Remuneration Policy

This policy statement sets out the principles guiding the general remuneration of executive employees and non-executive board members of the Company and serves the requirements falling under Section 9 of the Listing Rules of the Colombo Stock Exchange – Corporate Governance.

This statement outlines the policies followed by the Company in determining the compensation and other benefits to:

A) All executive employees of the company including Executive Directors, Key Responsible Persons and Senior Management.

B) Non-Executive Directors of the Company

A) Remuneration of Executives

In determining remuneration for executive employees, the Company aims to be competitive in order to be able to attract and retain competent employees. For this purpose, the Company commissions industry-based remuneration surveys on an annual basis to assess current market practices and to ensure that remuneration remains competitive and fair to the Company.

Executive remuneration comprises the following:

1)Fixed salaries and annual increments that are commensurate with experience and based on the individual’s responsibilities and performance.

2) Variable salaries – Variable salaries to executives, may be paid as per the basis recommended by the Remuneration Committee and approved by the Board. At present only annual bonuses as approved by the board of directors are paid.

Variable Incentives – Executives may be eligible for variable incentives related to performance achievements or upon the achievement of certain financial objectives as approved by the board.

3) Non-monetary benefits – Executives will be entitled to customary non-monetary benefits such as health care. They may be further entitled to company-maintained vehicles and other perquisites based on their role and service conditions.

4) Notice of termination and severance pay – Executives may be terminated from service and any dues to the Company recovered in accordance with the provisions of the contract of employment.

5) All executives are entitled to statutory payments as stipulated by the laws and regulations of Sri Lanka.

6) All employment conditions of executives are as stipulated in the letter of employment letter of the employee.

B) Remuneration of Non-Executive Directors

1) Policy considerations guiding the compensation of non-executive directors are designed to attract, retain and motivate directors of the required experience and expertise.

2) The Board and Remuneration Committee, in deciding remuneration of non-executive directors takes into consideration the experience, expertise and time commitments required of the directors as well as the complexities of the business of the Company and ensures that such remuneration is commensurate with the market practice and fair to the Company.

3) The remuneration of non-executive directors is reviewed by the Remuneration Committee and supported by a market survey conducted periodically.

Governance of the policy

The Board Remuneration Committee is responsible for governance of the remuneration policies of the Company and will periodically review such policies and amend or modify, to ensure relevance with the Company priorities, industry practices, market conditions and compliance with any regulatory requirement.

The annual report of the Company further sets out the total remuneration and benefits awarded to all employees including the non-executive directors.