Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Tourism
• Eco-tourism
• Employee Well-being
• Community Engagement
• Responsible Procurement

Environmental Achievements

• Received ISO 22000 and HACCP certifications, demonstrating commitment to quality and operational excellence.
• Citrus Waskaduwa offered as a quarantine center, supporting the government's COVID-19 response.

Social Achievements

• Citrus Waskaduwa served as a quarantine center, supporting the government's COVID-19 response.
• Most Outstanding Deep Down South Culinary Team award at Culinary Art Food Expo 2019.
• Focus on local tourism to drive revenue during border closures.
• Employee upskilling and establishment of health protocols to ensure guest safety.

Governance Achievements

• Compliance with the Code of Best Practices in Corporate Governance 2017 and CSE’s New Listing Rules.
• Establishment of a formal and transparent procedure for determining the remuneration of Directors.
• Regular Board meetings and active sub-committees (Audit, Remuneration, Related Party Transactions).

Climate Goals & Targets

Environmental Challenges

• Easter Sunday bombings and the COVID-19 pandemic significantly impacted the tourism industry and the Group's performance.
• Growth of the informal sector poses a threat to the formal sector.
• Increased competition in the hotel industry.
• High staff turnover.
• Interest rate risk.
• Reputation risk.
• Credit risk.
• Cyber risk.

Mitigation Strategies

• Debt restructuring program via a rights issue.
• Cost management exercises.
• Government support through moratoriums on loans, tax reductions, and other concessions.
• Stronger security measures to inspire guest confidence.
• Value additions at properties to gain competitive market share.
• Focus on local tourism.
• Maintaining marketing links with key source markets.
• Negotiating with banks for favorable borrowing rates.
• Offering Citrus Waskaduwa as a quarantine center.
• Maintaining high service standards.
• Monitoring social media and guest reviews.
• Comprehensive credit policies and procedures.
• Implementation of network protection technology and regular testing of controls.

Supply Chain Management

Responsible Procurement

• Stringent appraisal process for supplier selection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sri Lanka Accounting Standards (SLFRS/LKAS), Companies Act No. 7 of 2007, Code of Best Practices on Corporate Governance

Certifications: ISO 22000, HACCP

Third-party Assurance: Messrs Ernst & Young, Chartered Accountants

Awards & Recognition

• Most Outstanding Deep Down South Culinary Team award

Environmental Metrics

Social Achievements

• Despite running at very low occupancy rates we are proud to have been one of the few businesses to have not retrenched staff or imposed any salary or benefit restrictions.

Governance Achievements

• The Board consists of five Directors, comprising of one Executive Director and four Non-Executive Directors, of whom two are Independent.
• The Directors place a high degree of importance on sound corporate governance practices and are committed to the highest standards of corporate governance within the organisation.

Environmental Challenges

• The COVID-19 pandemic has certainly dealt a devastating blow to the tourism industry globally as well as locally, with the Sri Lankan sector experiencing its worst year in history.
• The tourism advantages of an island nation have also been a disadvantage during the pandemic - Sri Lanka was severely impacted by travel bans and restrictions due to its geographic positioning.
• Unlike nations that share borders, we are a country that relies heavily on international tourism, as such, 60 – 70% of our business was affected and what occupancy we did have was largely thanks to local patrons.
• COVID-19 has had a material detrimental impact on our business, financial results and liquidity.

Mitigation Strategies

• Timely adaption has allowed us to sustain ourselves despite the challenges.
• The Citrus Group made adaptive decisions to initiate the hotel quarantine and intermediate care concepts.
• Citrus Waskaduwa was the first to join the quarantine hotel initiative in May 2020 and continued operation in this capacity until February 2021.
• ICC operations resumed from March 2021 in collaboration with a Colombo based private hospital and continues to date.
• Citrus Hikkaduwa remained closed until the end of May 2020 when they were reopened for local tourists.
• Citrus Hikkaduwa commenced ICC operations from May 2021 which continues to this day.
• The Group has taken measures to ensure the sustainability and performance of your company during the coming financial year.
• The Group will continue to proactively monitor demand and is well positioned to capitalise on the medium-to-long term recovery of the country’s tourism sector.
• The Company still remains confident of its long-term prospects.
• The group is confident of the revival of the tourism industry.
• The Group's finance division continues to negotiate with banks and financial institutions to secure the best possible rates for the Group's borrowings and investments.
• We were the first to offer our resort facilities at Citrus Waskaduwa to be used as a Quarantine Centre, creating a trend amongst our peers in the leisure sector.
• Maintaining high standards of service at our hotels through investments in infrastructure and training of staff to deliver consistently positive guest experiences.
• Monitoring social media and guest reviews on aggregator sites by a dedicated team.
• A hospitality mindset supports our legacy and we are careful to nurture it through communication and a balanced assessment of performance.
• Comprehensive credit policies and procedures are in place to verify the creditworthiness and determine the potential credit risk associated with a client.
• Regular follow-up on debtors.
• Well-defined group-wide cyber security incident response process.
• Implementation of network protection technology to manage network perimeter defence, data loss, distributed denial of service attack, mobile devices and monitor suspicious cyber activities together with regular testing and verification of controls.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Sri Lanka's economic crisis (fuel shortages, power cuts, inflation, political uncertainty)
• Russo-Ukrainian war impacting tourism
• Travel advisories issued against visiting Sri Lanka
• Dengue outbreak
• High staff turnover
• Increased competition

Mitigation Strategies

• Implemented cost-controlling strategies
• Loan moratoriums and new loans at concessionary interest rates
• Deferral of non-essential capital expenditures
• Maintaining close relationships with suppliers
• Menu adjustments based on available products
• Finding alternative suppliers and products
• Adherence to hygiene and cleaning protocols
• COVID-19 awareness training
• Comprehensive health & safety policy
• Strengthening rewards and benefit schemes
• Comprehensive talent management program
• Negotiating with banks for favorable borrowing rates
• Entering into sales contracts in USD
• Regular price reviews based on exchange rate fluctuations
• Investments in infrastructure and staff training
• Monitoring social media and guest reviews
• Comprehensive credit policies and procedures
• Regular follow-up on debtors
• Well-defined cyber security incident response process
• Implementation of network protection technology

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent appraisal of potential suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance Practices
• Anti-Corruption and Ethics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities