"The Group completed a difficult year being affected adversely by the macro-economic environment. The increase in the price of raw materials and energy in the first half of the financial year affected our Manufacturing Sectors while the decrease in commodity prices and the global financial crisis in the second half of the year had a negative impact on the Plantation Sector and the Group as a whole."

I would like to present the Annual Report and Audited Accounts of the Company and its subsidiaries for the year ended 31st March 2009.The Group completed a difficult year being affected adversely by the macro-economic environment. The increase in the price of raw materials and energy in the first half of the financial year affected our Manufacturing Sectors while the decrease in commodity prices and the global financial crisis in the second half of the year had a negative impact on the Plantation Sector and the Group as a whole. High interest rates and inflation continued to have an adverse impact on profitability.

The Group achieved a turnover of Rs. 20.8 bn, a marginal increase from last year. Operating profit before interest and tax amounted to Rs. 1.35 bn a decrease of 34% from last year. The Group incurred a loss of Rs. 189 mn from continuing operations. Despite a reduction in Group borrowing by nearly Rs. 1 bn, Group Finance Cost remained almost at the same level as last year due to high interest rates. The Group incurred an additional loss of Rs. 116 mn from discontinued operations, resulting in a net loss of Rs. 305 mn.The Group continued with its strategy of exiting from businesses with low profitability and concentrated on its core business. The Group closed down the travel business and the PVC pipe operation.