Hemas Sustainability Report 201415- FINAL

Sustainability Report 2014/ 15
Enriching
Lives

Hemas Sustainability Report 2014/15
Scan to view the web
version of this report
Our Vision / 2
Hemas at a Glance / 4
Report Profile, Scope and Boundary / 6
The Hemas Sustainability Journey / 7
Statement from Chairman / 9
Statement from Group Chief Executive / 11
The Enriching Lives Plan: Our Sustainability Vision and
Framework / 12
Identifying and Engaging Our Stakeholders / 16
STAKEHOLDER PERFORMANCE
Economic Value Creation / 22
Customers / 24
Business Partnerships / 28
Employees / 36
Community / 44
Environment / 52
Shareholders / 58
GRI Index / 64
Group Directory / 66
Notes / 70
Contents

Enriching Lives
At Hemas Holdings PLC we want to make social
responsibility and sustainability inherent in our every
action, so that every employee experiences the sense of
pride that is the reward of a life well lived. We’re one of
Sri Lanka’s oldest and most respected corporates and our
progressive attitude and forward thinking strategies are
based around the values we represent: passion for our
customers, an obsession for performance, a drive towards
innovation and most importantly, our concern for people.
We believe that the long term view is the only one that
matters; that the creation of sustainable value to all
stakeholders is the only way to real success. That’s why our
philosophy of sustainability is all-encompassing, measured
against the social, environmental and economic impact we
have on the world we live in.
‘Abhimana’ is our philosophy of sustainability that
describes our vision of a sustainable and co-operative
society, of people living and working together. We shall
realise our vision by being a responsible corporate
citizen, empowering and encouraging our employees
and stakeholders and enriching lives through the spirit of
Abhimana, in all that we think, believe and do.

2
We will do this by:
Being a national leader in personal
care and healthcare solutions.
Investing in growth industries with
potential for superior value creation.
Establishing a regional footprint
through a team of passionate,
capable and empowered people.
Our VisionTo be the best at Enriching Lives
Through Leadership in Wellness, Leisure and Mobility
Our PurposeTo Passionately deliver Outstanding Products
and Services thus Enriching the Lives of our
Customers and creating Superior Value to
our Shareholders.
Hemas Holdings PLC Sustainability Report 2014/15 Hemas at a Glance 4
Report Profile, Scope and Boundary 6
The Hemas Sustainability Journey 7
Statement from Chairman 9
Statement from Group Chief Executive Officer 11
The Enriching Lives Plan:
Our Sustainability Vision and Framework 12
Identifying and Engaging Our Stakeholders 16
Stakeholder Performance 20
GRI Index 64
Group Directory 67
Notes 70

3
Hemas traces its origins to Hemas (Drugs) Ltd, a company established in 1948 – the same year
Ceylon declared its independence from Britain. The company’s evolution has mirrored that
of the nation – a resilient and determined trajectory that has conquered much adversity and
change.
Sheikh Hasannally Esufally (MBE), Founder of Hemas (Drugs), driven by his interest in medicine
and community service, began trading chemical and pharmaceutical products. Being an
entrepreneur he together with his sons ventured into many other related businesses, including the
manufacturing of colognes and creams in the backyard of his Colombo residence. In 1962, he
entered into collaboration with a French multinational, and the backyard project was propelled into
a commercial one of much larger scale.
With the nationalization of industries and the sweeping commercial changes of the early
1970s, Hemas entered the promising travel and tourism industry; the open economic policies
in the post-1977 era led to Hemas venturing into the business of commodity exports in
1978. Over the next three and a half decades, Hemas underwent rapid expansion and
transformation, boldly entering lucrative industries such as FMCG, freight and logistics, hotels,
power and energy, apparel manufacture, foods and hospitals; the Group was equally brave
in divesting businesses wherever deemed necessary, including its commodities businesses and
most recently, its power and energy business.
Operational changes were also made, with group operations restructured in 1993 to organise
individual businesses into separate subsidiaries with accountability to the parent company.
Hemas Drugs Ltd., was thus renamed Hemas Holdings (Pte) Ltd. In 2003, Hemas Holdings Ltd
was listed on the Colombo Stock Exchange, and the family-owned entity became a public one.
Today, Hemas Holdings PLC stands among the leading conglomerates in Sri Lanka, with
major interests in FMCG, Healthcare, Transportation, and Leisure. Over 65 years of progress
has seen Hemas reach customers in every corner of Sri Lanka.
The entrenched strengths of dedication, drive and teamwork together with deep-rooted family
values remains the solid foundation on which the conglomerate continues to grow.
Hemas reveres its moral compass: its values, which are upheld in each member of the Hemas
team:
Passion for Customer
Obsession for Performance
Driven by Innovation
Concern for People

4
Hemas at a Glance
Healthcare
As the largest private sector organisation in the
healthcare industry, we work within several key
healthcare segments, and are the market leader in
distribution of pharmaceuticals in Sri Lanka. We
have set the standard within the private sector for
the delivery of health and wellness related products
and services through our Hospitals, Pharmaceuticals
Distribution and Pharmaceuticals Manufacturing
businesses.
Hemas Hospital experienced a rapid growth of 34.9% over
the previous year.
Hospitals business now accounts for 32 labs and collection
centres across the country.
Hemas Pharmaceuticals maintains its market leadership with
the share of 21.3% (Source: IMS)
MSJ Industries, a fully owned subsidiary of J. L. Morison,
manufactures over 70 generic pharmaceutical formulations
which is registered with the Cosmetics, Devices and Drugs
Regulatory Authority (CDDA).
The Fast Moving Consumer Goods (FMCG) Sector
of Hemas is involved in the manufacture and
marketing of Personal care, Personal wash and Home
care branded products. Since 2013, the scope of the
Sector has been expanded to include the consumer
portfolio of our recent acquisition, J. L. Morison Son
& Jones (Ceylon) PLC.
Baby Cheramy is the Number 1 baby care brand in the
country.
Velvet was awarded ‘Local Brand of the Year’, ‘Product
Brand of the Year’ and ‘Brand of the Year’ at the SLIM
Brand Excellence Awards 2014.
Our Bangladesh business registered a historic topline growth
of 89.7% for 2014/15.
Through our recent acquisition of J. L. Morison Son & Jones
(Ceylon) PLC the sector inherited a portfolio of OTC brands
that are household names.
Morisons’ Brand was recognised as one of the Top 100
brands listed for 2014/15.
FMCG
Rs 11,895
Million
Rs 13,921
Million
Revenue Revenue
Rs 1,071
Million
Rs 970
Million
Profit after Tax Profit after Tax
Hemas Holdings PLC Hemas at a Glance 4
GRI Index 64
Group Directory 67
Notes 70
Sustainability Report 2014/15

5
Hemas Leisure sector comprises the Serendib Group
of Hotels, which includes four award winning
properties with a total inventory of 413 rooms, and
Diethelm Travels Sri Lanka (DTSL), part of the
Diethelm Travel Group, which boasts over half a
century of experience in the inbound tour.
Hotels registered a 23.3% growth in revenue during the year
under review.
The partnership with Minor Hotel Group has enabled
Serendib Leisure to be the only Sri Lankan hotel chain to
manage an international brand – AVANI
Total Inventory of 413 luxury rooms managed by Serendib
Leisure Management Ltd.
Currently in the process of developing two 5 star properties
in partnership with Minor Hotel Group; Anantara Tangalle
and Anantara Kalutara.
DTSL, Sri Lanka’s premier Destination Management
Company with over 35 years of experience.
Leisure TransportATION
From airline representation to travel services,
maritime services and logistics; our distinct and
trusted services have enabled us to gain significant
share in each of these segments. Our relationships
and links with strong global partners and key
organisations in the global transportation industry
allow us to provide the best in services to our valued
customers.
GSA for Emirates Airlines, Malaysia Airlines, Ailitalia,
Maldivian Airlines, China Southern Airlines & Druk Air.
Maritime representing FAR shipping lines in Sri Lanka,
which is a leading feeder operator to India East coast
providing exclusive services to Ports such as Haldia/Vizag
and holding over 50% market share in Bangladesh trade
lane.
Logistics operations include over 50 prime movers and
65 trailers including 7 car carriers, 6 acre container yards
and 140,000 sq feet warehouse facility. Hemas Logistics
specializes in Integrated logistics solutions.
Hemas Travels is the 2nd largest travel agency in the country
for outbound travel business.
Establishment of a Cargo GSA for Maldivian Airlines in
Thailand.
Rs 3,024
Million
Rs 1,518
Million
Revenue Revenue
Rs 318
Million
Rs 404
Million
Profit after Tax Profit after Tax

6
Report Profile, Scope and Boundary
Welcome to the first sustainability report published by Hemas
Holdings PLC. The information contained herein provide
details of the sustainability and corporate citizenship initiatives
pertaining to the operations of Hemas Holdings PLC and its
subsidiaries in Sri Lanka.
Hemas Holdings PLC is a public limited liability company
incorporated in Sri Lanka on 10th
December 1948 under the
Companies Ordinance No. 51 of 1938 and re-registered under
the Companies Act No. 07 of 2007. The ordinary shares of the
Company are quoted on the Main Board of the Colombo Stock
Exchange since October 2003. The Registered Office of the
Company is situated at “Hemas House”, No. 75, Braybrooke
Place, Colombo 2.
Unless otherwise specified, the information in this report is
relevant to the financial year ended as at 31st
March 2015.
However, in several instances, reference is made to historical
information as this is the first sustainability report published by
the Hemas Holdings PLC.
The report was prepared with information from internal sources,
validated by senior management. The financial information
contained herein is extracted from the Hemas Holdings PLC
audited accounts and notes to the financial statements for the
year ended 31st
March 2015, prepared in accordance with the Sri
Lanka Accounting Standards and audited by Messrs Ernst and
Young.
For additional information and background, this report may be
read together with the Hemas Holdings PLC Annual Report for
2014/15 and our website www.hemas.com.
Global Reporting Initiative (GRI)
This report has been prepared in accordance with the G4.0
Core Sustainability Reporting Guidelines. The GRI Index can
be found on page 62. The report has not been externally assured
prior to publication.
Contact Us
We welcome you to get in touch with us for further information
and to provide your valuable feedback on our sustainability
initiatives as well as this report by contacting us at Group
Sustainability Division
Hemas House
No 75, Braybrooke Place
Colombo 02.
Email: shiromi@hemas.com
GRI Index 64
Group Directory 67
Notes 70

7
The Hemas Sustainability Journey
2002
2011
2013
2007
2011
2014
2010
2012
2015
Piyawara – the Strategic CSR Project
is launched in partnership with the
Children’s Secretariat of the Ministry of
Child Development and Women’s Affairs.
Formal adoption of a holistic Corporate
Sustainability approach for Hemas, in
partnership with STING Consultants.
Formal stakeholder engagement
processes begin in the FMCG and
Leisure sectors.
The Hemas Group introduces “Hemas
Way” - a code of conduct for employees.
Hemas Pharmaceuticals publishes its first
Sustainability Report.
Abhimana is launched with the objective
of making Sustainability a lifestyle at
Hemas.
A formal stakeholder engagement process
is undertaken by Hemas Pharmaceuticals
as a pilot programme, in partnership with
STING Consultants.
The Group Sustainability Framework is
rolled out along with the relevant policies
and guidelines.
First Sustainability Report, in line
with the GRI G4 reporting framework
published by Hemas Holdings PLC.

9
Statement from Chairman
Our approach to business is built on the
solid foundation of our values; from the very
outset, Hemas has inculcated a wholehearted
belief in ethical business, steeped in good
values and noble principles.
I am very happy to deliver this message for our very first
Sustainability report. This report is our first attempt at compiling
the many dimensions of responsible business at Hemas and how
we go about giving meaning to our Vision of “enriching lives”.
Today, our business touches lives across all socio-economic
groups, throughout the island. We help care for those who are
sick, provide products to make people feel and look good, and
assist with travel and leisure solutions to make the most of life. So,
we give meaning to our Vision of “enriching lives” in many ways;
be it with the customers we serve, with the community we interact
with, our business partners who share our purpose, and of course
our employees who are passionate about doing the best we can
Doing business responsibly is a philosophy that has been rooted
in the DNA of the company right from its inception. This came
about initially through the Founders belief in ethical business
and high principles. But, more recently through embedding these
values through ‘Abhimana’, our own model to help employees live
these values.
The identification of key Sustainability parameters will help focus
discussion at Board and Management meetings. The metrics,
however, tell only part of the story, and going forward we will
continue our efforts to drive the culture of Sustainability to each
and every member of the Hemas family.
The Hemas Outreach Foundation has been leading the Group’s
efforts to enrich lives through transformative CSR. The
impact we have made through the foundation’s flagship project
“Piyawara” is a source of immense satisfaction to us, and has
far surpassed the achievements we imagined at its launch. The
project, now in its thirteenth year, is one of the most successful
public-private partnerships of its kind between a corporate entity
and the government of Sri Lanka.
These achievements would not have been possible without the
passion and commitment of the Hemas Team, and I thank them
for their hard work and their shared belief in our cause. Whilst
we have achieved much, there is much more that remains to
be done, and we will continuously look for ways of embedding
sustainability into our business decisions and enriching lives,
wherever and whenever we can.
Hussein Esufally
Chairman
20th
July 2015

11
Statement from Group Chief Executive Officer
Today, our strategic path is governed not only
by how well we develop growing commercial
opportunities but also by listening to and
responding to the communities of which we
are a part.
Enriching Lives are not just nice words for Hemas; but a
statement of our aspiration, in both good times and challenging
ones, to positively impact the lives of all stakeholders. It is the
philosophy that has driven Hemas from its very beginnings to
become the influential and resilient corporate entity it is today.
This report is our first attempt at detailing our sustainability
priorities and practices; while it maybe the first time we are
reporting on sustainability in this manner, responsibility is by
no means a new concept to Hemas. Responsibility has always
been integral to how we conduct our business. We have always
believed and demonstrated that creating sustainable value for our
stakeholders is the only way of achieving enduring success.
We know that, as one of the largest diversified Group operating
across Sri Lanka, our considerable footprint necessitates that we
prioritise not just our own interests but also those of our external
stakeholders in our decision making. Today, our strategic path is
governed not only by how well we develop growing commercial
opportunities but also by listening to and responding to the
communities of which we are a part. In this journey, Hemas looks
to always uphold the tenets of ethical business, and we expect the
same of those that partner us.
At the heart of our strategy is a vision to make a sustainable
difference to the socioeconomic ecosystem within which we
operate. In this respect, the most important milestone during the
past year was the launch of ‘Abhimana’ throughout the Hemas
Group to encourage among our employees the sense of dignity
and pride that can only arise from a life responsibly lived. As I
told my colleagues then, ‘Abhimana’ now becomes the core of
everything we do, be it new product development or the creation
of new processes, or the way we treat each other and those
around us. It is an extension of the values upon which Hemas was
founded, and encapsulates the very essence of the contents of our
Sustainability Policies.
Building on the foundation of Abhimana, over the next few years
we will focus on measuring and evaluating our sustainability
footprint; we have identified the issues that are most material
to our business and the sustainability criteria therein will be
incorporated into our performance management system over the
next financial year, creating a platform that keeps sustainability at
the top of the agenda.
As we seek to grow our businesses and improve the products and
services we provide to our customers island wide we will do so in
a manner that will include responsible consumption of depleting
resources; protection of the environment; an increased awareness
of social impact and the infusion of innovation into our business.
We are investing substantial resources in to how we manage
each of these aspects. Managing these priorities will enable us to
respond meaningfully to the sweeping global challenges that will
undeniably impact our company and our economy in the medium
term, from the shift of wealth from the West to East to the rapid
demographic changes such as urbanisation, growing wealth,
changing disease patterns and ageing populations; climate change
and pervasive digitization.
We hope this report enables you to gain some insight into our
sustainability journey thus far and the broad strategy we have
for the future. We are the first to recognise we are not perfect
and the path ahead must be one of continuous improvement
and committed effort, and in this endeavour, Hemas will always
be guided by its vision “to be the best at Enriching Lives”.
Steven Enderby
Group Chief Executive Officer
20th
July 2015

12
The Enriching Lives Plan: Our Sustainability
Vision and Framework
At Hemas, it has been a long held belief that creating sustainable
value to all our stakeholders is the only way to achieve long-lasting
business success; ‘Enriching Lives’ has been a corporate ethos
from our very inception and is today, the foundation of everything
we do. Our sustainability philosophy is thus based on the overall
impact of our organisation’s operations on the triple bottom line
of Environment, Social, and Economic factors.
The Hemas Group’s Sustainability Approach has been a value-
driven one, as shown in the diagram below:
Sustainability Approach
Corporate
Values
Defining the
role
the company
wants to play in
society
Quality of
values
Communicating
values
Sustainability
strategy
HOLISTIC CORPORATE ACCOUNTABILITY - PROCESS FOR A SUSTAINABLE & RESPONSIBLE BUSINESS
Stakeholder
Engagement
How the
company sets
about defining
and engaging
with its
stakeholders
Identifying
stakeholders
Engaging in
dialogue
Responding to
stakeholder
feedback
Identifying
Impacts, Risks
& Opportunities
The depth of
analysis of the
risks and
opportunities
faced by the
company
Identifying
impacts
Identifying risks
and opportunities
Addressing risks
and opportunities
Policy
Coverage
Establishes its
commitment
and
intent regarding
implementing
accountability
Environmental
Workplace
Human Rights
Social
Communicating
policies
Management
&
Governance
Accountability
Incorporated
with
management
and good
governance
Certified
management
systems
Commitment to
external charters
Core governance
procedures
Sustainability
governance
procedures
Measurement
&
Disclosure
Tracking
performance
and keeping
stakeholders
informed
Measuring
sustainability
performance
Global standards
of reporting
External
assurance
This approach has been in practice within the Group for
a number of years, as we pursued the goal of becoming a
sustainable and responsible business by building upon the core
values upheld by our founders. In June 2014, it was formalised
with the launch of ‘Abhimana’, an initiative that seeks to
incorporate good governance and responsibility into every action,
taking Corporate Responsibility to the next level, beyond the
standard theoretical guidelines and policies towards a lifestyle,
lived and practiced every day and constantly inculcated through
learning, sharing, collaborating and reinforcing.
Abhimana, a Sanskrit word for ‘pride’, was designed to be a
reminder of the dignity and pride of a life responsibly lived; the
logo is a word cloud (as seen on the cover of this report), which
personifies the simple values in life that are taken for granted
and serves as a reminder that if one steadfastly lives by these
GRI Index 64
Group Directory 67
Notes 70

13
values, the sustainability of any organisation is guaranteed.
Every employee and stakeholder is encouraged to take ownership
of Abhimana, and contribute new ideas and creativity to
make a unique environment of practically applied corporate
responsibility that ensures that Hemas and its stakeholders always
do the right thing.
The pride we thus aim to generate via a culture of responsibility,
manifests itself in –
Employees: Proud to work for Hemas
Partners and Stakeholders: Proud to be with Hemas
Communities: Proud to host Hemas
Consumers: Proud to use Hemas products & services
Creating awareness about Abhimana
The launch of Abhimana was followed by a number of activities
and activations among employees across the Group to create
awareness and appreciation of its underlying principles. 2200
employees were educated through Abhimana workshops, which
reached every person working for the ‘Hemas’ brand, including
part time and contract personnel as well as outsourced staff.
Activations included events to celebrate diversity and the group
wellness initiative launched by Hemas Hospitals (details on page
41).
Abhimana Champions have been appointed at each of the
Group’s locations of operation, with responsibility to drive
Abhimana initiatives; the structure of the working committee,
made up entirely of volunteers, is as shown below:
Head Office
Team:
3-4
volunteers
Hemas
Holdings PLC
Champion
Logistics
Welisara
Team: 4-5
volunteers
Fort Team:
3-4 volunteers
Transportation
Champion
Hendala
Team: 4-5
volunteers
Colpetty
Team:
3-4 volunteers
Pharmaceuticals
Champion
Galle Team:
4-5 volunteers
Thalwathugoda
Team:
4-5
volunteers
Wattala
Team:
4-5 volunteers
Hospitals
Champion
Head Office
Team:
3-4 volunteers
Dankotuwa
Team:
4-5volunteers
Welisara
Team:
4-5volunteers
FMCG
Champion
Kelaniya
Team:
4-5 volunteers
Modara
Team:
4-5 volunteers
JLM
Champion
Head Office
Team:
4-5
volunteers
DTSL
Champion
Head Office
Team:
4-5 volunteers
N*able
Champion
Group Sustainability Team
Abhimana Working Committee
Handing over the Abhimana pledge to Group CEO

14
Abhimana Champions
An employee signing the Abhimana pledge
Kalumukalana forest conservation project at Dankotuwa
Annual community medical camp by J. L. Morison
GRI Index 64
Group Directory 67
Notes 70
The Enriching Lives Plan: Our Sustainability Vision and Framework

15
Values
Results in
Strategic
community
investment/
philanthropy
Integrated
approach
Abhimana
Corporate sustainability
Piyawara programme
Sustainable communities
Integrated sustainability management approach driven centrally by the Group
Central
sustainability
team
Stakeholder
feedback
Policies
and guideline
Central
monitoring
system
Periodic
reporting by
sectors
Performance
analysis
to identify
areas for
improvement
Sustainability
performance
tied to
individual
KPIs
Public
disclosure to
stakeholders
Managing Sustainability through Abhimana
The launch of Abhimana propelled Hemas to a new stage in
its sustainability evolution, where the goal of ‘Enriching Lives’
becomes formally entrenched in the performance narrative of the
Group.
The Abhimana values drive the Hemas Group’s integrated
sustainability management approach; the approach consists of
eight strategic elements which together contribute towards our
corporate sustainability, as shown in the diagram below:
In 2014/15, the Group identified 18 key social, environment and
economic impacts relevant to the entire Group (material issues on
page 16), and established goals that relate to each of the impacts.
Over the 2015/16 financial year, scorecards will be implemented
Group-wide to monitor and measure progress towards managing
the impacts and achieving the set goals. The scorecard will be
analysed on a monthly basis; with plans and strategies altered or
modified wherever relevant, ensuring that the Group adapts to
changes in its internal and external environments.
With the aim of becoming a more responsible corporate with a
stronger outlook on sustainability, the goals will be linked to the
performance of each Business Unit with the respective Sector/
Business Head held accountable for their progress, thereby
entrenching the ‘Enriching Lives Plan’ in the management
agenda.
Picture
An employee promoting Health & Safety at the workplace

16
Identifying and Engaging Our Stakeholders
Defining the key stakeholder groups for a diversified holding
company such as ours has been a complex process. Over the
years, the group’s Sustainability Team has worked with the
Senior Management Teams of our businesses to identify the
stakeholders considered important by each business and sector.
These stakeholders could broadly be categorised as those who can
potentially influence our businesses; those who may be affected by
our businesses and those who bear legal, operational and financial
responsibilities towards our businesses.
These stakeholders were thereafter grouped and rated, based on
their overall degree of influence & importance on the business as
a whole. The key stakeholder groups thus identified were:
Investors
Employees
Customers
Suppliers & Business Partners
The Community
The Environment
The Hemas corporate sustainability strategy and initiatives
revolve around minimising our impact on these stakeholder
groups, and are designed to create value for them wherever
possible.
We engage with these stakeholders through multiple channels,
including formal stakeholder engagement exercises carried out
through our external partner Sting Consultants. The feedback
thus obtained is prioritised according to relevance and potential
impact: our strategic planning process ensures that we respond
to the valid needs and concerns of our stakeholders while swift
action is taken where corrective measures are deemed necessary.
The chart below depicts the channels we employ to proactively
engage with our key stakeholder group, as well as the topics
and concerns we address through our stakeholder engagement
mechanisms:
STAKEHOLDER ENGAGEMENT
Customers Our businesses work with a cross section of customers from both
the individual and B2B segments
Reasons for Engagement To understand customer needs better
To gauge product and service quality
To innovate and improve our products and services
Methods of Engagement Customer satisfaction surveys (ongoing) and Annual Engagement Survey
One on one interaction through customer meetings/progress reviews/visits (ongoing)
Customer complaint hotlines/social media/marketing communication (ongoing)
Industry exhibitions and trade fairs (ongoing)
Our Commitments Product and service quality, affordability, and safety
Environmental and social responsibility
Distribution efficiency
Employees The employees we engage belong to both the executive and non-
executive cadre and at times, also includes those provided to us by
manpower agencies
Reasons for Engagement To ensure we provide engaging and inspiring work and a safe workplace
To create awareness of group strategy, key events, and sustainability
To ensure that we remain a preferred employer
Methods of Engagement Weekly and monthly management meetings, emails and newsletters
Joint Consultative Committees (ongoing)
Performance reviews (bi-annual)
Employee Engagement Survey (annual)
Team building activities including get-togethers, sports tournaments, talent shows and CSR events (annual)
Our Commitments Open door policy and transparency
Training and career development through strategic talent management
Occupational Health and Safety
GRI Index 64
Group Directory 67
Notes 70

17
Suppliers and
Partners
The partners our businesses work with include principals, agents and
suppliers both in Sri Lanka and overseas
Reasons for Engagement To ensure efficiency of the supply chain
To understand the needs/concerns arising out of business relationships
To share best practices
Methods of Engagement Regular meetings, reviews and forums (ongoing)
Annual registration and procurement committee meetings (annual/quarterly)
Industry exhibitions, road shows and trade fairs (ongoing)
Emails, reports and other publications, website (ongoing)
Our Commitments Meeting contractual obligations
Technical assistance and knowledge transfer
Building long-term partnerships
Investors The investor stakeholder group includes the institutional and
individual shareholders as well as the investor community
consisting of analysts, fund managers and lending agencies
Reasons for Engagement To provide performance information in a timely and relevant manner
To share vision and strategy, and to demonstrate potential
To understand needs and concerns of investor community
Methods of Engagement Annual General Meeting/EGMs
Roadshows, Investor forums and presentations (annual)
Annual report, quarterly reports, CSE disclosures, media releases
Website, emails, telephone (ongoing)
Our Commitments Increasing shareholder returns
Generate lasting economic value
Good governance and transparency
Community Our businesses work closely with the communities in the vicinity of
their operations while at Group level, we undertake a nationwide
flagship community development initiative
Reasons for Engagement To create positive partnerships that accelerate social development
To ensure minimal impact on shared resources
To facilitate pre-school education in marginalised communities
Methods of Engagement Sourcing from suppliers within the local community (ongoing)
Employees recruited from the local vicinity (ongoing)
Community forums and awareness programmes (ongoing)
Regular meetings with local authorities and community leaders (ongoing)
Parent /teacher meetings at Piyawara Pre-schools (monthly)
Our Commitments Extending opportunities that create positive socioeconomic impacts
Development of local economy through local hiring and local sourcing
Responsible utilisation of shared resources
Increasing future national competitiveness through early childhood care and development

18
Government and
Regulators
This group includes ministries, government departments and
institutions as well as local authorities and legal/regulatory
bodies
Reasons for Engagement To demonstrate compliance and create awareness
To contribute to dialogue on policy
To identify needs of local communities
Methods of Engagement Statutory reporting, and correspondence (Monthly/quarterly/annually)
Participation in chambers and industry associations (ongoing)
Meetings, forums, presentations (ongoing)
Our Commitments Ensure compliance with legal and regulatory requirements
Responsible corporate citizenship
Positive contribution to national and local economy
Public-private partnerships to execute community projects
Hemas Enriching Lives Plan
Supply chain
Community
Goals
Indicators
Achieving Abhimana Principles
Identification of key risk
areas
Identification of key impact
areas
During the year under review, the Hemas Group undertook
an externally moderated exercise to identify the issues that are
material to the organisation.
The exercise involved internal teams preparing comprehensive
lists of economic, environmental and social risks potentially
impacting their businesses. These risks were then rated on their
impact to the organisation and stakeholder, and their likelihood
of occurrence.
Identifying and Engaging our Stakeholders
Identifying Material Aspects
Impacton
organisation
Impacton
Stakeholder
Aspect
Boundary
Labour rights of outsourced/
contract workers
Occupational health and safety
(including of outsourced/ contract
workers)
Customer health and safety (product
safety)
Training and skills development
Diversity
Local hiring
Local sourcing
Employment creation – vulnerable
groups
Advertising and Promotion –
stereotyping and responsible message
Bribery and corruption
Energy use
Water use
Waste management (operations and
product/ packaging waste)
Environmental accidents
Compliance
Stakeholder engagement
Supply chain responsibility – labour
practices, human rights, environment
Community impacts – economic,
social, environmental
Goals and indicator scorecards in respect of each of these
priorities have been prepared and will be implemented group-
wide during the 2nd quarter of 2015/16.
High Medium Low Internal External
GRI Index 64
Group Directory 67
Notes 70

19
Hemas Hospital staff at the Abhimana launch
Employees creating awareness on Abhimana values
‘Athwela’ - FMCG Abhimana initiative
Community engagement through the drought relief programme in Polonnauwa

20
STAKEHOLDER
PERFORMANCE
GRI Index 64
Group Directory 67
Notes 70

21
Rs. 38 Bn
MARKET
CAPITALISATION
Rs. 32 Bn
REVENUE
65 YEARS
IN BUSINESS
LEGACY OF OVER
Rs. 34.4 Bn
TOTAL ASSETS
The Winner
of Top Community Care
Company in Asia 2014
TOTAL
EMPLOYEES
4,332

22
Economic Value Creation
Economic Value Creation 22
GRI Index 64
Group Directory 67
Notes 70

23
Group Value Addition and Distribution from Continuing Operations
For the year ended 31 March FMCG Healthcare Leisure Transportation Others* Group
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
(Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000) (Rs. ‘000)
Value Generated
Revenue 11,895,065 9,544,591 13,920,681 12,064,199 3,024,409 2,678,665 1,517,730 1,307,733 2,139,068 1,664,093 32,496,953 27,259,281
Share of result of joint
ventures/associates - - - - 24,519 54,954 110,264 (39,397) - - 134,783 15,557
Other investment income 40,334 58,561 8,806 15,794 9,628 9,153 27,850 35,800 96,804 107,616 183,422 226,924
Profit on sale of assets &
other income 125,207 38,789 52,259 75,166 54,960 73,429 10,810 58,068 21,428 389,022 264,665 634,474
Valuation gain from
investment properties - - - - - - - - 281,624 729,269 281,624 729,269
12,060,606 9,641,941 13,981,746 12,155,159 3,113,516 2,816,201 1,666,654 1,362,204 2,538,924 2,890,000 33,361,447 28,865,505
Value Distributed
Operating overheads 9,810,780 7,884,600 11,479,048 10,087,103 2,244,081 1,998,120 780,548 544,450 1,940,286 1,691,409 26,254,743 22,205,682
Employee wages & benefits 1,032,036 835,111 1,097,797 953,344 454,000 406,117 396,342 304,839 566,884 442,321 3,547,059 2,941,732
Payments to providers of funds 1,717 6,078 196,455 238,947 61,730 63,183 24,396 29,880 772,569 578,982 1,056,867 917,070
Payments to government 142,572 87,188 237,315 189,753 63,480 65,916 60,430 56,055 200,403 70,761 704,200 469,673
Community investments 2,808 1,289 885 2,101 166 2,890 485 202 702 470 5,047 6,951
10,989,913 8,814,266 13,011,500 11,471,247 2,823,457 2,536,226 1,262,201 935,426 3,480,844 2,783,943 31,567,916 26,541,108
Value Retained for Expansion
and Growth
Depreciation 157,033 115,448 275,607 243,607 163,783 131,120 72,839 51,318 131,745 119,042 801,007 660,535
Amortization 551 30,322 11,994 9,282 1,950 2,616 671 262 12,270 3,465 27,436 45,947
Profit after dividends 913,109 681,905 682,645 431,023 124,326 146,239 330,943 375,198 (1,085,935) (16,450) 965,088 1,617,915
1,070,693 827,675 970,246 683,912 290,059 279,975 404,453 426,778 (941,920) 106,057 1,793,531 2,324,397
* Inclusive of the following Companies: Hemas Holdings PLC, Vishwa BPO, N*able

24
Customers
Customers 24
GRI Index 64
Group Directory 67
Notes 70

25
As a company firmly rooted in ethics and integrity, Hemas
considers responsibility towards our customers paramount. The
diverse businesses within the Group cater to an equally diverse set
of clientele, ranging from consumers of affordable mass market
products, tourists seeking exotic experiences and patients looking
for dependable healthcare to companies seeking technology
solutions and B to B clientele looking for partners in the highly
competitive transportation industry.
The challenge for Hemas is catering to the wide and varied
needs and concerns of its multiple customer groups by providing
the highest quality products and services within the parameters
of responsibility, efficiency and health and safety. We have
instituted many initiatives across our sectors that promote product
responsibility and customer satisfaction, some of which are
described in the following pages.
Product Responsibility
Across the Group, product responsibility is given the highest
priority.
In our FMCG operations, health and safety take precedence from
the product design stage, ensuring compliance with stringent
cosmetics and drugs regulations. Material Safety Data Sheets
(MSDS) and Technical Data Sheet (TDS) are maintained for each
and every raw material that goes into our products, which are
manufactured under processes that are ISO 9001 and OHSAS
18001 certified. Dermatological tests are carried out on critical
products wherever necessary.
Hemas Pharmaceuticals extends its product responsibility from
the point of sourcing principals to the delivery to patient. Pharma
sources only from global pharmaceutical, surgical and diagnostic
companies, and represent only Principals and products of the
highest quality, safety and efficacy. Further we ensure that we
maintain the quality, safety and efficacy of the products we
handle throughout the value chain until it reaches the customers.

The Hotels Sector practices high standards of food safety,
including the close monitoring of cold room temperatures and
temperatures of served food items as well as ensuring the proper
packaging and storage of food. Every single employee that
handles food is also required to avail himself of twice-yearly
health checks.
Diethelm Travel conducts periodic inspections to ensure guest
health and safety; these include inspection of vehicles, safety
checks of hotels and excursion sites. They also ensure all vehicles
are properly insured and their drivers and guides have the
relevant licenses.
Hemas Travels (Pvt) Ltd., provide solutions for all travel and
related services under one roof. Our affiliations with global
partners enable us to offer superior products and services while
adopting global best practices in delivering the best solutions
to our customers. We deliver value at every step of the travel
programme applying our industry-leading insight and technology
to enable greater choice, security and endeavouring to reduce
costs without compromising our quality or level of service, whilst
remaining competitive.
Hemas Hospitals displayed its responsibility to deliver good
clinical care by reaching out to an external review system
through Australian Council Health Standards International and
successfully obtaining an International hospital accreditation in
2010. Hospital clinical laboratories are awarded with ISO 15189
standards and hospitals are certified with OHSAS ISO18001 for
occupational health and safety standards. The Hospital quality
management system ensures good clinical outcomes, responsible
waste management, energy conservation activities, safety of
patients, visitors and staff as well as a system for incident and
complaints management.
‘Patient First’ commitment at Hospitals
Operating a chain of hospitals located at Galle, Wattala and
Thalawathugoda allows us the unique opportunity of providing
affordable private sector healthcare services to patients outside
of Colombo city. During the year, all three hospitals unrolled
a “Patient First” programme to enhance customer service and
patient care. The positive response from patients and their
demand for enhanced services led to the Wattala hospital
expanding its ETU capacity and introducing a fertility centre
during the year. The hospital also expanded its surgical offering by
adding capabilities to carry out procedures such as Artharascopy,
ACL, Scooping and Bone graft, Osteo clurtoma Latral Fermoval,
KT, TURP and Cystoscopy. The Hemas Southern Hospital
in Galle expanded its wound care clinic and introduced
orthopaedic surgeries during the year. Hemas Capital Hospital
in Thalawathugoda offer a Home Care Service built around
patient comfort and convenience. The care system starts as soon

26
as patients dial the dedicated number. Certified health officers
who answer the call will access the requirements and dispatch the
relevant care team. Hemas home care service providers offer a
unique service aided by superior technology and an automated
process. The home care service offers Physiotherapy, Sample
collection and Out Patient (OPD) general.
The Hospitals also operate an outer lab chain consisting of
laboratories, collections centres and mini labs which provide
easily accessible laboratory, accurate testing for communities
in the vicinity of our hospitals. It has a proven track record of
over six years for strict adherence to international standards and
benchmarks. During the year, it has widened its spread steadily
and rapidly up to 34 branches with a strong presence in Western
province, Southern province, Central province, Uva province,
North Western province and North Central province.
Main Labs Hemas
Collection
Centres
Mini Labs
Wattala Akurana Nawalapitiya
Ragama Karapitiya Kuliyapitiya
Gampaha Ankumbura Welimada
Chilaw Ja-ela
Kurunagala Bandarawela
Warakapola Paragahadeniya
Badulla Wennappuwa
Kandy Kotahena
Tangalle Kaduwela
Avissawella Jayawardanapura
Anuradhapura Karapitiya
Ambalangoda
Galle
Norris Canal
Kalubowila
Thalawathugoda

Customers
Product Labelling
The products within our FMCG portfolio, 90% carry ingredient
labels while 100% carry the date of manufacture and expiry.
At J. L. Morison’s, 100% of Over-the-Counter (OTC) and
pharmaceutical products manufactured at our plant list the
Active Pharmaceutical Ingredients (APIs) on the label, carton and
product information leaflet.
The products distributed by Hemas Pharmaceuticals follow
strict labelling guidelines, and products carry a clear and
comprehensive label as well as manufacture and expiry
information. While some products don’t carry disposal
information on the label, it is mentioned on the information
leaflets which are included with the products. Further
manufacturers as well as regulators lay out guidelines for safe
disposal, which we strictly follow.
Measuring and Monitoring customer
satisfaction
Our businesses strive to understand and respond to customer
needs on a proactive, meaningful basis; the FMCG sector
undertakes engagement surveys from time to time to identify
needs and concerns of customers; furthermore, customers have
access to a consumer care hotline to address any concerns.
Picture
We have instituted many initiatives across our
sectors that promote product responsibility and
customer satisfaction...
Customers 24
GRI Index 64
Group Directory 67
Notes 70

27
JLM’s Over-the-Counter (OTC) category includes well known
pharmaceutical brands such as Morison’s Lacto Calamine,
Morison’s Gripe Mixture and Valmelix Cough Syrup. The
company conducts extensive consumer research for each of these
brands to understand the needs, perceptions and concerns of the
consumers. The methodologies used include qualitative research
through focus groups and quantitative research through surveys
island-wide. Additionally, JLM engaged with Key Opinion
Leaders (KOLs) in the segment, such as mid-wives, to understand
their concerns and opinions.
Group Hotels have installed a Guest Satisfaction Survey (GSS)
software to manage guests feedback; it works by sending guests
an email three days after their stay, to solicit an opinion of their
experience. A printed GSS is also provided in all rooms and the
information collected therein is analysed and reviewed, with
corrective action taken where relevant. The Hotels also closely
monitor online review sites such as Tripadvisor, to learn about
guest experiences and any concerns raised.
Diethelm Travel works with a network of agents/tour operators,
where client needs and concerns are directed to them and in
turn they quote for the products and services. Diethelm Travel’s
efforts in building an effective partnership with agents/tour
operators include familiarisation tours so they may experience the
accommodation, transportation and the destination as a whole.
Such tours provide an opportunity for agents/tour operators
to raise concerns and provide feedback on the quality of the
products and services they offer.
N*able works in close consultation with its customers; in fact,
monthly meetings to review customers complaints is a key
performance indicator for the company. For large projects, N*able
conducts weekly meetings with customers to mitigate the possible
escalation of issues. An annual customer satisfaction survey is
carried out and the information is reviewed with a view to taking
corrective action where required.
Hospitals use customer feedback surveys as a regular input for its
continuous improvement of services. Patient satisfaction index
and incident occurrence is used as clinical performance indicators
and incorporated as KPI’s of management team. To encourage
our consumers to share their feedback with us, the hospitals
conduct a raffle draw among those who submit their written
feedback.

28
Business Partnerships
Business Partnerships 28
GRI Index 64
Group Directory 67
Notes 70

29
Distributor
Sustainable business partnerships form an important element of
our responsible approach to business and are a driving force in
our success. As a conglomerate with diverse interests, our business
collaborations span the entire gamut from domestic suppliers of
goods and third party service providers to international principals
and joint venture partners.
Procurement Policy
All companies within the Hemas Group are governed by a Group
Procurement Policy, which has been in place since August 2013.
The policy sets out the guidelines and responsibilities of each
user department in ensuring the best interests of the Group are
maintained during procurement. Purchases of goods and services
above pre-determined limits also require the approval of the
Procurement Committee, a four member committee with senior
management representation.
Responsible Supply Chains
Our supply chains are as vast and diverse as our businesses; from
the farmer who sells his produce to our hotels to the large global
diagnostic equipment manufacturer who supplies cutting edge
equipment to our hospitals, we apply the same principles of
fairness and transparency in our dealings with them. In return,
we expect our suppliers to share in our philosophy of responsible
business, and high standards of ethics and integrity. The products,
services and raw materials we procure are subject to a stringent
screening and selection process in order to ensure that their
quality matches our expectations.
Our diverse businesses have very different characteristics and
accordingly, each entity’s supply chain is specifically adapted to
its features. We have outlined here a few examples of the types of
supply chains represented in some of our primary sectors.
FMCG
The Hemas FMCG sector’s supply chain vision envisages ‘reliable
supply with assured quality through efficient operations by great
people’. As a company that manufactures and distributes some of
the country’s favourite brands of personal care items, maintaining
an uninterrupted, quality-assured supply chain is critical to the
business.
Supplier
Material
Warehouse
Manufacturing
Finished goods warehouse
Retailer
Customer
Distribute
Local
Raw material
Raw material
International
Finished goods
Finished goods
Distributor
The FMCG sector has identified seven supply chain strategic
priorities, which it closely monitors and pursues through various
mechanisms. These are;
Ensure availability
Assure quality
Optimise cost and cash
Build capacity and capability
Protect people and environment
Grow organisational potential
Guarantee compliance

30
The supply chain at J. L. Morison is focused on adding value
in the process of moving products from suppliers to customers;
the company achieves this through efficient internal processes,
automation, firm relationships with suppliers, developing
the communication and distribution channels, and ensuring
compliance to offer customers a trusted product.
As a conglomerate with diverse interests, our
business collaborations span the entire gamut
from domestic suppliers of goods and third party
service providers to international principals and
joint venture partners.
PharmaciesSales
Distributors Goods Delivery
Principals
Private
Institutions
Warehouse
Credit
Principals
Government
Institutions
Collecting Dues
Supply of Finished Goods Inventory
Invoicing Goods
Generating
Demand
Obtaining
Orders
PharmaCeuticals
Hemas Pharmaceuticals, which imports and distributes
pharmaceutical products from principals, illustrates its supply
chain as shown below:
Transportation
The transportation sector and its service-based operations involve
a different nature of supply chain management. The sector’s
approach is to work cohesively and safely when offering the use
of its services to its clients and to influence wherever possible
to promote good practice and raise awareness, not only among
suppliers and their employees but also others along its value chain.
The sector’s customers include multinational shipping lines,
importers, exporters, manufacturing organisations, freight
forwarding entities and local industries, all requiring efficiency
in terms of cost and reliable logistics services. Hemas’ approach
to logistics is a process driven approach with efficient resource
utilisation and priority given to the health and safety of
stakeholders. The sector’s supply chain includes many third
GRI Index 64
Group Directory 67
Notes 70

31
party vendors including customs house agents, trucking partners,
project consultants, manpower agents, component suppliers and
others. A careful screening and selection process ensures the
competence and compliance of the vendors in terms of capability
and health and safety.
Internally, the Business Development Team and Operations Team
ensure the optimisation of the supply chain activities by working
together in partnership with external parties to make a positive
impact on the economy.
As intermediaries between customers and tourism service
providers, Hemas Travels brings together a variety of travel
related services to form a complete holiday or business package,
which is then marketed directly to customers. They book flights,
cruises, rental cars, hotels and tour packages which are provided
by a supply chain of subcontracted companies
Leisure
An example of leisure sector supply chain management comes
from Diethelm Travel Sri Lanka (DTSL), which serves as a
Destination Management Company (DMC) that plays the role
of an intermediary between agents/tour operators and suppliers.
DTSL operation involves responding to client requests by liaising
with suppliers to provide them the requested products and
services. This in turn is sold by Diethelm Travel’s agents/tour
operators to their respective clients.
The multiple suppliers within the Diethelm supply chain
provide various elements of tourism products. These include
accommodation providers like hotels, apartments and camp
sites, transport providers like domestic/international airlines,
various vehicles such as coaches, micro vans, mini vans, cars and
if needed public transport including three-wheelers. DTSL also
provide guide services including site guides, national guides and
chauffeur guides. Finally their product range also include safari
jeep operators, shopping and restaurants as well as visa services
through the embassies.
Traveller Agent
Tour
operator
Hotel
Excursions
Transfers
Local purchasing
Companies across the Hemas Group prioritise local purchasing
(purchased from vendors in Sri Lanka) wherever our business
model permits. With the exception of our Pharma unit, which
serves as a local distributor of pharmaceutical products procured
overseas, group companies have spent the following percentages
of their procurement budgets on locally sourced goods and
services during the year:
FMCG 35%
Pharmaceuticals 1%
Hotels 39%
N*able 40%
Hospitals 99%
Diethelm Travels 99%
Hemas Holdings 95%

32
It must be noted that our hotels have established strong
relationships with suppliers in the vicinity of their operations
for the procurement of their fresh food supplies. Of the hotels,
Hotel Sigiriya purchases 17% of its products and services locally,
while at AVANI Bentota this figure amounts to 26% and 40% at
AVANI Kalutara while 74% of Club Hotel Dolphin’s vegetables,
fruit and meat requirement is purchased locally.
The hotels place high emphasis on maintaining and managing
positive relationships with suppliers, and conduct regular supplier
engagements to ensure the optimisation of the procurement
process as well as to address concerns. Among the long term
Growing with Dolphin
13 years ago, young Nalin Danushka began patrolling
the beaches outside Club Hotel Dolphin, selling his
wares, including arts, crafts and sarees, to guests of
the Hotel. Over the years, his business has expanded
from a small shop on the beach to a store named ASDA
today.
Now 31, Nalin’s business has diversified to include
gems and jewellery, and he now provides employment
to five others from the vicinity. Displaying a strong
spirit of entrepreneurship, Nalin has also ventured
into organizing tours for guests by boat, tuk tuk taxi
and semi luxury vans.
Today, Nalin is a key figure of the Kammala
community, taking the lead in many of the social and
religious events in the neighbourhood. His success is
inextricably linked to Club Hotel Dolphin, and stories
such as his are a source of much pride to Hemas.
Picture
Mr. Nalin Danushka at his store in Waikkal
suppliers to the hotels are U.R Wijeratne and Narada of
Dambulla, who for over ten years have supplied Hotel Sigiriya
with vegetables and fruit respectively. Similarly, AVANI Bentota
and AVANI Kalutara have established long term relationships
with their fresh fish and meat suppliers. Club Hotel Dolphin
is a good example of a community economy built around the
hotel; the neighbouring community operates boutiques, transport
services and tour services that cater to the hotel’s guests. Many
of these individuals have grown with the hotel, and it has been
heartening to note the upliftment of their quality of life and their
ability to strengthen their local economies by generating more
employment opportunities (See boxed story).
Our partnerships with global entities
demonstrate the Hemas Group’s capability of
building businesses with large players, wining
their respect and collaboration.
GRI Index 64
Group Directory 67
Notes 70

33
Sharing best practices
While driving efficient resource utilisation within the supply
chain, all our companies are encouraged to share best practices
and know-how to help build capacities and promote sustainable
business among suppliers, especially SME and Micro businesses.
For example, the Hemas Transportation sector works cohesively
to raise awareness and influence health and safety practices not
only among its suppliers and their employees but also others
along the value chain. Health and safety briefings always take
precedence prior to the sector’s operations with 3rd party vendors
while the business development teams prioritise health and safety
concerns when planning operations and logistics solutions.
Similarly, Hemas Pharmaceuticals supports the pharmacies
within its partner network by educating owners and employees on
the guidelines to be followed such as proper storage and handling
of products and expired items. Further the company conducts a
programme for pharmacy owners and employees on how to run a
pharmacy efficiently.
The FMCG sector works in partnership with its local suppliers
in its drive to introduce innovation throughout the supply chain;
from the small suppliers from remote villages who provide the
herbs used in our hair oils to the commercial packaging suppliers
we work with, we believe that there is much to be learnt from
mutual experiences.
Knowledge transfer through
collaboration
Our partnerships with global entities demonstrate the Hemas
Group’s capability of building businesses with large players,
winning their respect and collaboration. One of the finest
examples of this is the partnership between our leisure company
Serendib Hotels PLC and the Minor Hotel Group, which
operates over 120 hotels across the world with an inventory of
over 16000 rooms. Our hotels use the best practices and standards
of Minor Hotels and selected members of our team are provided
opportunities to train within the Minor network.

34
Hemas Pharmaceuticals
J. L. Morison Son and Jones
As Sri Lanka’s Pharmaceuticals market
leader with a heritage of six decades, Hemas
prides itself on being one of the most
streamlined and modernized organisations
in the nation’s pharmaceutical industry, with
advanced sales and distribution operations.
The operations are engineered to be ultra-
efficient in delivering business partners
with timely solutions in order to provide Sri
Lankans with the world’s most trusted brands
of pharmaceutical, surgical and diagnostic
products
J. L. Morison Son & Jones (Ceylon) PLC
(JLM) is a fully Sri Lankan owned company
with seven decades of experience in the
country. JLM aims to offer wellness and a
better quality of life to Sri Lankans through
the provision of trusted pharmaceutical and
OTC products that are efficacious and of
high quality at an affordable cost. As one
of the oldest and largest pharmaceutical
manufacturers in Sri Lanka, JLM takes pride
in providing for the healthcare needs of the
private and public sector.
In addition to manufacturing high quality
pharmaceutical and OTC products, JLM
also imports and distributes internationally
renowned healthcare, consumer and agro
brands via an island-wide distribution
network.
GRI Index 64
Group Directory 67
Notes 70

35
Diethelm Travels Sri Lanka
N*able
N*able is in the business of connecting: from
the network level to the application level. With
the internet of things shaping everyday lives
by providing intelligent solutions to make
life better, the company considers its role
an important cog in shaping a connected,
intelligent and efficient future. In doing so,
N*able works with global partners who are
leaders in building platforms for effective
business.
Diethelm Travel Sri Lanka is one of the
leading Destination Management Companies
in Sri Lanka with over 38 years of experience.
We are committed in providing quality and
customized Sri Lanka travel experiences for
individual travellers and groups. The company
strives to look for new ways of improving its
offering while remaining committed to cater to
evolving needs and expectations of customers
and partners ranging from Asia to Europe. To
achieve its ambitions, Diethelm works with a
solid network of business partners.

36
Employees
Employees 36
GRI Index 64
Group Directory 67
Notes 70

37
The Hemas culture places utmost importance on our employees.
It is imperative to our journey that we build a team of talent that
has the right combination of skills, attitude and fulfilment in order
to drive the company’s future aspirations.
The human resource management strategies in place are thus
geared to ensure that the right people are recruited; that they are
well trained and their skills developed; that they are rewarded and
recognised for their contributions; that their rights are protected
and that ultimately, they thrive at Hemas.
Total number of employees by Employment Grade
Staff FMCG Healthcare Leisure Transportation Other Hemas Group
Grade M F T M F T M F T M F T M F T M F T
Grade 1 294 22 316 871 664 1,535 703 55 758 298 4 302 21 9 30 2,187 754 2,941
Grade 2 40 16 56 117 273 390 54 29 83 27 55 82 38 20 58 276 393 669
Grade 3 21 5 26 15 30 45 17 9 26 25 36 61 21 11 32 99 91 190
Grade 4 26 14 40 42 12 54 18 7 25 14 11 25 21 9 30 121 53 174
Grade 5 22 5 27 84 4 88 28 4 32 10 4 14 31 12 43 175 29 204
Grade 6 7 6 13 6 1 7 8 2 10 6 1 7 13 3 16 40 13 53
Grade 7 8 2 10 6 6 12 3 1 4 3 2 5 5 5 10 25 16 41
Grade 8 2 1 3 6 0 6 5 2 7 4 0 4 4 1 5 21 4 25
Grade 9 5 1 6 3 3 6 5 0 5 3 2 5 4 0 4 20 6 26
Grade 10 0 1 0 1 0 0 0 0 0 0 1 0 1 2 0 2
Grade 11 1 0 1 1 0 1 1 0 1 0 1 1 0 0 0 3 1 4
Grade 12 0 0 0 0 0 0 0 0 0 0 0 0 2 0 2 2 0 2
Grade 13 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1
Total No of
employees
426 72 498 1,152 993 2,145 842 109 951 390 116 506 162 70 232 2,972 1,360 4,332
Total number of employees
FMCG Healthcare Leisure Transportation Other Hemas Group
M F T M F T M F T M F T M F T M F T
i) Total no. of permanent
employees
422 71 493 1,103 867 1,970 556 65 621 213 114 327 153 61 214 2,447 1,178 3,625
ii) Total no. of employees
on contract
4 1 5 49 126 175 288 42 330 177 2 179 9 9 18 527 180 707
Total no. of employees 426 72 498 1,152 993 2,145 844 107 951 390 116 506 162 70 232 2,974 1,358 4,332
Total no. of personnel from
manpower agencies
331 154 485 16 9 25 14 2 16 0 0 0 0 0 0 361 165 526
Total Cadre of Hemas Group, by Gender
0 500 1,000 1,500 2,000 2,50005001,0001,5002,0002,500
Total no. of
permanent employees
Total no. of
employees on contract
Total no. of manpower
agency personnel
Male Female
FMCG
Healthcare
Leisure
Transportation
Other
no.
Total Number of Employees,
by Gender - (Hemas Group)*
68.65%
31.35%
Male
Female
* Number excludes manpower agency personnel

38
Resignations 2014/15 by sector
0 100 200 300 400 5000100200300400500
20-30 yrs
31-40 yrs
41-50 yrs
50+
Male Female
FMCG
Healthcare
Leisure
Transportation
Other
20-30 years
31-40 years
41-50 years
50+ years
66.67%
20.64%
7.15%
5.54%
Resignations 2014/15
(Hemas Group)
Employees
Total Cadre by Age Group
20-30 yrs 433 175 608 477 620 1,097 340 47 387 155 57 212 45 25 70 1,450 924 2,374
31-40 yrs 221 36 257 421 231 652 247 29 276 168 36 204 81 27 108 1,138 359 1,497
41-50 yrs 89 12 101 183 94 277 201 27 228 45 15 60 28 12 40 546 160 706
50+ 14 3 17 87 57 144 70 6 76 22 8 30 8 6 14 201 80 281
Total 757 226 983 1,168 1,002 2,170 858 109 967 390 116 506 162 70 232 3,335 1,523 4,858
Total Cadre by Age Group & Gender
0 300 600 900 1,200 1,50003006009001,2001,500
20-30 yrs
31-40 yrs
41-50 yrs
50+
Male Female
FMCG
Healthcare
Leisure
Transportation
Other
no.
Total Cadre by Age Group -
(Hemas Group)
20-30 years
31-40 years
41-50 years
50+ years
48.86%
30.81%
14.53%
5.8%
Attrition 2014/15
New hires 2014/15 by sector
0 100 200 300 400 5000100200300400500
20-30 yrs
31-40 yrs
41-50 yrs
50+
Male Female
FMCG
Healthcare
Leisure
Transportation
Other
no.
20-30 years
31-40 years
41-50 years
50+ years
68.70%
22.70%
6.50%
2.10%
New hires 2014/15
(Hemas Group)
We practice a zero-tolerance approach to any
form of discrimination based on gender, ethnicity,
religion, age, sexual preference or disability.
Employees 36
GRI Index 64
Group Directory 67
Notes 70

39
Resignations
20-30 yrs 28 6 34 116 205 321 91 22 113 161 13 174 15 5 20 411 251 662
31-40 yrs 17 8 25 77 9 86 53 10 63 17 4 21 9 1 10 173 32 205
41-50 yrs 5 5 10 25 8 33 19 1 20 6 0 6 0 2 2 55 16 71
50+ 3 1 4 21 16 37 7 1 8 2 0 2 2 2 4 35 20 55
Total 53 20 73 239 238 477 170 34 204 186 17 203 26 10 36 674 319 993
The Hemas Way
Employees of Hemas are governed by an employee code of
conduct named the “Hemas Way”, which provides direction
as to the personal commitments expected of an employee. The
Hemas Way is the basis upon which day to day business must be
conducted and sets forth the expectations of employees when
dealing with the company, customers, suppliers, colleagues,
competitors and the broader community. It is designed to ensure
that each employee lives by the Hemas Values by upholding the
highest levels of business ethics and personal integrity.
Each employee is expected to declare his commitment to the
Hemas Way and their compliance with all policies and guidelines
that are in force within the Group, including policies such as
the Sexual Harassment Policy, Media Policy, IT Policy, Whistle
Blowing Policy, Workplace Policy, Human Rights Policy, Social
Responsibility Policy, Sustainability Policy and Environment
Policy.
How we manage Human Resources
Human Resource management takes place centrally at the
Holding Company level and at Strategic Business Unit (SBU)
level with policy, guidelines and process formulation focussed at
the centre and their operational implementation and adoption by
employees effected at SBU level.
Group HR, headed by a Human Resource Director, takes the
lead in shaping Group HR strategy in line with the Hemas
Vision. The strategy is then cascaded to SBU level, where HR
is managed with a high degree of independence under the
supervision of the respective Managing Directors and HR Heads,
who hold joint responsibility.
Hemas Talent
Management
Energize &
Engage
Nurture
Leadership
Within
Simplify &
Add Value
Attract the
Best
ENHANCED
CAPABILITY OF HR
TEAM
HR SAVVY
LEADERS
LEADERSHIP &
TALENT DRIVEN
CULTURE
A six year HR Strategy is in place for the period 2014-2020 in
pursuit of our goal of being among the top ten most sought
after employers in Sri Lanka, in line with the HR Vision “To be
respected as the employer of choice in Sri Lanka”.
As depicted above, the Talent Management Strategy addresses
the four pillars of HR excellence – energise and engage
employees with the vision; attract the best by building the Hemas
brand among potential job seekers through smart recruitment
strategies; nurture leadership within through deliberate efforts to
develop a pipeline of future leaders; and simplify and add value
through better processes. The Group has identified three aspects
that are pre-requisites if we are to implement the four pillars –
these are the enhanced capability of the HR team; HR savvy
leaders at SBU level, and a leadership and talent driven culture.
New Hires
20-30 yrs 40 7 47 192 303 495 99 22 121 93 16 109 13 9 31 437 357 803
31-40 yrs 8 1 9 83 52 135 52 4 56 48 4 52 1 2 13 192 63 265
41-50 yrs 3 0 3 14 16 30 16 2 18 20 3 23 1 0 2 54 21 76
50+ 0 0 0 8 8 16 5 0 5 4 0 4 0 0 0 17 8 25
Total 51 8 59 297 379 676 172 28 200 165 23 188 15 11 46 700 449 1,169
Talent Management Strategy

40
Diversity and Equal Opportunity
While Hemas is conscious about promoting diversity in our
workforce, our recruitments are based strictly on merit, with no
deliberate selection based on diversity criteria. Within Hemas, we
practice a zero-tolerance approach to any form of discrimination
based on gender, ethnicity, religion, age, sexual preference or
disability. Notably, there is no discrepancy in the basic salary and
remuneration offered to men and women; salaries and packages
are determined according to the existing salary bands for each
grade of employment and are offered to new recruits on merit
and to existing employees on performance.
Recruitment and Selection
Recruitment and selection is based on a person’s suitability
for the role conceived both in terms of knowledge, skills and
experience, and their fit with the role requirement and Hemas
culture. The recruitment process has been an early adopter of
innovative techniques of attracting the right talent, especially
in addressing the Millennial Generation. Recent recruitment
strategies have included gamification of the application process
for the management trainee programme. The Group has also
sought the infusion of digitally-savvy young blood by recruiting a
group of ‘Digital Innovators’ who are charged with permeating a
5%
5%
1%
89%
Diversity at Hemas
(Hemas Group staff breakdown by race)
Sinhala
Tamil
Muslim
Others
digitally-ready culture and leading transformational IT initiatives
across the Group. The exciting selection process for the ‘Digital
Innovator’ involved the prospective candidates solving business
problems online.
Training and Development
Training and development is a vital aspect of human resource
management at Hemas and is undertaken at both SBU level and
at Group level. The selection of training courses is influenced by
the performance appraisal system which enables SBUs to identify
skill gaps that need addressing. Respective SBUs implement
training calendars that include both technical competency
building and soft skills development programmes. The training
programmes thus cover aspects such as personal effectiveness,
emotional intelligence and mindfulness as well as health and
safety in addition to imparting the skills necessary to perform the
work roles effectively.
At Group level, we have established the Hemas Academy, which
implements the management development programmes for
high performers across the group, creating a critical leadership
pipeline. Furthermore, the company extends financial assistance
to employees pursuing advanced academic and professional
studies.
Employees on an Outbound Training programme
At Hemas, we understand that listening to our
employees and responding to their concerns
helps us to create high performance teams.
Employees 36
GRI Index 64
Group Directory 67
Notes 70
Employees

41
Given below are the total training hours at each sector for the
year ended 31st
March 2015 –
Sector Training Hours
FMCG 12,252
Healthcare 21,151
Leisure 19,705
Transportation 6,608
Other 7,697
Total for Group 67,413
Performance Management
100% of our confirmed employees receive performance and
career development reviews twice a year, with a mid-year review
taking place in September each year followed by an year end
review at the end of our financial year. It is compulsory that
all members of the cadre who are in confirmed employment
participate in the performance review process, with final feedback
conducted between the employee and his/her supervisor in the
presence of a neutral party.
The year-end appraisal results in employees being issued a
ranking based on their performance against set objectives, as
well as in a career discussion and a goal setting exercise for the
following year. A system of forced ranking has been in place since
2005 for all employees above Junior Executive grade; greater
transparency is brought to the proceedings through the entire
leadership team of Hemas participating in the rankings and
careers discussions in order to reach a collective, fair decision.
Succession Planning
A formal succession planning model is in place within the
company, and has been applied at Business Head level at all units.
Two to three personnel have been identified at each business to be
groomed to take on the role of Business Head in future. Over the
next few years, the succession chain will be extended lower within
each SBU.
The Group is also working towards building a leadership pipeline
at middle management level through a programme that seeks
to equip future leaders with leadership competencies through
training and knowledge enhancement as well as mentoring. It is
envisaged that the programme will be launched in the near future
in affiliation with a foreign resource to manage the programme.
Employee engagement
At Hemas, we understand that listening to our employees and
responding to their concerns helps us to create high performance
teams. Engagement and talent management are considered the
top-most priorities at SBU level, and are always at the top of the
agenda during business head’s meetings with the CEO. Thus we
pursue formal and informal engagement mechanisms in order to
ensure we respond swiftly to employee concerns.
Most recently, a comprehensive employee engagement survey
was conducted in June and July 2014 by global human resources
consultants AON Hewitt, covering the entire Group cadre other
than those on hotel floors. This included focus group meetings to
address the issues raised and to unearth the underlying concerns.
Results of this engagement exercise were published in September
2014.
Collective Bargaining
At Hemas, we recognise a worker’s right to collective bargaining.
Currently we work closely with four unions (3 in resort hotels and
one in J. L. Morisons & Co). The FMCG sector has in place two
Joint Consultative Committees, one specific to the manufacturing
work environment and the other on the Finished Good Stores
work environment. Appointment to the committee is through
nomination by the employees themselves. The JCCs meet with
the management team on a monthly basis to discuss issues that
may arise and possible interventions. The three hospitals have
also formed JCCs of a format similar to the FMCG Company.
J. L. Morisons & Co has a collective agreement with its union,
which includes 40% of its non executive cadre.
Grievance Handling
The open door policy practiced at Hemas ensures that employees
have the freedom to approach their supervisors and superiors
at any time, to raise their concerns. While this policy promotes
the early settlement of many concerns, a formal mechanism is
in place for the escalation of grievances. This involves a step by
step process, whereby an employee may escalate a grievance from
his own supervisor, to the supervisor’s superior and then to the
Managing Director of each SBU and/or Group HR.
Each and every employee can submit his grievance and have
it examined in an appropriate manner without any prejudice
whatsoever to him.
FMCG staff at the Annual Theme party

42
Employees
Our approach to the health of employees goes
well beyond meeting compliance in health and
safety expectations.
a view to engaging employees and their families to develop and
sustain healthy behaviours thereby enabling them to improve their
overall quality of life (Please refer box story). We also conducted
awareness on communicable diseases such as HIV/AIDS to
ensure that our employees are empowered with the knowledge to
both protect themselves and to deal fairly with those affected.
Emergency response is a vital element of the Group’s health and
safety efforts; a group-wide risk management team overlooks
potential hazards and ensures a high degree of readiness in
dealing with potential disasters. At each location of operation,
Health and Safety teams are appointed with cross functional
representation; they are tasked with identifying potential risks and
suggesting mitigating measures, while also being equipped to deal
with emergencies. This includes volunteer fire teams trained to
take charge in the event of a fire. Regular fire drills are conducted
for all employees and records maintained. Employees also receive
training in administering first aid and CPR at the workplace.
The Hotels sector conducts annual ‘Group Mystery Audits’ on
health and safety aspects, with the findings circulated among
management for necessary corrective action. Furthermore, all
hotels are also subjected to a health and safety audit by the state’s
Public Health Inspectors twice a year.
If the grievance is against/involves a person within the process,
the employee may decide to skip that person and go to the next
level. The Human Resources department may be consulted at any
stage of the above process with or without keeping the superiors
informed.
Employee Health and Safety
Our approach to the health of employees goes well beyond
meeting compliance in health and safety expectations. While
our locations of operation and our factories and hospitals
in particular, are in full compliance with health and safety
requirements, and have obtained international accreditations
and certifications, the company has gone beyond compliance
to proactively promote healthy living among employees. Thus
during the year, Hemas Hospitals conducted a landmark group-
wide health and wellbeing campaign, as an Abhimana initiative.
The programme addressed non-communicable diseases, with
Grievance Handling Process
Grievant & MD/CEO of the company
Grievant & relevant director
Grievant & department head
Grievant & immediate supervisor
Step 4
Step 3
Step 2
Step 1
Employees 36
GRI Index 64
Group Directory 67
Notes 70

43
Abhimana Health and Wellbeing
Programme
The “Employee Wellness Programme” promotes
healthy living by adopting a model that promotes
wellness behaviour instead of disease prevention.
The project was designed to promote healthy
behaviours by detecting and reversing unhealthy
behaviours among workers who are seemingly in
good health.
The project was considered timely given the vast
demographic and epidemiological transitions
taking place in Sri Lanka with the exponential rise
of non-communicable diseases such as diabetes,
heart and lung disease and cancer, together with
unhealthy lifestyles and widespread addiction to
smoking, alcohol and substance abuse.
At the outset, the wellness programme set out to
tackle issues relating to diabetes, hypertension and
heart disease and thus, the monitoring parameters
were fasting blood sugar, cholesterol and Body
Mass Index (BMI). Expert advice was obtained
from the World Health Organisation (WHO) at
the planning stage to compile national and global
statistics which provided the benchmarks.
The first stage of the project’s rollout involved
sensitisation of employees through awareness
sessions on NCDs and the importance of screening;
17 such sessions were held covering all the
Group’s locations of operation. All employees
were encouraged to participate voluntarily in the
programme, with the cost borne entirely by the
company.
1259 employees participated in the screening
programme and it was found that 57% of participants
did not engage in regular physical activity while 33%
reported BMIs of 25 or higher. Many participants also
found out that they were either prone to or at high risk
of NCDs with the values of cholesterol, blood sugar
and blood pressure well above the ideal ranges.
Consequent to the findings, the Group formulated
a series of interventions, including the promotion
of physical activity; continuous support to improve
dietary habits; periodic testing to improve monitoring
and the provision of healthy snacks and meals
at work. Related activities included establishing
gymnasiums, aerobics and yoga classes at the
workplace, obtaining the services of a dietician for
employees to consult, issuing educational material on
controlling BMI and lipids, demonstration of healthy
cooking and improving the food available at the
cafeteria, providing treadmills and pedometers for
use at the workplace, and the introduction of regular
wellness screening.
As an extension of the wellness project, the Group
also marked World Diabetes Day by serving kola
kenda (herbal porridge), kurakkan roti (finger millet
bread) and tea sans sugar to create awareness of
diabetes prevention through dietary control.
Furthermore, activities being planned for the
second stage include helping employees identify the
warning signs for heart attacks, strokes, and diabetic
complications as well as the provision of facilities
for employees to obtain daily readings of their blood
sugar and blood pressure levels, in order to ensure
better monitoring.

44
Community
Community 44
GRI Index 64
Group Directory 67
Notes 70

45
The Hemas ethos of “Enriching Lives” influences the Group’s
philosophy towards the community in everything we do, we
consider the interests of the community at large and make every
effort to minimise our impact on those around us.
Our responsibility to the community has been led by the
Hemas Group’s flagship project ‘Piyawara’, a project that has
grown in stature and impact in the Early Childhood Care and
Development (ECCD) space to now impact the lives of over 3000
children throughout Sri Lanka, every day.
PIYAWARA
The Hemas ‘Piyawara’ project focuses on early childhood care
and development, penetrating the segment by facilitating pre-
school education for children aged 3 to 5 years, from marginalised
communities. With the mission “to nurture young children with
good care in order to provide a solid foundation of a life long
journey”, Piyawara focuses on several key aspects within the
framework of early childhood development:
1 Improving infrastructure development : adding model pre-
schools to the national network or upgrading existing schools
to meet minimum standards
2 Parental awareness programmes
3 Pre-school teacher training programmes
4 Recreational facilities for children
5 Empowering children with special needs
6 Working towards eradicating child abuse in partnership with
Sri Lanka Police
7 Emergency intervention during national disasters
Piyawara project initiatives are developed with the long term
strategy of increasing national competitiveness by meeting the
economic, social and environmental needs of marginalised
families in Sri Lanka, whilst addressing national issues and needs
of the present from time to time without compromising the ability
of future generations to meet their own needs.
Piyawara is aligned with Millennium Development Goal 2 -
“Achieve Universal Primary Education” by laying the foundation
for successful primary education while also being aligned with
the policy of the government of Sri Lanka to set up child
friendly pre-schools of a high standard island-wide. The activities
undertaken during the project also address human rights and
children’s rights, by creating awareness of child abuse and the
need for child protection. The long term social impact of the
project is the creation of a generation of Sri Lankans who have
had a solid foundation to their lives in a nurturing and safe
environment.
The start of our journey
In 2002, the Hemas Group was keen to focus its social
responsibility efforts towards a single significant issue which we
could engage in the long term, in order to maximise impact. We
approached the Ministry of Social Welfare, which encouraged
Hemas to focus on Early Childhood Care and Development in
Sri Lanka.
The Ministry’s initial task for Hemas was to help upgrade
existing pre-schools in 10 districts to model pre-schools within
two years. This was successfully undertaken from 2002 to 2004,
along with ancillary activities such as teacher training and
parental awareness, community involvement, medical clinics, and
television programmes.
At the end of 2004, the Boxing Day tsunami ravaged Sri Lanka’s
coastline, leaving carnage in its wake and evicting survivors from
their homes and communities into makeshift camps. Through
Piyawara, the Hemas Group and our partners rose to make an
impact where it mattered, setting up 29 temporary pre-schools in
makeshift camps around the country, including in the war zones
of the North and East. Our response in rising to the challenges
immediately following the tsunami made Piyawara come of age.
In the decade that followed the Tsunami, Piyawara has been
endorsed as one of the best examples in Sri Lanka of addressing
national issues through a successful public-private partnership.
Our strategic partner is the Children’s Secretariat of the
Ministry of Child Development and Women’s Affairs while we
partner with government authorities such as the Local Councils,
Pradeshiya Sabhas, Municipal Councils and in remote regions
the Rural Development Authorities in managing the schools
once they are built. The local authorities ensure that the schools
are staffed by qualified teachers and that routine maintenance
is carried out. All Piyawara pre-schools are registered with the
respective Divisional Secretariats.
Piyawara is managed by the Hemas Outreach Foundation,
registered as an approved charity in Sri Lanka. The Foundation
is funded through donations from companies within the Hemas
Group as well as its overseas business partners, in Europe and
Germany in particular. The Hemas Outreach Foundation is
managed by a board of independent trustees appointed by
Hemas Holdings PLC and audited by Ernst & Young, while its
administration is undertaken by Hemas employees on a voluntary
basis.

46
Community
Anuradhapura
Polonnaruwa
Sigiriya
Kandalama
Kandy
Peradeniya
NuwaraEliya
BandarawelaRatnapura
Pinnawela
Negombo
Colombo
Bentota
Hikkaduwa
Dambulla
Piyawara pre-schools in Sri lanka....
Enriching Lives of
Over 3000 children
Over 100 teachers
Galle
Kitulgala
1. Wadduwa
2. Kalutara
3. Bentota
4. Balapitiya
5. Ambalangoda
6. Hikkaduwa
7. Rathgama
8. Galle 1
9. Galle II
10. Habaraduwa
11. Tissamaharama
12 Weligama
13. Matara 1
14. Matara II
15. Tangalle
16. Hungama
17. Hambantota 1
18. Hambantota 2
19. Gampaha
20. Matale
21. Polonnaruwa
22. Anuradhapura
23. Dankotuwa
24. Kurunegala
25. Badulla
26. Ratnapura
27. Jaffna 1
28. Jaffna II
29. Kalmunei
30. Ismailpuram
31. Navadanweli
32. Kantale
33. Ambalnagar
34. Kilinochchi
35. Mullaitivu Silawathi
36. Mullaitivu Teetakarei
37. Mullaitivu Kepapilaru
38. Boossa
39. Welioya
40. Monaragala, Malhawa
Community 44
GRI Index 64
Group Directory 67
Notes 70

47
Tissamaharama Piyawara Model Pre-school
Students at ‘Ape pataunata Piyawarak’ Special School in Hambantota
Student at play area in Kantale Piyawara Pre-school
Teachers and students at Panadura Piyawara Pre-school

48
The Piyawara Impact
A pre-school is by nature a place that generates much goodwill,
given the critical role it plays in the lives of the youngest members
of a community. The Piyawara pre-schools play a strong role
within the communities in which they operate as the community
itself is encouraged to play an active role in the maintenance of
the schools. In some areas, the Piyawara pre-schools are often
used as maternal and childcare centres, and become a place
that integrates government officials from the administrative
departments and Ministries of Health, Child Care with the
community.
The parent-teacher associations at the Piyawara schools function
with high levels of responsibility, ownership and accountability
and are considered models that are followed by other districts.
The line ministry even takes its foreign delegates to visit the
Piyawara Pre-schools to gain first-hand knowledge of a successful
example of social integration through a pre-school.
In terms of social impact, the Piyawara pre-schools ensure that
marginalised children in each pre-school receive structured
learning at a critical development stage, which they would
otherwise have to forego. The children are provided the best of
facilities and benefit from an activity based learning method. The
schools also encourage environmental awareness among children
and parents and teach children the appreciation of nature by
encouraging them to plant trees.
How Piyawara Operates
The Piyawara pre-schools are operated under strict standards
and are also governed by government regulations related to
pre-schools. Over and above the minimum compliance however,
we have strived to make the Piyawara pre-schools a model in
pre-school education, and the government has acknowledged that
Piyawara pre-schools are now considered the standard.
The model developed in partnership with our strategic partners,
is of an inclusive pre-school that promotes social integration and
uplifts living standards. From the architecture and design of the
schools, to their operation and the learning they impart, social
compliance is a primary influencing factor.
The Hemas Group builds each school and works in partnership
with the government authorities to initiate teacher training and
parental awareness and serves as a meaningful stakeholder in
each pre-school’s progress. The parent-teacher associations are
empowered with the awareness and skills to generate their own
funds to maintain schools through special concerts, sales, thereby
encouraging them to think entrepreneurially.
The learning curriculum in Piyawara schools follows the standard
introduced by the government, thus promoting activity based
learning and not reading and writing at a young age, which could
be detrimental to their future development.
The teaching cadre of the pre-schools, comprising of teachers
and assistant teachers is created from within the community of
each pre-school. By doing so, we have been able to nurture the
skills of the communities in these marginalised locations and have
successfully developed people with strong teaching and leadership
skills. This has been most apparent in our post-Tsunami efforts
and camps for the displaced such as the Menik Farm village,
where women identified from among the displaced persons were
trained to serve as pre-school teachers.
The teacher training programmes held annually for Piyawara pre-
school teachers boosts their skills by giving them an opportunity
to engage with other Piyawara pre-school teachers from island-
wide and to learn new teaching techniques, as a result facilitating
value co-creation in the interest of the local communities they
serve.
It is also important to note that Piyawara pre-schools have been
designed and built in an environmentally friendly manner while
students are taught to appreciate their environments from an
early age. As model pre-schools, the Piyawara schools must be
maintained in a child-friendly manner; as such, environmentally
friendly practices such as using bins for waste and preventing
water wastage are encouraged. The Piyawara community pre-
schools are also designed and built to function with daylight,
i.e. without electricity to achieve better energy efficiency. The
pre-school infrastructure helps to improve visual comfort for
the young students whilst allowing natural ventilation into the
building. In addition tube wells are being built for sanitation
purposes.
Engaging our business partners
We have engaged our business partners from overseas as well as
our distributors and sales representatives locally in the Hemas
Piyawara Project. The overseas business partners, especially
Piyawara Teacher Training Programme
Community
Community 44
GRI Index 64
Group Directory 67
Notes 70

49
Community pre-school in Mullaitivu
Children playing at the Kurunegala Piyawara pre-school
Pre-school Children at Ambalnagar
Pre-school Children at Mullaitivu

Hemas Sustainability Report 201415- FINAL

Hemas Sustainability Report 201415- FINAL

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