Chairman’s Message

Dear Shareholders,

It is with great pleasure that I welcome you to the 13th Annual General Meeting of Raigam Wayamba Salterns PLC and present you the annual report together with audited financial statements for the financial year 2017/2018.

The main challenge before the company in the financial year under review was to sustain the remarkable financial results recorded in the preceding year, 2016/2017. Compared to the previous year, the environmental and market factors affecting the industry were not favourable. However your company reached the expectations with a moderate growth in terms of revenue and profit, as we remained focused on strategy to drive short term performances, while ensuring that the right decisions were made to sustain long term growth.

As a result of the increased harvest of industrial salt in Sri Lanka during the period under review, once again the consumer market turned in to a sharp price competition bringing down margins. However your Company was able to face the situation in a stable manner as the company had heavily emphasized on capitalizing its’ brands as a long-term strategy. The capacity utilization of the two production facilities of the group, at Palavi in Puttalam District and Bata-atha in Hambantota District were at satisfactory levels.

In keeping with your company’s vision “to be the convenient partner enhancing the taste and health needs of the nation” continues to guide us in reinforcing our efforts to contribute to fulfillment of salt and iodine needs of the nation, ensuring highest standards in nutrition and health factors. Consequently, the company continued its focused efforts to empower the consumers and help them make informed good habits in their diets and to improve the awareness of essential good practices together with compliances relevant to the industry among our stakeholders in supply and distribution chains.

Being the trend setter in the value added salt market in Sri Lanka, our research and development efforts continued throughout the year in order to enhance

Message from the

Chairman

Being the trend setter in the value added salt market in Sri Lanka, our research and development efforts continued throughout the year in order to enhance the product portfolio providing consumers with new experience in their food and beverage options.

the product portfolio providing consumers with new experience in their food and beverage options. I am proud to mention that the real value of your investment calculated on net asset basis stood above the market price throughout the period since listing in the Colombo Stock Exchange (CSE). Raigam Wayamba Salterns PLC is among the few such companies listed in the CSE. Your Company which is operated on a healthy financial platform with minimum financial commitments has generated an earning of Rs. 0.53 per share in 2017/18 compared to Rs. 0.39 in the previous year. In keeping with the dividend policy of the company your Board has recommended a first and final dividend of Rs. 0.10 per share.

I would like to bring to the notice of our shareholders that the Company was compelled to annul the rights issue announced in August 2016 to finance the proposed acquisition of Raigam Eastern Salt Company (Pvt) Limited, due to reasons beyond our control. The due procedure has been followed in cancellation of the proposed rights issue subject to the approval of majority of public shareholders at the Extra Ordinary General Meeting that has been called for the subject purpose.

I take this opportunity to extend my appreciation to all our stakeholders including industrial and retail customers, distributors, suppliers and service providers whose continued support was a pillar of strength for the group during the year. I extend my utmost gratitude to my colleagues on the Board of Directors, and the entire staff for their invaluable contributions during the year. Finally, a special thanks to our shareholders for the confidence placed in us.

Dr. Ravi Liyanage

Chairman

30 July 2018