Colombo, Sri Lanka – 01 September 2026 – Lanka Ventures PLC (CSE: LFIN), a prominent investment company fueling visionary enterprises, today announced the release of its Annual Report for the financial year ended 31st March 2026. The report highlights a period of strategic recalibration amidst challenging macroeconomic conditions, marked by a significant increase in total comprehensive income despite a decline in core operating profits.
Financial Performance Overview for FY 2025/26
Lanka Ventures PLC’s consolidated financial statements reveal a mixed performance for the fiscal year. The Group reported a total comprehensive income of LKR 667.29 million, a notable turnaround from a comprehensive loss of LKR 203.15 million in the previous year. This positive shift was primarily driven by favourable foreign currency translation differences. However, the Group’s profit for the year attributable to equity holders saw a reduction to LKR 156.70 million, down from LKR 288.87 million in FY 2024/25. Basic Earnings Per Share (EPS) consequently declined to LKR 2.69 from LKR 5.06.
Key financial highlights from the Annual Report include:
- Revenue: Decreased to LKR 406.75 million (FY 2024/25: LKR 436.98 million).
- Operating Profit: Declined significantly to LKR 58.66 million (FY 2024/25: LKR 272.94 million).
- Share of Profit from Equity Accounted Investees: Reduced to LKR 578.17 million (FY 2024/25: LKR 759.71 million).
- Profit Before Tax: Stood at LKR 359.88 million (FY 2024/25: LKR 678.74 million).
- Total Assets: Grew to LKR 9.49 billion (FY 2024/25: LKR 8.62 billion), with 67% funded by equity.
- Equity Attributable to Equity Holders: Increased to LKR 3.35 billion (FY 2024/25: LKR 2.98 billion).
Operational Challenges and Strategic Responses
The reduction in power generation income was attributed to several factors, including the reclassification of Campion Hydro to a lower-tier tariff and inverter malfunctions at two solar plants (Maho and Pallekele), which have since been rectified. Furthermore, the absence of delay payment interest from the Ceylon Electricity Board (CEB), which contributed LKR 72 million in the previous year, impacted revenue. Operating profits were also affected by an impairment provision of LKR 99 million against delayed dividend receivables from investments in Bangladesh and lower interest income from short-term repo investments.
The share of earnings from equity-accounted investees was impacted by damage to two hydro projects from Cyclone Ditwah (reconstruction completed in June 2026) and major maintenance requirements for two wind power projects, with repair work ongoing.
On a positive note, the Group’s total comprehensive income was significantly bolstered by a foreign currency translation gain of LKR 399 million. This gain largely resulted from the depreciation of the Sri Lankan Rupee against the Bangladeshi Taka, shifting from LKR 2.44 per BDT in April 2025 to LKR 2.56 per BDT by March 2026.
Portfolio Management and Future Outlook
Lanka Ventures PLC continues to prioritize a diversified investment portfolio across various energy sources (hydro, wind, solar, thermal) and geographic locations, including Sri Lanka, Bangladesh, and Nepal. This strategy aims to mitigate risks associated with seasonal variations and dependence on a single buyer market.
A key development during the year was the successful rights issue by its main subsidiary, LVL Energy Fund PLC, in June 2026. The issue, which raised LKR 507 million, was oversubscribed and the proceeds were utilized for debt reduction, addressing a liquidity issue stemming from non-receipt of dividends from Bangladesh investments.
The Group’s investment in Meditech company Jendo Innovations (Pvt) Ltd also saw significant milestones. Jendo Innovations Inc. was incorporated in Delaware, USA, becoming the holding company for the local entity, and successfully raised USD 250,000 from a US-based investor. Locally, Jendo received approval from the National Medicines Regulatory Authority to commence commercial operations, marking a critical step towards commercializing its endothelial dysfunction screening system.
Economic Context and Corporate Governance
The Annual Report provides an outlook on the macroeconomic environments in Sri Lanka, Bangladesh, and Nepal. Sri Lanka’s economy is projected for a moderating recovery with GDP growth of 3.5%-4.0% in 2026, influenced by fiscal tightening and the Central Bank of Sri Lanka’s flexible inflation targeting framework. Bangladesh anticipates a cautious recovery, driven by strong worker remittances and modest GDP growth. Nepal’s economy is expected to see moderate growth, primarily from its robust hydropower sector and sustained remittances.
In terms of corporate governance, the company confirmed the re-election of Mr. M.R. Abeywardena and Mr. W.P.K. Jayawardana, and the appointment of Mr. N.B. Weerasekera, Ms. I. Brohier, and Mr. M.S. Wijemanne to the Board to fill casual vacancies. Messrs. Ernst & Young, Chartered Accountants, have been proposed as the new external auditors for the upcoming financial year, subject to shareholder approval.
Lanka Ventures PLC remains committed to backing groundbreaking ventures, fostering a resilient ecosystem, and driving sustainable value for its shareholders amidst evolving market dynamics.
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