MESSAGE FROM CHAIRMAN

Merill J. Fernando

As an element in our commitment to making business a matter of human service, we present our fourth cohesive sustainability report and reiterate our commitment to integrating sustainability into all facets of the Dilmah business. We continue to be committed to embracing the core and founding values of Dilmah in integrating into the heart of our business, respect for nature and future life on earth. Through our products, workforce, and willingness to adapt and explore, we continue to work to reduce our impacts on the planet whilst maintaining the quality of our teas.

This year, we continued our efforts to incorporate sustainable development principles, tools and approaches into our businesses. We have developed a sustainability strategy intended to mitigate operational risks and to build long-term resilience by improving environmental efficiency and innovation. The aim of this strategy is that our businesses should have a positive environmental and social impact whilst continuing to succeed in the long term. When the natural environments that we depend on thrives, so do we. Our strategy has identified six areas that are material to all our operating units. They are carbon, water, waste, materials, biodiversity and climate resilience. We have reported on our commitments, indicators of progress in relation to each of them and developed short and long term targets.

In our efforts to incorporate sustainable development principles, tools and approaches into our businesses, we identified, tracked and accelerated our progress in areas of sustainability which are most material to our group. This has provided us with an opportunity not just to reflect on our achievements but to look forward as well. We operate in changing and complex markets. Globalization and technological progress is increasing the pace of change. We understand that for Dilmah to succeed in creating long term value, sustainable development should be a strategic imperative.

By emphasizing sustainable development, both as a concept and in practice, we will be a more robust, competitive and resilient business in the long term. This is why, despite the current economic challenges, we continue to invest in development that makes our business more sustainable. This year, for example, we offered additional central support for projects which can deliver long term benefits in terms of sustainable development. Such support is intended to encourage innovation and to improve our overall sustainability performance, contributing to long term growth in shareholder value.

Dilmah is intensely involved in the communities in which it operates and understand that in order to continue to succeed, we need to play our part now in protecting the environment by addressing related issues such as climate change, water scarcity and waste management. We also continue to address biodiversity issues, source and use sustainable materials and work towards becoming more resilient to climate change. These matters are key areas of our focus and is in the heart of our operations. There are no quick-fixes. In line with our strategy we will continue to search for ways to make our businesses more sustainable and to work with others who share our sustainability values.

We are extremely grateful for the time and effort put in by all our teams involved in developing a comprehensive plan for the Group towards 2020 and beyond that could provide a blueprint for the right approach towards sustainability by conglomerates.

Merill J. Fernando