SERENDIB HOTELS PLC INTERIM CONDENSED FINANCIAL STATEMENTS SECOND QUARTER 2016/17

SERENDIB HOTELS PLC INTERIM CONDENSED FINANCIAL STATEMENTS SECOND QUARTER 2016/17

Quarter ended 31st December 2017 Contents Page No. Operations Review 3-4 Financial Statements Statement of Financial Position 5 Statement of Profit or Loss 6 Statement of Comprehensive Income 7 Statement of Changes in Equity 8-9 Statement of Cash Flows 10 Notes to the Financial Statements 11 Investor Information 12-14

SERENDIB HOTELS PLC OPERATIONS REVIEW THIRD QUARTER 2017/18 The Serendib Hotels Group owns and operates four properties; AVANI Bentota Resort & Spa, Club Hotel Dolphin Waikkal, Hotel Sigiriya and the Lantern Beach Collection Mirissa. The latter was added to the portfolio through the acquisition of 51.15% in Frontier Capital Lanka (Pvt) Ltd in September 2017, increasing the Group s consolidated room inventory to 436 keys. AVANI Kalutara Resort is managed by Serendib Leisure Management Ltd, a fully owned subsidiary of the company. Jada Resorts & Spa (Pvt) Ltd, the owning company of AVANI Kalutara Resort is treated as an investment. Hence, the operating results of AVANI Kalutara are not reflected in the Consolidated Financial Statements of Serendib Hotels PLC. Sri Lanka recorded 564,476 tourist arrivals during the third quarter of the financial year 2017/18. This was a growth of 4% against the same period last year, and was an improvement in comparison to the 0.5% decline experienced in the second quarter of 2017/18. During the quarter under review, arrivals from the UK, India and China grew by 7%, 12% and 3% respectively whereas Germany and Russia declined by 9% and 3% respectively. Total arrivals for the cumulative period of April to December amounted to 1,511,454, an increase of 3% against the same period last year. Financial & Operational Review In the quarter under review, occupancy across our group of hotels stood at 74%, down from 79% recorded in the corresponding period last year. Accordingly, group occupancy for the nine months end stood at 69%, a reduction of four percentage-points from last year. At hotel level, AVANI Bentota recorded an occupancy of 76% for the quarter and 66% YTD; Club Hotel Dolphin s occupancy for the quarter was 80% and 74% YTD and Hotel Sigiriya recorded 68% occupancy for the quarter and 65% YTD. The Lantern Beach Collection, which is the newest addition to our portfolio recorded an occupancy of 57% during the quarter. The group recorded a revenue of Rs. 487 Mn during the quarter, an increase of 12% compared to last year. Quarterly turnover was boosted by the addition of revenue from the Lantern Beach Collection of Rs. 40 Mn. Accordingly, underlying group revenue grew by 3% over last year, achieved mainly through local currency depreciation. Group turnover to date of Rs. 1.2 Bn. is a 1% increase over last year, which on an underlying basis declined by 3%. Performance at AVANI Bentota and Hotel Sigiriya were impacted due to the decline in room rates and occupancy during the year, arising mainly due to price competition from the formal sector and a significant shift in guest preferences to informal stay experiences. Hotel Sigiriya recoded a higher guest mix from online channels. While Club Hotel Dolphin s guest mix included a larger portion of all-inclusive guests compared to last year. The hotel is pleased to note a recovery from its traditional source markets for guests and the strengthening of the Euro and Sterling in the currency markets which led to an increase in average room rates achieved at the hotel. In keeping with our strategy to pursue higher yielding opportunities, our investment in the Lantern Boutique Collection enabled the Group to increase its overall RevPAR by 30% to Rs. 7,500 from Rs. 5,783 in the corresponding quarter last year.

Administrative, Sales and Marketing, and Finance Costs have increased during the year by Rs.74 Mn, Rs.8 Mn and Rs. 22 Mn respectively. The main reasons for the increase in administrative expenses are increases in IT-related expenses and amortization due to new system implementations, business development expenses, and costs of Lantern Beach Collection which was not included in the prior year. Finance costs too have grown due to the borrowings obtained to fund the acquisition of the Lantern Beach Collection and other new business development initiatives. Group Operating Profit stood at Rs. 47 Mn for the quarter, recording a decline of 30% over last year due to increases in costs, while cumulative Operating profit declined to 23.9 Mn over the same period. The decline in profit is owing to the impact of lower occupancy and revenue achieved during the first two quarters of the year. The impact of Lantern Beach Collection to Operating profit and Profit before Tax was Rs. 4.0 Mn and Rs. -3.0 Mn. respectively. As we approach the peak tourist season, we anticipate a further recovery of our performance with higher occupancies and rates, supported by the strengthening of key source currencies. The challenge from the fast-growing informal sector and new hotel inventory will be addressed through stronger service offerings across by our team and we look forward to ending the year on a stronger note. Malinga Arsakularatne EXECUTIVE DIRECTOR

STATEMENT OF FINANCIAL POSITION Group Company As at 31.12.2017 31.12.2016 31.03.2017 31.12.2017 31.12.2016 31.03.2017 Rs.'000 Audited Audited ASSETS Non-Current Assets Property, Plant & Equipment 3,524,400 3,211,177 3,185,809 743,313 791,445 769,906 Leasehold Property 27,944 29,754 29,296 25,951 27,653 27,227 Intangible Assets 388,976 84,262 95,986 20,980 21,169 25,085 Investments in Subsidiaries - - - 610,674 260,497 271,191 Other Non Current Financial Assets 330,106 369,505 330,107 322,106 363,064 322,107 4,271,426 3,694,698 3,641,198 1,723,024 1,463,828 1,415,516 Current Assets Inventories 38,657 29,192 25,088 9,100 9,213 7,817 Trade and Other Receivables 326,716 389,560 469,076 69,329 88,652 116,773 Taxation Recoverable 11,225 12,222 12,885 3,379 2,307 503 Other Current Financial Assets 48,003 10,909 705 10,938-35 Cash and Short Term Deposits 202,422 148,982 163,125 56,528 35,916 29,045 627,023 590,865 670,879 149,274 136,088 154,173 Total Assets 4,898,449 4,285,563 4,312,077 1,872,298 1,599,916 1,569,689 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 913,122 913,122 913,122 913,122 913,122 913,122 Other Components of Equity 555,389 582,804 570,115 80,983 90,044 82,443 Other Revenue Reserve - 19,940 19,940-14,500 14,500 Retained Earnings 919,215 897,869 938,047 189,233 194,858 193,763 Equity Attributable to Owners of the Parent 2,387,726 2,413,735 2,441,224 1,183,338 1,212,524 1,203,828 Non Controlling Interest 813,612 800,308 805,224 - - - Total Equity 3,201,338 3,214,043 3,246,448 1,183,338 1,212,524 1,203,828 Non-Current Liabilities Interest Bearing Loans & Borrowings 220,081 37,207 54,090 81,117 4,184 8,741 Deferred Tax Liabilities 154,291 119,504 144,352 30,619 16,926 31,883 Employee Benefit Liabilities 62,556 54,766 56,494 14,058 12,649 14,281 436,928 211,477 254,936 125,794 33,759 54,905 Current Liabilities Trade and Other Payables 702,432 624,532 545,981 139,110 189,692 161,843 Dividends Payable 7,963 4,188 8,201 3,203 1,587 3,206 Income Tax Liabilities - 275 343 - - - Other Current Financial Liabilities 2,803 - - - - - Interest Bearing Loans and Borrowings 449,286 150,115 126,481 404,595 131,394 130,596 Bank Overdraft 97,699 80,933 129,687 16,258 30,960 15,311 1,260,183 860,043 810,693 563,166 353,633 310,956 Total Equity and Liabilities 4,898,449 4,285,563 4,312,077 1,872,298 1,599,916 1,569,689 Net Assets Per Share (Rs.) 21.41 21.64 21.89 10.61 10.87 10.79 The above figures are provisional & subject to audit. These Financial Statements are in compliance with the requirements of the Companies Act No.07 of 2007.. K.D.D.Gunasekera - Director Finance The board of directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the board by,. A.N. Esufally - Chairman Colombo 7th February 2018

STATEMENT OF PROFIT OR LOSS Group Company 3 Months 3 Months % Variance 9 Months 9 Months % Variance 3 Months 3 Months % Variance 9 Months 9 Months % Variance Ended Ended Ended Ended Ended Ended Ended Ended Rs.'000 31.12.2017 31.12.2016 31.12.2017 31.12.2016 31.12.2017 31.12.2016 31.12.2017 31.12.2016 Revenue 487,108 436,491 12% 1,199,930 1,191,250 1% 138,929 136,461 2% 344,128 345,679 0% Cost of Sales (136,372) (128,211) 6% (356,929) (349,738) 2% (35,865) (37,760) -5% (98,065) (96,036) 2% Gross Profit 350,736 308,280 14% 843,001 841,512 0% 103,064 98,702 4% 246,063 249,643-1% Dividend Income - - - - - - 6,653 51,135-87% Other Operating Income and Gains (1,399) 20,271-107% 39,288 21,790 80% 2,759 575 380% 9,571 605 1482% Sales and Marketing Expenses (12,456) (8,025) 55% (39,293) (31,168) 26% (5,699) (5,055) 13% (16,264) (15,025) 8% Administrative Expenses (289,844) (253,256) 14% (819,105) (744,421) 10% (82,754) (76,177) 9% (246,064) (225,781) 9% Operating Profit 47,037 67,270-30% 23,891 87,713-73% 17,370 18,045-4% (41) 60,577-100% Finance Cost (20,718) (3,192) 549% (33,529) (11,039) 204% (14,026) (2,497) 462% (22,681) (7,175) 216% Finance Income 4,336 (8,645) -150% 8,504 8,317 2% 1,437 399 260% 2,366 3,660-35% Profit /(Loss) Before Tax 30,655 55,433-45% (1,134) 84,991-101% 4,781 15,947-70% (20,356) 57,062-136% Income Tax Expense (4,900) (5,687) -14% (22,078) (19,508) 13% 1,263 (48) -2731% 1,326 1,351-2% Profit for the Period 25,755 49,746-48% (23,212) 65,483-135% 6,044 15,899-62% (19,030) 58,413-133% Attributable to : Equity Holders of the Parent 16,557 32,878-50% (38,772) 24,455-259% Non-Controlling Interest 9,199 16,868-45% 15,560 41,028-62% 25,756 49,746-48% (23,212) 65,483-135% Earnings /(Loss) Per Share (Rs.) 0.15 0.29 (0.35) 0.22 0.05 0.14 (0.17) 0.52 The above figures are provisional & subject to audit.

STATEMENT OF COMPREHENSIVE INCOME Group Company 3 Months 3 Months 9 Months 9 Months 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended Ended Ended Ended Ended 31.12.2017 31.12.2016 31.12.2017 31.12.2016 31.12.2017 31.12.2016 31.12.2017 31.12.2016 Rs. Rs. Rs. Rs. Profit for the Period 25,755 49,746 (23,212) 65,483 6,044 15,899 (19,030) 58,413 Other Comprehensive Income Net Movement on Cash Flow Hedge (3,127) 4,027 (21,813) 14,984 1,417 3,886 (1,460) 9,258 - Net (loss)/gain on available-for-sale (AFS) financial assets - (1,559) - (1,559) - (1,559) - (1,559) Other Comprehensive Income for the Period, Net of Tax (3,127) 2,467 (21,813) 13,424 1,417 2,327 (1,460) 7,699 Total Comprehensive Income for the Period, Net of Tax 22,628 52,213 (45,025) 78,907 7,461 18,226 (20,490) 66,112 Attributable to: Equity Holders of the Parent 15,011 30,000 (53,498) 35,866 Non Controlling Interest 7,617 22,213 8,473 43,041 22,628 52,213 (45,025) 78,907 The above figures are provisional & subject to audit.

STATEMENT OF CHANGES IN EQUITY Attributable to Owners of the Parent Total Group Stated Other Components of Equity Other Revenue Retained Total Non Controlling Equity Capital Cash Flow Hedge Available for Revaluation Reserves Earnings Interest Reserve Sale Assets Reserve Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Balance as at April 01, 2016 913,122 11,638-559,754 19,940 985,003 2,489,457 790,667 3,280,124 Net Profit/(Loss) for the period - 24,455 24,455 41,028 65,483 Other Comprehensive Income Net Movement in Cash Flow Hedge 12,971 12,971 2,013 14,984 Change in Fair Value of Available for Sale Assets (1,559) (1,559) (1,559) Total Comprehensive Income - 12,971 (1,559) - - 24,455 35,867 43,041 78,908 Dividend Paid (111,589) (111,589) (33,400) (144,989) Balance as at December 31, 2016 913,122 24,609 (1,559) 559,754 19,940 897,869 2,413,735 800,308 3,214,043 Balance as at April 01, 2017 913,122 17,484-552,631 19,940 938,047 2,441,224 805,224 3,246,448 Net Profit/(Loss) for the period (38,772) (38,772) 15,560 (23,212) Other Comprehensive Income Net Movement in Cash Flow Hedge (14,726) (14,726) (7,087) (21,813) Total Comprehensive Income - (14,726) - - - (38,772) (53,498) 8,473 (45,025) Dividend Paid - - (4,456) (4,456) Acquisition of non controling interest 4,371 4,371 Transfer of Reserves - - - - (19,940) 19,940 - - - Balance as at December 31, 2017 913,122 2,758-552,631-919,215 2,387,726 813,612 3,201,338 The above figures are provisional & subject to audit.

STATEMENT OF CHANGES IN EQUITY Company Stated Other Components of Equity Other Revenue Retained Total Capital Cash Flow Hedge Available for Revaluation Reserves Earnings Rs.'000 Reserve Sale Assets Reserve Rs. Rs. Rs. Rs. Rs. Rs. Rs. Balance as at April 01, 2016 913,122 (8,706) - 91,051 14,500 247,971 1,257,938 Net Profit/(Loss) for the period - - - - - 58,413 58,413 Other Comprehensive Income Net Movement on Cash Flow Hedge - 9,258 - - - - 9,258 Fair Value on Available For Sale Assets - - (1,559) - - - (1,559) Total Comprehensive Income - 9,258 (1,559) - - 58,413 66,112 Dividend Paid - - - - - (111,526) (111,526) Balance as at December 31, 2016 913,122 552 (1,559) 91,051 14,500 194,858 1,212,524 Balance as at April 01, 2017 913,122 (1,486) - 83,929 14,500 193,763 1,203,828 Net Profit/(Loss) for the period - - - - - (19,030) (19,030) Other Comprehensive Income Net Movement in Cash Flow Hedge - (1,460) - - - - (1,460) Total Comprehensive Income - (1,460) - - - (19,030) (20,490) Transfer of Reserves - - - - (14,500) 14,500 - Balance as at December 31, 2017 913,122 (2,946) - 83,929-189,233 1,183,338 The above figures are provisional & subject to audit.

STATEMENT OF CASH FLOWS Rs.'000 Cash Flows Used in Operating Activities 9 Months Ended 31.12.2017 Group 9 Months Ended 31.12.2016 9 Months Ended 31.12.2017 Company 9 Months Ended 31.12.2016 Net Profit before Income Tax (1,134) 84,991 (20,356) 57,062 Adjustments for Depreciation 121,330 95,069 36,923 34,342 Amortization 13,267 2,526 5,381 1,553 Exchange (Gain)/Loss (31,120) (27,437) (10,093) 9,258 Interest Income (8,504) (8,317) (2,366) (3,660) Dividend Income - - (6,653) (51,135) Finance Costs 33,529 11,039 22,681 7,175 Loss / (Profit) on Disposal of Fixed Assets (730) 2,381 26 (425) Impairment of debtors (3,841) - (1,074) - Movements in Provisions, Pensions 8,692 8,302 1,170 1,136 Working Capital Adjustments 131,489 168,554 25,639 55,306 (Increase)/ Decrease in Inventories (10,950) (7,367) (1,283) (2,658) (Increase)/ Decrease in Trade and Other Receivables 163,398 (83,576) 37,615 (17,696) Increase/ (Decrease) in Trade and Other Payables (64,197) 244,528 (22,737) 39,755 (Increase)/Decrease Current Financial Assets 3,582 45 - - (Increase)/Decrease Current Financial Liabilities (2,809) - - - Cash Generated from / (Used in) Operations 220,513 322,184 39,234 74,707 Finance Cost Paid (33,529) (11,039) (22,681) (7,175) Defined Benefit Plan Costs Paid (3,088) (7,319) (1,394) (1,890) Taxes Paid (15,076) (44,278) (2,813) (2,129) Net Cash From/(Used in) Operating Activities 168,820 259,548 12,346 63,513 Cash Flows From / (Used in) Investing Activities Acquisition of Property, Plant & Equipment (46,901) (169,175) (10,610) (27,972) Acquisition of Intangible Assets - (59,624) - (21,118) Proceeds from Disposal of Property, Plant & Equipment 3,055 12,192 254 2,279 Acquisition of /Investment in Subsidiaries (323,845) - (339,482) - Investment in Financial Assets (50,879) - - - Loans Granted to Related Parties - - - - Interest Received 8,504 8,317 2,366 3,660 Dividend Received - - 6,653 51,135 Net Cash Flows From / (Used in) Investing Activities (410,066) (208,290) (340,819) 7,984 Net Cash Flows From / (Used in) Financing Activities Proceeds From Interest Bearing Loans & Borrowings 476,000 23,050 150,000 50,000 Proceeds From Interest Bearing Loans & Borrowings - - 340,000 - Repayment of Related Party Borrowings - - (66,000) (7,000) Repayment of Interest Bearing Loans & Borrowings (158,775) (185,653) (68,991) (76,195) Dividends Paid - (111,456) - (111,526) Dividends Paid to Non-Controlling Interest (4,694) (33,400) - - Net Cash Flows from/(used in) Financing Activities 312,531 (307,459) 355,009 (144,721) Net Increase/(Decrease) in Cash and Cash Equivalents 71,285 (256,201) 26,536 (73,224) Cash and Cash Equivalents at the beginning of the period 33,438 324,250 13,734 78,180 Cash and Cash Equivalents at the end of the period 104,723 68,049 40,270 4,956 Analysis of Cash & Cash Equivalents Cash and Bank Balances 202,422 148,982 56,528 35,916 Bank Overdraft (97,699) (80,933) (16,258) (30,960) 104,723 68,049 40,270 4,956 The above figures are provisional & subject to audit.

NOTES TO THE FINANCIAL STATEMENTS 1 The condensed interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS - 34, Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2017. Further, provisions of the Companies Act No. 7 of 2007 have been considered in preparing the interim financial statements. 2 The accounting policies have been consistently applied by the Company and unaudited previous quarter's figures have been restated wherever necessary for better presentation and to be comparable with those of the current period. 3 There has been no significant change in the nature of the contingent liabilities as disclosed in the Annual Report of 2016/17. 4 No circumstances have arisen after the reporting date, which would require adjustments to or disclosure in the Financial Statements. 5 Acquisition On 15th September 2017, company acquired a controlling stake (51.15%) in Frontier Capital Lanka (Pvt) Limited which has two fully owned subsidiaries, Evolution Capital Lanka (Private) Limited and Lantern Villa (Private) Limited. The three companies together manage the Lantern Collection which consists of luxury villas located in Mirissa, Sri Lanka. Goodwill In calculating goodwill resulting from the acquisition of Frontier Capital Lanka (Pvt) Limited (Fontier) group, the Group has not determined the fair value of the identifiable assets and the liabilities assumed due to time constraints. The currently computed goodwill is based on the book value of net assets and hence will be revised when the fair values of aquired net assets and liabilities assumed are determined. Non-Controlling Interest has been valued at proportionate share of net assets. Goodwill is as follows. Rs.'000 Purchase consideration 309,482 Indirect investment in Frontier subsidiaries* 167,056 476,538 NCI -48.85% 163,814 640,352 Book value of net assets of Frontier 335,341 Goodwill on acquisition 305,012 * Evolution Capital Lanka (Private) Limited and Lantern Villa (Private) Limited have not been consolidated by Frontier and therefore has been directly consolidated by Serendib Hotels' PLC.

INVESTOR INFORMATION Audited Group 31.12.2017 31.12.2016 Y/E 31.03.2017 Earnings /(Loss) per Share (Rs.) (0.35) 0.22 0.61 Debt/ Total Equity Ratio (%) 24 8.3 9.6 Interest Cover (Times) 1 9 13 Quick Asset Ratio (Times) 0.5 1 1 No. of Shares Representing Stated Capital - Voting 75,514,738 75,514,738 75,514,738 - Non Voting 36,011,056 36,011,056 36,011,056 Market Price - Voting - Highest (Rs.) 23.80 27.30 28.00 - Voting -Lowest (Rs.) 18.50 24.00 21.80 - Last Traded Price (Rs.) 20.00 24.00 23.10 Market Price - Non Voting - Highest (Rs.) 17.90 24.00 22.80 - Non Voting -Lowest (Rs.) 15.50 20.20 16.60 - Last Traded Price (Rs.) 16.00 22.50 20.00 The above figures are provisional & subject to audit.

DIRECTORS' SHAREHOLDING 31.12.2017 No. of Shares Voting Non Voting Mr. A N Esufally 16,565 NIL Mr. S M Enderby NIL NIL Mr. W M De F Arsakularatne NIL NIL Mr. E J D Rajakarier NIL NIL Mr. M A Jafferjee NIL NIL Mr. R N Athukorala NIL NIL Mr. T M Wijesinghe NIL NIL Ms. S L Speldewinde NIL NIL Mr. S A Chojnacki NIL NIL Mr. I A H Esufally NIL NIL LIST OF 20 MAJOR SHAREHOLDERS (VOTING). 31.12.2017 Name No. of Shares % Hemas Holdings PLC 42,802,738 56.68 Lodging Investment (Labuan) Ltd. 18,886,578 25.01 Seylan Bank Ltd./ B S M De Silva 1,294,552 1.71 Mr. E J De Soysa 800,000 1.06 People's Leasing & Finance PLC/L P Hapangama 648,750 0.86 Mrs. B C R Wickramaratne 606,240 0.80 Acuity Partners (Pvt) Ltd. / Mr B S M De Silva 490,000 0.65 Mrs. M V Fernando 400,000 0.53 The Ceylon Chamber Of Commerce Account No 02 370,000 0.49 Dr. B G S De Silva 355,747 0.47 Mrs. C A Wenceslaus 286,337 0.38 Mrs. A R Gamage 248,838 0.33 Dr. R S Deraniyagala 225,662 0.30 People's Leasing & Finance PLC/DR. H S D Soysa & MRS. G Soysa 221,290 0.29 Ms. H G S Ansell 216,825 0.29 Mr. P P S Fernando 216,000 0.29 Miss. J C Wickramaratne 203,145 0.27 Hemtours (Private) Limited 181,875 0.24 Mrs. S Poologasundram 161,706 0.21 Dr. K Poologasundram 156,268 0.21 68,772,551 91.07 Shares held by the balance shareholders 6,742,187 8.93 75,514,738 100.00

LIST OF 20 MAJOR SHAREHOLDERS (NON -VOTING) 31.12.2017 Name No. of Shares % Hemas Holdings PLC 19,260,487 53.48 Lodging Investment (Labuan) Ltd. 7,156,750 19.87 Deutsche Bank AG as Trustee to Candor Opportunities Fund 1,493,000 4.15 Askold (Pvt) Ltd. 999,658 2.78 National Industries Group (Holdings) (S.A.K) 990,210 2.75 Ceylon Guardian Investment Trust PLC A/C # 01 464,400 1.29 J B Cocoshell (Pvt) Ltd. 456,307 1.27 Trading Partners (Pvt) Ltd. 410,986 1.14 Shalsri Investments (Pvt) Ltd. 341,825 0.95 Acuity Partners (Pvt) Ltd. /Mr. B. S. M. De Silva 309,570 0.86 Ceylon Investment PLC A/C # 01 266,296 0.74 Mr. H W M Woodward (deceased) 184,723 0.51 Cocoshell Activated Carbon Company Ltd. 150,000 0.42 Mr. H A Pieris 139,000 0.39 Mrs. H G S Ansell 136,300 0.38 Mr. M K Kutubdeen 134,000 0.37 People's Leasing & Finance PLC/DR. H S D Soysa & MRS. G Soysa 118,232 0.33 Dr. H S D Soysa 112,781 0.31 Mrs. B Y La Brooy 100,370 0.28 Deutsche Bank AG As Trustee to Candor Growth Fund 100,000 0.28 33,324,895 92.54 Shares held by the balance shareholders 2,686,161 7.46 36,011,056 100.00 MINIMUM PUBLIC HOLDING REQUIREMENT AS PER SECTION 7.13.1 OF CSE LISTING RULES Category Float Adjusted Market Capitalization (Rs.) Public Holding Percentage No. of Shareholders Ordinary (Voting) Shares 272,608,204 18.05% 1054 The Company is non-compliant with regard to Rule No. 7.13.1 of the Listing Rules of the CSE as at 31.12.2017. Category Float Adjusted Market Capitalization (Rs.) Public Holding Percentage No. of Shareholders Option Ordinary (Non - Voting) Shares 153,493,525 26.64% 653 5

CORPORATE INFORMATION Legal Form A quoted public company with limited Liability Incorporated in Sri Lanka in 1966 Company Registration No. PQ 223 Subsidiaries Hotel Sigiriya PLC Dolphin Hotels PLC Serendib Leisure Management Limited Sanctuary Resort Lanka (Pvt) Limited Sanctuary Resort Wilpattu Lanka (Pvt) Limited Frontier Capital Lanka (Pvt) Limited Evolution Capital (Pvt) Limited Lantern Villa (Pvt) Limited Directors Mr. A N Esufally Chairman - Alternate: Mr. V H A Perera Mr. S M Enderby Mr. E J D Rajakarier Mr. W M De F Arsakularatne Mr. M A Jafferjee Mr. R N A Athukorala Mr. T M Wijesinghe Ms. S L Speldewinde Mr. S A Chojnacki Mr. I A H Esufally Registered Office Hemas House Level 3 75, Braybrooke Place Colombo 02 Tel: + 94 (11) 4790500-6 Fax: + 94 (11) 2438933 E-mail : inquiries@serendibleisure.lk Website : www.serendibleisure.com Secretaries Hemas Corporate Services (Pvt) Ltd. Level 9, Hemas House 75, Braybrooke Place Colombo 02 Tel: + 94 (11) 4731731 Fax: + 94 (11) 4731777 Managing Agent Serendib Leisure Management Ltd