This Report is presented in compliance with the requirement set out in Section 9.6.3 (e) of the Listing Rules on Corporate Governance of the Colombo Stock Exchange.

The requirement of appointing a “Senior Independent Director” (SID) to Nawaloka Hospitals PLC is in accordance with Section 9.6.3 (a) i of the Listing Rules on Corporate Governance of the Colombo Stock Exchange and the Code of Best Practice on Corporate Governance issued by The Institute of Chartered Accountants of Sri Lanka.

The Board continues to maintain its position that the role of the Executive Chairperson is more appropriate for the Company and Group in meeting stakeholder objectives at large.

Considering the above, the presence of the Senior Independent Director is important in ensuring that no one person has unfettered decision-making powers, and that matters discussed at the Board level are done so in an environment which facilitates independent thought by individual Directors. The Senior Independent Director also acts as the independent party to whom concerns could be voiced on a confidential basis.

The Senior Independent Director chaired meetings of the Non-Executive Directors and Independent Directors excluding the participation of the Executive Directors held in June 2025.

The Independent/Non-Executive Directors are confident that the risk and compliance as well as broader assurance and Corporate Governance frameworks of the Group have kept well abreast of the said dynamics leading to continued synonymity of the Group with best practice in corporate governance.

The Independent/Non-Executive Directors thank the Chairperson-CEO, Deputy Chairperson, Director – General Manager and members of the management team for their transparent and cooperative engagement with the Independent/Non-Executive Directors, at all times.

Mr Virann De Zoysa
Senior Independent Director

04 September 2025