Internationally benchmarked climate action

Aitken Spence PLC reached a defining moment in its sustainability journey, becoming the first diversified holdings company in Sri Lanka to have its emission reduction targets validated by SBTi. For a Group whose operations span 17 industry sectors and several geographical regions, this complexity is amplified. Each sector presents unique challenges, from energy-intensive operations to service-oriented businesses with wide networks and value chains. Bringing these diverse units together under a unified climate strategy calls on a comprehensive understanding of operational processes, a robust governance framework, a mature system and consistent monitoring mechanisms to ensure measurable outcomes.

According to UNEP’s latest Emissions Gap Report, global temperatures are likely to exceed 1.5°C within the next decade and the window for meaningful action is narrowing. 2024 was the first calendar year in human history to exceed 1.5°C of warming above pre-industrial levels, the very threshold the Paris Agreement was agreed to prevent. Corporates have a critical role to play in addressing climate change, and global expectations for corporate climate action are justifiably rising.

The Science Based Targets initiative (SBTi) is a corporate climate action organisation designed to address this responsibility, enabling companies and financial institutions worldwide to play their part in combating the climate crisis. An independent global organisation that reviews whether corporate climate targets are in line with the level of action needed to tackle climate change, SBTi was initially founded as a collaboration between CDP, United Nations Global Compact, We Mean Business Coalition, World Resources Institute (WRI), and World Wide Fund for Nature (WWF).

SBTi validation strengthens the credibility of Aitken Spence’s climate commitments by anchoring its emissions reduction pathway to independently verified sciencebased thresholds. This enhances confidence among investors and other stakeholders by demonstrating that the Group’s decarbonisation trajectory is aligned with global climate science rather than internally defined benchmarks.

Commenting on this achievement, Chairman/Chairperson of Aitken Spence PLC, Ms. Stasshani Jayawardena said, “Receiving SBTi validation for our targets is a proud milestone for Aitken Spence and an important indicator of where we are headed as a Group. As global expectations around climate responsibility continue to evolve, we believe businesses must lead with clarity, accountability and ambition. This recognition reflects our willingness to take bold decisions, transform the way we operate, and align our growth ambitions with internationally accepted climate goals. Across our diverse businesses and markets, sustainability will continue to shape how we invest, innovate and create long-term value for all stakeholders.”

By achieving this validation, the Group attests that large, multi-sector organisations can pursue climate responsibility with coherence and measurable impact, even while managing the complexities inherent to diverse business operations.

This landmark achievement is further reinforced by Aitken Spence’s longstanding track record of pioneering sustainability-led innovation across industries. The Group is the first and only company in Sri Lanka to invest in a waste-to-energy power project through Western Power Company, pioneered the world’s first LEED Gold certified hotel with Heritance Kandalama, and established the first carbon neutral, green printing facility in the South Asian region through Aitken Spence Printing.

Looking ahead, the validated targets provide a clear framework for guiding future investments, initiatives and partnerships, while supporting more informed responses to climaterelated risks and emerging regulatory expectations. In doing so, SBTi validation reinforces sustainability as a core element of the Group’s longterm strategy and resilience.

COLOMBO, Sri Lanka, 03rd June 2026: JAT Holdings PLC recorded its highest-ever annual revenue in FY25/26, with performance reflecting the continued strength of its core coatings business, disciplined manufacturing strategy, and investments in emerging growth platforms despite a challenging external environment.

For the year ended 31 March 2026, Group revenue increased by 9% year-on-year to Rs. 12.6 billion, compared to Rs. 11.6 billion in the previous year. Local revenue grew by 12% to Rs. 9.7 billion, additionally supported by the EV charger business and the decorative paints segment, while foreign operations recorded Rs. 2.9 billion.

Gross profit rose by 21% to Rs. 4.8 billion, with gross profit margin improving from 34% to 38%. This improvement was a key indicator of the quality of the Group’s growth during the year, supported by a stronger product mix, improved manufacturing control, backward vertical integration, and operational efficiencies across JAT’s facilities in Sri Lanka and Bangladesh.

Profit before tax increased by 5% to Rs. 1.68 billion, while finance costs reduced by 17% to Rs. 292 million due to effective debt management and lower interest rates. Profit after tax stood at Rs. 1.52 billion. Profit after tax was impacted by the reduction of the previous year’s deferred tax asset, which affected year-on-year comparability. Underlying performance remained resilient, with revenue, gross profit, gross margin and profit before tax all improving during the year.

Selling and distribution expenses, as well as administrative expenses, increased during the year, primarily due to the consolidation of Mirotone following its acquisition in October 2025, reflecting the Group’s expanded operating footprint.

Despite the temporary impact of Cyclone Ditwah in Q3, JAT achieved its highest-ever wood coatings sales, with the segment recording 9% growth and a 5% improvement in GP margin. Notably, 83% of wood coatings sales came from the loyalty base, a 16% increase from the previous year’s sales contribution while the loyalty base itself has grown by 10%. The Company also completed the second phase of its binder plant expansion, increasing capacity by 76%. This expansion further strengthened JAT’s backward vertical integration strategy, improving control over critical inputs, supporting margin resilience, and reducing exposure to supply chain and import-related volatility.

The emulsion category recorded 15% sales growth during the year, while product development efforts continued with the further enhancement of Hydro+ waterproofing paint for exterior walls and the development of three new water-based binders for waterproofing paints, interior wood coatings and wall coatings. Brushes continued steady growth, with sales up 12% and GP margins improving by 7%.

The CSE yesterday recorded a bearish trend because investors are shifting to fixed income instruments due to external and internal uncertainties, especially with the escalation of tensions in West Asia.

Amid those developments both indices moved downward. The All Share Price Index down by 340.85 points while S and P SL20 declined by 46.70 points.

Turnover stood at Rs 2.6 billion with six crossings. Those crossings were reported in JKH, which crossed 19 million shares to the tune of Rs 375 million; its shares traded at Rs 19.80, ACL Cables one million shares crossed for Rs 161 million; its shares traded at Rs 93.50, Commercial Bank 250,000 shares crossed for Rs 50 million; its shares sold at Rs 200, Amana Takaful 1.2 million shares crossed for Rs 26 million; its shares sold at Rs 21.30, People’s Leasing 1 million shares crossed to the tune of Rs 21 million; its shares sold at Rs 21 and CCS 150,000 shares crossed to the tune of Rs 20 million; its shares fetched Rs 133.

In the retail market companies that mainly contributed to the turnover were; HNB Rs 291 million (745,889 shares traded), ACL Cables Rs 194 million (two million shares traded), JKH 80.6 million (four million shares traded), Haycarb Rs 28 million (525,000 shares traded), Colombo Dockyard Rs 55 million (525,000 shares traded), Softlogic Life Insurance Rs 60 million (710,100 shares traded) and Commercial Bank Rs 58 million (290,800 shares traded). During the 88 million share volumes changed hands in 30770 transactions.

It is said that manufacturing sector counters, especially JKH, performed well while the banking sector, especially Commercial Bank and HNB, performed well. Further the insurance and leasing sector also performed well.

Yesterday the rupee was quoted at Rs 336.25/35 to the US dollar in the spot market on, from Rs 335.50/336.25 the previous day, while bond yields were somewhat steady, dealers said, with the secondary market “not very active”.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 331.5000 buying, 340.50 selling; the euro was 379.5100 buying, and 393.4270 selling; pound was 440.8796 buying, and 454.9252 selling.

By Hiran H Senewiratne