctuation (2,324,179) - (2,324,179) 2,895,216
Balance as at 31st March 26,242,154 11,975 26,254,129 28,578,308

Accumulated amortisation/impairment
Balance as at 01st April 11,679,662 9,934 11,689,596 9,303,764
Charge for the year 1,300,008 2,041 1,302,049 1,465,928
Impact on exchange rate fluctuation (1,020,198) - (1,020,198) 919,904
Balance as at 31st March 11,959,472 11,975 11,971,447 11,689,596

Carrying value
As at 31 March 2024 14,282,682 - 14,282,682
As at31 March 2023 16,886,671 2,041 16,888,712

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

18 INTANGIBLE ASSETS
18.1 Group

Goodwill Computer Total Total

Software 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Cost or Valuation
Balance as at 01st April 850,050 317,936 1,167,986 1,053,481
Additions during the year - 11,565 11,565 1,330
Reclassified from property, plant and equipment - 10,650 10,650 -
Effect of movement in exchange rates (67,750) (16,032) (83,782) 113,175
Balance as at 31st March 782,300 324,119 1,106,419 1,167,986

Accumulated amortisation / impairment

Balance as at 01st April - 278,937 278,937 232,070
Effect of movement in exchange rates - (14,332) (14,332) 17,508
Reclassified from property, plant and equipment - 10,650 10,650 -
Charge for the year - 26,576 26,576 29,359
Balance as at 31st March - 301,831 301,831 278,937

Carrying value
As at 31.03.2024 782,300 22,288 804,588
As at 31.03.2023 850,050 38,999 889,049

The gross carrying amount of fully amortised intangible assets that are still in use for the Group as at 31st March 2024 was
Rs. 192,543,704/- (as at 31.03.2023 - Rs. 188,133,953/-).

There were no intangible assets pledged by the Group as security for facilities obtained from banks as at 31.03.2024. (2022/2023- nil)

Net carrying value of goodwill

This represents the goodwill arisen on business combination on acquisition of Alfalaj hotel by Aitken Spence Resorts (Middle East) LLC
during 2015/16.

The recoverable amount of goodwill is determined based on value-in-use calculations. The value in use calculation is based on a discounted
cash flow model. The cash flows are derived from the budget and do not include restructuring activities that the Group is not yet
committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. There is a
considerable degree of judgement involved in preparing forecasts and assumptions including discount rates.

The key assumptions used are given below.

Business growth - Based on the long term average growth rate for each business unit. The volume growth has been budgeted on a
reasonable and realistic basis for a period of five years.

The weighted average growth rate used is consistent with the forecast included in industry reports.
(2023/2024 - 15%, 2022/2023 - 17.21%)

Inflation - Based on current inflation rate.

Discount rate - Risk free rate adjusted for the specific risk relating to the industry. [Pre-tax rate]
(2023/2024 - 9.13%, 2022/2023 - 9.24%)

Margin - Based on past performance and budgeted expectations

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash
inflows and the growth rate used for extrapolation purposes. Therefore, Management has identified that a reasonable possible change in the
two key assumptions namely, business growth rate and discount rate could cause the carrying amount to exceed the recoverable amount.
Given below is the change required individually for each key assumptions, for the carrying amount to equate the recoverable amount.

- Business growth rate : decreased by 4.5%

- Discount rate : increased by 4.4%

18.2 Company

Computer Total Total

Software 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000

Cost or Valuation
Balance as at 01st April 13,101 13,101 13101
Additions during the year - - -
Balance as at 31st March 13,101 13,101 13,101

Accumulated amortisation / impairment

Balance as at 01st April 13,101 13,101 12922
Charge for the year - - 179
Balance as at 31st March 13,101 13,101 13,101

Carrying value
As at 31.03.2024 - -
As at 31.03.2023 - - -

The gross carrying amount of fully amortised intangible assets that are still in use for the Company as at 31st March 2024 was Rs. 13,100,576/-
(as at 31.03.2023 - Rs. 13,100,576/-).

There were no intangible assets pledged by the Company as security for facilities obtained from banks as at 31.03.2024. (2022/2023- nil)

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

19 INVESTMENT IN SUBSIDIARIES
19.1 Investments in subsidiaries – unquoted

Country of Number Company Group 31.03.2024 31.03.2023

incorporation of Shares Holding Holding Rs. ’000 Rs. ’000

a) Equity shares
Aitken Spence Hotels Ltd Sri Lanka 14,701,904 98.01% 98.01% 149,750 149,750
Crest Star (BVI) Ltd British Virgin 3,415,000 100.00% 100.00% 185,628 185,628
(Ordinary Shares of US$ 1 each) Island
Cowrie Investment Pvt Ltd Maldives 52,740 60.00% 60.00% 321,733 321,733
(Ordinary Shares of Mrf 1000 each)
Aitken Spence Resorts (Middle East) LLC Oman 01 0.00% 51.00% - -
(Ordinary Shares of OMR 1 each)
Hethersett Hotels Ltd Sri Lanka 24,542,000 94.44% 94.44% 161,421 161,421
Neptune Ayurvedic Village (Pvt) Ltd Sri Lanka 500,000 100.00% 100.00% 5,000 5,000
Aitken Spence Hotels International (Pvt) Ltd Sri Lanka 10,744,582 41.00% 51.00% 181,024 181,024
Aitken Spence Hotel Managements Asia (Pvt) Ltd Sri Lanka 5,125,500 51.00% 51.00% 51,255 51,255
Aitken Spence Hotel Managements India 29,869,000 16.60% 59.13% 744,325 744,325
(South India) Ltd
Turyaa (Pvt) Ltd Sri Lanka 219,812,321 100.00% 100.00% 2,802,879 1,583,679
Turyaa Resorts (Pvt) Ltd (Note 19.3) Sri Lanka - 100.00% 100.00% - 1,219,200
Ahungalla Resorts Ltd Sri Lanka 78,369,024 60.00% 60.00% 2,926,326 2,926,326
Meeraladuwa (Pvt) Ltd Sri Lanka 20,227,801 100.00% 100.00% 202,278 202,278
ADS Resorts Pvt Ltd Maldives 01 0.00% 51.00% - -
Unique Resorts Pvt Ltd Maldives 01 0.00% 51.00% - -
Nilaveli Resorts (Pvt) Ltd Sri Lanka 01 100.00% 100.00% - -
Nilaveli Holidays (Pvt) Ltd Sri Lanka 01 100.00% 100.00% - -
The Galle Heritage (Pvt) Ltd Sri Lanka 01 100.00% 100.00% - -
7,731,619 7,731,619
Provision for impairment of investment in Turyaa (313,158) (260,840)
(Pvt) Ltd*
Net carrying amount of investments in subsidiaries –
unquoted as at 31st March 7,418,461 7,470,779

* Impairment to the carrying value of investment in Turyaa (Pvt) Ltd was recognised based on the discounted future cash flows to the extent
of the non recoverability amount of the investment.

The effects of changes in current economic conditions referring to macro environmental factors have been taken into effect in the cashflow
forecasts and the discount rate used for the calculation. There is a considerable degree of judgement involved in preparing forecasts and
assumptions including discount rates.

The key assumptions used for the investment impairment of the Company are given below.
- Discount factor : 11.8% to17.3%
- Inflation : Based on the current inflation Rate
- Forecasted terminal growth rate for future period : 2%
- Margin Based on past performance and budgeted expectations

b) Preference shares
Aitken Spence Hotels Ltd has redeemed the preference shares invested by Aitken Spence Hotel Holdings PLC during the last financial year
ended 31st March 2023. (40,000,000 shares were redeemed at Rs. 10/- per share)

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
19.2 Investments in sub subsidiaries / inter company shareholding- unquoted

Country of Number Company Group 31.03.2024 31.03.2023

incorporation of Shares Holding Holding Rs. ’000 Rs. ’000

Aitken Spence Hotels Ltd

- Kandalama Hotels (Pvt) Ltd Sri Lanka 10,216,216 63.00% 61.75% 234,406 234,406
- Heritance (Pvt) Ltd Sri Lanka 2,125,627 100.00% 98.01% 35,751 35,751
270,157 270,157
Crest Star (BVI) Ltd
- Jetan Travel Services Company Pvt Ltd Maldives 47,500 95.00% 95.00% 545,476 545,476
545,476 545,476
Aitken Spence Hotels International (Pvt) Ltd
- ADS Resorts Pvt Ltd Maldives 1,274,999 100.00% 51.00% 103,970 103,970
- Unique Resorts Pvt Ltd Maldives 6,374,999 100.00% 51.00% 562,663 562,663
- Aitken Spence Hotel Services Pvt Ltd India 9,999 99.99% 51.00% 271 271
- Aitken Spence Hotel Managements India 150,048,995 83.40% 42.53% 3,390,956 3,390,956
(South India) Pvt Ltd
- Ace Resorts Pvt Ltd Maldives 462,599 100.00% 51.00% 37,008 37,008
- Aitken Spence Resorts (Middle East) LLC Oman 11,748,275 100.00% 51.00% 4,817,994 4,817,994
8,912,862 8,912,862
Aitken Spence Hotel Managements Asia (Pvt) Ltd
- PR Holiday Homes (Pvt) Ltd India 621,310 84.57% 43.13% 178,144 178,144
- Aitken Spence Hotels International (Pvt) Ltd Sri Lanka 5,196,916 20.00% 10.00% 1,931,128 1,931,128
2,109,272 2,109,272
PR Holiday Homes (Pvt) Ltd
- Perumbalam Resorts Pvt Ltd India 9,999 99.99% 43.12% 218 218
218 218
Aitken Spence Hotel Services Pvt Ltd
- Aitken Spence Hotel Managements India 01 0.00% 0.00% - -
(South India) Pvt Ltd
- -
Aitken Spence Hotel Managements (South India)
Pvt Ltd
- Perumbalam Resorts Pvt Ltd India 01 0.01% 0.01% - -
- -
Unique Resorts Pvt Ltd
- Ace Resorts Pvt Ltd Maldives 01 0.00% 0.00% - -
- -

Kandalama Hotels (Pvt) Ltd and Heritance (Pvt) Ltd are subsidiaries of Aitken Spence Hotels Ltd.
Jetan Travel Services Company Pvt Ltd is a subsidiary of Crest Star (BVI) Ltd.
ADS Resorts Pvt Ltd, Unique Resorts Pvt Ltd, Aitken Spence Hotel Services Pvt Ltd, Aitken Spence Hotel Managements (South India) Pvt
Ltd, Ace Resorts Pvt Ltd, Aitken Spence Resorts (Middle East) LLC are subsidiaries of Aitken Spence Hotels International (Pvt) Ltd.
P.R Holiday Homes Pvt Ltd is a subsidiary of Aitken Spence Hotel Managements Asia (Pvt) Ltd.
Perumbalam Resorts Pvt Ltd is a subsidiary of P.R Holiday Homes Pvt Ltd.

215
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

19.3 Merger Accounting for common control combinations

During 2022/2023 the Group commenced adopting the Statement of Recommended Practice (SORP) for Merger Accounting for Common
Control Combinations approved by the Council of the Institute of Chartered Accountants of Sri Lanka on 19 December, 2012, for
business combinations in which all of the combining entities are ultimately controlled by the same party both before and after the business
combination.

With effect from 01st April 2023, Turyaa Resorts (Pvt) Ltd was amalgamated with Turyaa (Pvt) Ltd, both being wholly own subsidiaries of
Aitken Spence Hotel Holdings PLC and was accounted as a common control combination in accordance with the above SORP. There was
no impact to the Consolidated financial statements of the Group due to this amalgamation as both combining entities were accounted for as
subsidiaries prior to the amalgamation.

19.4 Non - controlling interests

The following subsidiaries have material non - controlling interests.

For the year Principle place of Operating Segment Ownership interest held by
business/Country of non- controlling interests
incorporation As at As at
31.03.2024 31.03.2023

Aitken Spence Hotels International (Pvt) Ltd Sri Lanka Sri Lankan Sector - Others 49% 49%
Aitken Spence Hotels Managements Sri Lanka Sri Lankan Sector - Others 49% 49%
Asia (Pvt) Ltd
Ahungalla Resorts Ltd Sri Lanka Sri Lankan Sector- Hotels 40% 40%
Cowrie Investment Pvt Ltd Republic of Maldives South Asia and Middle East Sector 40% 40%
ADS Resorts Pvt Ltd Republic of Maldives South Asia and Middle East Sector 49% 49%
Unique Resorts Pvt Ltd Republic of Maldives South Asia and Middle East Sector 49% 49%
Aitken Spence Hotel Managements India South Asia and Middle East Sector 40.87% 40.87%
(South India) Pvt Ltd

Except for Ahungalla Resorts Ltd and Cowrie Investment Pvt Ltd, the non-controlling interest of other subsidiaries are held with the holding
Company, Aitken Spence PLC.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
The following table summarises the financial information relating to the Group’s subsidiaries that has material non-controlling interests,
before any intra-group eliminations.

Cowrie Investment Pvt Ltd Ahungalla Resorts Ltd

2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Revenue 18,572,473 19,909,769 4,343,712 2,459,385

Profit/(loss) after tax 970,889 431,317 (375,069) (1,371,293)

Profit/(loss) attributable to NCI 388,356 172,527 (150,028) (548,517)
Other comprehensive income/(loss) (831,253) 875,144 (1,819) (413,826)

Total comprehensive income/(loss) 139,636 1,306,461 (376,888) (1,785,119)

Total comprehensive income/(loss) attributable to NCI 55,854 522,584 (150,755) (714,048)

Current assets 2,396,473 2,497,162 1,144,875 1,665,155

Non- current assets 35,732,667 40,256,816 8,838,259 9,247,681
Current liabilities (6,683,355) (7,529,165) - (2,934,029)
Non- current liabilities (21,949,094) (26,293,523) (9,851,532) (12,005,208)
Net assets 9,496,691 8,931,290 131,602 (4,026,401)
Net assets attributable to NCI 3,798,676 3,572,516 52,641 (1,610,560)

Cash flow from operating activities 3,891,677 2,338,977 1,040,764 517,818

Cash flow from investing activities (681,864) (834,145) (21,818) (43,661)
Cash flow from financing activities (2,433,059) (4,528,896) (1,720,380) (387,546)
Effect of exchange rate changes on cash and cash 99,613 237,818 - -
equivalents
Net increase/(decrease) in cash and cash 876,367 (2,786,246) (701,434) 86,611
equivalents

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NOTES TO THE FINANCIAL STATEMENTS

20 INVESTMENT IN EQUITY ACCOUNTED INVESTEES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Recognised in the statement of financial position

- Interest in associates 63,185 93,040 992,673 1,008,176
Carrying amount as at 31st March 63,185 93,040 992,673 1,008,176

Recognised in the statement of changes in equity

- Interest in associates - (364) - -
Share of adjustment on equity accounted investees - (364) - -

Recognised in the income statement

- Interest in associates (36,314) (397,559) - -
Share of loss of equity accounted investees
(net of tax) (36,314) (397,559) - -

Recognised in the statement of profit or loss and other

comprehensive income
- Interest in associates 6,459 29,889 - -
Share of other comprehensive income of equity accounted
investees (net of tax) 6,459 29,889 - -

20.1 Investment in associates

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Investment in associates - quoted 20.1.1 - - 736,513 736,513

Investment in associates - unquoted 20.1.2 63,185 93,040 256,160 271,663
Total equity value of investment in associates as at
31st March 63,185 93,040 992,673 1,008,176

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20.1.1 Investment in associates - quoted

Group Company
As at No. of Group 31.03.2024 31.03.2023 No. of Company 31.03.2024 31.03.2023
Shares Holding Rs. ’000 Rs. ’000 Shares Holding Rs. ’000 Rs. ’000

Browns Beach Hotels PLC

(Consolidated with Negombo Beach
Resorts (Pvt) Ltd)
Net book value as at 01st April 48,627,103 37.42% 925,110 925,110 47,455,750 36.62% 906,602 906,602
Share of net assets of equity - (364)
accounted investees directly
recognised in equity due to surcharge
tax
Share of movement in equity value * (925,110) (924,746) - -
Equity value of investment as at - - 906,602 906,602
31st March
Provision for impairment of - - (170,089) (170,089)
investment **
Equity value of investment as at - - 736,513 736,513
31st March - net of impairment
Market value of quoted investment 632,152 588,388 616,925 574,215
as at 31st March

* As the Group’s share of losses arising from Browns Beach Hotels PLC has exceeded its interest in equity accounted investee, the carrying
amount has been reduced to nil and the recognition of further losses was discontinued since 2022/23. The unrecognised losses as at
31.03.2024 is amounting to Rs. 254,624,655.

** Impairment to the carrying value of investment in Browns Beach Hotels PLC was recognised based on the discounted future cash flows
to the extent of the non recoverability amount of the investment.

The effects of changes in current economic conditions referring to macro environmental factors have been taken into effect in the cash flow
forecasts and the discount rate used for the calculation. There is a considerable degree of judgement involved in preparing forecasts and
assumptions including discount rates.

The key assumptions used for the investment impairment of the Company are given below.

Discount factor - 15.8% to18.9%

Inflation - Based on current inflation rate.
Forecasted terminal growth rate for future period - 2%
Margin - Based on past performance and budgeted expectations

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NOTES TO THE FINANCIAL STATEMENTS

20.1.2 Investment in associates - unquoted

Group Company
As at No. of Group 31.03.2024 31.03.2023 No. of Company 31.03.2024 31.03.2023
Shares Holding Rs. ’000 Rs. ’000 Shares Holding Rs. ’000 Rs. ’000

Amethyst Leisure Ltd

(Consolidated with Paradise Resorts
Passikudah (Pvt) Ltd)
Net book value as at 01 st April 218,345,163 27.89% 334,808 334,808 218,345,163 27.89% 332,848 332,848
Share of movement in equity value (334,808) (314,398) - -
Equity value of investment as at - 20,410 332,848 332,848
31st March
Provision for impairment of investment * - - (304,567) (289,064)
Equity value of investment as at 31st
March - net of impairment - 20,410 28,281 43,784

Aitken Spence Hotel

Managements (Pvt) Ltd
(Consolidated with Aitken Spence
Resources (Pvt) Ltd)
Net book value as at 1st April 3,862,353 49.00% 227,879 227,879 3,862,353 49.00% 227,879 227,879
Share of movement in equity value (164,694) (155,249) - -
Equity value of investment as at
31st March 63,185 72,630 227,879 227,879

Total equity value of investment of 63,185 93,040 256,160 271,663

investments in associates - unquoted
as at 31st March

* Impairment to the carrying value of investment in Amethyst Leisure Ltd was recognised based on discounted future cash flows to the
extent of the non recoverability amount of the investment.

The effects of changes in economic conditions referring to macro economic factors have been taken into effect in the cash flow forecasts
and the discount rate used for the calculation. There is a considerable degree of judgement involved in preparing forecasts and assumptions
including discount rates.

The key assumptions used for the investment impairment of the Company are given below.

Discount factor - 13.1% to 14.7%

Inflation - Based on current inflation rate.
Forecasted terminal growth rate for future period - 2%
Margin - Based on past performance and budgeted expectations

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20.2 Principle place of business and the group holding percentage of investment in associates

Name Principle place of Nature of relationship with Ownership Fair Value of

Business /Country the Group interest % ownership
of incorporation voting rights as interest
at 31st March (if listed)
2024 Rs.’000

Browns Beach Hotels PLC Sri Lanka Owns Negombo Beach Resorts 37.42% 632,152
(Pvt) Ltd
Negombo Beach Resorts (Pvt) Ltd Sri Lanka Owns and Operates 37.42% -
(100% subsidiary of Browns Beach Hotels PLC) “Sentido Heritance Negombo”
Amethyst Leisure Ltd Sri Lanka Owns Paradise Resorts 27.89% -
Passikudah (Pvt) Ltd
Paradise Resorts Passikudah (Pvt) Ltd Sri Lanka Owns and Operates 27.89% -
(100% subsidiary of Amethyst Leisure Ltd) “Amethyst Resorts”
Aitken Spence Hotel Managements (Pvt) Ltd Sri Lanka Provides Management Services 49.00% -
to all Hotels in Sri Lanka
Aitken Spence Resources (Pvt) Ltd Sri Lanka Provides Human Resources to 49.00% -
(100% subsidiary of Aitken Spence Hotel overseas hotels
Managements (Pvt) Ltd)

20.3 Summarised financial information of investment in associates with material NCI

Browns Beach Hotels PLC Aitken Spence Hotel
Managements (Pvt) Ltd
For the year (Consolidated with (Consolidated with
Negombo Beach Resorts Aitken Spence
(Pvt) Ltd) Resources (Pvt) Ltd)
2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Revenue 1,295,243 660,084 1,016,040 947,271

Loss after tax (466,967) (1,013,059) (32,457) (49,787)
Other comprehensive income/(loss) (780) (21,447) 13,182 77,235

Total comprehensive income (467,747) (1,034,506) (19,275) 27,448

Attributable to NCI (292,730) (647,425) (9,830) 13,999
Attributable to Investees Shareholders (175,017) (387,081) (9,445) 13,449
Share of net assets of equity accounted investees directly recognised in equity - (364) - -
Unrecognised losses due to negative net assets 175,017 64,433 - -
Share of movement in equity value attributable to the Group - (323,012) (9,445) 13,449

Current assets 715,040 486,726 363,033 1,159,153

Non - current assets 4,587,037 4,791,863 412,653 325,048
Current liabilities (1,744,656) (1,095,881) (688,113) (1,456,244)
Non- current liabilities (4,213,865) (4,354,913) (92,865) (76,321)
Net assets (656,444) (172,205) (5,292) (48,364)
Attributable to NCI - (172,205) (68,477) (120,994)
Attributable to investees shareholders - - 63,185 72,630

Groups interest in net assets of investee at the beginning of the year - 323,012 72,630 59,181
Share of movement in equity value attributable to the Group - (323,012) (9,445) 13,449
Group's interest in net assets of investee at the end of the year - - 63,185 72,630

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

21 OTHER FINANCIAL ASSETS - NON CURRENT

21.1 Unquoted equity securities, debt securities and unsecured loans
Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Financial assets at fair value through OCI
- Unquoted equity securities 21.1.1 250,254 272,494 - -

Financial assets at amortised cost

-Unquoted debt securities and unsecured 21.1.2 725,524 799,459 725,524 799,459
loans
Carrying amount as at 31st March 975,778 1,071,953 725,524 799,459

Current unquoted equity and debt securities 27 - (73,935) - (73,935)

Non-current unquoted debt and equity 975,778 998,018 725,524 725,524
securities

21.1.1 Unquoted equity securities

Group Company
As at No of shares 31.03.2024 31.03.2023 31.03.2024 31.03.2023
as at
31.03.2024 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Investment in Floatels India (Pvt) Ltd

Balance as at 01st April 272,494 244,790 - -
Effect of movement in exchange rates (22,240) 27,704 - -
Balance as at 31st March 716,037 250,254 272,494 - -
The balance reflects the recent sale price of remaining equity shares.

Valuation technique and significant unobservable inputs used for valauation are disclosed in Note No. 40.3.2.

The Group designated the investments in equity securities at FVOCI because these equity securities represent investments that the Group
intended to hold for the long term for strategic purpose.

No Strategic investments were disposed of during 2023/2024, and there were no transfer of any cumulative gain or loss within equity
relating to these investments.

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21.1.2 Unquoted debt securities and unsecured loans

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Secured redeemable debentures

Earl's Court Hotel Management (Pvt) Ltd 73,935 70,571 73,935 70,571
Reversal of impairment - 3,364 - 3,364
73,935 73,935 73,935 73,935
Settlements during the year (73,935) - (73,935) -
- 73,935 - 73,935
Unsecured loans
Negombo Beach Resorts (Pvt) Ltd 725,524 725,524 725,524 725,524
Carrying amount as at 31st March 725,524 799,459 725,524 799,459
Current unquoted debt securities - (73,935) - (73,935)
Non-current unquoted debt securities and unsecured loans 725,524 725,524 725,524 725,524

i Redeemable debentures are receivable in 60 equal instalments. Interest linked to AWPLR.

ii Unsecured loan is receivable in 7 years with a grace period of 2 years. Interest linked to AWPLR.

22 DEFERRED TAX ASSETS

22.1 Movement in deferred tax assets

Group Company
For the year 2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April 486,592 648,820 - -

Effect of movement in exchange rates (41,463) 47,634 - -
Reversal of temporary differences
-Recognised in income statement (85,163) (90,316) - -
-Recognised in other comprehensive income - (119,546) - -
Balance as at 31st March 359,966 486,592 - -

22.2 Composition of deferred tax assets

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax assets attributable to;

Defined benefit obligations 3,036 3,384 - -
Tax losses carried forward 704,758 856,086 - -
Expected credit loss 7,403 10,163 - -
Property, plant and equipment (247,071) (263,495) - -
Revaluation surplus on freehold land (108,160) (119,546) - -
Net deferred tax assets 359,966 486,592 - -

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NOTES TO THE FINANCIAL STATEMENTS

GRI 201-3

22.3 Movement in tax effect of temporary differences - Group - 2023/2024

2023/2024
Balance as at Recognised Recognised Exchange Balance as at
01.04.2023 in profit and in other differences 31.03.2024
(loss) comprehensive
income
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax assets

Defined benefit obligations 3,384 (26) - (322) 3,036
Tax losses carried forward 856,086 (71,755) - (79,573) 704,758
Expected credit losses 10,163 (2,099) - (661) 7,403
869,633 (73,880) - (80,556) 715,197
Deferred tax liabilities
Property, plant and equipment (263,495) (11,283) - 27,707 (247,071)
Revaluation surplus on freehold land (119,546) - - 11,386 (108,160)
(383,041) (11,283) - 39,093 (355,231)
Net deferred tax assets 486,592 (85,163) - (41,463) 359,966

22.4 Movement in tax effect of temporary differences - Group - 2022/2023

2022/2023
Balance as at Recognised Recognised Exchange Balance as at
01.04.2022 in profit and in other differences 31.03.2023
(loss) comprehensive
income
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax assets

Defined benefit obligations 3,432 (644) - 596 3,384
Tax losses carried forward 1,075,646 (314,219) - 94,659 856,086
Expected credit losses 21,118 (15,236) - 4,281 10,163
1,100,196 (330,099) - 99,536 869,633
Deferred tax liabilities
Property, plant and equipment (451,376) 239,783 - (51,902) (263,495)
Revaluation surplus on freehold land - - (119,546) - (119,546)
(451,376) 239,783 (119,546) (51,902) (383,041)
Net deferred tax assets 648,820 (90,316) (119,546) 47,634 486,592

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
23 INVENTORIES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Food 344,435 422,014 15,898 19,186

Beverage 268,908 342,901 6,496 4,449
Maintenance 375,086 406,994 8,324 5,284
Stationery 34,855 27,931 1,071 979
House keeping 75,892 181,806 2,356 2,016
Ayurveda stocks 3,867 5,421 - -
Fuel and others 323,067 303,925 6,263 12,110
1,426,110 1,690,992 40,408 44,024

There were no inventories pledged as security for overdraft facilities as at 31st March 2024 ( as at 31st March 2023- nil).

None of the inventories are pledged as security for loan facilities obtained by the Group or Company from banks as at 31st March 2024.
(Group and Company 2022/2023 - nil).

24 TRADE AND OTHER RECEIVABLES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Trade receivables 3,156,294 2,434,181 132,907 83,407

Provision for impairment (138,774) (144,930) (838) (330)
Net trade receivables 3,017,520 2,289,251 132,069 83,077
Non trade receivables 130,905 130,354 3,058 3,231
Total recognised under financial instruments
(Note No. 39.1) 3,148,425 2,419,605 135,127 86,308
Other Taxes receivable 38,998 46,987 - -
Other receivable 128,388 68,341 5,027 2,770
Total 3,315,811 2,534,933 140,154 89,078

No loans have been given to directors of the Company.

24.1 Credit and market risks, and impairment losses

Information about the Group’s exposure to credit risk of trade receivables which discusses how the Group manages and measures credit
quality of trade receivables , market risk and the impairment losses of trade receivables are disclosed in Note No.41.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

25 AMOUNTS DUE FROM HOLDING COMPANY

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Short term investments 1,068,116 146,435 - -

Total 1,068,116 146,435 - -

The above short term investments were made on normal market interest rates.

26 AMOUNTS DUE FROM PARENT’S GROUP ENTITIES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Aitken Spence Travels (Pvt) Ltd 610,180 551,683 109,862 74,066

Aitken Spence Hotel Managements (Pvt) Ltd 164,900 315,415 5,649 -
Aitken Spence Hotels International (Pvt) Ltd - - 207,016 524,197
Aitken Spence Exports (Pvt) Ltd 628 534 - -
Aitken Spence Hotels Ltd - - 6 -
Negombo Beach Resorts (Pvt) Ltd 609,864 2,698 609,864 -
Turyaa (Pvt) Ltd - - 310,841 4,754
Meeraladuwa (Pvt) Ltd - - 518 382
Ahungalla Resorts Ltd - - 122,952 -
Aitken Spence Shipping Ltd 108 - - -
Hapag Lloyd Lanka (Pvt) Ltd 33 70 - -
Ace Aviation Services Maldives (Pvt) Ltd - 65,983 - -
Aitken Spence Garments Ltd 268 - 132 -
Aitken Spence International Consulting (Pvt) Ltd 132 234 - -
Paradise Resorts Passikudah (Pvt) Ltd 595 3,278 26 8
Total 1,386,708 939,895 1,366,866 603,407

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
27 OTHER FINANCIAL ASSETS

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Other financial assets - current (Note 21.1.2) - 73,935 - 73,935

Bank deposits 4,029,660 4,478,774 260,371 357,733
Total 4,029,660 4,552,709 260,371 431,668

28 CASH AND CASH EQUIVALENTS

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Short term deposits less than 90 days 449,224 3,387,815 - 44,970

Cash at bank and in hand 1,848,009 1,874,496 147,562 141,740
Cash and cash equivalents in the statement of 2,297,233 5,262,311 147,562 186,710
financial position
Bank overdrafts and other short term borrowings (5,618,695) (7,946,332) (337,053) (168,939)
Cash and cash equivalents in the statement of (3,321,462) (2,684,021) (189,491) 17,771
cash flows

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NOTES TO THE FINANCIAL STATEMENTS

29 STATED CAPITAL

Company
As at No of shares 31.03.2024 31.03.2023
as at
31.03.2024 Rs. ’000 Rs. ’000

Issued and fully paid ordinary share capital 336,290,010 3,389,587 3,389,587

Preference share capital - redeemable cumulative 16,500,000 165,000 165,000

Total 3,554,587 3,554,587

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per individual
present at the meeting of shareholders or one vote per share in case of a poll.

Preference shares do not carry the right to vote. All shares rank equally with regard to residual assets, except that preference shareholder
participate only to the extent of the face value of shares adjusted for dividends in arrears.

Preference Share capital is classified as equity as redeemable only at the company’s option. Dividends thereon are recognised as
distributions within equity upon approval by the company’s shareholders.

Preference shareholder is entitled to dividends at 9% annually.(Cents 90 per share)

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30 RESERVES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Revaluation reserve 30.1 3,148,179 3,148,179 666,248 666,248

General reserve 30.2 22,929 22,929 22,929 22,929
Cashflow hedge reserve 30.3 (2,208,231) (3,109,161) - -
Fair value reserve 30.4 73,525 62,626 - -
Foreign currency translation reserve 30.5 8,479,077 10,181,031 - -
Total 9,515,479 10,305,604 689,177 689,177

Transaction movement
Balance brought forward 10,305,604 8,791,779 689,177 705,961
Transfers to / (from) foreign currency translation (1,701,954) 1,647,312 - -
reserve during the year
Transfer to / (from) cashflow hedge reserve 900,930 (250,673) - -
Movement in fair value reserve 10,899 42,212 - -
Movement in revaluation reserve - 74,974 - (16,784)
Balance carried forward 9,515,479 10,305,604 689,177 689,177

30.1 Revaluation reserves

The revaluation reserve relates to property plant and equipment which has been revalued by the Group.

30.2 General reserves

The general reserve relates to retained earnings set aside by the Group.

30.3 Cashflow hedge reserve

This represents the reserve created to eliminate the exposure that arises from changes in cash flows of a financial liability due to exchange
rate fluctuations.

30.4 Fair value reserve

This represents the cumulative net change in the fair value of equity securities designated at FVOCI until the investments are derecognised.

30.5 Foreign currency translation reserve

The foreign currency translation reserve comprise of all foreign exchange difference arising from the translation of the financial statements
of foreign operations.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

31 INTEREST BEARING LIABILITIES - BANKS

31.1 Movement in Interest bearing liabilities - banks

Group Company
For the year 2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Loan Capital
Balance as at 01st April 42,542,435 43,819,989 712,486 815,369
Effect of movement in exchange rates (3,098,828) 4,921,755 - -
Loans received during the year 504,424 321,921 - -
Interest capitalised during the year - 361,034 - 52,622
Transaction cost 5,395 7,690 - -
Loan repayments during the year (5,811,807) (6,889,954) (177,155) (155,505)
34,141,619 42,542,435 535,331 712,486
Loan Interest
Balance as at 01st April 160,521 132,395 - -
Effect of movement in exchange rates (4,960) 18,820 - -
Interest accrued during the period 3,787,762 3,731,805 115,480 156,255
Interest capitalised during the period - (361,034) - (52,622)
Interest paid during the period (3,829,495) (3,361,465) (115,480) (103,633)
113,828 160,521 - -
Total balance as at 31st March 34,255,447 42,702,956 535,331 712,486
Current portion of interest bearing liabilities - banks (5,693,006) (6,114,421) (217,205) (177,154)
Non current portion of interest bearing liabilities 28,562,441 36,588,535 318,126 535,332
- banks

31.2 Analysed by currency equivalent in Rupees

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Equivalent Equivalent Equivalent Equivalent
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Sri Lanka Rupees 1,497,813 1,731,199 535,331 712,486

United States Dollars 21,824,074 27,123,100 - -
Euro 9,302,585 11,994,118 - -
Oman Riyal 1,636,009 1,865,541 - -
Transaction cost to be amortised (5,034) (11,002) - -
Total 34,255,447 42,702,956 535,331 712,486

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31.3 Analysed by repayment period

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Payable within one year 5,693,006 6,114,421 217,205 177,154

Payable between one and two years 13,507,432 5,916,576 318,126 217,206
Payable between two and five years 7,863,949 20,667,444 - 318,126
Payable after five years 7,191,060 10,004,515 - -
Total 34,255,447 42,702,956 535,331 712,486

31.4 Analysed by interest rate

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Fixed rate term loans 900,135 855,626 - 47,410

Term loans linked to LIBOR - 24,753,447 - -
Term loans linked to AWPLR 1,497,813 1,674,333 535,331 665,076
Term loans linked to EURIBOR 9,302,585 11,994,119 - -
Term loans linked to SOFR 20,922,939 1,570,892 - -
Term loans linked to T-bill rate (Oman) 1,636,009 1,865,541 - -
Transaction cost to be amortised (5,034) (11,002) - -
34,254,447 42,702,956 535,331 712,486

231
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

31.5 Analysed by lending institutions, credit terms and security details

31.5.1 Analysed by lending institutions, credit terms and security details - Group

Bank / financial Loan No Currency Linked interest Assets pledged and collaterals
institution basis

Hatton National Bank Loan No. 1 USD SOFR Mortgage agreement over the head lease of the hotel property
Loan No. 2 USD SOFR Corporate Guarantee from Aitken Spence Hotels International (Pvt) Ltd and
mortgage agreement over the head lease of the hotel property
Loan No. 3 USD SOFR Corporate Guarantee from Aitken Spence Hotels International (Pvt) Ltd

Loan No. 4 USD SOFR Corporate Guarantee from Aitken Spence Hotels International (Pvt) Ltd
Loan No. 5 USD Fixed rate Third party letter of set-off and lien over deposits owned by another Group's
subsidiary
Loan No. 6 USD Fixed rate Mortgage agreement over the head lease of the hotel property
Loan No. 7 LKR Fixed rate None (Loan obtained under Enterprise Sri Lanka Loan Scheme)
Loan No. 8 LKR Fixed rate None (Loan obtained under Credit Guarantee and Interest Subsidy Loan
Scheme)
Loan No. 9 LKR Fixed rate None (Loan obtained under Credit Guarantee and Interest Subsidy Loan
Scheme)
Loan No. 10 LKR Fixed rate None (Loan obtained under Saubhagya Loan Scheme)
Loan No. 11 LKR Fixed rate None (Loan obtained under Saubhagya Loan Scheme)

DFCC Bank Loan No. 1 USD SOFR Corporate Guarantee from Aitken Spence Hotels International (Pvt) Ltd and
mortgage agreement over the head lease of the hotel property
Loan No. 2 LKR AWPLR Corporate Guarantee from Aitken Spence Hotel Holdings PLC

Hongkong and Shanghai

Banking Corporation
Loan No. 1 EUR EURIBOR Corporate Guarantee from Aitken Spence PLC and primary mortgage over the
hotel property
Loan No. 2 EUR EURIBOR Corporate Guarantee from Aitken Spence PLC
Loan No. 3 USD SOFR Corporate Guarantee from Aitken Spence PLC and primary mortgage over the
hotel property
Loan No. 4 OMR Central Bank of Corporate Guarantee from Aitken Spence PLC and primary mortgage over the
Oman T-Bill rate hotel property

People’s Bank Loan No. 1 USD SOFR Corporate Guarantee from Aitken Spence Hotel Holdings PLC and negative
pledge over the shares of Aitken Spence Hotels International (Pvt) Ltd
Loan No. 2 USD SOFR Corporate Guarantee from Aitken Spence Hotel Holdings PLC and negative
pledge over the shares of Aitken Spence Hotels International (Pvt) Ltd
Loan No. 3 USD Fixed rate None

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Repayment Terms Maturity 31.03.2024 31.03.2023

Rs' 000 Rs' 000

Repayment commenced. Monthly instalments. Mar - 2030 9,014,014 10,757,938

Repayment commenced. Monthly instalments. Mar - 2026 1,037,795 1,615,826

Fully settled during the financial year. Apr - 2023 - 40,893

Fully settled during the financial year. Oct - 2023 - 33,628

60 Monthly instalments starting Aug-2024. Jul - 2031 753,411 290,646

Fully settled during the financial year. Sep - 2023 - 155,354

Fully settled during the financial year. Sep - 2023 - 36,540
Fully settled during the financial year. Sep - 2023 - 10,870

Fully settled during the financial year. Sep - 2023 - 5,425

Fully settled during the financial year. Oct - 2023 - 2,060

Fully settled during the financial year. Oct - 2023 - 1,091
10,805,220 12,950,271

Repayment commenced. Monthly instalments. Mar - 2030 6,628,974 7,910,935

Repayment commenced. Monthly instalments. Oct - 2029 962,481 1,009,257

7,591,455 8,920,192

Repayment commenced. Monthly instalments and 75% final baloon payment. Apr - 2025 4,631,180 5,704,697

Repayment commenced. Monthly instalments. Jul - 2024 247,731 639,767

Bullet repayment at maturity. Jul - 2025 1,445,690 1,570,892

Restructured during the financial year. 20 quarterly instalments starting from Aug-2023. May - 2028 1,636,009 1,865,541

7,960,610 9,780,897

Repayment commenced. Quarterly instalments. Jul - 2026 2,541,758 3,780,839

Repayment commenced. Monthly instalments. Nov - 2024 255,708 613,388

Repayment commenced. Monthly instalments. Nov - 2024 146,724 352,759

2,944,190 4,746,986

233
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Bank / financial Loan No Currency Linked interest Assets pledged and collaterals
institution basis

ABANCA Corporación Loan No. 1 EUR EURIBOR Corporate Guarantee from Ruisa II SA
Bancaria

Habib Bank Loan No. 1 LKR AWPLR Corporate Guarantee from Aitken Spence PLC

Sampath Bank Loan No. 1 LKR Fixed rate Corporate Guarantee from Aitken Spence Hotel Holdings PLC

Total
Transaction cost to be
amortised

31.5.2 Analysed by lending institutions, credit terms and security details - Company

Bank / financial Loan No Currency Linked interest Assets pledged and collaterals
institution basis

Hatton National Bank Loan No. 1 LKR Fixed rate None (Loan obtained under Enterprise Sri Lanka Loan Scheme)
Loan No. 2 LKR Fixed rate None (Loan obtained under Credit Guarantee and Interest Subsidy Loan
Scheme)

Habib Bank Loan No. 1 LKR AWPLR Corporate Guarantee from Aitken Spence PLC

Total

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Repayment Terms Maturity 31.03.2024 31.03.2023

Rs' 000 Rs' 000

Repayment commenced. Quarterly instalments and 72% final bullet repayment at maturity. Apr - 2026 4,423,674 5,649,655

4,423,674 5,649,655

Repayment commenced. Quarterly instalments. Mar - 2026 535,332 665,076

535,332 665,076

Fully settled during the financial year. Nov - 2023 - 881

- 881

34,260,481 42,713,958
(5,034) (11,002)

34,255,447 42,702,956

Repayment Terms Maturity 31.03.2024 31.03.2023

Rs' 000 Rs' 000

Fully settled during the financial year. Sep - 2023 - 36,540

Fully settled during the financial year. Sep - 2023 - 10,870

- 47,410

Repayment commenced. Quarterly instalments. Mar - 2026 535,331 665,076

535,331 665,076

535,331 712,486

235
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

32 INTEREST BEARING LIABILITIES - LEASES

32.1 Movement of lease liabilities

Group Company
For the year 2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April 15,010,510 14,689,882 - -

Payment of lease liabilities (2,162,060) (2,422,018) - -
Impact on exchange rate fluctuation (1,156,419) 1,767,582 - -
Interest expense charged to income statement 791,478 975,064 - -
Balance as at 31st March 12,483,509 15,010,510 - -
Current portion of interest bearing liabilities - leases (1,379,271) (1,422,456) - -
Non current portion of interest bearing liabilities - leases 11,104,238 13,588,054 - -

32.2 Analysed by capital repayment

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Payable within one year 1,379,271 1,422,456 - -

Payable between one and two years 1,130,149 1,494,614 - -
Payable between two and five years 593,111 1,642,668 - -
Payable after five years 9,380,978 10,450,772 - -
Total 12,483,509 15,010,510 - -

32.3 Details of lease liabilities recognised due to ROU assets

Company name Nature of the leasing activities Remaining lease

period as at
31.03.2024
(No of years)

Aitken Spence Hotels Ltd Lease Land 19

Lease building for Neptune Ayurvedic centre -
Hethersett Hotels Ltd Lease Land 71
Kandalama Hotels (Pvt) Ltd Lease Land 19
Unique Resorts Pvt Ltd Lease Land 21
Jetan Travel Services Company Pvt Ltd Lease Land 17
ADS Resorts Pvt Ltd Lease Land 2
Cowrie Investment Pvt Ltd Meedhupparu island - Lease Land 24
Heritance Aarah island - Lease Land 41

All above lease contracts entered on lands and buildings are for the business purpose only.
The Group has not earned any income from sub leasing of right of use assets for the year ended 31st March 2024.
Further, Group has not entered in to any sale and lease back transaction as at 31st March 2024.
There were no any restrictions imposed by lease arrangements, any variable lease payments, extension options or any leases not yet
commenced to which the lesee was committed as at 31st March 2024.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
32.4 Amounts recognised in profit or loss

Group
For the year ended 31st March 2024 2023
Rs. ’000 Rs. ’000

Amortisation charge of right-of-use assets (Note 17.1) 1,302,049 1,465,928

Interest on lease liabilities 791,478 975,064
Expenses relating to short term leases and low value assets 437,684 470,828

32.5 Amounts recognised in the Statement of cash flows

Group
For the year ended 31st March 2024 2023

Rs. ’000 Rs. ’000

Total cash out flow for leases (2,162,060) (2,422,018)

33 DEFERRED TAX LIABILITIES

33.1 Movement in deferred tax liabilities

Group Company
For the year 2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April 3,014,059 1,364,422 229,170 82,954

Effect of movement of exchange rates (11,009) 5,211 - -
Origination of temporary differences
- recognised in income statement 293,654 1,056,041 (78,057) (2,515)
- recognised in other comprehensive income (6,405) 588,385 (2,026) 148,731
Balance as at 31st March 3,290,299 3,014,059 149,087 229,170

33.2 Composition of deferred tax liabilities

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax liabilities attributable to;

Property, plant and equipment 3,395,860 3,218,092 212,367 212,669
Revaluation surplus on freehold land 843,902 856,291 246,255 246,255
Unrealised exchange gain (34,137) 16,672 (18,589) 23,887
Undistributed profits of consolidated entities 29,832 23,558 - -
Right-of-use assets 9,331 10,462 - -
Defined benefit obligations (63,429) (49,843) (18,220) (14,170)
Carried forward tax losses (870,015) (1,035,750) (272,474) (239,369)
Expected credit loss (12,939) (16,872) (252) (102)
Lease liability (8,106) (8,551) - -
Net deferred tax liabilities 3,290,299 3,014,059 149,087 229,170

237
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

33.3 Movement in tax effect of temporary differences - Group - 2023/2024

2023/2024
Balance as at Recognised Recognised in Exchange Balance as at
01st April in profit & (loss) Other gain/(losses) 31 st March
2023 Comprehensive 2024
Income
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax liabilities

Property, plant and equipment 3,218,092 251,189 - (73,421) 3,395,860
Revaluation surplus on freehold land 856,291 - - (12,389) 843,902
Unrealised exchange gain 16,672 (50,809) - - (34,137)
Undistributed profits of consolidated entities 23,558 6,274 - - 29,832
Right-of-use assets 10,462 (1,131) - - 9,331
4,125,075 205,523 - (85,810) 4,244,788

Deferred tax - assets

Defined benefit obligations (49,843) (7,181) (6,405) - (63,429)
Tax losses carried forward (1,035,750) 91,691 - 74,044 (870,015)
Expected credit loss (16,872) 3,176 - 757 (12,939)
Lease liability (8,551) 445 - - (8,106)
(1,111,016) 88,131 (6,405) 74,801 (954,489)
Net deferred tax liabilities 3,014,059 293,654 (6,405) (11,009) 3,290,299

33.4 Movement in tax effect of temporary differences - Group - 2022/2023

2022/2023
Balance as at Recognised Recognised in Exchange Balance as at
01st April in profit & (loss) Other gain/(losses) 31 st March
2022 Comprehensive 2023
Income
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax liabilities

Property, plant and equipment 1,335,924 1,783,108 - 99,060 3,218,092
Revaluation surplus on freehold land 265,669 - 590,622 - 856,291
Unrealised exchange gain 54,881 (38,209) - - 16,672
Undistributed profits of consolidated entities - 23,558 - - 23,558
Right-of-use assets 5,410 5,052 - - 10,462
1,661,884 1,773,509 590,622 99,060 4,125,075

Deferred tax - assets

Defined benefit obligations (19,707) (27,899) (2,237) - (49,843)
Tax losses carried forward (266,727) (674,440) - (94,583) (1,035,750)
Expected credit loss (6,855) (10,751) - 734 (16,872)
Lease liability (4,173) (4,378) - - (8,551)
(297,462) (717,468) (2,237) (93,849) (1,111,016)
Net deferred tax liabilities 1,364,422 1,056,041 588,385 5,211 3,014,059

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
33.5 Movement in tax effect of temporary differences - Company

2023/2024 2022/2023
Balance as at Recognised Recognised in Balance as at Recognised Recognised in Balance as at
31st March in profit & Other 31st March in profit & Other 01st April
2024 (loss) Comprehensive 2023 (loss) Comprehensive 2022
Income Income
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Deferred tax liabilities

Property, plant and equipment 212,367 (302) - 212,669 113,393 - 99,276
Revaluation surplus on
freehold land 246,255 - - 246,255 - 149,984 96,271
458,622 (302) - 458,924 113,393 149,984 195,547

Deferred tax assets

Defined benefit obligations (18,220) (2,024) (2,026) (14,170) (7,588) (1,253) (5,329)
Tax losses carried forward (272,474) (33,105) - (239,369) (90,369) - (149,000)
Expected credit loss (252) (150) - (102) 514 - (616)
Unrealised exchange gain (18,589) (42,476) - 23,887 (18,465) - 42,352
(309,535) (77,755) (2,026) (229,754) (115,908) (1,253) (112,593)
Net deferred tax liabilities 149,087 (78,057) (2,026) 229,170 (2,515) 148,731 82,954

34 EMPLOYEE BENEFITS
34.1 Retirement benefit obligations

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Retirement benefit obligations

Present value of unfunded obligations 366,966 315,641 60,733 47,235

Recognised liability for defined benefit obligations 366,966 315,641 60,733 47,235

34.2 Movement in present value of the defined benefit obligations

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Defined benefit obligations as at 01st April 315,641 265,214 47,235 38,065

Charge for the year (Note 34.3) 83,970 49,353 12,275 7,776
Actuarial losses (Note 34.4) 19,927 8,597 6,752 4,177
Benefits paid (39,140) (21,082) (5,529) (2,783)
Effect of movement in exchange rates (13,432) 13,559 - -
Defined benefit obligations as at 31st March 366,966 315,641 60,733 47,235

239
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

34.3 Expenses recognised in income statement

Group Company
For the year ended 31st March, 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

- Current service cost 48,669 20,001 9,210 2,637

- Interest cost 35,301 29,352 3,065 5,139
83,970 49,353 12,275 7,776

34.4 Losses/(gains) recognised in other comprehensive income

Group Company
For the year ended 31st March, 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Actuarial losses /(gains) on retirement benefit

obligations;
- Due to change in financial assumptions 32,461 7,158 (1,523) 2,464
- Due to experience adjustment (12,534) 1,439 8,275 1,713
19,927 8,597 6,752 4,177

34.5 The provision for retirement benefits obligations as at 31st March 2024 is based on the actuarial valuation carried out by professionally
qualified actuaries, Messrs. Actuarial & Management Consultants (Pvt) Ltd, using “Projected Unit Credit” (PUC) method, the method
recommended by the Sri Lanka Accounting Standard – LKAS 19 on “Employee Benefits”.

The actuarial present value of the promised retirement benefits as at 31st March 2024 amounted to Rs. 366,966,531/-. (Company- Rs.
60,732,967/-)

The liability is not externally funded.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
34.6 The principal actuarial assumptions
The principal actuarial assumptions used in determining the cost are given below;

2023/2024 2022/2023

Financial assumptions
Discount rate * 12% 19.5%
Salary increment rate **
- Executive staff 15% in July 2024 20% in July 2023
with 11% p.a from with 15% p.a from
2025 2024
- Non - executive staff and other staff

* In the absence of a deep market in long-term bonds in Sri Lanka, a long-term interest rate of 12% p.a. (2022/2023 – 19.5% p.a.) has been
used to discount future liabilities considering yield available on government bonds with a tenure equivalent to the average future working
life of the employees.

** Based on the actual salary increment rates of the Group over the past few years and the future economic outlook of the country, an
increase in the long term salary increment rate is factored into the valuation for the current year.

Due to the prevailing economic conditions, the management has considered different scenarios for the possible changes in the assumptions
used in valuing the retirement benefit obligation and concluded that the impact to the Group’s liability on retirement benefit obligation from
those possible changes is not material.

It is also assumed that the company will continue in business as a going concern.

2023/2024 2022/2023

Demographic assumptions
- Mortality A 1967/1970 mortality table,issued
by the Institute of Actuaries, London
- Disability 10% of mortality rates
- Retirement age 60 years
- Staff turnover rate
Executive staff Non- Executive Other Staff
staff
* 18 - 24 years 21% 27% 80%
* 25 - 29 years 23% 28% 57%
* 30 - 34 years 16% 25% 44%
* 35 - 39 years 11% 15% 34%
* 40 - 44 years 11% 13% 32%
* 45 - 49 years 7% 16% 27%
* 50 - 54 years 9% 9% 27%
* 55 - 59 years 0% 0% 0%

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

34.7 Sensitivity analysis

The following table demonstrate the sensitivity to a reasonable possible change in the key assumptions employed with all other variables
held constant in the employment benefit liability measurement, in respect of the year 2023/2024.

The sensitivity of the comprehensive income and statement of financial position is the effect of the assumed changes in discount rate and
salary increment rate on the profit or loss for the year and employment benefit obligations as at 31st March 2024 is as follows.

Group Company
Effect on Effect on employment Effect on Effect on employment
comprehensive benefit comprehensive benefit
income liability income liability
(reduction)/increase (reduction)/increase (reduction)/increase (reduction)/increase
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Increase /(decrease) in discount rate

-1% (14,860) 14,860 (2,409) 2,409
+1% 13,721 (13,721) 2,245 (2,245)

Increase /(decrease) in salary escalation

rate
-1% 14,559 (14,559) 2,395 (2,395)
+1% (15,506) 15,506 (2,530) 2,530

34.8 Maturity analysis of the payment

The following payment are expected on defined benefit obligations in future years.

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Within next 12 months 82,280 79,248 11,076 11,376

Between 1-2 years 93,079 94,025 12,718 12,002

Between 2-5 years 86,092 65,427 20,510 11,745

Beyond five years 105,515 76,941 16,429 12,112
366,966 315,641 60,733 47,235

34.9 Weighted average duration (years) of defined benefit obligation

The following payment are expected on defined benefit obligations in future years.

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Weighted average duration of defined benefit

obligation (no of years) 4.3 3.9 4.2 3.9

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
35 OTHER PROVISIONS AND PAYABLES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Accrued payables 1,481,810 1,996,179 44,739 52,185

Contract liabilities (Note 7.6.2) 2,418,761 2,143,152 19,737 33,664
Total recognised under financial instruments (Note 39.1) 3,900,571 4,139,331 64,476 85,849
Unclaimed dividends 60,818 45,988 55,756 40,927
Taxes and other miscellaneous payables and provisions 1,813,425 1,296,919 51,643 32,355
Total 5,774,814 5,482,238 171,875 159,131

36 AMOUNTS DUE TO PARENT’S GROUP ENTITIES

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Aitken Spence Exports (Pvt) Ltd 1,014 1,676 - -

Aitken Spence Travels (Pvt) Ltd - 13,620 - -
Elpitiya Plantations PLC 402 424 - 25
Aitken Spence Printing and Packaging (Pvt) Ltd 419 10 - -
Aitken Spence Hotel Managements (Pvt) Ltd 70,683 186,871 - 19,703
Aitken Spence International Pte. Ltd 331 - - -
Jetan Travel Services Company Pvt Ltd - - - 4
Hethersett Hotels Ltd - - - 98
Aitken Spence Cargo (Pvt) Ltd 682 1,628 - -
Negombo Beach Resorts (Pvt) Ltd - 2 - -
Aitken Spence Elevators (Pvt) Ltd 1,790 - - -
Aitken Spence Agriculture (Pvt) Ltd 34 - - -
Global Parcel Delivery (Pvt) Ltd 22 38 - -
Total 75,377 204,269 - 19,830

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

37 FOREIGN CURRENCY TRANSLATION

The principle exchange rates used for translation of assets and liabilities as at the reporting date are as follows:

As at 31.03.2024 31.03.2023

US Dollar 300.44 327.14

Indian Rupee 3.61 3.99
UK Pound 380.52 405.97
Oman Riyal 782.30 850.05
Euro 326.03 357.10

38 CONTINGENT LIABILITIES
The contingent liability as at 31st March 2024 on guarantees given by Aitken Spence Hotel Holdings PLC to banks on facilities obtained by
subsidiaries amounted to Rs. 11,351,669,533 /- (as at 31.03.2023 - Rs. 13,373,529,709/-). Liability as at 31st March 2024 on guarantees
given by subsidiaries to banks on facilities obtained by fellow subsidiaries amounted to Rs. 13,829,253,200 /- (as at 31.03.2023 - Rs.
16,418,824,200/-).

39 FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUES

The following tables shows the carrying amounts and fair values of financial assets and financial liabilities of the Group and the Company.

39.1 Accounting classifications of financial instruments

39.1.1 Accounting classifications of financial instruments - Group

As at 31st March 2024 Financial Assets Financial Assets Financial Total

at Fair value at Amortised Liabilities at Carrying
through OCI cost Amortised cost amount

Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted equity securities 21.1.1 250,254 - - 250,254
- Unquoted debt securities and unsecured loans 21.1.2 - 725,524 - 725,524
- Bank deposits 27 - 4,029,660 - 4,029,660
Trade and other receivables 24 - 3,148,425 - 3,148,425
Amount due from holding company 25 - 1,068,116 - 1,068,116
Amount due from parent's group entities 26 - 1,386,708 - 1,386,708
Cash and cash equivalents 28 - 2,297,233 - 2,297,233
Total financial assets 250,254 12,655,666 - 12,905,920

Financial liabilities
Interest bearing liabilities - banks 31 - - 34,255,447 34,255,447
Interest bearing liabilities - leases 32 - - 12,483,509 12,483,509
Trade payables - - 1,503,995 1,503,995
Other provisions and payables 35 - - 3,900,571 3,900,571
Amount due to holding company - - 2,531,875 2,531,875
Amount due to parent's group entities 36 - - 75,377 75,377
Bank overdrafts and other short term borrowings 28 - - 5,618,695 5,618,695
Total financial liabilities - - 60,369,469 60,369,469

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
As at 31st March 2023 Financial Assets Financial Assets Financial Total
at Fair value at Amortised Liabilities at Carrying
through OCI cost Amortised cost amount
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted equity securities 21.1.1 272,494 - - 272,494
- Unquoted debt securities and unsecured loans 21.1.2 - 799,459 - 799,459
- Bank deposits 27 - 4,478,774 - 4,478,774
Trade and other receivables 24 - 2,419,605 - 2,419,605
Amount due from holding company 25 - 146,435 - 146,435
Amount due from parent's group entities 26 - 939,895 - 939,895
Cash and cash equivalents 28 - 5,262,311 - 5,262,311
Total financial assets 272,494 14,046,479 - 14,318,973

Financial liabilities
Interest bearing liabilities - banks 31 - - 42,702,956 42,702,956
Interest bearing liabilities - leases 32 - - 15,010,510 15,010,510
Trade payables - - 1,559,571 1,559,571
Other provisions and payables 35 - - 4,139,331 4,139,331
Amount due to holding company - - 1,313,017 1,313,017
Amount due to parent's group entities 36 - - 204,269 204,269
Bank overdrafts and other short term borrowings 28 - - 7,946,332 7,946,332
Total financial liabilities - - 72,875,986 72,875,986

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NOTES TO THE FINANCIAL STATEMENTS

39.1.2 Accounting classifications of financial instruments - Company

As at 31st March 2024, Financial Assets Financial Assets Financial Total

at Fair value at Amortised Liabilities at Carrying
through OCI cost Amortised cost amount
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted debt securities and unsecured loans 21.1.2 - 725,524 - 725,524
- Bank deposits 27 260,371 260,371
Trade and other receivables 24 - 135,127 - 135,127
Amount due from parent's group entities 26 - 1,366,866 - 1,366,866
Cash and cash equivalents 28 - 147,562 - 147,562
Total financial assets - 2,635,450 - 2,635,450

Financial liabilities
Interest bearing liabilities - banks 31 - - 535,331 535,331
Trade payables - - 42,572 42,572
Other provisions and payables 35 - - 64,476 64,476
Amount due to holding company - - 1,609,944 1,609,944
Bank overdrafts and other short term borrowings 28 - - 337,053 337,053
Total financial liabilities - - 2,589,376 2,589,376

As at 31st March 2023 Financial Assets Financial Assets Financial Total

at Fair value at Amortised Liabilities at Carrying
through OCI cost Amortised cost amount
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted debt securities and unsecured loans 21.1.2 - 799,459 - 799,459
- Bank deposits 27 - 357,733 - 357,733
Trade and other receivables 24 - 86,308 - 86,308
Amount due from parent's group entities 26 - 603,407 - 603,407
Cash and cash equivalents 28 - 186,710 - 186,710
Total financial assets - 2,033,617 - 2,033,617

Financial liabilities
Interest bearing liabilities - banks 31 - - 712,486 712,486
Trade payables - - 26,772 26,772
Other provisions and payables 35 - - 85,849 85,849
Amount due to holding company - - 502,434 502,434
Amount due to parent's group entities 36 - - 19,830 19,830
Bank overdrafts and other short term borrowings 28 - - 168,939 168,939
Total financial liabilities - - 1,516,310 1,516,310

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39.2 Fair value of financial instruments
The fair value of financial assets and financial liabilities, together with the carrying amounts shown in the statement of financial position as
at the reporting dates are as follows:

As at 31st March 2024 Group Company

Carrying amount Fair value Carrying amount Fair value
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted equity securities 250,254 250,254 - -
- Unquoted debt securities and unsecured loans 725,524 725,524 725,524 725,524
- Bank deposits 4,029,660 4,029,660 260,371 260,371
Trade and other receivables 3,148,425 3,148,425 135,127 135,127
Amount due from holding company 1,068,116 1,068,116 - -
Amount due from parent's group entities 1,386,708 1,386,708 1,366,866 1,366,866
Cash and cash equivalents 2,297,233 2,297,233 147,562 147,562
Total financial assets 12,905,920 12,905,920 2,635,450 2,635,450
Financial liabilities
Interest bearing liabilities - banks 34,255,447 34,255,447 535,331 535,331
Interest bearing liabilities - leases 12,483,509 12,483,509 - -
Trade payables 1,503,995 1,503,995 42,572 42,572
Other provisions and payables 3,900,571 3,900,571 64,476 64,476
Amount due to holding company 2,531,875 2,531,875 1,609,944 1,609,944
Amount due to parent's group entities 75,377 75,377 - -
Bank overdrafts and other short term
borrowings 5,618,695 5,618,695 337,053 337,053
Total financial liabilities 60,369,469 60,369,469 2,589,376 2,589,376

As at 31st March 2023 Group Company

Carrying amount Fair value Carrying amount Fair value

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial assets
Other financial assets
- Unquoted equity securities 272,494 272,494 - -
- Unquoted debt securities and unsecured loans 799,459 799,459 799,459 799,459
- Bank deposits 4,478,774 4,478,774 357,733 357,733
Trade and other receivables 2,419,605 2,419,605 86,308 86,308
Amount due from holding company 146,435 146,435 - -
Amount due from parent's group entities 939,895 939,895 603,407 603,407
Cash and cash equivalents 5,262,311 5,262,311 186,710 186,710
Total financial assets 14,318,973 14,318,973 2,033,617 2,033,617
Financial liabilities
Interest bearing liabilities - banks 42,702,956 42,702,956 712,486 712,486
Interest bearing liabilities - leases 15,010,510 15,010,510 - -
Trade payables 1,559,571 1,559,571 26,772 26,772
Other provisions and payables 4,139,331 4,139,331 85,849 85,849
Amount due to holding company 1,313,017 1,313,017 502,434 502,434
Amount due to parent's group entities 204,269 204,269 19,830 19,830
Bank overdrafts and other short term borrowings 7,946,332 7,946,332 168,939 168,939
Total financial liabilities 72,875,986 72,875,986 1,516,310 1,516,310

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NOTES TO THE FINANCIAL STATEMENTS

39.3 Methods and assumptions used to estimate the fair values

A number of Group’s accounting policies and disclosures require the determination of fair value, for both financial and non financial assets and liabilities.
Fair values have been determined for measurement and disclosure purposes based on the following valuation techniques.

Property plant and equipment

The fair value of freehold land is determined based on market values.

The market value of land is the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing
seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably and willingly. This involves evaluation of
recent active market prices of similar assets, making appropriate adjustments for difference in size, nature and location of the property.

Financial Assets measured at fair value through other comprehensive income

Investments in equity instruments - quoted and unquoted
The fair value of investments in quoted equity shares for which there is an active share market is determined using the closing market prices. Investments
in non quoted shares are determined based on present value of future cash flows discounted at the market interest rates at the reporting date.

Investments in debt instruments - unquoted

Investments in debt instrument- unquoted which consist of debentures is considered as a loan and impaired using Z score method. A template has been
formulated for this purpose taking into consideration of probability of default based on last year audited accounts. However if a primary mortgage bond is
being provided against the debentures, the loss given default (probability of default) would be considered as zero and impairment is made. For other forms
of guarantees such as personal guarantees etc. the loss given default would vary between 45%-100%.

Trade and other receivables

Fair value of trade receivables is determined at amount estimated to be realised after making provision for impairment based on expected credit loss
model.

For impairment purposes a loss rate has been established taking into consideration forward looking factors that affect customer default rates. Forward
looking macro economic data such as GDP is incorporated in calculating the probability of default. The credit loss derived using the provision matrix is
adjusted based on the future adjusted PD factors.

The Group uses an allowance matrix to measure ECLs of trade receivables, which comprise a very large number of small balances.

Fair value of other receivables are determined based on the amount estimated to be reasonably realised. If there are any receivables for more than one
year, the balance over one year disclosed based on present value.

Bank Deposits
Fair value of bank deposits is determined at amount estimated to be realised after making provision for impairment based on the duration of the deposit
and credit rating of the financial institution in which the deposit is held and the corresponding probability of default. Twelve months expected credit loss
(ECL) basis is considered for impairment on bank deposits. External credit ratings of the counterparties and probability of default (PD) rates corresponding
rating scale published by rating agencies are used in ECL calculation. PD rates are recalibrated using asset correlation formula and forward-looking
adjustments are incorporated in arriving at final loss rates. Loss given default (LGD) of 45% is assumed for bank deposits. Credit ratings of counterparties
are carefully monitored and subsequent deterioration of the credit quality would trigger remeasurement of loss allowances using Lifetime ECL method.

Financial liabilities at amortised cost

Fair value of interest bearing borrowings, trade and other payable and short term bank borrowings are determined based on the amount estimated to be
reasonably incurred in the foreseeable future less impairment.

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40 FAIR VALUE MEASUREMENT
40.1 Determination of fair value hierarchy
The Group and the Company use the following hierarchy for determining and disclosing the fair value of assets and liabilities by valuation
techniques: The different levels have been defined as follows:

(i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)

(ii) Inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly (Level 2)

(iii) Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data
[Inputs that are unobservable that reflect management own assumptions] (Level 3)

The following table provides the fair value measurement hierarchy of the Group’s and Company’s assets and liabilities.

40.1.1 Fair value measurement hierarchy -2023/2024

Group Company
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Recurring fair value measurements

Assets measured at fair value:
Property, plant and equipment
- Freehold land 16.3.2 - - 11,486,928 11,486,928 - - 843,500 843,500
Other financial assets
- Unquoted equity securities 21.1.1 - - 250,254 250,254 - - - -
- - 11,737,182 11,737,182 - - 843,500 843,500
Assets for which fair values are
disclosed
Other financial assets
- Unquoted debt securities and 21.1.2 - 725,524 - 725,524 - 725,524 - 725,524
unsecured loans
- Bank deposits 27 - 4,029,660 - 4,029,660 - 260,371 - 260,371
Investment in equity accounted
investees - quoted 20.1.1 632,152 - - 632,152 616,925 - - 616,925
632,152 4,755,184 - 5,387,336 616,925 985,895 - 1,602,820
Liabilities for which fair values are
disclosed
- Interest bearing liabilities - banks 31 - 34,255,447 - 34,255,447 - 535,331 - 535,331
- Interest bearing liabilities - leases 32 12,483,509 12,483,509 - - - -
- 46,738,956 - 46,738,956 - 535,331 - 535,331

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NOTES TO THE FINANCIAL STATEMENTS

40.1.2 Fair value measurement hierarchy -2022/2023

Group Company
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Notes Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Assets measured at fair value

Property, plant and equipment
- Freehold land 16.3.2 - - 12,147,273 12,147,273 - - 843,500 843,500
Other financial assets
- Unquoted equity securities 21.1.1 - - 272,494 272,494 - - - -
- - 12,419,767 12,419,767 - - 843,500 843,500
Assets for which fair values are
disclosed
Other financial assets
- Unquoted debt securities and 21.1.2 - 799,459 - 799,459 - 799,459 - 799,459
unsecured loans
- Bank deposits 27 - 4,478,774 - 4,478,774 - 357,733 - 357,733
Investment in equity accounted
investees - quoted 20.1.1 588,388 - - 588,388 574,215 - - 574,215
588,388 5,278,233 - 5,866,621 574,215 1,157,192 - 1,731,407
Liabilities for which fair values are disclosed
- Interest bearing liabilities - banks 31 - 42,702,956 - 42,702,956 - 712,486 - 712,486
- Interest bearing liabilities - leases 32 - 15,010,510 - 15,010,510 - - - -
- 57,713,466 - 57,713,466 - 712,486 - 712,486

40.2 Reconciliation of fair value measurement of “Level 3” Financial Instruments

Freehold land
The reconciliation of property, plant and equipment (land) is given in Note 16.1 and 16.2 to the financial statements.

Unquoted equity securities

Group Company
2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April 272,494 244,790 - -

Effect of movement in exchange rates (22,240) 27,704 - -
Balance as at 31st March 250,254 272,494 - -

40.2.1 Transfers between levels of fair value hierarchy

There were no transfers between Level 1, Level 2 and Level 3 during the year.

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40.3 Valuation techniques and significant unobservable inputs
40.3.1 Assets and liabilities measured at fair value - Recurring

Assets Valuation Technique Significant Sensitivity of the input to the fair

unobservable inputs value

Property plant and equipment

- Freehold land Market comparable method Price per perch of land Estimated fair value would increase
- This method considers the selling price of a (Note 16.3.2) (decrease) if price per perch increases
similar property within a reasonably recent period / (decreases)
of time in determining the fair value of property
being revalued. This involves evaluation of recent
active market price of similar assists making
appropriate adjustments for difference in size,
nature and location of the property.

Other financial assets

- Unquoted equity Market return on a comparable investment Valuation based on the Not applicable
securities recent and agreed sale
price of shares (of INR
55/- per share)

40.3.2 Assets and liabilities for which fair values are disclosed - Recurring

Assets/Liabilities Valuation Technique Significant unobservable inputs

Other financial assets

- Unquoted debt securities and unsecured Valuation determined based on present value of cashflow projections/ discounted rate
loans future cash flows discounted at the market interest (current market interest rates linked to
rates. AWPLR)
- Bank deposits

Interest-bearing liabilities - banks Discounted cash flows current market interest rate (Note 31
and Note 32)
Interest-bearing liabilities - leases

41 FINANCIAL RISK MANAGEMENT

41.1 Overview
The Group has exposure to the following risks from its use of financial instruments.
- Credit risk
- Liquidity risk
- Market risk

Financial instruments used by the Group in its business activities contain multiple variables that are affected by various market and
environmental conditions. Such variations are generally not within the control of the users, and therefore cause fluctuations in the values of
financial instruments. Fluctuations in value could result in a situation undesirable to the Group and expose it to risk. These risks need to be
managed, as unmanaged risks can lead to unplanned outcomes where the Group could fall short of its financial and budgetary objectives.
The Group has adopted a financial risk management strategy aimed at minimising the risks associated with the use of financial instruments
by establishing several policies and guidelines that are followed by the companies in the Group. These policies and guidelines are reviewed
from time to time and updated to reflect current requirements in accordance with the developments in the operating environment.

This part of the report covers the financial impact that could arise from market risk, credit risk and liquidity risk, the most important elements
of the financial risk that the Group is subject to.

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NOTES TO THE FINANCIAL STATEMENTS

41.2 Risk management framework

The Board of Directors have overall responsibility for the establishment and oversight of the Group’s risk management framework. The
Board is supported by the Board of management and the Audit committee in managing all risks affecting the Group. The Group audit
committee is assisted in its oversight role by Group’s internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures the results of which is reported to the audit committee. Central Treasury Department of the Holding
Company also implement and carries out specific risk management policies laid down and approved by the management. Central Treasury
in close co-corporation with the Group’s operating units identifies, evaluates and formulates principle for risk management covering specific
areas such as foreign exchange risk and interest rate risk.

41.3 Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks, foreign exchange transactions and through the use of other financial instruments.

Credit risk exposure

The Group’s maximum exposure to credit risk as at the year end based on the carrying value of financial assets in the statement of financial
position is given below. The maximum credit risk of the Group and the Company is limited to the carrying value of these financial assets as
at the reporting date.

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. '000 Allocation Rs. '000 Allocation Rs. '000 Allocation Rs. '000 Allocation
% % % %

Financial assets
Financial assets at fair
value through OCI
Other financial assets - 250,254 2% 272,494 2% - - - -
unquoted equity shares

Financial assets at
amortised cost
Other financial assets - 725,524 6% 799,459 6% 725,524 28% 799,459 39%
unquoted debt securities
and unsecured loans
Bank deposits 4,029,660 31% 4,478,774 31% 260,371 9% 357,733 18%
Trade and other receivables 3,148,425 24% 2,419,605 17% 135,127 5% 86,308 4%
Amount due from holding 1,068,116 8% 146,435 1% - 0% - 0%
company
Amount due from parent's
group entities 1,386,708 11% 939,895 7% 1,366,866 52% 603,407 30%
Cash and cash equivalents 2,297,233 18% 5,262,311 36% 147,562 6% 186,710 9%
Total credit exposure 12,905,920 100% 14,318,973 100% 2,635,450 100% 2,033,617 100%

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The Board of Directors has provided the policy direction for the Central Treasury Department of the Holding Company to manage
the risk arising from investments made in financial institutions. The Group’s transactions are carried out only with a limited number of
institutions all of which have stable credit ratings from internationally recognised rating providers. The Group’s exposures and credit ratings
of counterparties are continuously monitored and the investment portfolio is diversified amongst several institutions to minimise the
unsystematic risk.

Credit Exposure on receivables

Trade receivables
The Group’s maximum exposure to credit risk on trade receivables as at the year end based on the carrying value in the statement of
financial position is given below:

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Note Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Trade receivables 24 3,156,294 2,434,181 132,907 83,407

Provision of impairment (138,774) (144,930) (838) (330)
Total 3,017,520 2,289,251 132,069 83,077

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also
considers various statistics of the Group’s customer base, including the default risk, business relationships with due attention given to past
performances, stability in the industry and creditworthiness, as these factors may have an influence on credit risk.

In monitoring customer credit risk customers are grouped according to their business volumes and consider separately for granting credit
limits. Some customers are graded as “high risk” based on the credit worthiness established through past experience. Such customers are
monitored carefully and future sales are made on a prepayment basis.

The Group has established a credit policy under which each new customer is analysed individually for creditworthiness. The Group’s review
includes obtaining bank guarantees (collaterals) and references. As at the reporting date value of collaterals obtained from customers
amounted to Rs. 1 Mn. Credit limits are established for each customer and these limits are reviewed frequently. Customers that fail to meet
the Group’s benchmark creditworthiness may transact with the Group only on a prepayment basis.

Impairment losses
Impairment for trade receivables is established based on expected credit loss method. The main component of this allowance is a specific
loss component that relates to individually significant exposures based on aging of the outstanding’s. The loss rate calculated based on the
historical provision matrix is adjusted based on the future calibrated probability of default and the loss given default. Forward looking factors
that affect customer default rates and macro economic data such as GDP are considered in calculating the probability of default.

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NOTES TO THE FINANCIAL STATEMENTS

The aging of trade receivables - out side the Group as at the reporting date was:
As at Group Company
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs.’000 Rs.’000 Rs.’000 Rs.’000

Less than 30 days 2,428,090 1,986,657 87,449 62,125

30-60 days 477,916 236,235 30,660 17,622
60-90 days 76,044 59,812 11,654 1,625
90-180 days 73,884 55,781 9,301 2,500
180-365 days 12,021 3,619 971 475
more than 365 days 124,466 122,024 895 285
Advances received (36,127) (29,947) (8,023) (1,225)
Total gross trade receivables 3,156,294 2,434,181 132,907 83,407
Impairment provision on trade receivables
- Life time ECL - credit impaired (124,466) (122,024) (895) (285)
- Life time ECL - not credit impaired (14,308) (22,906) 57 (45)
Carrying value of net trade receivables 3,017,520 2,289,251 132,069 83,077

The movement in the allowance for impairment in respect of trade receivables during the year was:
Group Company
2023/2024 2022/2023 2023/2024 2022/2023
Rs.'000 Rs.'000 Rs.'000 Rs.'000

Balance as at 01st April 144,930 207,498 330 1,038

Impairment provision - recognised for the year 6,709 (90,680) 508 (708)
Effect of movement in exchange rate (12,865) 28,112 - -
Balance as at 31st March 138,774 144,930 838 330

- Short term bank deposits

The Group has a number of bank deposits in Sri Lankan rupees and other currencies. These deposits have been placed in several banks in
order to minimise the credit risk in accordance with the policy directions provided by the Board. In order to further minimise the credit risk,
the Group’s exposure and credit ratings of banks are regularly monitored and a diversified investment portfolio is maintained. In the event of
any weakening of credit metrics of a bank the Group may decide to liquidate its investments and move to an institution with a higher credit
rating.

The Group’s maximum exposure to credit risk on term deposits as at the year end based on the carrying value in the statement of financial
position is given below.
As at Group Company
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Allocation Rs. ’000 Allocation Rs. ’000 Allocation Rs. ’000 Allocation
% % % %

Government owned banking institutions 1,637,722 41% 505,507 11% - 0% - 0%

Commercial banks * 2,391,938 59% 3,973,267 89% 260,371 100% 357,733 100%
Total 4,029,660 100% 4,478,774 100% 260,371 100% 357,733 100%
* Commercial banks - Investments made with other commercial banks consist of fixed deposits and term deposits held with private
commercial banks.

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 Short term bank deposits and credit ratings of the banks

As at Group Company
31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Allocation Rs. ’000 Allocation Rs. ’000 Allocation Rs. ’000 Allocation
% % % %

Fitch ratings
AAA 879,683 22% 1,502,288 34% - 0% 69,476 19%
A 3,149,977 78% 2,976,486 66% 260,371 100% 288,257 81%
4,029,660 100% 4,478,774 100% 260,371 100% 357,733 100%

- Cash and cash equivalents

The Group limits its exposure to credit risk by investing only in liquid instruments with reputed banking Institutions. The Group also use
broad investment portfolio and limit investments with a single counterparty.

41.4 Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Group’s reputation.

A shortage of liquidity would have a negative impact on stakeholder confidence in a business entity and hampers its operations. The Group has
ensured that it maintains sufficient liquidity reserves to meet all its operational and investment requirements by closely monitoring and forecasting
future funding needs and securing funding sources for both regular and emergency requirements. Shortening the working capital cycle is one of
the main practices preferred in ensuring that there is sufficient liquidity at a given time. Adequate short-term working capital facilities provided by
banks are available to all the Group companies which are utilised in the event of a requirement. These facilities are available at favourable rates and
have been mostly provided without collateral. The Group maintains a constant dialogue with the banking sector institutions to ensure that there are
sufficient working capital facilities available whenever required and closely monitors their utilisation.

The Group continuously prepares and monitors rolling cash flow forecasts and access the liquidity requirements of each operating unit to ensure it
has sufficient cash to meet operational needs. Regular reviews are also carried out to check actual performance against budgeted targets.

Surplus cash held by the operating units over and above balance required for working capital management are invested in interest bearing term
deposits or with treasury department of the parent company. At the reporting date, the Group held term deposits that are expected to readily
generate cash inflows for managing liquidity risk of liabilities as at the reporting date.

The Group considered that Cash flow scrutiny is paramount in the days and months ahead and has adopted a disciplined approach across the Group
for preserving and increasing liquidity, particularly on account of the impact of prevailing macro economic conditions.

Maturity analysis - Group

The table below summarises the maturity profile of the Group’s financial liabilities at 31st March 2024 based on contractual undiscounted payments.

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NOTES TO THE FINANCIAL STATEMENTS

As at 31st March 2024 Contractual undiscounted cash flows

Carrying On Less than 3 to 12 1 to 2 2 to 5 More than Total
Amount demand 3 months months years years 5 years
Rs.’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial liabilities
Interest bearing liabilities- banks 34,255,447 - 2,154,342 6,554,200 12,479,639 14,839,658 7,589,051 43,616,890
Interest bearing liabilities- leases 12,483,509 - 514,272 1,537,485 1,722,956 2,229,204 17,983,026 23,986,943
Trade payables 1,503,995 1,503,995 - - - - - 1,503,995
Other provisions and payables 3,900,571 3,900,571 - - - - - 3,900,571
Amount due to holding company 2,531,875 2,531,875 - - - - - 2,531,875
Amount due to parent's group entities 75,377 75,377 - - - - - 75,377
Short term bank borrowings 5,618,695 5,618,695 - - - - - 5,618,695
60,369,469 13,630,513 2,668,614 8,091,685 14,202,595 17,068,862 25,572,077 81,234,346

The table below summarises the maturity profile of the Group’s financial liabilities at 31st March 2023 based on contractual undiscounted payments.

As at 31st March 2023 Contractual undiscounted cash flows

Carrying On Less than 3 3 to 12 1 to 2 2 to 5 More than Total
Amount demand months months years years 5 years
Rs.’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial liabilities
Interest bearing liabilities- banks 42,702,956 - 2,459,992 7,175,043 8,900,284 26,043,738 10,675,139 55,254,196
Interest bearing liabilities- leases 15,010,510 - 557,187 1,672,715 2,230,017 3,488,980 20,365,103 28,314,002
Trade payables 1,559,571 1,559,571 - - - - - 1,559,571
Other provisions and payables 4,139,331 4,139,331 - - - - - 4,139,331
Amount due to holding company 1,313,017 1,313,017 - - - - - 1,313,017
Amount due to parent's group 204,269 204,269 - - - - - 204,269
entities
Short term bank borrowings 7,946,332 7,946,332 - - - - - 7,946,332
72,875,986 15,162,520 3,017,179 8,847,758 11,130,301 29,532,718 31,040,242 98,730,718

Maturity analysis - Company

The table below summarises the maturity profile of the Company’s financial liabilities at 31st March 2024 based on contractual undiscounted
payments.

As at 31st March 2024 Contractual undiscounted cash flows

Carrying On Less than 3 3 to 12 1 to 2 2 to 5 More than Total
Amount demand months months years years 5 years
Rs.’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial liabilities
Interest bearing liabilities- banks 535,331 - 62,609 213,750 342,225 - - 618,584
Trade payables 42,572 42,572 - - - - - 42,572
Other provisions and payables 64,476 64,476 - - - - - 64,476
Amount due to holding company 1,609,944 1,609,944 - - - - - 1,609,944
Short term bank borrowings 337,053 337,053 - - - - - 337,053
2,589,376 2,054,045 62,609 213,750 342,225 - - 2,672,629

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 The table below summarises the maturity profile of the Company’s financial liabilities at 31st March 2023 based on contractual undiscounted
payments.

As at 31st March 2023 Contractual undiscounted cash flows

Carrying On Less than 3 to 12 1 to 2 2 to 5 More than Total
Amount demand 3 months months years years 5 years
Rs.’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Financial Liabilities
Interest bearing liabilities- banks 712,486 - 57,446 167,218 249,392 353,878 - 827,934
Trade payables 26,772 26,772 - - - - - 26,772
Other provisions and payables 85,849 85,849 - - - - - 85,849
Amount due to holding company 502,434 502,434 - - - - - 502,434
Amount due to parent's group entities 19,830 19,830 - - - - - 19,830
Short term bank borrowings 168,939 168,939 - - - - - 168,939
1,516,310 803,824 57,446 167,218 249,392 353,878 - 1,631,758

41.5 Market risk

Fluctuations of those market driven variables that affect cashflows arising from financial instruments can result in the actual outcome being
different to expected cashflows thereby creating the market risk. Variables such as interest rates and exchange rates can move in directions
different to those originally expected and the consequent cashflows could be different to the originally anticipated cashflows.

Market risk could result in the revenues and expenses of the Group being adversely affected and impacting the profit attributable
to shareholders. In order to identify, manage and minimise the market risk, the Group has put into practice a number of policies and
procedures.

Market prices comprise of the following risks:

- Currency risk (foreign exchange risk)
- Interest rate risk
- Equity price risk

41.5.1 Currency risk

The currency risk arises when a financial transaction is denominated in a currency other than that of the reporting currency of an entity.
The Group has exposure to foreign currency risk where it has cash flows in overseas operations and foreign currency transactions which are
affected by foreign exchange movements.

Transaction exposure arises where there are contracted cashflows (receivables and payables) of which the values are subject to
unanticipated changes in exchange rates due to contracts being denominated in a foreign currency. Translation exposure occurs due to the
fluctuations in foreign exchange rates and arises to the extent to which financial reporting is affected by exchange rate movements when
the reporting currency is different to those currencies in which revenues, expenses, assets and liabilities are denominated.

Foreign currency sensitivity

As the Group transacts in many foreign currencies other than the Sri Lankan rupee which is the reporting currency, it is exposed to currency
risk on revenue generation, expenses, investments and borrowings. The Group has significant investments in the Maldives, India, Oman
where the net assets are exposed to foreign currency translation risk. Revenue generations and expenses incurred in foreign currency are
exposed to foreign currency transaction risk.

The Group has investment in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure
arising from the net assets of the Group’s foreign operations is managed, primarily through borrowings denominated in the relevant foreign
currencies. The total interest bearing borrowings of the Group denominated in USD amounted to Rs. 21,824 Mn. (31-03-2023 -
Rs. 27,123.1 Mn) The total interest bearing borrowings of the Group denominated in EURO amounted to Rs. 9,302.5 Mn.(31-03-2023 - Rs.
11,994.1 Mn)

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

All overseas investments is mostly financed through USD denominated borrowings. The translation exposure resulting from USD borrowings
has been minimised to a high degree through these investments. However for purposes of disclosure the exposure for currency risk is only
provided on Group’s foreign currency denominated financial instruments.

The Group actively evaluates the possibility of employing hedge accounting to mitigate the exposure to currency risk by designating an
effective relationship between foreign currency denominated transaction with assets or liabilities. Hedge accounting enables to minimise
the timing differences in recognising foreign currency translation impact to the income statement or other comprehensive income statement
and to effectively capture the economic substance of the transaction. Group’s significant portion of the foreign currency borrowings (EURO
denominated borrowings) have been made by the Group companies with incomes in foreign currencies.

The Sri Lankan Rupee (LKR) experienced significant volatility against the US Dollar (USD) during the first half of the financial year. However
during the 3rd quarter, there were signs of stabilisation in the exchange rate. As the 3rd quarter progressed, LKR appreciated steadily against
the US Dollar. Overall, the LKR strengthened by 8.16% against the USD during the financial year. To account for this fluctuating exchange
rate, a 10% threshold is used in sensitivity analysis for this year. In comparison, last year’s more volatile exchange rate necessitated a higher
fluctuation rate of 15% for sensitivity analysis.

Significant movement in exchange rates during the year ended 31st March 2024

Lowest Level Highest Level

Rate Date Rate Date Spread Year end
rate
USD/LKR 290.55 01.06.2023 330.44 26.07.2023 39.88 300.44
EUR/LKR 310.8 01.06.2023 365.64 27.07.2023 54.84 326.03

41.5.1.1 Effect on profit before tax

Group Company
USD denominated EURO GBP USD EURO GBP
net financial denominated denominated denominated denominated denominated
assets/(liabilities) net financial net financial net financial net financial net financial
assets/ assets/ assets/ assets/ assets/
(liabilities) (liabilities) (liabilities) (liabilities) (liabilities)

in USD '000 in EURO '000 in GBP '000 in USD '000 in EURO '000 in GBP '000

As at 31st March 2024

Foreign currency exposure 71,010 (27,440) 121 1,194 112 61
LKR depreciated by 10% (Rs.'000) 2,133,411 (894,612) 4,614 35,867 3,643 2,319
LKR appreciated by 10% (Rs.'000) (2,133,411) 894,612 (4,614) (35,867) (3,643) (2,319)

As at 31st March 2023

Foreign currency exposure 4,922 (32,913) 5 1,560 6 0
LKR depreciated by 15% (Rs.'000) 241,552 (1,763,005) 303 76,565 310 14
LKR appreciated by 15% (Rs.'000) (241,552) 1,763,005 (303) (76,565) (310) (14)

258
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
41.5.1.2 Effect on equity

Group Company
in USD '000 in USD '000
As at 31st March 2024
Foreign currency exposure 136,576 -
LKR depreciated by 10% (Rs.'000) 4,103,293 -
LKR appreciated by 10% (Rs.'000) (4,103,293) -

As at 31st March 2023

Foreign currency exposure 127,001 -
LKR depreciated by 15% (Rs.'000) 6,232,089 -
LKR appreciated by 15% (Rs.'000) (6,232,089) -

41.5.1.3 Cash flow hedge

A subsidiary company in the Group designated a hedge relationship between its highly probable EURO denominated sales and its foreign currency
denominated borrowings.

The risk management objective of the cash flow hedge is to hedge the risk of variation in the foreign currency exchange rates associated with
EURO currency denominated forecast sales. The risk management strategy is to use the foreign currency variability (gains /losses) arising from
revaluation of the foreign currency borrowing attributable to change in the spot foreign exchange rates to off-set the variability, due to foreign
exchange rate movements, on LKR conversion of EURO denominated forecast sales.

The effective portion of the gain or loss on the hedging instrument is recognised in the Other Comprehensive Income Statement (OCI) and any
ineffective portion is recognised immediately in the Income Statement.

The amount recognised in Other Comprehensive Income is transferred to the Income Statement when the hedge transaction occurs (when the
forecasted revenue is realised). If the forecast transaction is no longer expected to occur, the cumulative gain or loss previously recognised in
Other Comprehensive Income is transferred to the Income Statement.

Cash flow hedge reserve reflects the effective portion of the gain or loss on the hedging instrument. The cash flow hedging reserve as at 31
March 2024 represents the foreign currency variability arising from revaluation of the foreign currency borrowings attributable to change in the
spot LKR/EUR rate that is expected be set of from the variability of exchange rates form highly probable EURO denominated sales (Named “All
Inclusive” apartment revenue) expected to occur from 1st quarter of 2017/18 upto the tenor of refinanced borrowings.

Hedging instrument - Foreign currency borrowing of EURO 40 Mn in January 2017 out of which EURO 34.1 Mn has been designated for the
hedge from April 2017.

Further, outstanding balance of EURO 32.6 Mn as at 31 March 2018 has been refinanced effective from the 1st quarter of 2018/19 for an
extended tenor .

Hedged item – Highly probable EURO denominated sales (Named “All Inclusive” apartment revenue) expected to occur from April 2017 to March
2029.

During the year, the effective portion of the hedging instrument being a gain of Rs. 1,501.5 Mn (2022/2023 - loss of Rs. 418 Mn) was recognised
in the other comprehensive income statement (OCI) and the ineffective portion being a loss of Rs. 15.2 Mn (2022/2023 - loss of Rs. 84.3 Mn)
relating to current financial year and future periods were recognised in the income statement under net foreign exchange gain/ (loss) in other
operating income of the subsidiary financial statement for the year ended 31st March 2024.

In respect of the cash flow hedge instrument, Group recognised Rs. 2,208.2 Mn (2022/2023- Rs. 3,109.1 Mn) under cash flow hedge reserve
being the Group’s portion of the fair value loss recognised by the subsidiary.

259
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Cash flow hedge reserve

Group Company
2023/2024 2022/2023 2023/2024 2022/2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Balance as at 01st April (3,109,161) (2,858,488) - -

Net movement in cash flow hedge reserve 900,930 (250,673) - -
Balance as at 31st March (2,208,231) (3,109,161) - -

41.5.2 Interest rate risks

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating
interest rates.

The Central Bank of Sri Lanka (CBSL) continued the tightening of monetary policy stance during current financial year, resulting in a sharp upward
trend in the first half of the financial year, particularly with the uncertainty of a domestic debt restructuring being factored in to secondary market
yields on Government Securities. The shortage of liquidity in the first half of the financial year further put pressure on market interest rates. There
was a decrease in interest rates in the last three months of the financial year on account of the reduced Government debt financing requirements
and improved liquidity position in the country.

The Group’s investment portfolio consists of a range of financial instruments with both fixed and variable interest rates such as treasury bills and
treasury bonds which are subject to interest rate risk. Liabilities with variable interest rates such as AWPLR, LIBOR, SOFR and EURIBOR linked
borrowings would expose the Group to cashflow risk as the amount of interest paid would change depending on the changes in market interest
rates. Investments with fixed interest rates would expose the Group to variations in fair values during the marking to market of portfolios. Suitable
strategies are used by the Central Treasury Department of the Holding Company to manage the interest rate risks in portfolio investments.
The use of long-term interest rate forecasts to determine the most suitable duration of investments with the objective of overcoming the re-
investment risk as well as to minimise any adverse impact in marking to market of the portfolio is one of the often used strategies. Interest rate
swaps could be used when there is a need to hedge the risks on debt instruments with variable rates. Close monitoring of market trends is carried
out to improve the accuracy of such decisions.

The Group treasury department of the parent company monitors the interest rate environment on a continuous basis to advise the sector finance
managers on the most suitable strategy with regard to borrowings. The Group usually negotiates long term borrowings during the periods in
which interest rates are low in order to extend the favourable impact to future reporting periods.

Interest rate sensitivity

At the reporting date the interest rate sensitivity analysis of interest-bearing financial instruments of the Group and Company are given below.
This analysis depicts the impact of the probable movement in interest rate on profit before tax with all other variables held constant. Due to the
significant volatility in interest rates observed during the financial year and thereafter, a fluctuation of 1,000 basis points is considered for the
sensitivity analysis for LKR financial liabilities as at reporting date, similar to the last year. In line with observed trend in the market, sensitivity
threshold for USD financial liabilities is decreased to 25 basis points from last year’s 250 basis points.

Significant movement in interest rates during the year ended 31st March 2024

Lowest Level Highest Level

Rate Date Rate Date Spread Year end
rate
LKR Interest rate - AWPLR (Weekly) 10.69 24-Mar 22.63 23-Apr 1,194 10.69
USD Interest rate - Term SOFR (3 Month) 4.895 23-Apr 5.426 23-Oct 53 5.298

260
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Financial year 2023/2024 Group Company
Exposure Increase/ Effect Exposure Increase/ Effect
(Rs.'000) decrease in on Profit (Rs.'000) decrease in on Profit
basis points before Tax basis points before Tax

Sri Lanka rupee borrowings (Interest 1,497,813 +1000 149,781 535,332 +1000 53,533
linked to AWPLR)
USD loans (SOFR) 20,922,939 +25 5,231 - +25 -

Sri Lanka rupee borrowings 1,497,813 -1000 (149,781) 535,332 -1000 (53,533)
USD loans (SOFR) 20,922,939 -25 (5,231) - -25 -

Financial year 2022/2023 Group Company

Exposure Increase/ Effect Exposure Increase/ Effect
(Rs.'000) decrease in on Profit (Rs.'000) decrease in on Profit
basis points before Tax basis points before Tax

Sri Lanka rupee borrowings (Interest 1,674,333 -1000 167,433 665,076 -1000 66,508
linked to AWPLR)
USD loans (LIBOR and SOFR) 26,324,339 -250 658,108 - -250 -

Sri Lanka rupee borrowings 1,674,333 +1000 (167,433) 665,076 +1000 (66,508)
USD loans (LIBOR and SOFR) 26,324,339 +250 (658,108) - +250 -

Constant monitoring of market interest rates is carried out to ensure appropriate steps are taken to maximise the return on financial
management and to minimise the cost of borrowings. Group very strongly negotiates with banks and obtains best possible interest rates for
the Group’s borrowings. Listed below are steps adopted by the Group to minimise the effect of interest rate risks:

1 Entering into loans with interest rate caps and fixed rates.

2 Re - negotiating with banks on interest rates when ever there are favourable fluctuations in the market rates.

41.5.3 Equity prices

The Group has adopted the policy that its investment in subsidiaries, joint ventures and associate companies are recorded at cost as per
LKAS 27 and 28 standards and therefore are scoped out from the Sri Lanka Accounting Standards, SLFRS 9 - Financial Instruments. Equity
investments non quoted are carried in the Consolidated Statement of Financial Position as financial assets at fair value through OCI. Both
quoted and non quoted investments are fair valued as at each reporting date.

A sensitivity analysis of the above has not been carried out as the Group’s exposure to such is not material.

42 FINANCIAL CAPITAL MANAGEMENT

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of the capital.

The capital of the company consist of the following:

Equity Capital
- Ordinary share capital
- Preference share capital

Debt
- Long term borrowings

261
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES TO THE FINANCIAL STATEMENTS

Group Company
As at, 31.03.2024 31.03.2023 31.03.2024 31.03.2023

Debt to Equity ratio (times) 0.94 1.22 0.05 0.07

The Group monitors capital on the basis of the debt to equity ratio. This ratio is calculated based on the long term interest bearing debt and
preference shares divided by total equity capital. Total debt consist of total non current borrowings and preference share capital excluding
lease liabilities and total equity consist of total equity including minority interest excluding preference shares capital. The following factors
are also objectively taken into consideration in managing capital of the Group.

1. Maintain sufficient capital to meet minimum regulatory requirements. (Companies Act)

2. Maintain strong equity base as opposed to debt capital

3. Group’s future developments, investments and business strategies

4. Group cash flow projections and ability to pay higher returns to shareholders

When capital is not available in adequate quantities or at a reasonable cost, it can have an adverse impact on the performance of the Group.
The management being conscious of these factors, has implemented the capital management policy to ensure the long-term sustainability
and competitiveness of the Group. Ensuring that there is no idle capital which will act as a drag on the returns generated is another factor
that is considered. Excessive capital invested in a business will have a dampening impact on the performance while insufficient level of
capital will prevent an organisation from achieving its long-term objectives.

Sourcing of debt is carried out after careful and detailed analysis of lender proposals. Important factors such as the tenure of the loans,
interest rates, capital repayment terms including grace periods and repayment amounts and other terms and conditions including covenants
are taken into consideration when deciding. Minimising the weighted average cost of capital is one of the key considerations in determining
sourcing options. The Group’s debt is denominated in Sri Lankan rupees as well as foreign currencies such as US dollar, Euro, and Oman
Riyal. Foreign currency denominated loans have been taken mainly by the companies with foreign exchange earnings in order to take
advantage of the relatively low interest rates.

43  DIRECTOR’S FEES
The Director’s fees of the Group for the year ended 31st March 2024 is nil. (2022/2023 - Rs. nil)

44  RELATED PARTY TRANSACTIONS

Aitken Spence Hotels Holdings Group carries out transactions in the ordinary course of business with parties who are defined as related
parties as per Sri Lanka Accounting Standard LKAS 24 - Related Party Disclosures, which are transacted at normal business terms. The
pricing policy applicable to such transactions are comparable with those that would have been charged from unrelated companies.

Deshamanya D.H.S. Jayawardena, the Chairman of the Company, is also the Chairman of the parent company; Aitken Spence PLC and
Aitken Spence Hotel Managements Asia (Pvt) Ltd. He is also the Chairman of Browns Beach Hotels PLC and Negombo Beach Resorts (Pvt)
Ltd which are equity accounted investees of the Group and the Chairman of Distilleries Company of Sri Lanka PLC, DCSL Breweries Lanka
Limited, Stassen Exports (Pvt) Ltd, Stasson Foods (Pvt) Ltd, Lanka Milk Foods (CWE) PLC, Lanka Bell (Pvt) Ltd, Bell Solutions (Pvt) Ltd,Periceyl
(Pvt) Ltd, Lanka Diaries (Pvt) Ltd, Pattipola Live Stock Company Ltd, Ambewela Products (Pvt) Ltd, Melstacorp PLC, Melsta Laboratories Pvt)
Ltd, Continental Insurance Lanka Ltd and Formula World (Pvt) Ltd. He is also a Director of Ace Power Embilipitiya (Pvt) Ltd. Transactions
carried out by the Group with these companies in the ordinary course of business are disclosed in Note. No. 44.1.1, 44.1.2, 44.1.3 , 44.1.4
and 44.1.5.

Dr. M.P Dissanayake who is the Deputy Chairman and Managing Director of the Company, is also the Deputy Chairman and Managing
Director of the parent company; Aitken Spence PLC. He is also is a Director for Browns Beach Hotels PLC and Aitken Spence Hotel
Managements (Pvt) Ltd which are equity accounted investees of the Group. He is also a Director of Aitken Spence Hotels International (Pvt)
Ltd, Aitken Spence Hotels Ltd, Kandalama Hotels (Pvt) Ltd, Ahungalla Resorts Ltd, Hethersett Hotels Ltd, Turyaa (Pvt) Ltd and Meeraladuwa
(Pvt) Ltd which are subsidiaries of the Group. He is also a Director of Aitken Spence Travels (Pvt) Ltd, Ace Containers (Pvt) Ltd, Aitken Spence
Cargo (Pvt) Ltd, Ace Cargo (Pvt) Ltd, Aitken Spence Garments Ltd, Aitken Spence Ports International (Pvt) Ltd, Aitken Spence Agriculture
(Pvt) Ltd, Aitken Spence Shipping (Pvt) Ltd, Aitken Spence Maritime (Pvt) Ltd, Ace Distriparks (Pvt) Ltd, Aitken Spence Industrial Solutions

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
(Pvt) Ltd, Aitken Spence Printing and Packaging (Pvt) Ltd, Aitken Spence International Pte. Ltd, Global Parcel Delivery (Pvt) Ltd, Aitken Spence
Aviation (Pvt) Ltd, Aitken Spence Elevators (Pvt) Ltd, Aitken Spence Industrial Solutions (Pvt) Ltd, Spence Shipping and Cargo Logistics (Pvt)
Ltd, Aitken Spence Property Developments (Pvt) Ltd, Hapag Lloyd Lanka (Pvt) Ltd, Spence Maldives (Pvt) Ltd, Ace Aviation Services Maldives
(Pvt) Ltd, Ace Power Embilipitiya (Pvt) Ltd and Elpitiya Plantations PLC. Transactions carried out by the Group with these companies in the
ordinary course of business are disclosed in Note No. 44.1.1, 44.1.2, 44.1.3 and 44.1.4.

Ms. D.S.T Jayawardena who is the Joint Deputy Chairperson/Joint Managing Director of the Company , is also the Joint Deputy
Chairperson/Joint Managing Director of the parent company; Aitken Spence PLC . She is also the Chairperson of Aitken Spence Hotel
Managements (Pvt) Ltd which is an equity accounted investee of the Group. She is also the Chairperson of Aitken Spence Hotels Ltd,
Turyaa (Pvt) Ltd, Kandalama Hotels (Pvt) Ltd, Hethersett Hotels Ltd, Meeraladuwa (Pvt) Ltd and also a Director of Ahungalla Resorts Ltd and
Aitken Spence Hotel Managements Asia (Pvt) Ltd, which are subsidiaries of the Group. She is also a Director of Paradise Resorts Passikudah
(Pvt) Ltd, Browns Beach Hotels PLC, and Negombo Beach Resorts (Pvt) Ltd, which are equity accounted investees of the Group. She is also
a Director of Aitken Spence Exports (Pvt) Ltd, Aitken Spence Travels (Pvt) Ltd, which is a subsidiary of Aitken Spence PLC. Further, she is
also a Director of Distilleries Company of Sri Lanka PLC, DCSL Breweries Lanka Limited, Stassons Foods (Pvt) Ltd, Stassons Exports (Pvt)
Ltd, Lanka Milk Foods (CWE) PLC, Lanka Dairies (Pvt) Ltd, Pattipola Livestock Company Ltd, Ambewela Products (Pvt) Ltd, and Ambewela
Livestock Company Ltd.Transactions carried out by the Group with these companies in the ordinary course of business are disclosed in
Note No 44.1.1, 44.1.2, 44.1.3, 44.1.4 and 44.1.5.

Mr. C.M.S Jayawickrama a Director of the Company is also the Managing Director of Aitken Spence Hotel Managements (Pvt) Ltd; which is an
equity accounted investee of the Group, and a Director of Aitken Spence Hotels Ltd, Turyaa (Pvt) Ltd, Kandalama Hotels (Pvt) Ltd, Hethersett
Hotels Ltd, Meeraladuwa (Pvt) Ltd, Ahungalla Resorts Ltd and Aitken Spence Hotels International (Pvt) Ltd and , which are subsidiaries of the
Group. Mr. C.M.S Jayawickrama is also a Director of Negombo Beach Resorts (Pvt) Ltd and Paradise Resorts Passikudah (Pvt) Ltd , which are
equity accounted investees of the Group. He is also a Director of Aitken Spence Exports (Pvt) Ltd and Interlifts International (Pvt) Ltd which
are subsidiaries of Aitken Spence PLC. Transactions carried out by the Group with these companies in the ordinary course of business are
disclosed in Note No. 44.1.2 and 44.1.3 and 44.1.4.

Mr. J.M.S. Brito, who is non Executive Director of the Company, is also a Director of the parent company; Aitken Spence PLC. Transactions
carried out by the Group with these companies in the ordinary course of business are disclosed in Note No. 44.1.1.

Mr. R. N. Asirwatham who is a Non Executive Director of the Company, is also a Director of the parent company; Aitken Spence PLC. He
is also a Director of Browns Beach Hotels PLC, Royal Ceramics Lanka PLC and Ceylon Grain Elevators PLC . Transactions carried out by the
Group with these companies in the ordinary course of business are disclosed in Note No. 44.1.1, 44.1.3 and 44.1.5.

R. N.J. De S Deva Adithya who is a Non Executive Director of the Company, is also a Director of the parent company; Aitken Spence
PLC. He is also a Director of Distilleries Company of Sri Lanka PLC and Melstacorp PLC. Transactions carried out by the Group with these
companies in the ordinary course of business are disclosed in Note No. 44.1.1 and 44.1.5.

Mr. C.H. Gomez who is a Non Executive Director of the Company, is also a Director of the parent company; Aitken Spence PLC.
Transactions carried out by the Group with these companies in the ordinary course of business are disclosed in Note No. 44.1.1.

Mr. M.A.N.S. Perera who is a Non Executive Director of the Company, is a Director of Aitken Spence PLC, Browns Beach Hotels PLC,
Paradise Resorts Passikudah (Pvt) Ltd, Distilleries Company of Sri Lanka PLC, DCSL Breweries Lanka Limited,Lanka Bell (Pvt) Ltd, Bell
Solutions (Pvt) Ltd, Periceyl (Pvt) Ltd and Formula World (Pvt) Ltd. Transactions carried out by the Group with these companies in the
ordinary course of business are disclosed in Note No. 44.1.1, 44.1.3 and 44.1.5.

Dr. R.A. Fernando was appointed as a Non Executive Director of the Company with effect from 10th January 2024. He is also a Director
of Melstacorp PLC, Distilleries Company of Sri Lanka PLC and DCSL Breweries Lanka Limited. Transactions carried out by the Group with
these companies in the ordinary course of business are disclosed in Note No. 44.1.5.

Mr. G.P.J Goonewardena who was a Non Executive Director of the Company until his demise on 18th November 2023.

Details of transactions carried out by the Group with related parties and outstanding balances with the related parties are given in
Note No. 44.1.1 to 44.1.5.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 44.1 Details of transactions carried out with related companies

Group Company

264
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
44.1.1 Transactions with parent company

Aitken Spence PLC Parent Interest income earned Market terms 38,948 - - -
Company
Interest expense paid Market terms 326,391 - 203,481 -
Lease rent paid Contractual 3,562 - - -
payment
Corporate guarantee fees paid Market terms 81,127 - 81,127 -

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Fees paid for services Market terms 346,573 (2,531,875) 34,803 (46,216)
Payment made on allocation of Market terms 2,897 - 435 -
expenses
Sale of goods and services Market terms 5,037 - 1,590 -
Net borrowings/withdrawals of short Market terms 148,415 1,068,116 1,087,154 (1,563,728)
term funds
44.1.2 Transactions with subsidiaries

Aitken Spence Hotels International Subsidiary Settlements of short term advances Market terms - - 304,958 207,016
(Pvt) Ltd
Interest on advances Market terms - - 14,381 -
NOTES TO THE FINANCIAL STATEMENTS

Aitken Spence Hotel Managements Asia Subsidiary Allocation of expenses Market terms - - 533 -
(Pvt) Ltd
Turyaa (Pvt) Ltd Subsidiary Purchase of goods and services and Market terms - - 150 -
reimbursement of expenses
Sale of goods and services Market terms - - - 36
Net investments of short term funds Market terms - - (282,000) 310,805
Interest received Market terms - - 28,805 -
Ahungalla Resorts Ltd Subsidiary Net investments of short term funds Market terms - - (118,800) 122,952
Interest received Market terms - - 4,152 -
Kandalama Hotels (Pvt) Ltd Subsidiary Purchase of goods and services Market terms - - 1,622 -
Sale of goods and services and Market terms - - 285 -
reimbursement of expenses
Hethersett Hotels Ltd Subsidiary Purchase of goods and services Market terms - - 483 -
Aitken Spence Hotels Ltd Subsidiary Sale of goods and services Market terms - - 6 6
Purchase of goods and services Market terms - - 35 -
Meeraladuwa (Pvt) Ltd Subsidiary Short term advances Short term - - 136 518
 Group Company
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

44.1.3 Transactions with equity accounted investees

Paradise Resorts Passikudah (Pvt) Ltd Associate Sale of goods and services and Market terms 4,260 595 26 26
reimbursement of expenses
Reimbursement of expenses Market terms 482 - - -
Negombo Beach Resorts (Pvt) Ltd Associate Interest income Market terms 58,319 58,319
Net borrowings/(investments) of short term Market terms (556,000) 609,864 (556,000) 609,864
funds
Net borrowings/(investments) of Market terms - 725,524 - 725,524
shareholder loan
Sale of goods and services Market terms 1,158 - - -
Purchase of goods and services Market terms 94 - - -
Browns Beach Hotels PLC Associate Sale of goods and services and Market terms 130 - 130 -
reimbursement of expenses
Aitken Spence Hotel Managements Associate Management fees paid for managing Sri Percentage of 339,872 - 45,395 -
(Pvt) Ltd Lankan hotels revenue and
profits
Central purchasing and merchandising unit Market terms 66,667 - 14,848 -
handling charges
Online reservations handling charges Market terms 53,827 - 3,207 -
Allocation of expenses Market terms 87,731 (70,683) 21,783 -
Rent income Market terms 1,781 - - -
Provision of restaurant services Market terms 150 - - -
Purchase of hotel supplies to maldivian Market terms 458,568 164,900 - -
hotels
Sale of goods and services Market terms 14,537 - 1,238 5,649
44.1.4 Transactions with parent’s group entities

Aitken Spence Travels (Pvt) Ltd Subsidiary of Sale of Hotel rooms in the ordinary course Market terms 1,709,488 610,180 451,064 109,862
the Parent of business
Company
Purchase of air tickets for overseas travel Market terms 7,057 - 3,440 -
Aitken Spence Exports (Pvt) Ltd Subsidiary of Purchase of mineral water Market terms 28,661 (1,014) 8,307 -
the Parent
Company
Reimbursement of expenses received Market terms 6,408 628 - -

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265
 Group Company
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding

266
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Aitken Spence Printing and Packaging Subsidiary of Printing and typesetting hotel promotional Market terms 3,258 (419) 1,580 -
(Pvt) Ltd the Parent literature and annual reports
Company
Sale of goods and services Market terms 29 - - -
Aitken Spence Elevators (Pvt) Ltd Subsidiary of Repairs and maintenance of hotel elevators Market terms 17,750 (1,790) 2,560 -
the Parent
Company

Aitken Spence Industrial Solutions (Pvt) Subsidiary of Repairs and maintenance of hotel elevators Market terms 199 - - -
Ltd the Parent

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Company

Ace Aviation Services Maldives (Pvt) Ltd Subsidiary of Interest income earned Market terms 393 - - -
the Parent
Company

Global Parcel Delivery (Pvt) Ltd Subsidiary of Courier services Market terms 1,193 (22) 310 -
the Parent
Company

Hapag Lloyd Lanka (Pvt) Ltd Subsidiary of Sale of goods and services Market terms 401 33 - -
NOTES TO THE FINANCIAL STATEMENTS

the Parent
Company

Aitken Spence International Consulting Subsidiary of Provision of insurance services Market terms 22,836 - - -
(Pvt) Ltd the Parent
Company
Sale of goods and services Market terms 354 132 - -

Aitken Spence International Pte. Ltd Subsidiary of Purchase of goods and services Market terms 15,534 (331) - -
the Parent
Company

Aitken Spence Garments Ltd Subsidiary of Sale of goods and services Market terms 513 268 132 132
the Parent
Company
 Group Company
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Ace Cargo (Pvt) Ltd Subsidiary of Sale of goods and services Market terms 164 - - -
the Parent
Company

Ace Containers (Pvt) Ltd Subsidiary of Sale of goods and services Market terms 209 - - -
the Parent
Company

Ace Power Embilipitiya (Pvt) Ltd Subsidiary of Sale of goods and services Market terms 185 - - -
the Parent
Company

Aitken Spence Property Developments Subsidiary of Purchase of services Market terms 4,142 - - -
(Pvt) Ltd the Parent
Company
Reimbursement of expenses Market terms 626 - - -

Aitken Spence Maritime Ltd Subsidiary of Sale of goods and services Market terms 315 - - -
the Parent
Company

Aitken Spence Shipping Ltd Subsidiary of Sale of goods and services Market terms 690 108 - -
the Parent
Company

Spence Maldives (Pvt) Ltd Subsidiary of Purchase of goods and services Market terms 9,419 - - -
the Parent
Company

Shipping and Cargo Logistics (Pvt) Ltd Subsidiary of Sale of goods and services Market terms 67 - 67 -
the Parent
Company

Interlifts International (Pvt) Ltd Subsidiary of Purchase of goods and services Market terms 4,769 - - -
the Parent
Company

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267
 Group Company
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding

268
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Aitken Spence Cargo (Pvt) Ltd Subsidiary of Clearing of imported items Market terms 35,608 (682) 28,429 -
the Parent
Company
Sale of goods and services Market terms 202 - - -

Aitken Spence Ports International (Pvt) Subsidiary of Clearing of imported items Market terms 429 - 304 -
Ltd the Parent
Company

Aitken Spence Hotel Holdings PLC I Annual Report 2023/24

Aitken Spence Agriculture (Pvt) Ltd Subsidiary of Purchase of vegetables Market terms 177 (34) - -
the Parent
Company

Elpitiya Plantations PLC Associate of Purchase of tea leaves Market terms 11,838 (402) 1,756 -
the Parent
Company
Sale of goods and services Market terms 195 - - -

Aitken Spence Engineering Solutions Joint venture Purchase of goods and services Market terms 3,929 - - -
(Pvt) Ltd of the Parent
Company
NOTES TO THE FINANCIAL STATEMENTS

44.1.5 Transactions with other related companies

Distilleries Company of Sri Lanka PLC Other related Purchase of beverages Market terms 28,431 (1,511) 10,223 (527)
company
Sale of goods and services Market terms 119 - - -

DCSL Breweries Lanka Limited Other related Purchase of beverages Market terms 4,916 - 1,258 -
company

Stassen Exports (Pvt) Limited Other related Purchase of food items Market terms 14,369 (55) - -
company
Sale of goods and services Market terms 4,463 - - -

Lanka Milk Foods (CWE) PLC Other related Purchase of milk powder Market terms 24,040 (185) - -
company
 Group Company
Name of the Related Party Relationship Nature of transaction Terms of the Transaction Outstanding Transaction Outstanding
transaction Value As at Value As at
31.03.2024 31.03.2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Lanka Diaries (Pvt) ltd Other related Purchase of food items Market terms 1,089 - - -
company

Lanka Bell (Pvt) Ltd Other related Provision of telecommunication services Market terms 1,872 (35) - -
company

Bell Solutions (Pvt) Ltd Other related Provision of telecommunication services Market terms 1,561 (185) - -
company

Periceyl (Pvt) Ltd Other related Purchase of beverages Market terms 48,029 (1,545) 19,325 (1,518)
company

Pattipola Livestock Company Ltd Other related Purchase of food items Market terms 4,875 (555) - -
company

Royal Ceramics Lanka PLC Other related Purchase of goods Market terms 3,289 - 1,059 -
company

Continental Insurance Lanka Limited Other related Provision of insurance services Market terms 730,071 - 20,179 -
company

Stassen Foods (Pvt) Limited Other related Purchase of food items Market terms 984,877 (25,173) 54,140 (3,283)
company

Ambewela Products (Pvt) Ltd Other related Purchase of milk products Market terms 2,885 - - -
company

Formula World (Pvt) Ltd Other related Provision of vehicle maintenance services Market terms 4,517 - - -
company

Melsta Laboratories (Pvt) Ltd Other related Purchase of services Market terms 665 - - -
company

Ceylon Grain Elevators PLC Other related Purchase of food items Market terms 33,853 (468) - -
company

Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC

269
NOTES TO THE FINANCIAL STATEMENTS

44.1.6 The Company and the subsidiaries in the ordinary course of business have for the sale of hotel rooms, contracted with certain tour
operators, for whom Aitken Spence Travels (Pvt) Ltd, has contracted with for provision of hotel services. The total revenue generated by
such company and the balance outstanding as at 31st March 2024 is disclosed above.

44.1.7 The Company and the Subsidiaries in the ordinary course of business have generated revenues amounting to Rs. 22,465,751(Company-
Rs. 7,776,300) from sale of hotel packages to Aitken Spence PLC and its Subsidiaries (excluding Hotel Companies). Balances outstanding
from these companies as at 31st March 2024 is reflected in Note No. 26 - Amounts due from parent’s group entities.

44.2 Non recurrent transactions with related Parties

There were no non recurrent transactions carried out with related parties during the year where the aggregate value of transaction
exceeds 10% of equity or 5% of total assets which ever is lower.

44.3 Recurrent transactions with related parties

Name of the Related Relationship The rationale for Value of the related party Value of the Terms and
Party entering transactions entered into related party conditions of
into the transaction during the financial year transactions the related party
ending 31st March 2024 as a % of transaction
revenue
Rs. ’000

Aitken Spence Travels Subsidiary of Parent Sale of hotel rooms in 1,709,488 3.62% Market Terms
(Pvt) Ltd Company the ordinary course of
business
Continental Insurance Other related Provision of insurance 730,071 1.54% Market Terms
Lanka Ltd Company services
Stassen Foods (Pvt) Ltd Other related Purchase of goods in 984,877 2.08% Market Terms
Company the ordinary course of
business

There were no recurrent transactions carried out with related parties during the year where the aggregate value of transaction exceeds 10% of consolidated gross revenue of
the Group.

44.4 Transactions with Key Management Personnel (KMP)

Aitken Spence Hotel Holdings PLC, considers its Board of Directors as the key management personnel of the Company. The Board of
Directors, Vice Presidents and Assistant Vice Presidents of subsidiary companies are considered as key management personnel of Group
Companies.

There were no transactions other than employment benefits disclosed below carried out during the year with Key management personnel
and their close family members which require disclosure per LKAS - 24 - Related Party Disclosures.

Group Company
For the year ended 31 st March 2024 2023 2024 2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Short term employment benefits 42,989 12,665 - 12,665

Post employment benefits - - - -
Total 42,989 12,665 - 12,665

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
NOTES TO THE FINANCIAL STATEMENTS

45 ACQUISITION OF NON CONTROLLING SHARES

Aitken Spence Hotel Holdings PLC made an offer to the minority shareholders of Aitken Spence Hotels Ltd on 8th June 1999, to purchase
their shares at Rs. 31/-per share.(subsequently revised to Rs. 20/- per share). The Company as at 31 st March 2024 held 98.01% of the
equity share capital of Aitken Spence Hotels Ltd.

46 EVENTS AFTER REPORTING DATE

The board declared a preference dividend of cents 90 per share on the cumulative preference shares for the financial year ended 31st
March 2024. There has been no other material events occuring after the reporting date that requires adjustment to or disclosure in the
financial statements.

47 CAPITAL EXPENDITURE COMMITMENTS

The following commitments for capital expenditure approved by the Directors as at 31st March have not been provided for in the financial
statements.

Group Company
As at 31.03.2024 31.03.2023 31.03.2024 31.03.2023
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Approximate amount approved but not contracted for 4,192,798 - 397,689 -

Approximate amount contracted for but not accounted 373,893 775,363 266,666 -
Total 4,566,691 775,363 664,355 -

The above includes Rs. 4,398 Mn (2022/2023- Rs. 774 Mn) for the acquisition of property, plant and equipment, Rs. 168 Mn (2022/2023 -
Rs. 882,308/-) for the acquisition of intangible assets for the Group and Rs. 650 Mn (2022/2023- Nil) for the acquisition of property, plant
and equipment, Rs. 14 Mn (2022/2023 - Nil) for the acquisition of intangible assets for the Company.

48 AVERAGE NUMBER OF EMPLOYEES

The average number of employees of the Group (excluding equity-accounted investees) at as at 31st March 2024 was 2,823 (as at
31.03.2023 - 2,989).

The number of employees of the Company as at 31st March 2024 was 252 (as at 31.03.2023 - 234).

49 DIRECTORS RESPONSIBILITY
The Board of Directors of the Company are responsible for the preparation of financial statements.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
QUARTERLY STATISTICS

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the three months ended 30th June 30th September 31st December 31st March
2023 2023 2023 2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

Net revenue 7,894,932 8,919,486 13,446,685 15,941,807

Other income (10,900) 17,743 (79,014) 91,281
Staff costs (1,800,257) (1,821,129) (1,936,077) (1,910,448)
Depreciation (916,182) (965,035) (971,753) (944,277)
Amortisation (324,572) (335,424) (341,344) (327,285)
Other operating expenses - direct (2,330,478) (2,703,067) (3,372,810) (3,424,731)
Other operating expenses - indirect (3,101,960) (3,118,782) (3,603,330) (3,662,818)
Profit/ (loss) from operations (589,417) (6,208) 3,142,357 5,763,529
Finance income 115,161 102,547 89,604 91,560
Finance expenses (1,454,055) (1,445,867) (1,460,966) (1,305,780)
Share of profit/(loss) of equity accounted investees net of tax (42,939) 27,233 (23,945) 3,337
Income tax expense (203,013) (323,332) (231,119) (384,000)
Net Profit /(loss) for the period (2,174,263) (1,645,627) 1,515,931 4,168,646

Profit attributable equity holders of the parent company (1,407,995) (1,021,657) 830,276 2,739,488
Non - controlling interests (766,268) (623,970) 685,655 1,429,158
Net Profit /(loss) for the period (2,174,263) (1,645,627) 1,515,931 4,168,646

Consolidated Statement of Financial Position

As at 30th June 30th September 31st December 31st March

2023 2023 2023 2024
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Assets
Non current assets 86,808,316 89,473,967 88,590,184 82,669,627
Current assets 11,869,710 12,062,178 15,721,901 14,419,950
Total assets 98,678,026 101,536,145 104,312,085 97,089,577

Equity and liabilities

Equity 18,924,175 18,721,242 19,366,117 21,360,082
Non - controlling interest 8,008,537 7,838,918 8,396,211 9,504,610
Total equity 26,932,712 26,560,160 27,762,328 30,864,692

Non current liabilities 49,136,505 49,235,899 47,357,480 43,323,944

Current liabilities 22,608,809 25,740,086 29,192,277 22,900,941
Total liabilities 71,745,314 74,975,985 76,549,757 66,224,885
Total equity and liabilities 98,678,026 101,536,145 104,312,085 97,089,577

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Share Information - Group

As at 30th June 30th September 31st December 31st March

2023 2023 2023 2024

Earnings / (loss) per ordinary share (Rs) (4.19) (3.04) 2.47 8.04
Net asset value per share (Rs) 55.78 55.18 57.10 63.52
Market price per share
- Highest (Rs) 62.00 90.00 80.00 70.00
- Lowest (Rs) 55.00 56.00 60.10 55.80
- Last traded price (Rs) 56.00 79.10 63.00 66.20
- Closing price (Rs) 56.00 79.10 63.00 66.20
Percentage of shares held by public 25.41% 25.44% 25.44% 25.44%
Number of public shareholders 3,695 3,592 3,632 3,722
Float adjusted market capitalisation (Rs) 4,784,436,944 6,766,448,927 5,389,551,090 5,663,306,066

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDICATIVE US DOLLAR FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME IN USD

For the year ended 31 st March 2024 2023
USD '000 USD '000

Revenue 157,298 140,796

Revenue tax (3,514) (3,059)
Net revenue 153,784 137,737

Other income 64 586

Staff costs (24,857) (24,324)
Depreciation (12,639) (11,892)
Amortisation (4,422) (4,571)
Other operating expenses - direct (39,379) (34,760)
Other operating expenses - indirect (44,890) (40,427)
Profit from operations 27,661 22,349

Finance income 1,328 1,656

Finance expenses (18,861) (17,760)
Net finance expense (17,533) (16,104)

Share of loss of equity accounted investees (net of tax) (121) (1,215)

Profit before income tax 10,007 5,030

Income tax expense (3,799) (4,885)
Profit for the year 6,208 145

Attributable to:
Equity holders of the parent 3,795 (879)
Non - controlling interest 2,413 1,024
Profit for the year 6,208 145

Earnings/(loss) per ordinary share - Basic/Diluted (USD) 0.01 (0.00)

Exchange rate used for translation 300.44 327.14

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 For the year ended 31st March 2024 2023
USD '000 USD '000

Profit for the year 6,208 145

Other comprehensive income/(loss)

Items that will never be reclassified to profit or loss
Revaluation of freehold land - 2,503
Share of other comprehensive income of equity accounted investees 21 91
Actuarial losses on defined benefit obligations (66) (26)
Income tax on other comprehensive income 21 (2,164)
(24) 404
Items that are or may be reclassified to profit or loss
Foreign currency translation differences of foreign operations (8,741) 8,058
Net movement in cash flow hedge 4,998 (1,277)
(3,743) 6,781
Other comprehensive income/(loss) for the year net of tax (3,767) 7,185
Total comprehensive income for the year net of tax 2,441 7,330

Attributable to:
Equity holders of the parent company 1,110 3,711
Non - controlling interests 1,331 3,619
Total comprehensive income for the year net of tax 2,441 7,330

Exchange rate used for translation 300.44 327.14

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDICATIVE US DOLLAR FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN USD

As at 31.03.2024 31.03.2023
USD '000 USD '000

ASSETS
Non-current assets
Property, plant and equipment 220,288 222,060
Right -of-use assets 47,539 51,625
Intangible assets 2,678 2,718
Investment in equity accounted investees 210 284
Other financial assets 3,248 3,051
Deferred tax assets 1,198 1,487
275,161 281,225

Current assets
Inventories 4,747 5,169
Trade and other receivables 11,037 7,749
Amounts due from holding company 3,555 448
Amount due from parent's group entities 4,616 2,873
Deposits and prepayments 2,934 2,431
Current tax receivable 50 88
Other financial assets 13,412 13,917
Cash and cash equivalents 7,646 16,086
47,997 48,761
Total assets 323,158 329,986

EQUITY AND LIABILITIES

Equity attributable to equity holders of the company

Stated capital 11,831 10,866
Reserves 31,672 31,502
Retained earnings 27,593 21,951
71,096 64,319
Non -controlling interests 31,636 27,936
Total Equity 102,732 92,255

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 As at 31.03.2024 31.03.2023
USD '000 USD '000

Non-current liabilities
Interest - bearing liabilities - banks 95,069 111,844
Interest - bearing liabilities - leases 36,960 41,536
Deferred tax liabilities 10,952 9,213
Employee benefits 1,221 965
144,202 163,558
Current liabilities
Trade payables 5,006 4,767
Other provisions and payables 19,220 16,758
Amounts due to holding company 8,427 4,014
Amounts due to parent's group entities 251 624
Interest - bearing liabilities - banks 18,949 18,691
Interest - bearing liabilities - leases 4,591 4,348
Current tax payable 1,078 681
Bank overdrafts and other short term borrowings 18,702 24,290
76,224 74,173
Total liabilities 220,426 237,731
Total equity and liabilities 323,158 329,986

Exchange rate used for translation 300.44 327.14

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 SUPPLEMENTARY INFORMATION

AN ENDURING STORY
As we gaze towards the horizon at the endless expanse of possibilities
that lie before us, we pledge to nurture unforgettable memories
for the generations to come – both today, and beyond.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
INVESTOR INFORMATION

1. STOCK EXCHANGE LISTING

Aitken Spence Hotel Holdings PLC is a public quoted company, the issued ordinary shares of which have been listed with the Colombo
Stock Exchange.

The Stock Exchange Code for Aitken Spence Hotel Holdings PLC shares is “AHUN.N0000”.

2. SHAREHOLDERS
There were 3,732 registered ordinary shareholdres as at 31st March 2024 distributed as follows:

Range 31.03.2024 31.03.2023

No. of No. of % No. of No. of %
Shareholders Shareholding Shareholders Shareholding

1 to 1,000 shares 2,349 667,343 0.20 2,303 683,159 0.20

1,001 to 10,000 shares 987 3,361,207 1.00 1,042 3,588,218 1.07
10,001 to 100,000 shares 303 8,922,666 2.65 306 9,192,203 2.73
100,001 to 1,000,000 shares 78 20,225,067 6.01 70 18,777,762 5.59
1,000,001 and above 15 303,113,727 90.14 14 304,048,668 90.41
3,732 336,290,010 100.00 3,735 336,290,010 100.00

3. ANALYSIS OF SHAREHOLDERS

31.03.2024 31.03.2023

Category Shareholding % Shareholding %

Nationals 335,325,852 99.71 333,955,246 99.31

Non - Nationals 964,158 0.29 2,334,764 0.69
336,290,010 100.00 336,290,010 100.00

Category Shareholding % Shareholding %

Aitken Spence PLC & Subsidiaries 250,507,418 74.49 250,507,418 74.49

Other Institutions 58,137,030 17.29 60,902,668 18.11
Individuals 27,645,562 8.22 24,879,924 7.40
336,290,010 100.00 336,290,010 100.00

* Percentage of shares held by the public as at 31st March 2024 was 25.44% and number of public shareholders as at 31st March 2024
were 3,722.

4. SHARE TRADING

2023/24 2022/23 2021/22 2020/21 2019/20

Number of Shares Traded During the Year 22,081,827 16,557,254 14,095,777 14,455,930 6,998,161
Value of Shares Traded During the Year (Rs.) 1,448,046,908 891,882,424 557,995,507 381,490,589 171,349,406
Number of Transactions 8,028 9,022 9,983 8,216 4,440

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
 INVESTOR INFORMATION

5. MARKET VALUE

Financial Year Highest Lowest Year End

Rs. Rs. Rs.

2019/20 31.80 15.00 15.00

2020/21 37.00 12.00 31.20
2021/22 49.40 27.00 35.00
2022/23 68.00 28.00 60.50
2023/24 90.00 55.00 66.20

* Closing price of the share as at 31st March 2024 was Rs. 66.20.

6. RATIOS

2023/24 2022/23 2021/22 2020/21 2019/20

Earnings / (Loss) Per Share (Rs.) 3.35 (0.94) 1.85 (13.93) (1.90)
Price Earnings Ratio (Times) 19.76 (63.72) 19.00 (2.17) (7.94)
Net Asset Value per Share as at 31st March (Rs.) 63.03 62.08 58.60 (46.96) 60.66

7. DIVIDENDS
There was no dividend paid to ordinary shareholders of the Company for the year 2023/24. (The last dividend was paid in financial year
2018/19)

8. MARKET CAPITALISATION (AS AT 31ST MARCH)

Year Stated Capital & Market
Reserves Capitalisation
Rs.’000 Rs.’000

2019/20 20,562,900 5,077,979

2020/21 15,956,456 10,155,958
2021/22 19,871,251 11,938,295
2022/23 21,041,256 20,143,772
2023/24 21,360,082 22,262,399

The float adjusted market capitalisation as at 31st March 2024 was Rs. 5,663,306,066 with reference to the rule no.7.6 (iv) of the listing
rules of the Colombo Stock Exchange.

As the float adjusted market capitalisation was more than Rs. 5 Bn, Aitken Spence Hotel Holdings PLC complies under option 3 with the
minimum public holding requirement.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
9. GROUP EFFECTIVE HOLDING IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

Company As at 31.03.2024 As at 31.03.2023

Aitken Spence Hotel Managements Asia Private Limited 51.00% 51.00%

Aitken Spence Hotels Limited 98.01% 98.01%
Aitken Spence Hotel Managements (Private) Limited 49.00% 49.00%
Crest Star (B.V.I) Limited (British Virgin Islands) 100.00% 100.00%
Cowrie Investment Private Limited (Maldives) 60.00% 60.00%
Aitken Spence Hotels International Private Limited 51.00% 51.00%
PR Holiday Homes Private Limited (India) 43.13% 43.13%
Heritance (Private) Limited 98.01% 98.01%
Kandalama Hotels (Private) Limited 61.75% 61.75%
Jetan Travel Services Company Private Limited (Maldives) 95.00% 95.00%
Ace Resorts Private Limited (Maldives) 51.00% 51.00%
A.D.S Resorts Private Limited (Maldives) 51.00% 51.00%
Unique Resorts Private Limited (Maldives) 51.00% 51.00%
Aitken Spence Hotel Services Private Limited (India) 51.00% 51.00%
Aitken Spence Hotel Managements (South India) Private Limited (India) 59.13% 59.13%
Aitken Spence Resorts (Middle East) LLC (Oman) 51.00% 51.00%
Perumbalam Resorts Private Limited (India) 43.12% 43.12%
Amethyst Leisure Limited 27.89% 27.89%
Turyaa Resorts (Private) Limited * - 100.00%
Turyaa (Private) Limited 100.00% 100.00%
Browns Beach Hotels PLC 37.42% 37.42%
Hethersett Hotels Limited 94.44% 94.44%
Ahungalla Resorts Limited 60.00% 60.00%
Neptune Ayurvedic Village (Private) Limited 100.00% 100.00%
Nilaveli Holidays (Private) Limited 100.00% 100.00%
Nilaveli Resorts (Private) Limited 100.00% 100.00%
The Galle Heritage (Private) Limited 100.00% 100.00%
Meeraladuwa (Private) Limited 100.00% 100.00%
Paradise Resorts Passikudah (Private) Limited 27.89% 27.89%
Negombo Beach Resorts (Private) Limited 37.42% 37.42%
Aitken Spence Resources (Private) Limited 49.00% 49.00%

* With effect from 01st April 2023, Turyaa Resorts (Pvt) Ltd was amalgamated with Turyaa (Pvt) Ltd.

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 INVESTOR INFORMATION

10. SHAREHOLDING OF DIRECTORS TOGETHER WITH THEIR SPOUSES IN AITKEN SPENCE HOTEL HOLDINGS PLC

Name of the Director As at 31.03.2024 As at 31.03.2023

Deshamanya D.H.S. Jayawardena - -

Ms. D.S.T. Jayawardena 16,000 16,000
Dr. M.P. Dissanayake - -
Mr. C.M.S. Jayawickrama - -
Mr. J.M.S. Brito 194,062 300,658
Mr. R.N. Asirwatham 1,000 1,000
Mr. N.J. de Silva Deva Aditya - -
Mr. C.H. Gomez - -
Mr. M. A. N. S. Perera - -
Dr. R.A. Fernando * - -
Mr. G.P.J. Goonewardena** - 5,460
Total 211,062 323,118

* Dr. R.A. Fernando appointed with effect from 10th January 2024.

** Mr. G.P.J. Goonewardena demised on 18th November 2023.

11. TWENTY LARGEST SHAREHOLDERS

Shareholder As at 31.03.2024

No. of Shares %

1 Aitken Spence PLC - A/C No. 01 239,472,667 71.21

2 Employees Provident Fund 31,501,601 9.37
3 Ace Cargo (Private) Limited 4,423,601 1.32
4 Hatton National Bank PLC - Capital Alliance Quantitative Equity Fund 4,325,715 1.29
5 Aitken Spence Hotel Managements (Private) Limited 3,530,639 1.05
6 Mr. K. Balendra 2,764,946 0.82
7 Aitken Spence Aviation (Private) Limited 2,604,140 0.77
8 Bank of Ceylon - No. 01 Account 2,527,424 0.75
9 Employees Trust Fund Board 2,370,705 0.70
10 Mr. G.C. Wickremasinghe (Deceased) 2,082,241 0.62
11 Ceylon Investment PLC A/C No. 02 2,035,255 0.61
12 Ceylon Guardian Investments Trust PLC A/C No. 02 1,964,745 0.58
13 Miss. A.T. Wickremasinghe 1,245,004 0.37
14 Invenco Capital (Private) Limited 1,239,698 0.37
15 Hatton National Bank PLC A/C No. 04 (HNB Retirement Pension Fund) 1,025,346 0.30
16 Mr. S.R. Perera 1,000,000 0.30
17 Mr. M. J. Fernando (Deceased) 1,000,000 0.30
18 Mrs. K. Fernando 991,149 0.29
19 Miss N.T.M.S. Cooray 775,080 0.23
20 Cargo Boat Development Company PLC 733,193 0.22
Total 307,613,149 91.47

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12. HISTORY OF MOVEMENT IN ORDINARY SHARE CAPITAL

Year Issue Number of Shares

Shares in issue at the time of listing 1,281,612

1979/80 Initial Public Offer 500,000
1980/81 Private Placement 300,000
1980/81 Rights Issue 368,743
1981/82 Rights Issue 1,839,063
1982/83 Rights Issue 1,429,806
1983/84 Rights Issue 791,792
1984/85 Rights Issue 822,790
1994/95 Bonus Issue 2,444,602
1994/95 Share swap to acquire Aitken Spence Hotels Ltd 9,699,199
1994/95 Share swap to acquire Brown's Beach Hotels Ltd 638,020
1994/95 Share swap to acquire M. P. S. Hotels Ltd 473,557
1999/00 Bonus Issue 3,431,531
1999/00 Rights Issue 14,412,429
2010/11 Rights Issue (1 for 4) 9,608,286
Share Split (7 for 1) 288,248,580
Total as at 31st March 2024 336,290,010

13. HISTORY OF MOVEMENT IN PREFERENCE SHARE CAPITAL

Year Issue Number of Shares

1981/82 12% Cum. Redeemable Preference Shares 200,000

1982/83 Redemption (40,000)
1983/84 Redemption (40,000)
1984/85 Redemption (40,000)
1985/86 Redemption (40,000)
1990/91 Redemption (40,000)
1996/97 9% Cum Redeemable Preference Shares 16,500,000
Total as at 31st March 2024 16,500,000

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DECADE AT A GLANCE

Year ended 31st March 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015

OPERATING RESULTS
Revenue 47,258,528 46,059,884 24,570,780 5,728,379 19,019,241 19,570,589 18,250,581 16,055,386 13,378,071 13,270,918
Profit/(loss) from operations 8,310,261 7,310,886 4,280,099 (5,188,495) 1,563,667 2,734,959 3,013,834 2,298,164 2,883,023 3,858,199
Profit/(loss) before taxation 3,006,151 1,644,950 1,946,659 (7,606,620) (433,023) 1,904,325 2,189,891 1,549,562 2,520,651 3,920,116
Taxation (1,141,464) (1,598,141) (912,354) 353,405 (462,701) (707,161) (606,496) (535,823) (432,889) (484,494)
Profit/(loss) after taxation 1,864,687 46,809 1,034,305 (7,253,215) (895,724) 1,197,164 1,583,395 1,013,739 2,087,762 3,435,622
Profit/(loss) attributable to equity 1,140,112 (287,893) 623,542 (4,669,045) (624,953) 810,581 1,169,314 675,873 1,403,766 2,234,804
holders of the parent

SHAREHOLDERS’ FUNDS
Stated capital 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587 3,554,587
Reserves and retained earnings 17,805,495 17,486,669 16,316,664 12,401,869 17,008,313 17,784,234 16,216,628 15,607,239 14,851,205 13,676,628
Shareholders’ funds 21,360,082 21,041,256 19,871,251 15,956,456 20,562,900 21,338,821 19,771,215 19,161,826 18,405,792 17,231,215

LIABILITIES
Non-current interest bearing liabilities 39,666,679 50,176,589 52,079,329 38,138,710 33,500,094 23,405,292 18,154,051 14,450,707 8,186,477 5,363,625
Amount due to ultimate holding 2,531,875 1,313,017 1,201,857 168,765 134,293 110,020 834,985 348,329 155,804 37,518
company
Current liabilities 20,369,066 22,951,987 18,587,850 12,630,068 10,364,198 8,329,080 9,987,503 8,801,945 5,859,232 5,173,696
Other non current liabilities 3,657,265 3,329,700 1,629,636 1,267,974 1,201,019 2,462,557 1,722,855 1,144,318 411,798 344,196
Total Liabilities 66,224,885 77,771,293 73,498,672 52,205,517 45,199,604 34,306,949 30,699,394 24,745,299 14,613,311 10,919,035

NON-CONTROLLING INTEREST 9,504,610 9,139,015 8,269,807 6,006,264 8,587,530 9,256,614 8,122,788 8,270,862 5,429,111 4,638,017

TOTAL EQUITY AND LIABILITIES 97,089,577 107,951,564 101,639,730 74,168,237 74,350,034 64,902,384 58,593,397 52,177,987 38,448,214 32,788,267

ASSETS
Property, plant and equipment 66,183,428 72,644,868 67,363,789 52,766,644 52,554,379 49,918,218 41,404,788 37,687,160 23,101,360 16,402,491
Right-of-use assets 14,282,682 16,888,712 16,379,328 11,964,320 11,172,389 - - - - -
Leasehold property - - - - - 2,214,518 2,023,903 2,042,460 2,006,728 1,906,526
Prepaid operating leases - - - - - 1,924,329 1,772,172 1,791,169 1,811,071 1,067,063
Intangible assets 804,588 889,049 821,411 581,137 580,627 472,879 416,053 404,612 380,166 2,842
Investments 63,185 93,040 461,073 631,527 910,478 1,249,902 1,158,581 1,294,427 4,982,212 3,098,474
Other financial assets 975,778 998,018 283,123 772,508 764,245 778,986 763,780 126,650 202,395 180,191
Deferred tax assets 359,966 486,592 648,820 717,802 295,849 160,942 143,906 157,760 147,969 119,017
Current assets 14,419,950 15,951,285 14,095,217 5,655,205 7,046,542 8,182,610 10,910,214 8,673,749 5,816,313 10,011,662
Assets classified as held for sale - - 1,586,969 1,079,094 1,025,525 - - - - -
Total Assets 97,089,577 107,951,564 101,639,730 74,168,237 74,350,034 64,902,384 58,593,397 52,177,987 38,448,214 32,788,267

CASH FLOW
From operating activities 7,772,452 8,494,454 6,793,956 (807,340) 3,303,771 2,858,941 2,801,992 2,587,485 3,479,769 3,986,229
From investing activities (960,863) (435,840) (3,736,595) (1,287,929) (3,214,760) (6,272,236) (3,050,809) (2,279,588) (6,507,608) (6,137,472)
From financing activities (7,518,264) (9,333,868) (2,516,246) (414,643) (1,437,348) 767,316 3,266,138 120,782 1,409,694 2,412,926
Net cash inflow/(outflow) (706,596) (1,275,254) 541,115 (2,509,912) (1,348,337) (2,645,979) 3,017,321 428,679 (1,618,145) 261,682

KEY INDICATORS
Earnings/(loss) per ordinary share (Rs.) 3.35 (0.94) 1.85 (13.93) (1.90) 2.37 3.43 1.97 4.13 6.60
Net Assets value per ordinary 63.03 62.08 58.60 46.96 60.66 62.96 58.30 56.49 54.24 50.75
share (Rs.)
Closing price per share (Rs.) 66.20 59.90 35.50 30.20 15.10 23.70 33.50 35.20 53.00 67.00
Dividend per share (Rs.) - - - - - 1.00 1.25 0.75 1.25 1.50
Dividend cover (Times) - - - - - 2.37 2.75 2.62 3.30 4.40
Price to earnings ratio (Times) 19.76 (63.72) 19.19 (2.17) (7.94) 10.02 9.76 17.91 12.83 10.15
Gearing (debt/(debt+equity)) % 56.47 62.65 65.13 63.73 53.73 43.65 39.78 34.90 26.08 20.30
Interest cover (Times) 1.54 1.35 1.95 (2.32) 0.94 3.18 3.45 3.31 8.73 22.21
Return on average shareholders’
funds (%) 5.42 1.81 3.51 (25.89) (3.08) 3.90 5.98 3.55 7.87 13.75

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REAL ESTATE HOLDINGS OF THE GROUP

Description of the Property No of Location Building in No of Land Extent Acres Net Book Value as at
Rooms Sq.Ft Buildings 31.03.2024 (Rs.’000)

Freehold Leasehold Land Buildings

Aitken Spence Hotel Holdings PLC 152 Ahungalla 253,590 3 12.21 - 843,500 686,649
Heritance Ahungalla
Meeraladuwa (Pvt) Ltd - Balapitiya - - 29.56 - 226,350 -
Meeraladuwa Island
Kandalama Hotels (Pvt) Ltd 152 Dambulla 470,438 3 183.61 50.00 58,122 452,569
Heritance Kandalama
Hethersett Hotels Ltd 50 Nuwara Eliya 66,120 4 - 25.00 - 125,532
Heritance Tea Factory
Aitken Spence Hotels Ltd 64 Beruwala 135,372 3 - 6.44 - 329,952
Heritance Ayurveda
Heritance (Pvt) Ltd - Beruwala - - 5.79 - 347,500 -
Neptune Ayurvedic Village (Pvt) Ltd - Beruwala 12,500 - 0.12 - 4,425 41,911
Turyaa (Pvt) Ltd 199 Kalutara 305,746 23 8.35 - 691,775 1,531,122
Turyaa Kalutara
Ahungalla Resorts Ltd 501 Ahungalla 601,751 11 12.97 - 1,113,500 7,331,419
Hotel RIU Sri Lanka
Jetan Travel Services Company Pvt Ltd 122 Maldives 98,043 43 - 11.69 - 1,367,423
Adaaran Club Rannalhi
Cowrie Investment Pvt Ltd
Adaaran Select Meedhuparu 221 Maldives 296,683 122 - 44.45 - 4,197,937
Heritance Aarah 150 Maldives 257,642 244 - 26.90 - 23,180,328
ADS Resorts Pvt Ltd 202 Maldives 309,863 210 - 78.00 - 558,812
Adaaran Select Hudhuranfushi
Unique Resorts Pvt Ltd 50 Maldives 56,643 53 - 4.48 - 2,699,303
Adaaran Prestige Vadoo
Aitken Spence Hotel Managements
(South India) Pvt Ltd
Turyaa Chennai 140 Chennai/India 126,825 1 0.84 - 1,887,670 4,198,081
Perumbalam Resorts Pvt Ltd - Chennai/India - - 4.06 - 114,265 -
P.R Holiday Homes Pvt Ltd - Chennai/India - - 14.05 - 409,457 836
Aitken Spence Resorts (Middle East) LLC
Al Falaj Hotel 150 Oman 176,550 3 5.05 - 6,498,396 5,514,119

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GROUP COMPANIES AND DIRECTORATE

SUBSIDIARIES Aitken Spence Hotels International (Private) Aitken Spence Resorts (Middle East) LLC
Limited * Owning Company of the Al Falaj hotel in
TOURISM SECTOR
Overseas investment company of the Hotels Muscat, Sultanate of Oman.
HOTELS sector and provides international marketing Authorised Managers:
services to the resorts in the Sultanate of Dr. M.P. Dissanayake,
Ace Resorts Private Limited * Oman and in the Republic of Maldives. Ms. D.S.T. Jayawardena,
The Company will be wound up in the future. Directors: Dr. R.M. Fernando,
Directors: Dr. M.P. Dissanayake, C.M.S. Jayawickrama,
Dr. M.P. Dissanayake, Ms. D.S.T. Jayawardena, A. Perera,
C.M.S. Jayawickrama (Managing Director), C.M.S. Jayawickrama. S.N. de Silva.
Ms. D.S.T. Jayawardena, Ms. N. Sivapragasam.
M. Mahdy. Aitken Spence Hotel Services Private Limited
Incorporated to operate as a local marketing Ahungalla Resorts Limited *
A.D.S Resorts Private Limited * company of hotels in the Republic of India. A joint venture company between Aitken
Owns the Adaaran Select Hudhuran Fushi The Company did not carry out any operations Spence Hotel Holdings PLC and RIUSA NED
resort in the Republic of Maldives. during the year. BV and owns the RIU Hotel in Sri Lanka in
Directors: Ahungalla.
Directors:
Ms. D.S.T. Jayawardena (Chairperson), C.M.S. Jayawickrama. Directors:
C.M.S. Jayawickrama (Managing Director), K.A. Kodippilige (Appointed w.e.f. Dr. M.P. Dissanayake,
M. Mahdy. 03.04.2024), J.T. Riu (Managing Director),
T.K. Dewanarayana (Resigned w.e.f. L. Riu Guell,
03.04.2024). Ms. D.S.T. Jayawardena,
Aitken Spence Hotel Managements
C.M.S. Jayawickrama.
(South India) Private Limited
Owns the 140 roomed hotel property Aitken Spence Hotels Limited *
“Turyaa” in Chennai in the Republic of India. Holding company of Kandalama Hotels Cowrie Investment Private Limited *
(Private) Limited and Heritance (Private) Owns the Heritance Aarah and Adaaran Select
Directors:
Limited. Owns the Heritance Ayurveda resort Meedhupparu Resorts in the Republic of
Dr. M.P. Dissanayake,
in Beruwela. Maldives.
C.M.S. Jayawickrama,
Ashis Miglani (Appointed w.e.f. 29.01.2024), Directors: Directors:
K A Kodippilige (Appointed w.e.f. 03.04.2024), Ms. D.S.T. Jayawardena (Chairperson), Dr. M.P. Dissanayake (Chairman and Managing
T.K. Dewanarayana (Resigned w.e.f 10.12.2023). Dr. M.P. Dissanayake, Director),
C.M.S. Jayawickrama. Ms. D.S.T. Jayawardena,
Ms. D.R. Alexander (Appointed w.e.f. C.M.S. Jayawickrama,
Aitken Spence Hotel Managements Asia
11.10.2023), I.M. Didi,
(Private) Limited *
B.G.D.L.P. Wijerathne (Appointed w.e.f. M. Salih.
Manages resorts in the Sultanate of Oman and
11.10.2023).
in the Republic of Maldives.
Directors:
Deshamanya D.H.S. Jayawardena,
Dr. R.M. Fernando,
Ms. D.S.T. Jayawardena,
Ms. N. Sivapragasam.

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Crest Star (B.V.I.) Limited Meeraladuwa (Private) Limited * PR Holiday Homes Private Limited
The holding company of Jetan Travel Services Owns the island of Meeraladuwa in Owns a land in Cochin, in the Republic of India
Company Private Limited. Balapitiya for a future hotel project.
Directors: Directors: Directors:
Dr. M.P. Dissanayake, Ms. D.S.T. Jayawardena (Chairperson), Dr. M.P. Dissanayake,
C.M.S. Jayawickrama, Dr. M.P. Dissanayake, C.M.S. Jayawickrama,
Ms. D.S.T. Jayawardena. C.M.S. Jayawickrama. K.K.M. Rawther,
K.K. Kabeer,
Heritance (Private) Limited * Neptune Ayurvedic Village (Private) Limited * K A Kodippilige (Appointed w.e.f. 03.04.2024),
Owns a land in Beruwela for a proposed hotel Leases the company owned land and building T.K. Dewanarayana (Resigned w.e.f. 10.12.2023).
project. to Aitken Spence Hotels Limited.
Directors: Directors: The Galle Heritage (Private) Limited *
Ms. D.S.T. Jayawardena (Chairperson), Ms. D.S.T. Jayawardena (Chairperson), The Company is in the process of being
Dr. M.P. Dissanayake, Dr. M.P. Dissanayake, struck off.
C.M.S. Jayawickrama. C.M.S. Jayawickrama. Directors:
Ms. D.S.T. Jayawardena (Chairperson),
Hethersett Hotels Limited * Nilaveli Holidays (Private) Limited * Dr. M.P. Dissanayake,
Owns the Heritance Tea Factory hotel in To operate a future hotel project. C.M.S. Jayawickrama.
Kandapola. Directors:
Directors: Ms. D.S.T. Jayawardena (Chairperson), Turyaa (Private) Limited *
Ms. D.S.T. Jayawardena (Chairperson), Dr. M.P. Dissanayake, Owns the 199 roomed hotel property Turyaa
Dr. M.P. Dissanayake, C.M.S. Jayawickrama. in Kalutara.
C.M.S. Jayawickrama, Directors:
Ms. D.R. Alexandar (Appointed w.e.f. Nilaveli Resorts (Private) Limited * Ms. D.S.T. Jayawardena (Chairperson),
11.10.2023), To operate a future hotel project. Dr. M.P. Dissanayake,
B.G.D.L.P. Wijeratne (Appointed C.M.S. Jayawickrama.
Directors:
w.e.f.11.10.2023).
Ms. D.S.T. Jayawardena (Chairperson),
Dr. M.P. Dissanayake, Unique Resorts Private Limited *
Jetan Travel Services Company Private C.M.S. Jayawickrama. Owns the Adaaran Prestige Vadoo resort in
Limited * the Republic of Maldives.
Owns the Adaaran Club Rannalhi resort in the Directors:
Perumbalam Resorts Private Limited
Republic of Maldives. Ms. D.S.T. Jayawardena (Chairperson),
A fully owned subsidiary of PR Holiday Homes
Directors: Private Limited in the Republic of India. C.M.S. Jayawickrama (Managing Director),
Ms. D.S.T. Jayawardena (Chairperson), Directors: M.D.B.J. Gunatilake.
C.M.S. Jayawickrama (Managing Director), Dr. M.P. Dissanayake,
H. Mohamed, C.M.S. Jayawickrama,
M. Mahdy. K.K.M. Rawther,
K.K. Kabeer,
Kandalama Hotels (Private) Limited * T.K. Dewanarayana (Resigned w.e.f.
Owns the Heritance Kandalama hotel. 10.12.2023).
Directors:
Ms. D.S.T. Jayawardena (Chairperson),
Dr. M. P. Dissanayake,
C.M.S. Jayawickrama.

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GROUP COMPANIES AND DIRECTORATE

JOINT VENTURES & ASSOCIATES Negombo Beach Resorts (Private) Limited *

Owns the Sentido Heritance Negombo Hotel.
TOURISM SECTOR
Directors:
HOTELS Deshamanya D.H.S. Jayawardena (Chairman),
Ms. D.S.T. Jayawardena,
Aitken Spence Hotel Managements (Private) C.M.S. Jayawickrama,
Limited * C.R. Stanislaus.
Manages resorts in Sri Lanka.
Directors: Paradise Resort Pasikudah (Private) Limited *
Ms. D.S.T. Jayawardena (Chairperson and Joint Owning Company of Amethyst resort,
Managing Director), Pasikudah.
Dr. M.P. Dissanayake, Directors:
C.M.S. Jayawickrama (Joint Managing Ms. D.S.T. Jayawardena (Chairperson),
Director). Ms. V.J. Senaratne,
C.M.S. Jayawickrama,
Aitken Spence Resources (Private) Limited * B.G.D.L.P. Wijerathne,
The Company did not carry out any operations M.A.N.S. Perera (Appointed w.e.f.
during the year. 17.05.2023).
Directors:
Ms. D.S.T. Jayawardena (Chairperson), * The companies’ financial statements are
C.M.S. Jayawickrama, audited by KPMG
G.P.J. Goonewardena (Demised w.e.f
18.11.2023).

Amethyst Leisure Limited *

The holding Company of Paradise Resort
Pasikudah (Private) Limited.
Directors:
Ms. D.S.T. Jayawardena (Chairperson),
Ms. V.J. Senaratne,
C.M.S. Jayawickrama,
B.G.D.L.P. Wijerathne,
M.A.N.S. Perera (Appointed w.e.f.
17.05.2023).

Browns Beach Hotels PLC *

Owns the property leased out to Negombo
Beach Resorts (Private) Limited.
Directors:
Deshamanya D.H.S. Jayawardena (Chairman),
Dr. M.P. Dissanayake,
Ms. D.S.T. Jayawardena,
C.R. Stanislaus,
R.N. Asirwatham,
N.J. de Silva Deva Aditya,
M A N S Perera.

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CORPORATE INFORMATION
GRI 2-1

NAME GROUP REMUNERATION COMMITTEE AUDITORS

Aitken Spence Hotel Holdings PLC Mr. R.N. Asirwatham - Chairman KPMG
Mr. J.M.S. Brito Chartered Accountants
LEGAL FORM Mr. C.H. Gomez 32A, Sir Mohamed Macan Markar
A Public Quoted Company with limited Mr. C. R. Jansz (Director of the parent Mawatha,
liability, incorporated in Sri Lanka on March Company Aitken Spence PLC and appointed P.O Box 186,
14, 1978 as a member of the Remuneration Committee Colombo 03,
w.e.f. 08.09.2023 ) Sri Lanka
COMPANY REGISTRATION NUMBER
PQ 97 GROUP NOMINATION AND BANKERS
GOVERNANCE COMMITTEE Hatton National Bank PLC
REGISTERED OFFICE
Mr. R.N. Asirwatham - Chairman People’s Bank
No. 315, Vauxhall Street Colombo 2,
Deshamanya D.H.S. Jayawardena Bank of Ceylon
Sri Lanka
Mr. J.M.S. Brito Hongkong and Shanghai Banking
Corporation Ltd
DIRECTORS
GROUP RELATED PARTY Union Bank of Colombo PLC
Deshamanya D.H.S. Jayawardena -
TRANSACTIONS REVIEW COMMITTEE Nations Trust Bank PLC
Chairman
Mr. R.N. Asirwatham - Chairman DFCC Bank PLC
Ms. D.S.T. Jayawardena - Joint Deputy Mr. J.M.S. Brito Deutsche Bank AG
Chairperson and Joint Managing Director Mr. C.H. Gomez Commercial Bank of Ceylon PLC
(Appointed to the Office of Joint Deputy Mr. N.J. de S Deva Aditya/Mr. M.A.N.S. Sampath Bank PLC
Chairperson Joint Managing Director w.e.f. Perera (Mr. M.A.N.S. Perera served as an Seylan Bank PLC
14th September 2023) Alternate Director to Mr. N.J. de Silva Deva Habib Bank Limited
Dr. M.P. Dissanayake - Managing Director Aditya in the parent company Aitken Spence ABANCA CorporaciÓn Bancaria, S.A.
Mr. C.M.S. Jayawickrama PLC and he ceased to be an Alternate Director Bank of Maldives
to Mr. N.J. de S Deva Aditya w.e.f. 01.01.2024) Sohar International Bank SAOG
Mr. J.M.S. Brito
Mr. R.N. Asirwatham SECRETARIES HOLDING COMPANY
Mr. N.J. de Silva Deva Aditya Aitken Spence Corporate Services (Private) Aitken Spence PLC
Limited
Mr. C.H. Gomez
No. 315, Vauxhall Street, CONTACT DETAILS
Mr. M.A.N.S. Perera No. 315, Vauxhall Street,
Colombo 02,
Dr. R.A. Fernando (Appointed w.e.f. Sri Lanka. Colombo 02,
10.01.2024) T: (+94 11) 2308308 Sri Lanka.
Mr. G.P.J. Goonewardena (Demised on F:(+94 11) 2445406 T:(+94 11) 2308308
18.11.2023) E: benji@aitkenspence.lk, F:(+94 11) 2445406
comsec@aitkenspence.lk Web: www.aitkenspencehotels.com
GROUP AUDIT COMMITTEE
Mr. R.N. Asirwatham - Chairman REGISTRARS
Mr. J.M.S. Brito Central Depository Systems (Private)
Mr. C.H. Gomez Limited
Mr. N.J. de Silva Deva Aditya/Mr. M.A.N.S. Ground Floor, M&M Center,
Perera (Mr. M.A.N.S. Perera served as an No. 341/5, Kotte Road,
Alternate Director to Mr. N.J. de Silva Deva Rajagiriya.
Aditya in the parent company Aitken Spence T: (+94 11) 2356456
PLC and he ceased to be an Alternate Director F: (+94 11) 2440396
to Mr. N.J. de S Deva Aditya w.e.f. 01.01.2024) E: registrars@cse.lk
Web: www.cds.lk

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDEPENDENT ASSURANCE REPORT

Independent practitioner’s assurance report • The Global Reporting Initiative’s (GRI) ERNST & YOUNG’S RESPONSIBILITIES
to the Board of Directors of Aitken Spence Sustainability Reporting Guidelines, Our responsibility is to express a
Hotel Holdings PLC on the Sustainability publicly available at https://www. conclusion on the presentation of the
reporting criteria presented in the Integrated globalreporting.org Subject Matter based on the evidence we
Annual Report FY 2023/24
have obtained.
• The Sustainability Accounting Standards
SCOPE Board (SASB) Sustainability Reporting We conducted our engagement in
We have been engaged by Aitken Spence Guidelines, publicly available at https:// accordance with the Sri Lanka Standard
Hotel Holdings PLC to perform a ‘limited sasb.ifrs.org/standards (Hotels and for Assurance Engagements Other Than
assurance engagement,’ as defined Lodging) Audits or Reviews of Historical Financial
by Sri Lanka Standard on Assurance Information (SLSAE 3000 (Revised), and
Engagements, here after referred to as Such Criteria were specifically designed
the terms of reference for this engagement
the engagement, to report on Aitken for the purpose of assisting you in
as agreed with the Aitken Spence Hotel
Spence Hotel Holdings PLC’s Economic, determining whether Entity’s Economic,
Holdings PLC on 6th May 2024 standards
Environment, Social and Governance Environment, Social and Governance
require that we plan and perform our
(EESG) indicators (the “Subject Matter”) (EESG) indicators contained in the Entity’s
engagement to express a conclusion on
contained in Aitken Spence Hotel Holding Report is presented in accordance with the
whether we are aware of any material
PLC’s (the “Entity’s”) Integrated Annual relevant criteria; As a result, the subject
modifications that need to be made to
Report for the year ended 31st March matter information may not be suitable for
the Subject Matter in order for it to be in
2024 (the “Report”). another purpose.
accordance with the Criteria, and to issue
a report. The nature, timing, and extent of
Other than as described in the preceding AITKEN SPENCE HOTEL HOLDINGS PLC’S
RESPONSIBILITIES the procedures selected depend on our
paragraph, which sets out the scope of our
Aitken Spence Hotel Holdings PLC’s judgment, including an assessment of the
engagement, we did not perform assurance
management is responsible for selecting risk of material misstatement, whether due
procedures on the remaining information
the Criteria, and for presenting the Subject to fraud or error.
included in the Report, and accordingly,
we do not express a conclusion on this Matter in accordance with that Criteria,
We believe that the evidence obtained
information. in all material respects. This responsibility
is sufficient and appropriate to provide a
includes establishing and maintaining
basis for our limited assurance conclusions.
CRITERIA APPLIED BY AITKEN SPENCE internal controls, maintaining adequate
HOTEL HOLDINGS PLC records, and making estimates that are OUR INDEPENDENCE AND QUALITY
In preparing the Subject Matter, Aitken relevant to the preparation of the subject MANAGEMENT
Spence Hotel Holdings PLC applied the matter, such that it is free from material We have maintained our independence
following criteria (“Criteria”): misstatement, whether due to fraud or and confirm that we have met the
error. requirements of the Code of Ethics for

290
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Professional Accountants issued by the was not designed to provide assurance EMPHASIS OF MATTER
Institute of Chartered Accountants of Sri on internal controls. Our procedures Economic, Environment, Social management
Lanka (CA Sri Lanka) and have the required did not include testing controls or data/information are subject to inherent
competencies and experience to conduct performing procedures relating to checking limitations given their nature and the
this assurance engagement. aggregation or calculation of data within IT methods used for determining, calculating,
systems. and estimating such data. Such inherent
EY also applies International Standard limitations are common in Sri Lanka.
on Quality Management 1, Quality A limited assurance engagement consists
Management for Firms that Perform of making enquiries, primarily of persons We also do not provide any assurance
Audits or Reviews of Financial Statements, responsible for preparing the subject on the assumptions and achievability of
or Other Assurance or Related Services matter and related information and prospective information presented in the
engagements, which requires that we applying analytical and other appropriate Entity’s Report.
design, implement, and operate a system procedures.
of quality management including policies CONCLUSION
or procedures regarding compliance Our procedures included: Based on our procedures and the evidence
with ethical requirements, professional obtained, we are not aware of any material
• Validated the information presented and
standards, and applicable legal and modifications that should be made to the
checked the calculations performed by the
regulatory requirements. organization through recalculation.
information on the Economic, Environment,
Social and Governance (EESG) contained
DESCRIPTION OF PROCEDURES • Performed a comparison of the content in the Integrated Annual Report of Aitken
PERFORMED given in the Report against the criteria
Spence Hotel Holdings PLC for the year
given in the selected sustainability
Procedures performed in a limited ended 31st March 2024, in order for it to
standards/frameworks.
assurance engagement vary in nature be in accordance with the Criteria.
and timing from and are less in extent • Conducted interviews with relevant
than for a reasonable assurance organization’s personnel to understand
engagement. Consequently, the level of the process for collection, analysis,
assurance obtained in a limited assurance aggregation, and presentation of
data. Interviews included selected key
engagement is substantially lower than the
management personnel and relevant staff. 15th July 2024
assurance that would have been obtained
had a reasonable assurance engagement • Read the content presented in the Colombo
been performed. Our procedures were Report for consistency with our overall
designed to obtain a limited level of knowledge obtained during the course of
our assurance engagement and requested
assurance on which to base our conclusion
changes wherever required.
and do not provide all the evidence that
would be required to provide a reasonable • Provided guidance, recommendations,
level of assurance. and feedback on the improvement of
the sustainability reporting indicators to
Although we considered the effectiveness improve the presentation standard.
of management’s internal controls when We also performed such other procedures
determining the nature and extent of our as we considered necessary in the
procedures, our assurance engagement circumstances.

291
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INDEPENDENT ASSURANCE REPORT

Independent practitioner’s assurance report Such Criteria were specifically designed Information (SLSAE 3000 (Revised), and
to the Board of Directors of Aitken Spence for the purpose of assisting in determining the terms of reference for this engagement
Hotel Holdings PLC on the Integrated Annual whether the capital management, as agreed with the Aitken Spence Hotel
Report 2023/24 stakeholder engagement, business model, Holdings PLC on 6th May 2024. Those
strategy, organizational overview & external standards require that we plan and perform
SCOPE
environment outlook presented in the our engagement to express a conclusion
We have been engaged by Aitken Spence
Integrated Annual Report is presented in on whether we are aware of any material
Hotel Holdings PLC to perform a ‘limited
accordance with the relevant criteria; As a modifications that need to be made to
assurance engagement,’ as defined by Sri
result, the subject matter information may the Subject Matter in order for it to be in
Lanka Standard on Assurance Engagements,
not be suitable for another purpose. accordance with the Criteria, and to issue
here after referred to as the engagement,
a report. The nature, timing, and extent of
to report on Aitken Spence Hotel Holdings AITKEN SPENCE HOTEL HOLDINGS PLC’S the procedures selected depend on our
PLC’s Information on how it’s strategy, RESPONSIBILITIES
judgment, including an assessment of the
governance, performance and prospects, in Aitken Spence Hotel Holdings PLC’s risk of material misstatement, whether due
the context of its external environment, lead management is responsible for selecting to fraud or error.
to the creation, preservation or erosion of the Criteria, and for presenting the Subject
value over the short, medium and long term Matter in accordance with that Criteria, We believe that the evidence obtained is
(the “Subject Matter”) contained in Aitken in all material respects. This responsibility sufficient and appropriate to provide a basis
Spence Hotel Holdings PLC’s (the “Entity’s”) includes establishing and maintaining for our limited assurance conclusions.
Integrated Annual Report for the year ended internal controls, maintaining adequate
31st March 2024 (the “Report”). records, and making estimates that are OUR INDEPENDENCE AND QUALITY
relevant to the preparation of the subject MANAGEMENT
Other than as described in the preceding matter, such that it is free from material We have maintained our independence and
paragraph, which sets out the scope of our misstatement, whether due to fraud or confirm that we have met the requirements
engagement, we did not perform assurance error. of the Code of Ethics for Professional
procedures on the remaining information Accountants issued by the Institute of
included in the Report, and accordingly, ERNST & YOUNG’S RESPONSIBILITIES Chartered Accountants of Sri Lanka (CA Sri
we do not express a conclusion on this Our responsibility is to express a conclusion Lanka) and have the required competencies
information. on the presentation of the Subject Matter and experience to conduct this assurance
based on the evidence we have obtained. engagement.
CRITERIA APPLIED BY AITKEN SPENCE
HOTEL HOLDINGS PLC We conducted our engagement in EY also applies International Standard
In preparing the Subject Matter, Aitken accordance with the Sri Lanka Standard on Quality Management 1, Quality
Spence Hotel Holdings PLC applied the for Assurance Engagements Other Than Management for Firms that Perform Audits
Integrated Reporting Framework (<IR> Audits or Reviews of Historical Financial or Reviews of Financial Statements, or Other
Framework) issued by the International
Integrated Reporting Council (IIRC)
(“Criteria”):

292
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Assurance or Related Services engagements, Our procedures included: • Read the Integrated Report in its
which requires that we design, implement, entirety for consistency with our overall
• Performed a comparison of the content
and operate a system of quality management knowledge obtained during the assurance
of the Integrated Annual Report against
including policies or procedures regarding engagement.
the Guiding Principles and Content
compliance with ethical requirements, Elements given in the Integrated Reporting We also performed such other procedures
professional standards and applicable legal Framework (<IR> Framework). as we considered necessary in the
and regulatory requirements. circumstances.
• Checked whether the information
DESCRIPTION OF PROCEDURES contained in the Integrated Annual Report EMPHASIS OF MATTER
PERFORMED – Financial Capital element information has Economic, Environment, Social and
Procedures performed in a limited been properly derived from the audited Intellectual capital management data/
assurance engagement vary in nature and financial statements. information are subject to inherent
timing from and are less in extent than • Conducted interviews with the selected limitations given their nature and the
for a reasonable assurance engagement. key management personnel and relevant methods used for determining, calculating,
Consequently, the level of assurance staff and obtained an understanding of and estimating such data. Such inherent
obtained in a limited assurance engagement the internal controls, governance structure limitations are common in Sri Lanka.
is substantially lower than the assurance and reporting process relevant to the
that would have been obtained had a Integrated Report. We also do not provide any assurance
reasonable assurance engagement been • Obtained an understanding of the relevant on the assumptions and achievability of
performed. Our procedures were designed internal policies and procedures developed, prospective information presented in the
to obtain a limited level of assurance on including those relevant to determining Entity’s Annual Report.
which to base our conclusion and do not what matters most to the stakeholders,
provide all the evidence that would be how the organization creates value, the CONCLUSION
required to provide a reasonable level of external environment, strategy, approaches Based on our procedures and the evidence
assurance. to putting members first, governance and obtained, we are not aware of any material
reporting. modifications that should be made to the
Although we considered the effectiveness information contained in the Integrated
• Obtained an understanding of the
of management’s internal controls when Annual Report of Aitken Spence Hotel
description of the organization’s strategy
determining the nature and extent of our Holdings PLC for the year ended 31st
and how the organization creates value,
procedures, our assurance engagement March 2024, in order for it to be in
what matters most to the stakeholders and
was not designed to provide assurance enquiring the management as to whether accordance with the Criteria.
on internal controls. Our procedures did the description in the Integrated Report
not include testing controls or performing accurately reflects their understanding.
procedures relating to checking aggregation
• Checked the Board of Directors meeting
or calculation of data within IT systems.
minutes during the financial year to ensure
A limited assurance engagement consists consistency with the content of the
Integrated Report. 15th July 2024
of making enquiries, primarily of persons
Colombo
responsible for preparing the subject matter • Tested the relevant supporting evidence
and related information and applying related to qualitative & quantitative
analytical and other appropriate procedures. disclosures within the Integrated Report
against identified material aspects.

293
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GRI CONTENT INDEX

GRI Standard / Disclosure Location Omission GRI Sector

Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

General disclosures
GRI 2: General 2-1 Organisational details Page 289
Disclosures 2021
2-2 Entities included in the organisation's Page 4
sustainability reporting
2-3 Reporting period, frequency and contact Page 4
point
2-4 Restatements of information Page 4
2-5 External assurance Page 5
2-6 Activities, value chain and other business Page 39 None
relationships
2-7 Employees Pages 83,91 None
2-8 Workers who are not employees Page 83 None
2-9 Governance structure and composition Page 116 None
2-10 Nomination and selection of the highest Page 121 None
governance body
2-11 Chair of the highest governance body Page 121 None
2-12 Role of the highest governance body in Page 119 None
overseeing the management of impacts
2-13 Delegation of responsibility for managing Page 145 None
impacts
2-14 Role of the highest governance body in Page 119 None
sustainability reporting
2-15 Conflicts of interest Page 156 None
2-16 Communication of critical concerns Page 114 None
2-17 Collective knowledge of the highest Page 28 None
governance body
2-18 Evaluation of the performance of the Page 156 None
highest governance body
2-19 Remuneration policies Page 156 None
2-20 Process to determine remuneration Page 156 None
2-21 Annual total compensation ratio 2-21 Confidentiality Compensation
constraints related information
is considered
confidential within
the organisation

2-22 Statement on sustainable development Pages 45, 114 None

strategy
2-23 Policy commitments Page 114 None
2-24 Embedding policy commitments Page 114 None
2-25 Processes to remediate negative impacts Page 114 None
2-26 Mechanisms for seeking advice and raising Page 114 None
concerns
2-27 Compliance with laws and regulations Page 99 None
2-28 Membership associations Page 97 None
2-29 Approach to stakeholder engagement Page 42 None
2-30 Collective bargaining agreements Page 89 None

294
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
GRI Standard / Disclosure Location Omission GRI Sector
Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Material topics
GRI 3: Material 3-1 Process to determine material topics Page 48
Topics 2021
3-2 List of material topics Page 48
Economic performance
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 201: Economic 201-1 Direct economic value generated and Page 70 None
Performance 2016 distributed
201-2 Financial implications and other risks and 201-2 Information Insignificant
opportunities due to climate change unavailable/ information
incomplete
201-3 Defined benefit plan obligations and other Page 224 None
retirement plans
201-4 Financial assistance received from Page 73 None
government
Market presence
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 202: Market 202-1 Ratios of standard entry level wage by Pages 70,85,90 None
Presence 2016 gender compared to local minimum wage
202-2 Proportion of senior management hired Pages 64,83 None
from the local community
Indirect economic impacts
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 203: Indirect 203-1 Infrastructure investments and services Page 74 None
Economic Impacts supported
2016
203-2 Significant indirect economic impacts Page 104 None
Procurement practices
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 204: 204-1 Proportion of spending on local suppliers Page 103 None
Procurement
Practices 2016
Anti-corruption
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 205: Anti- 205-1 Operations assessed for risks related to Page 43 None
corruption 2016 corruption
205-2 Communication and training about anti- Page 125 None
corruption policies and procedures
205-3 Confirmed incidents of corruption and Page 104 None
actions taken

295
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GRI CONTENT INDEX

GRI Standard / Disclosure Location Omission GRI Sector

Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Anti-competitive behaviour
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 206: Anti- 206-1 Legal actions for anti-competitive Page 104 None
competitive behaviour, anti-trust, and monopoly practices
Behaviour 2016
Tax
GRI 3: Material 3-3 Management of material topics Page 48
Topics 2021
GRI 207: Tax 2019 207-1 Approach to tax Page 202 None
207-2 Tax governance, control, and risk Page 202 None
management
207-3 Stakeholder engagement and management Page 42 None
of concerns related to tax
207-4 Country-by-country reporting 207-4,b Not applicable We provide
consolidated
financial
disclosures
for locations
outside Sri
Lanka keeping
with the
accounting
standards
followed by
the Company.
Energy
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 302: Energy 302-1 Energy consumption within the Page 108 None
2016 organisation
302-2 Energy consumption outside of the 302-2 Information Too many
organisation unavailable/ variables to
incomplete standardise
302-3 Energy intensity Page 108 None
302-4 Reduction of energy consumption Page 108 None
302-5 Reductions in energy requirements of Page 108 None
products and services
Water and Effluents
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 303: Water and 303-1 Interactions with water as a shared Page 109 None
Effluents 2018 resource
303-2 Management of water discharge-related Page 109 None
impacts
303-3 Water withdrawal Page 110 None
303-4 Water discharge Page 110 None
303-5 Water consumption Page 109 None

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
GRI Standard / Disclosure Location Omission GRI Sector
Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Biodiversity
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 304: 304-1 Operational sites owned, leased, managed Page 112 None
Biodiversity 2016 in, or adjacent to, protected areas and areas of
high biodiversity value outside protected areas
304-2 Significant impacts of activities, products Page 112 None
and services on biodiversity
304-3 Habitats protected or restored Page 112 None
304-4 IUCN Red List species and national Page 112 None
conservation list species with habitats in areas
affected by operations
Emissions
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions Page 109 None
2016
305-2 Energy indirect (Scope 2) GHG emissions Page 109 None
305-3 Other indirect (Scope 3) GHG emissions Page 109 305-3 Information Too many
unavailable/ variables to
incomplete standardise
305-4 GHG emissions intensity Page 109 None
305-5 Reduction of GHG emissions Page 109 None
305-6 Emissions of ozone-depleting substances 305-6 Information Too many
(ODS) unavailable/ variables to
incomplete standardise
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), 305-7 Information Too many
and other significant air emissions unavailable/ variables to
incomplete standardise
Waste
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 306: Waste 306-1 Waste generation and significant waste- Page 111 None
2020 related impacts
306-2 Management of significant waste-related Page 111 None
impacts
306-3 Waste generated Page 111 None
306-4 Waste diverted from disposal Page 111 None
306-5 Waste directed to disposal Page 111 None
Supplier environmental assessment
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 308: Supplier 308-1 New suppliers that were screened using Page 103 None
Environmental environmental criteria
Assessment 2016
308-2 Negative environmental impacts in the Page 104 None
supply chain and actions taken

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GRI CONTENT INDEX

GRI Standard / Disclosure Location Omission GRI Sector

Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Employment
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 401: 401-1 New employee hires and employee Page 84 a, b Information Insignificant
Employment 2016 turnover unavailable/ information
incomplete Partial reporting
401-2 Benefits provided to full-time employees Page 85 None
that are not provided to temporary or part-time
employees
401-3 Parental leave Page 90 None

Labour/management relations
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 402: Labour/ 402-1 Minimum notice periods regarding Page 89 None
Management operational changes
Relations 2016
Occupational health and safety
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 403: 403-1 Occupational health and safety Page 87 None
Occupational Health management system
and Safety 2018
403-2 Hazard identification, risk assessment, and Page 87 None
incident investigation
403-3 Occupational health services Page 87 None
403-4 Worker participation, consultation, and Page 87 None
communication on occupational health and safety
403-5 Worker training on occupational health Page 87 None
and safety
403-6 Promotion of worker health Page 87 None
403-7 Prevention and mitigation of occupational Page 87 None
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational Page 87 None
health and safety management system
403-9 Work-related injuries Page 87 None
403-10 Work-related ill health Page 87 None
Training and education
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 404: Training 404-1 Average hours of training per year per Page 86 404-1, a Information granular data not
and Education 2016 employee unavailable/ recorded
incomplete
404-2 Programs for upgrading employee skills Page 86 None
and transition assistance programs
404-3 Percentage of employees receiving regular Page 86 None
performance and career development reviews

298
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
GRI Standard / Disclosure Location Omission GRI Sector
Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Diversity and equal opportunity

GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 405: Diversity 405-1 Diversity of governance bodies and Page 83 b Information Insignificant
and Equal employees unavailable/ information
Opportunity 2016 incomplete Partial reporting
405-2 Ratio of basic salary and remuneration of Page 90 None
women to men
Non-discrimination
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 406: Non- 406-1 Incidents of discrimination and corrective Page 90 None
discrimination 2016 actions taken
Freedom of association and collective bargaining
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 407: Freedom 407-1 Operations and suppliers in which the Page 89 None
of Association right to freedom of association and collective
and Collective bargaining may be at risk
Bargaining 2016
Child labour
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 408: Child 408-1 Operations and suppliers at significant risk Page 83 None
Labour 2016 for incidents of child labour
Forced or compulsory labour
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 409: Forced or 409-1 Operations and suppliers at significant risk Page 83 None
Compulsory Labour for incidents of forced or compulsory labour
2016
Security practices
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 410: Security 410-1 Security personnel trained in human rights Pages 83,85 None
Practices 2016 policies or procedures
Local communities
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 413: Local 413-1 Operations with local community Page 104 None
Communities 2016 engagement, impact assessments, and
development programs
413-2 Operations with significant actual and Page 104 None
potential negative impacts on local communities

299
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GRI CONTENT INDEX

GRI Standard / Disclosure Location Omission GRI Sector

Other Source Standard
Requirement Reason Explanation
Omitted Ref. No.

Supplier social assessment

GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 414: Supplier 414-1 New suppliers that were screened using Page 103 None
Social Assessment social criteria
2016
414-2 Negative social impacts in the supply chain Page 103 None
and actions taken
Public policy
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 415: Public 415-1 Political contributions Page 153 None
Policy 2016
Customer health and safety
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 416: Customer 416-1 Assessment of the health and safety Page 96 None
Health and Safety impacts of product and service categories
2016
416-2 Incidents of non-compliance concerning Page 102 None
the health and safety impacts of products and
services
Customer privacy
GRI 3: Material 3-3 Management of material topics Page 48 None
Topics 2021
GRI 418: Customer 418-1 Substantiated complaints concerning Page 105 None
Privacy 2016 breaches of customer privacy and losses of
customer data

300
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
SASB DISCLOSURES

Topic Accounting Metric Unit of measure Code

1. Energy Total energy consumed - Non-renewable sources;
Management
Petrol -
Diesel 291,446
Furnace Oil -
LPG 22,144
Gigajoules (GJ)
Kerosene SV-HL- -
Total energy consumed - Renewable sources; 130a.1

Biomass/fuel wood 14,481

Solar energy 1,852
Wind energy 6,082
Percentage grid electricity 22%
Percentage (%)
Percentage renewable 5%

2. Water Total water withdrawn 1,455,265

Thousand cubic
Management SV-HL- Sri Lanka, Oman and India - 100%
metres (m³),
Total water consumed 140a.1 Maldives - 60% is released back into
Percentage (%)
the ocean.
3. Ecological 16 properties
Impacts Number of lodging facilities located in or near Please refer to the Natural Capital
SV-HL-
areas of protected conservation status or Number report for details
160a.1
endangered species habitat
(GRI 304-1, 304-2)

Description of environmental management Please refer to the Natural Capital

SV-HL- report for details
policies and practices to preserve ecosystem N/A
160a.2
services (GRI 3-3)
4. Labour (1) Voluntary turnover rate for lodging facility
31
Practices employees SV-HL-
Rate
(2) Involuntary turnover rate for lodging facility 310a.1
0
employees
Total amount of monetary losses as a result of legal Presentation SV-HL-
None
proceedings associated with labour law violations currency 310a.2
Presentation SV-HL- Not reported due to reasons of
(1) Average hourly wage
currency 310a.3 confidentiality
100% of employees earned above
(2) Percentage of lodging facility employees earning
Percentage (%) the local stipulated minimum wage in
minimum wage, by region
regions of operation
Description of policies and programmes to prevent SV-HL- Please refer to the
N/A
worker harassment 310a.4 Human Capital report for details
5. Climate Change Number of lodging facilities located in 100- Number
SV-HL-
2
Adaptation year flood zones 450a.1
ACTIVITY METRICS
SV-HL-
Number of available room-nights Number 847,656
000.A
SV-HL-
Average occupancy rate Rate 67%
000.B
SV-HL-
Total area of lodging facilities Square metres (m²) 316,423
000.C
Number of lodging facilities and the percentage that are:
18, of which 94% are managed
Managed
Number of lodging facilities and the percentage that are: Number, SV-HL-
0
Owned and leased Percentage (%) 000.D
Number of lodging facilities and the percentage that are:
0
Franchised

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
GLOSSARY OF FINANCIAL TERMS

A Collateral - Monetary or non-monetary asset

pledged or received as security in lieu of a
Dividend Yield Ratio - Dividend per share as a
percentage of the market price. A measure of
Accounting Policies - The specific principles, loan or credit terms obtained or provided. return on investment.
bases, conventions, rules and practices
adopted by an enterprise in preparing and Contingent Liabilities - A possible obligation Dividends per Share (DPS) - Dividends
presenting Financial Statements. that arises from past events and whose paid and proposed, divided by the number
existence will be confirmed only by the of issued shares, which ranked for those
Accrual Basis - Recording Revenues and occurrence or non-occurrence of one or more dividends.

E
Expenses in the period in which they are uncertain future events not wholly within the
earned or incurred regardless of whether cash control of the entity
is received or disbursed in that period. Earnings Per Share (EPS) - Net profit for the
Contract Liability - An entity’s obligation to period attributable to ordinary shareholders
Actuarial Gains and Losses - Gain or loss transfer goods or services to a customer for divided by the weighted average number of
arising from the difference between estimates which the entity has received consideration (or ordinary shares in issue during the period.
and actual experience in a company’s pension the amounts due) from the customer.
plan. EBIT - Earnings before interest and tax.
Credit Risk - Risk that the counterparty to
Amortisation -The systematic allocation of the a transaction fails to meet its contractual EBITDA - Earnings before interest, taxes,
depreciable amount of an intangible asset over obligations in accordance to the agreed terms depreciation and amortisation.
its useful life. and conditions.
Effective Rate of Taxation - Income tax over
Asset Held for Sale - The carrying amount Current Ratio - Current assets divided by profit before tax.
of the asset value which will be recovered current liabilities.
through a sale transaction rather than through Enterprise Value (EV) - Market capitalisation
continuing use. Current Service Cost - Is the increase in the plus net debt/(net cash).
present value of the defined benefit obligation
Average Weighted Prime Lending Rate resulting from employee service in the current EPS Growth - Percentage of increase in the
(AWPLR) - Reflects rates applicable on loans period. EPS over the previous year.

D
and advances granted by commercial banks to
their most creditworthy customers. Equity - The value of an asset after all the

B Debt/Equity Ratio - Ratio between long-term

interest-bearing liabilities and total equity. It
liabilities or debts have been paid.

Basis Point - One hundredth of a percentage shows the extent to which the firm is financed EURIBOR - The Euro Interbank Offered Rate
point. i.e.1/100 by debt. (EURIBOR) is a daily reference rate. It is the

C Deferred Income Tax - The net tax effect on

average interest rates at which Eurozone
banks borrow unsecured funds from counter-
Capital Employed - Total shareholders’ funds items which have been included in the Income parties in the Euro interbank market.

F
plus debt. Statement, which would only qualify for
inclusion on a tax return at a future date.
Capital Reserves - Reserves identified for Fair Value - The price that would be received
specific purposes and considered not of the Derivatives - Financial contracts whose values to sell an asset or transfer a liability in
entity, directly or indirectly, including any are derived from the values of underlying an orderly transaction between market
director (whether executive or otherwise) of assets. participants at the measurement date.
the entity available for distribution.
Dividend Cover - Net profit attributable to Fair Value Through OCI (FVOCI) - Financial
Cash Equivalents - High liquid investments the ordinary shareholders divided by the total instruments that are held for trading and
that are readily convertible to know dividend. measured at fair value through other
amounts of cash and which are subject to an comprehensive income.
insignificant risk of change in value. Dividend Pay Out Ratio - The percentage of
earnings paid to shareholders in dividends.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
Fair Value Through Profit and Loss - A
financial asset/liability acquired/incurred L Return on Capital Employed (ROCE) -
Profit before finance expense and tax as a
principally for the purpose selling or LIBOR - The London Inter Bank Offer Rate percentage of average capital employed.
repurchasing it in the near term. is an interest rate at which banks can borrow
funds, in marketable size, from other banks in Return on Equity - Profit attributable to
Financial Assets - Any asset that is cash, the London interbank market. shareholders as a percentage of average
an equity instrument of another entity or a shareholders’ funds.
contractual right to receive cash or another Liquidity Risk - The risk of an entity having
financial asset from another entity. constrains to settle its financial liabilities. Revenue Reserves - Reserves considered
as being available for distributions and
Financial Instruments- Any contract that Market Capitalisation- The number of investments.
gives rise to financial assets of one entity ordinary shares in issue multiplied by the
and financial liability or equity instrument of market price per share. Right-of-use Asset (ROU) - ROU asset is an

M
another entity. asset that represents a lessee’s right to use an
underlying asset over the lease term.

S
Financial Liability - Any liability that is a Materiality - The relative significance of a
contractual obligation to deliver cash or transaction or an event, the omission or
another financial asset to another entity. misstatement of which could influence the Segmental Analysis - Analysis of financial

G
decisions of users of Financial Statements. information by segments of an entity

Gearing - Proportion of total interest-bearing N specifically, the different geographical areas in

which it operates.
liabilities to capital employed. Refer Debt to Net Assets Per Share - Shareholders’ funds
equity. divided by the number of ordinary shares in Shareholder’s Funds - The sum of Share

I
issue as at the Reporting date. capital, Capital Reserves and Revenue
Reserves.
Impairment - This occurs when recoverable Non-Controlling Interest - Part of the net
amount of an asset is less than it is carrying results of operations and of net assets of a SOFR - The Secured Overnight Financing
amount. subsidiary attributable to interests which are Rate (SOFR) is a reference rate that has been
not owned, directly or indirectly, through established as the preferred alternative rate
Intangible Assets - An identifiable non- Subsidiaries, by the Parent company. for the USD London Interbank Offered Rate
monetary asset without physical substance
held for use in the production or supply of O (LIBOR). SOFR is commonly used for US dollar
denominated derivatives, loans, and other
goods or services for rental to others or for Other Comprehensive Income - An entry that financial transactions in place of LIBOR. SOFR
administrative purposes. is generally found in the shareholders’ equity is calculated by the New York Federal Reserve
section of the Statement of Financial Position. based on transaction data from the overnight

P
Interest Cover- This indicates the ability repurchase (repo) market.

T
of an entity to cover long term and short-
term interest expenses with EBIT. (Profit Price Earnings Ratio (PER) - Market price per
before Interest & Taxation + Share of Equity share divided by the earnings per share. Total Equity - Total of share capital, reserves,
Accounted investees divided by total Interest retained earnings and non-controlling interest.

V
charged for the year). Price to Book Value Ratio (PBV) - Market price

K
per share divided by net assets per share.
Value Added - The wealth created by the
Key Management Personnel (KMP) - KMP Probability of Default (PD) - Estimate of operation of the company. The value is
are those persons having authority and likelihood that a borrower will be unable to distributed among the stakeholders and the
responsibility for planning directing and meet debt obligations. balance retained within the business.

R W
controlling the activities of the entity, directly
or indirectly, including any Director (whether
executive or otherwise) of that entity. Related Parties - A person or entity that Working Capital - Capital required to
is related to the entity that is preparing its finance day-to-day operations, computed as
Financial Statements. the excess of current assets cover current
liabilities.

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTICE OF MEETING

Notice is hereby given that the Forty is 77 years of age and that he be re- “IT IS HEREBY RESOLVED THAT
Seventh (47th) Annual General Meeting of appointed a Director of the Company.” the existing Article 103 be deleted
Aitken Spence Hotel Holdings PLC will be in entirety and the following New
held at No. 315, Vauxhall Street, Colombo 1.5 To re-appoint Mr. N.J. de Silva Deva Article Numbered 103 be substituted
02 on Tuesday, 06th August 2024 at 10.45 Aditya who is over the age of 70 years, therefor:
a.m., as a virtual meeting using a digital as a Director by passing the following
Resolution as an Ordinary Resolution: 103(a). Subject to paragraph 103(d) of
platform for the following purposes:-
this Article, a Director may by
“IT IS HEREBY RESOLVED that the notice in writing under his/her
1. ORDINARY BUSINESS
age limit stipulated in Section 210 of hand and subject to the approval
1.1 To receive and consider the Annual
the Companies Act No. 7 of 2007 shall of the Board of Directors, appoint
Report of the Board of Directors
not apply to Mr. N.J. de Silva Deva any person to be his/her Alternate
together with the Audited Financial
Aditya who is 76 years of age and that Director to act for him/her
Statements for the year ended 31st
he be re-appointed a Director of the under exceptional circumstances
March 2024 and the Report of the
Company.” acceptable to the Board of
Auditors thereon.
Directors, for a maximum period
1.6 To re-elect Mr. C.M.S. Jayawickrama
1.2 To re-appoint Deshamanya D.H.S. of one (01) year from the date of
who retires in terms of Article 83 and
Jayawardena who is over the age of appointment. The said notice of
84 of the Articles of Association, as a
70 years, as a Director by passing the appointment may specify a date
Director.
following Resolution as an Ordinary or an event upon the happening
Resolution: 1.7 To elect Dr. R.A. Fernando who retires of which such person shall cease
in terms of Article 90 of the Articles of to be his/her Alternate Director,
“IT IS HEREBY RESOLVED that the Association, as a Director. and the tenure of office of the
age limit stipulated in Section 210 of Alternate Director so appointed
the Companies Act No. 7 of 2007 shall 1.8 To authorise the Directors to shall nevertheless not exceed a
not apply to Deshamanya D.H.S. determine contributions to charities. period of one (01) year from the
Jayawardena who is 81 years of age date of appointment.
and that he be re-appointed a Director 1.9 To re-appoint the retiring External
Auditors, Messrs. KPMG, Chartered 103(b). A Director may by notice in
of the Company.”
Accountants and authorise the writing under his/her hand at
1.3 To re-appoint Mr. R.N. Asirwatham Directors to determine their any time before the expiration
who is over the age of 70 years, as remuneration. of one year from the date of
a Director by passing the following appointment, revoke the Alternate
Resolution as an Ordinary Resolution: 2. SPECIAL BUSINESS Director so appointed by him/her
2.1 To consider and pass if thought fit and appoint another person as
“IT IS HEREBY RESOLVED that the age the following resolution as a Special his/her Alternate Director, subject
limit stipulated in Section 210 of the Resolution to amend the Articles of to paragraph (a) above.
Companies Act No. 7 of 2007 shall not Association as set out below:
103(c). Notwithstanding anything
apply to Mr. R.N. Asirwatham who “IT IS HEREBY RESOLVED THAT to the contrary contained in
is 81 years of age and that he be re- the existing Article 73 be deleted in paragraph (b) above, the office
appointed a Director of the Company.” entirety and the following New Article of an Alternate Director may
Numbered 73 be substituted therefor: be determined by the Board of
1.4 To re-appoint Mr. J.M.S. Brito who is
Directors before the expiration of
over the age of 70 years, as a Director 73. The Directors of the Company
one year from the date of his/her
by passing the following Resolution as shall not be less than five (05) nor
appointment.
an Ordinary Resolution: more than ten (10) in number.”
103(d). A person nominated to be
2.2 To consider and pass if thought fit
“IT IS HEREBY RESOLVED that the appointed as an Alternate Director
the following resolution as a Special
age limit stipulated in Section 210 shall be of the same nature
Resolution to amend the Articles of
of the Companies Act No. 7 of 2007 of his appointor if appointed,
Association as set out below:
shall not apply to Mr. J.M.S. Brito who i.e. an Alternate Director of a

304
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
 Non-Executive Director shall Note: d) To facilitate the appointment of
be of a Non-Executive nature. 1. The Board of Directors has decided proxies, the Form of Proxy is attached
Similarly, an Alternate Director to that this year too the Annual General hereto and the duly filled Forms of
an Independent Non-Executive Meeting of Aitken Spence Hotel Proxy should be sent to reach the
Director shall be a person Holdings PLC will be held as a virtual Company Secretaries via e-mail to
who will satisfy the criteria of meeting by participants joining in dilshani.yapa@aitkenspence.lk or
Independence as set out by the person or by proxy, through audio facsimile on +94 11 2445406 or by
Listing Rules of the Colombo or audio visual means in the manner post to the registered address of the
Stock Exchange. The Nominations specified below: Company No. 315, Vauxhall Street,
and Governance Committee Colombo 02, not less than forty eight
shall review and determine i. Shareholder participation (48) hours before the time fixed for the
that a person nominated to the a) The shareholders are encouraged to meeting.
office of Alternate Director to appoint a Director of the Company as
an Independent Non-Executive their proxy to represent them at the ii. Shareholders’ queries
Director satisfies the criteria meeting. The shareholders are hereby advised
for Independence prior to his that if they wish to raise any queries,
appointment. b) The shareholders may also appoint any such queries should be sent to reach
other persons other than a Director of the Company Secretaries, via e-mail
103(e). A person appointed to be an the Company as their proxy and the to dilshani.yapa@aitkenspence.lk or
Alternate Director shall not in proxy so appointed shall participate at facsimile on +94 11 2445406 or by
respect of such appointment the meeting through audio or audio post to the registered address of the
be entitled to receive any visual means only. Company No. 315, Vauxhall Street,
remuneration from the Company
Colombo 2, not less than five (5) days
nor be required to hold any share c) The shareholders who wish to before the date of the meeting. This
qualification. participate at the meeting will be able is in order to enable the Company
to join the meeting through audio or Secretaries to compile the queries and
103(f). Alternate Director so appointed
audio visual means only. To facilitate forward same to the attention of the
shall be entitled to receive notice
this process, the shareholders are Board of Directors so that such queries
of meetings and to attend such
required to furnish their details by could be addressed at the meeting.
meetings on behalf of his/her
perfecting Annexure II to the circular
appointor and shall have the right
to shareholders and forward same to 2. The Annual Report of the Company for
to sign circular resolutions of the
reach the Company Secretaries via the year 2023/2024 will be available
Directors for and on behalf of his/
e-mail to dilshani.yapa@aitkenspence. for perusal on the website on www.
her appointor in the event his/her
lk or facsimile on +94 11 2445406 or aitkenspencehotels.com and on the
appointor is unable to sign such
by post to the registered address of Colombo Stock Exchange website on
resolutions.”
the Company No. 315, Vauxhall Street, www.cse.lk.
Colombo 02 not less than five (05)
3. ANY OTHER BUSINESS
days before the date of the meeting
To consider any other business of
so that the meeting login information
which due notice has been given.
could be forwarded to the e-mail
By Order of the Board addresses so provided. The circular to
the shareholders will be posted to all
Aitken Spence Hotel Holdings PLC
the shareholders along with the Notice
of Meeting and the Form of Proxy.

Aitken Spence Corporate Services

(Private) Limited
Secretaries

15th July 2024

Colombo

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
NOTES

306
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
FORM OF PROXY

We .........................................................................................................................................................................................................................................................
................................................................... of …....................................................................................................................................................................................
.........being a member/members of Aitken Spence Hotel Holdings PLC hereby appoint ....................................................................................................
.............................................................................................................. of ............................................................................................................................................
....................................................................................................................................................................................................................................(whom failing),

Deshamanya Don Harold Stassen Jayawardena (whom failing),

Ms. Don Stasshani Therese Jayawardena (whom failing),
Dr. Mahinda Parakrama Dissanayake (whom failing),
Mr. Chrisanthus Mohan Susith Jayawickrama (whom failing),
Mr. Joseph Michael Suresh Brito (whom failing),
Mr. Rajanayagam Nalliah Asirwatham (whom failing),
Mr. Charles Humbert Gomez (whom failing),
Mr. Niranjan Joseph de Silva Deva Aditya (whom failing),
Mr. Mellawatantrige Anton Niroshan Sampath Perera (whom failing),
Dr. Ravindra Ajith Fernando,

as my/our proxy to represent me/us, to speak and to vote on my/our behalf at the Annual General Meeting of the Company to be held on
06th August 2024 at 10.45 a.m., and at any adjournment thereof and at every poll which may be taken in consequence thereof.

I/We the undersigned hereby authorise my/our proxy to vote on my/our behalf in accordance with the preference indicated below:

1. ORDINARY BUSINESS
No. Resolution For Against
1.1 To re-appoint Deshamanya D.H.S. Jayawardena who is over the age of 70 years
1.2 To re-appoint Mr. R.N. Asirwatham who is over the age of 70 years
1.3 To re-appoint Mr. J.M.S. Brito who is over the age of 70 years
1.4 To re-appoint Mr. N.J. de S. Deva Aditya who is over the age of 70 years
1.5 To re-elect Mr. C.M.S Jayawickrama who retires in terms of Article 83 and 84 of the Articles of
Association
1.6 To elect Dr. R.A. Fernando who retires in terms of Article 90 of the Articles of Association
1.7 To authorise the Directors to determine contributions to charities
1.8 To re-appoint the retiring External Auditors, Messrs. KPMG, Chartered Accountants and authorise the
Directors to determine their remuneration

2. SPECIAL BUSINESS
No. Resolution For Against
2.1 To pass the Special Resolution for the amendment to the Articles of Association as detailed in item 2.1
of the Notice of Meeting
2.2 To pass the Special Resolution for the amendment to the Articles of Association as detailed in item 2.2
of the Notice of Meeting

Signed this ....................................................... day of .................... Two Thousand and Twenty Four.

.........................................................................
Shareholder’s Signature/(s)

......................................................................... .........................................................................
Shareholder’s NIC / Folio No. Proxyholder’s NIC No.

Note: Instructions as to completion are noted on the reverse hereof.

307
Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
FORM OF PROXY

INSTRUCTIONS AS TO COMPLETION
1. Kindly perfect the Form of Proxy by filling in the mandatory details required above, signing in the space provided and filling in the date
of signature.

2. If the Form of Proxy is signed by an Attorney, the relative power of attorney should also accompany the proxy form for registration, if
such power of attorney has not already been registered with the Company.

3. In the case of a Company/Corporation, the Form of Proxy shall be executed in the manner specified in the Articles of Association/
Constitutional documents (as applicable).

4. In the absence of any specific instructions as to voting, the proxy may use his/her discretion in exercising the vote on behalf of his/her
appointor.

5. Duly filled Forms of Proxy should be sent to reach the Company Secretaries via e-mail to dilshani.yapa@aitkenspence.lk or facsimile on
+94 11 2445406 or by post to the registered address of the Company No. 315, Vauxhall Street, Colombo 2, not less than forty eight
(48) hours before the time fixed for the meeting.

Please provide the following details (mandatory):

NIC/PP/Company Registration No. of the Shareholder/s : ....................................................................................................................................

Folio No. : ......................................................................................................................................

E-mail address of the Shareholder/(s) or

proxy holder (other than a Director appointed as proxy) : .....................................................................................................................................

Mobile No. : ....................................................................................................................................

Fixed Line : ....................................................................................................................................

308
Aitken Spence Hotel Holdings PLC I Annual Report 2023/24
INVESTOR FEEDBACK FORM

Name (Optional) : ..............................................................................................................................................................................................................................

Address (Optional) : ..........................................................................................................................................................................................................................

Number of shares held (Optional) : ................................................................................................................................................................................................

Please rate the following areas (where applicable) on a scale of 1 to 5 where 1 is the lowest to 5 being the highest

Lowest Highest
1 2 3 4 5

1. Business Development
a) Quality and presentation of the Annual Report     
b) Usefulness of the information in the interim Financial Statements     
c) Likelihood of the financial information in the Annual Report to influence investment decisions     
d) Likelihood of the environmental information in the Annual Report to influence investment decisions     
e) Likelihood of the social information in the Annual Report to influence investment decisions     
f) Satisfaction with the risk management strategies of the Company     

2. Corporate Communication
a) Quality of Group communications appearing in traditional media (newspapers, radio, television)     
b) Quality of Group communications appearing in emerging and new media (social media, web)     
c) Satisfaction with the frequency and volume of Group communications appearing in mass media channels     
(newspapers, radio, television)
d) Accessibility and availability of information related to the Group in mass media channels     
e) Quality of service and information provided at stakeholder contact channels (web, general line, front     
office/ reception)
f) Satisfaction with the contact channels available for queries and feedback     

3. Human Resources
a) Satisfaction with the conduct of employees     
b) Competency of employees based on your recent interactions     
c) Access to HR related information     

4. Sustainability
a) Satisfaction with the strategies developed for economic sustainability     
b) Satisfaction with the commitment of the Group towards environmental conservation     
c) Satisfaction with the commitment of the Group towards social empowerment and community     
development
d) Ethical conduct of the Group in business activities     

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Annual Report 2023/24 I Aitken Spence Hotel Holdings PLC
INVESTOR FEEDBACK FORM

Please tick more than one where applicable:

5. What areas of the following business activities are you interested in receiving more information regarding via Group
communications?
a) Sustainability initiatives 
b) Reporting processes 
c) Internal operations 
d) New business initiatives 

6. What channels of communication are preferred when receiving Group related information?
a) Web 
b) Newspapers 
c) Electronic media 
d) Social media 
e) Mobile 

7. Out of the following, what areas of sustainability do you feel Aitken Spence Hotels should focus more on?
a) Energy 
b Water 
c) Biodiversity 
d) Waste management 
e) Resource efficiency 
f) GHG emission reduction 
g) Social empowerment 
h) Infrastructure development 
i) Education 

The completed Feedback Form could be e-mailed to info@aitkenspence.lk or posted to the registered address of the Company at No. 315,
Vauxhall Street, Colombo 02, Sri Lanka.

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Aitken Spence Hotel Holdings PLC I Annual Report 2023/24