“Our financial performance during the year provides evidence that the strategic direction adopted by the Group over recent years is beginning to deliver the outcomes we anticipated.”
I am pleased to place before you the Annual Report and audited financial statements of Ambeon Capital PLC for the financial year 2025/26. The Group strengthened its position as a diversified investment holding company during the period under consideration, guided by a philosophy of creating value through changing economic cycles.
Operating Backdrop
The financial year unfolded against an environment that demanded both confidence and caution. After several years of economic turbulence, Sri Lanka continued on its path towards recovery, with improving macroeconomic stability, moderating inflation, progress in external debt restructuring and the continuation of International Monetary Fund (IMF)-supported reforms helping to restore confidence among businesses and investors. There was a growing sense that the country had turned an important corner. Investment activity began to strengthen, consumer sentiment gradually improved and businesses were once again able to make decisions with a greater degree of certainty than had been possible in recent years.
Yet, the recovery was neither uniform nor without setbacks, reminding us that rebuilding an economy is a gradual process rather than a single event. At the same time, the global environment became increasingly unpredictable. The reconfiguration of international trade following the introduction of reciprocal tariff measures by the US, heightened geopolitical tensions in the Middle East and the sharp escalation in global energy prices created fresh uncertainties for businesses around the world. For an economy such as Sri Lanka’s, which remains closely connected to international trade and imported energy, these developments inevitably had implications for exporters, supply chains, inflation and business confidence.
Closer home, the devastation caused by Cyclone Ditwah served as a stark reminder of the growing influence of climate-related events on economic activity. While reconstruction efforts provided support to several sectors of the economy, the broader impact reinforced the need for businesses to build greater resilience into their strategies and operations.
Where Ambeon Capital PLC is concerned, these developments reaffirmed the importance of the principles that have guided our approach over many years. Economic cycles, geopolitical events and market disruptions will continue to shape the operating landscape, but they do not alter the fundamentals of prudent investing. The Board has consistently believed that long-term value is created not by reacting to short-term events, but by maintaining financial discipline, investing in fundamentally strong businesses and building a diversified portfolio capable of performing across different economic environments. The year under review reinforced that conviction. While uncertainty is likely to remain a defining feature of the global economy into the near future, we believe Sri Lanka’s improving economic fundamentals, together with the Group’s balanced portfolio and disciplined approach to capital allocation, provide a sound platform from which to pursue sustainable growth and create enduring value for our shareholders.
Performance
Our financial performance during the year provides evidence that the strategic direction adopted by the Group over recent years is beginning to deliver the outcomes we anticipated. Stronger earnings, growth in net asset value and the restoration of shareholder distributions are encouraging indicators. Beyond the financial results, the year also marked another step in the continued evolution of the Group’s investment portfolio. The strategic decisions taken over recent years have strengthened the quality and diversity of our investments while reinforcing the resilience of the portfolio. The marked improvement in earnings and net asset value therefore represents not simply a stronger financial outcome, but the cumulative benefit of a disciplined long-term investment strategy.
Revenue recorded healthy growth of approximately 12%, while net profit reached LKR 3.2 billion, more than double the performance achieved in the previous financial year. During the year, the Group completed its strategic exit from manufacturing through the divestment of the remaining stake in Dankotuwa Porcelain PLC, bringing to a close a transformation that has repositioned Ambeon towards sectors with stronger long-term growth characteristics. At the same time, presence across Information technology, financial services, real estate and treasury investments was strengthened; while the portfolio was further broadened through the acquisition of Myland Developments PLC. The Group also repositioned its financial cluster, which was previously held under Ambeon Holdings, to Ambeon Capital, further streamlining the structure of the portfolio. These decisions were guided by a clear philosophy of building a balanced portfolio capable of generating sustainable earnings, creating multiple avenues for growth and delivering enduring value to shareholders through changing economic cycles.
Our Information technology, business remained the largest contributor to revenue, continuing to strengthen its international footprint while capitalising on growing demand for digital infrastructure, cybersecurity and technology solutions across regional markets.
The financial services businesses demonstrated resilience, delivering stable earnings while providing a platform for future expansion into complementary financial services.
Our treasury and diversified investment portfolio generated encouraging returns. We were equally encouraged by the progress made across our growth platforms.
The real estate portfolio benefited from improving market conditions and increasing investor confidence, while continuing to build long-term value through the development of strategically located assets.
At the same time, the Board took several important steps to further diversify the Group’s earnings base through carefully selected investments that complement our existing portfolio and strengthen our long-term growth prospects. Our continued interest in opportunities within the natural resources space reflect a deliberate strategy of investing in businesses with enduring fundamentals, strong market positions and the capacity to create sustainable value over the long term.
Another milestone was the restoration of shareholder distributions after several years. The declaration of dividends by Ambeon Capital PLC reflected improved financial performance and the Board’s confidence in the Group’s financial strength, liquidity position and future prospects. While rewarding shareholders remains an important objective, the Board continues to maintain a prudent balance between returns to investors and retaining sufficient financial flexibility to pursue new investment opportunities as they arise.
Over the years, Ambeon Capital has evolved considerably. What was once a company with a relatively narrow investment focus has developed into a diversified group with interests spanning Information technology, financial services, real estate, fast-moving consumer goods and diversified investments. The Board remains committed to preserving its disciplined approach as we evaluate future investment opportunities guided by quality, strategic fit and long-term value creation.
Good Governance
Long-term value creation today cannot be separated from environmental and social responsibility. Investors, customers and regulators increasingly expect companies to demonstrate how they create value responsibly, not simply how much value they create. This shift is reshaping corporate leadership globally, and rightly so. Our approach to sustainability continues to evolve alongside the Group. Environment, social and governance (ESG) is integrated into the way investment decisions are evaluated, businesses are governed and long-term risks are assessed. We believe responsible business practices strengthen both corporate resilience and shareholder value over time.
Equally important is our responsibility as a corporate citizen and this expectation extends beyond philanthropy to encompass responsible employment practices, ethical supply chains, environmental stewardship and meaningful stakeholder engagement. Across the Group, our companies continue to support a range of community initiatives that reflect the unique nature of their operations and the needs of the communities they serve. We are particularly encouraged by the growing emphasis placed on employee participation in these initiatives, reinforcing the belief that corporate responsibility is most meaningful when it becomes part of an organisation’s culture.
Environmental stewardship has likewise become an increasingly important consideration in the way our businesses operate and invest. Although the Group’s portfolio spans industries with different environmental footprints, the Board believes that every business has a responsibility to manage resources responsibly and continually improve its environmental performance. We therefore encourage our portfolio companies to identify opportunities to improve resource efficiency, minimise environmental impacts where practicable, and incorporate sustainability considerations into business planning and investment decisions.
Good governance has always been regarded by the Board as fundamental to preserving the confidence of shareholders, regulators, employees and the wider investment community. During the year, the Board continued to strengthen its oversight of strategic planning, enterprise risk management, capital allocation and succession planning, while maintaining a strong emphasis on transparency, accountability and ethical conduct.
In an investment holding company, governance extends beyond the parent entity. It encompasses the oversight of diverse businesses operating across multiple sectors, each with its own opportunities, risks and operating dynamics. This requires a governance framework that encourages entrepreneurial leadership while maintaining consistency in standards, controls and accountability across the Group.
Closely linked to good governance is effective risk oversight. Recent years have demonstrated how quickly operating conditions can change, reinforcing the importance of anticipating emerging risks rather than simply responding to them. Accordingly, the Board continues to review not only financial and operational risks but also strategic risks that could influence the Group’s long-term competitiveness and sustainability.
Looking Ahead
One of the encouraging developments over the past year has been the growing confidence returning to Sri Lanka’s private sector. While challenges undoubtedly remain, the country appears to have regained an important sense of direction. Realising that potential, however, will require consistency in policy, continued fiscal discipline, institutional strengthening and sustained investment in productivity and innovation. The private sector has an equally important role to play by investing responsibly, creating employment, embracing innovation and maintaining high standards of governance.
For Ambeon Capital PLC, this environment presents opportunities that extend well beyond any single financial year. Businesses that demonstrate strong fundamentals, capable management, sound governance and sustainable competitive advantages will continue to receive our attention.
One of the strengths of any investment holding company lies not only in the quality of its assets but in the quality of the people entrusted with leading them. Talent development, succession planning and leadership continuity therefore remain important priorities across the Group. While each subsidiary operates independently, there is a shared commitment to building organisations that empower people, encourage professional growth and create environments where innovation and responsible decision-making can flourish. Within our business, we continue to encourage a culture that values integrity, accountability, collaboration and innovation. These qualities have become increasingly important as our portfolio expands and our businesses operate in markets that are becoming more interconnected, technology-driven and customer-focused.
The pace of technological change is also reshaping virtually every industry in which we operate. Digital transformation is no longer confined to technology businesses; it is influencing customer behaviour, operational efficiency, governance, risk management and competitive positioning across every sector. Our businesses continue to invest in technology not simply to automate processes, but to improve decision-making, strengthen customer engagement and enhance organisational agility.
One of the defining characteristics of Ambeon has always been its willingness to evolve. Our recent acquisition of a majority stake in Harischandra Mills PLC is a clear reflection of this approach, broadening the Group’s footprint into the FMCG sector with strong long-term potential. This philosophy will continue to guide the Group as we evaluate future investment opportunities.
Acknowledgements
I wish to record my sincere appreciation to my fellow Directors for their guidance and support throughout the year. Their constructive oversight strengthens the quality of the Board’s deliberations and decision-making.
I also extend my gratitude to the management teams across the Group, whose leadership and dedication have enabled our businesses to navigate an evolving business environment with confidence.
Their efforts, together with the commitment of employees across our portfolio companies, continue to shape the Group’s progress and future prospects.
I would like to thank our shareholders for their patience and support. Your trust remains the foundation upon which we continue to build.
I remain confident that Ambeon Capital PLC is well equipped to navigate the changing landscape and contribute meaningfully to our stakeholders and the broader economic and social development of Sri Lanka.