Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Employee Wellbeing
• Environmental Responsibility

Environmental Achievements

• Growing some produce on the premises, utilizing it in the menu, and bringing cost savings.
• Using environmentally friendly packaging and materials.
• Separating wet and dry garbage for recycling or responsible disposal.
• Treating wastewater and using it for gardens and drip irrigation.

Social Achievements

• Organized an event for International Women’s Day focused on empowerment and wellbeing.
• Organized a discussion on Tourism & Green Investment for World Environmental Health Day and World Tourism Day.
• Efforts made to increase female participation in traditionally male-dominated roles.
• Efforts made to encourage the recruitment of differently-abled personnel.

Governance Achievements

• Mr. W. P. Hettiaratchi and Ms. D. L. Panabokke were re-designated as Executive Directors to meet compliance obligations.
• Company is in the process of taking steps to achieve compliance with changes to the Listing Rules of the Colombo Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• High interest rates and debt burdens impacting financial resilience.
• Increased cost base of operations, especially electricity costs (nearly threefold increase).
• High taxation affecting competitiveness and margins.
• Talent migration and difficulty in recruiting and retaining skilled personnel.
• Transport infrastructure impeding Kandy's promotion as a destination.
• Kandy's perception as a stopover destination.
• New room inventory potentially exacerbating profit impact.
• Inability to fully benefit from foreign currency arbitrage.
• Reduced disposable income among the local community impacting ancillary businesses.

Mitigation Strategies

• Continuous efforts to manage liquidity and curtail borrowings.
• Negotiations with lenders to reschedule loan facilities.
• Loan of USD 1 million from Universal Enterprises Private Limited.
• Negotiations with suppliers for favorable settlement terms.
• Rationalizing costs and close follow-up on debt collection.
• Deferring discretionary expenses.
• Focusing on weddings and events to enhance revenues.
• Leveraging diversified revenue streams (food, laundry services).
• Improving hotel ratings on digital channels.
• Strengthening training regime and providing employee incentives.
• Lobbying efforts to encourage travel partners to change itineraries and promote Kandy as a base.
• Streamlining processes and designing strategies to enhance agility and efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Reporting Standards

Frameworks Used: Sri Lanka Accounting Standards (SLAS)

Third-party Assurance: Messrs. Bakertilly Edirisinghe & Co., Chartered Accountants

Awards & Recognition

• Forbes magazine ranked Sri Lanka the fourth most popular destination in the world for 2024.
• Travel Off Path nominated Sri Lanka among the top five fastest-growing tourist destinations.