Access Engineering PLC to Recover Rs. 1.45 Bn Post Logistics JV Termination 📈

Shareholders of South Asia Commercial and Logistics Hub Ltd. have mutually agreed to abandon the project due to changing external circumstances and operational timetables. • Overall Settlement Details • Total Initial Project Cost: US$ 392 Mn (50-year BOT venture launched in April 2023). • Venture Shareholding: China Merchants Port Holdings (70%), Sri Lanka Ports Authority (15%), Access Engineering PLC (15%). • Expected Total Recovery for Access Engineering: ~Rs. 1.45 Bn (out of Rs. 1.76 Bn original investment cost). • Recovery Breakdown: US$ 3.29 Mn (~Rs. 1.09 Bn refund share at Rs. 331/US$) + Rs. 365 Mn in available distributable funds. • Financial & Accounting Impact • Company-Level Impact: Recognises an estimated direct loss of ~Rs. 310 Mn against the original investment cost of Rs. 1.76 Bn. • Group-Level Impact: No further material loss anticipated, as the carrying value was already adjusted down to ~Rs. 1.38 Bn after accounting for Rs. 387 Mn in cumulative losses for the financial year ended 31 March 2026. • Project Scope Background • Planned as South Asia's largest commercial & logistics complex at the Port🏗️ Access Engineering Exits Logistics Hub JV with Rs. 310M Company Loss • Overview: Access Engineering PLC and co-shareholders have mutually agreed to terminate the $392M South Asia Commercial and Logistics Hub project at the Port of Colombo due to changing external circumstances and timelines. • Financial Settlement: • Access holds a 15% stake (original cost of Rs. 1.76 Bn). • Expected total recovery: ~Rs. 1.45 Bn (includes US$ 3.29 Mn / ~Rs. 1.09 Bn refund share + ~Rs. 365 Mn in distributable funds, based on indicative rate of Rs. 331/US$). • Company-level impact: Recognizes a loss of ~Rs. 310 Mn. • Group-level impact: No further material loss expected, as Rs. 387 Mn in venture losses were already accounted for in FY26 statements (carrying value reduced to ~Rs. 1.38 Bn). • Project Context: Launched in April 2023 as a 50-year BOT venture with China Merchants Port Holdings (70%), SLPA (15%), and Access Engineering (15%) to build South Asia’s largest logistics complex (530,000 cu.m storage capacity). _Note: Figures remain subject to exchange rate fluctuations on actual payment dates and final accounting adjustments._