TABLE OF CONTENT

A NOTE FROM THE EXECUTIVE GENERAL MANAGER........................................................ 1

OUR VISION / OUR MISSION.......................................................................................... 2

THE TRITON.................................................................................................................... 3

SUSTAINABILITY STRATEGY............................................................................................. 4

THE GREEN PHILOSOPHY................................................................................................ 5

THE TEAM....................................................................................................................... 6

HERITANCE AHUNGALLA - AT A GLANCE........................................................................ 7 - 8

OUR STAKEHOLDERS

EMPLOYEES

HR POLICY.............................................................................................................. 9

EMPLOYEES............................................................................................................ 10

CAREER PROGRESSION........................................................................................... 11

WORK PLACE SATISFACTION.................................................................................. 12 - 18

WORK PLACE SAFETY................................................................................................. 19

HEALTH AND SAFETY POLICY.................................................................................. 20

GUESTS

GUESTS ATTRACTIONS........................................................................................... 21-26

DINING EXPERIENCES............................................................................................. 27-30

ENVIRONMENT

ENVIRONMENT POLICY.......................................................................................... 31

BEST PRACTICES..................................................................................................... 33 - 39

ENERGY POLICY..................................................................................................... 40

ENERGY EFFICIENT PRACTICES................................................................................ 41 - 42

COMMUNITY

THE COMMUNITY.................................................................................................... 43

EMPLOYMENT OPPORTUNITIES................................................................................ 44

SOCIAL AND CULTURAL DEVELOPMENT................................................................... 45 - 49

SUPPLIERS

PURCHASING POLICY.............................................................................................. 50

ACHIEVEMENTS.............................................................................................................. 51

ANIMAL WELFARE POLICY............................................................................................... 52

SUSTAINABILITY INDICATORS......................................................................................... 53

A NOTE FROM THE EXECUTIVE GENERAL MANAGER

Innovation and growth strategies drive goodcompanies. But to be a great company thehotel Leader in an industry - a company mustalso have a set of core values that inform everydecision the company makes. For HeritanceAhungalla, a subsidiary company of AitkenSpence Hotel Managements (Pvt) Ltd., our corevalues have stood the test of time: put peoplefirst, pursue excellence, embrace change, actwith integrity and serve our world.

Innovation and growth remain key drivers to oursuccess. But a long the way, we have also beensteadfast in our commitment to people and theplanet.

We understand that conservation and communityengagement is more than a moral imperative; italso makes good business sense. Smart, sociallyresponsible policies bring us customer preferenceand loyalty from the next generation travelersand work force.

We continue to evolve our sustainabilityreporting to best meet our stakeholder’s needs.This report disclose the progress we have madetoward our sustainability goals in 2015- 2016.Unless other Wise noted, the reports are basedon data from our internal reports/activates andreflect operational Performance of our company.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General ManagerHerintance Ahungalla

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1

OUR VISION

To be the Asia’s Best Beach ResortTo give our Customer a unique Holiday Experience,

while preserving the environment in which we operatein for generations to come.

OUR MISSION

To operate a sustainable business development.To satisfy and retain our guest.To Build our service strength.

To handover a financially stable, environmental friendly beach havento the next generation.

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2

THE TRITON

The Triton Hotel at Ahungalla is hidden away in acoconut grove beside a long and featurelessbeachfront. The design partie was a seeminglybanal version of a traditional rest house with twolong wings of rooms facing the ocean underoverhanging hipped roofs.

But, Bawa’s strength lay in his ability to control aproject on side and breathe magic into it.

In the final plan he re-arranged the rooms intoclusters to create a series of courtyards at differentlevels and he transformed the entrance sequenceinto a coup de theatre, offering a vista through agrove of palm trees, past slender columns of thelobby to the light blue surface of the swimming pooland the darker blue of the ocean beyond. “if theworld were flat you would be able to see Africa” hewryly observed.

At Heritance Ahungalla, tradition comes alive infive-star elegance, with exotic living spaces anddining experiences. To lobby pool blends with thesea providing an endless relaxing vista. Smoothlines and shades of black, gold and browncharacteries the design that graces the interiors.even the landscaped gardens set the pace for arejuvenating stay. Call it the perfect setting forholidaying, romantic dining or corporateconferencing.

'IF THE WORLDWERE FLAT

YOU WOULDBE

ABLE TOSEE AFRICA'

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SUSTAINABILITYSUSTAINABILITYSUSTAINABILITYSUSTAINABILITY STRATEGYSTRATEGYSTRATEGYSTRATEGY

INTRODUCTIONHeritance Ahungalla was founded on the principlethat quality service is at the core of how we dobusiness. Our commitment to serve our customers,associates, environment and communities makesour culture vibrant, our business robust and ourcommunities strong. With a vision to be theAsia’s best Beach Resort & to give an uniqueexperience to the customers while preserving theenvironment in which we operate in for generationsto come.

Our heritage, renowned company culture and howwe do business both informs and enrichesrelationships and instills a passion for who we arethat our stakeholders can experience every day.

We are taking every effort to ingrain aspects ofresponsible tourism into their operations, embracingsustainability precepts as our guiding principle. Thelong term vision is to build on the foundation ofsustainability therefore, the strategies andoperations that support their short, medium andlong term goals are inextricably bound to principlesof sustainable business. The sustainability objectivesof the Hotel focus on four critical areas:

The hotel is having a sustainability policy whichprovides a sustainability structure and a platformwhereby the principles of sustainability can beembedded into corporate policy. In embeddingsustainability within their operations and strategy,they have targeted five core areas:

1. Economic Value Creation

2. Environmental & Social Value Creation

3. Zero Waste – 7R System

4. Sustainable Sourcing of Sustainable Produce

5. Employee Development & Equal Opportunity

GOALS/TARGETSAs we look ahead, our focus will be on continuingto build loyalty to our parent company,understanding and attracting next generationassociates and guests, embracing innovation andtechnology, and generating value for our hotelowners. We believe success in achieving thesegoals will allow us to sustain our presence in themarket and profitability.

Our focus on sustainable hotel operations whichprovides job opportunities for the locals, localbusinesses and grows local economic and tourisminfrastructure in this area.

MANAGEMENT APPROACHAs we drive our regional growth, we are focused onresponsibly investing in our brand, people and thesystems that support them. We remain true to ourfounding principles and core values: putting peoplefirst, pursuing excellence, embracing change,acting with integrity and serving our world.

CORPORATE GOVERNANCEHeritance Ahungalla has a long-standingcommitment to transparency and integrity. OurBoard of Directors oversees management andthrough this oversight enhances the long-term valueof the company. A formal infrastructure of a rangeof panel members comprised of executives andassociates guides us in making everydaydecisions that affect our work environment, oursustainability practices and our business strategy.

Committee for Excellence—Driven by a GM-ledcommittee of Chief Engineer and Engineers alonewith other senior executives and members ofcommittee, this committee monitors the progress ofour global diversity and inclusion strategy andevaluates the company’s efforts to promote diversityamong our workforce, owners, customers andsuppliers.

Economic ValueAdditionto the Nation

CommunityEngagementand Development

EmployeeDevelopment

EnvironmentalManagement and

Stewardship

SustainabilitySustainabilitySustainabilitySustainabilityObjectivesObjectivesObjectivesObjectives

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THETHETHETHEGREENGREENGREENGREEN PHILOSOPHYPHILOSOPHYPHILOSOPHYPHILOSOPHY

Heritance Ahungalla represents an unique GreenPhilosophy that combines responsible tourism withenvironment friendliness. The hotel is driven by agreen model where the leadership inenvironmental sustainability has enabled them toenhance business performance.

Firstly by growing revenue due to increasingdemand amongst travelers who like to offset theircarbon footprint and contribute to uplift the naturalenvironment and communities. Secondly, byreducing the costs of business operations throughgreen operations, green buildings, energyreduction and carbon off setting. These measuresadd value to the environment and to theirprofitability.

We have launched an EnvironmentalManagement System (EMS) which improvesproductivity and provides a more holisticapproach to operations by eliminating waste andoptimizing resource usage.

Instead of viewing environmental and socialfactors as well as employees, the wider communityand everything else impacted became a part of thesustainability drive. It was developed by internalenvironmental experts, based on globallyrecognized ISO 14001 guidelines.

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THE TEAM

CHAIRED BY

Mr. Upul Peiris - Executive General Manager

Mr. Ajith Biyanwila - Chief Engineer

Mr. Vimukthi Fernando - Engineer

COMMITTEE

Mr. Srinath Athukorala - Front Office Manager

Mr. Gamini Wijethunga - Food & Beverage Manager

Mr. Janaka Liyanage - Senior Executive Housekeeper

Mr. Roshan Pujitha - Sous Chef

Mr. Roshitha Jayasinghe - Senior Finance Manager

Mr. Wijitha Coomasaru - Security Manager

Ms. Nishadee Gunathilake - Senior Human Resources Executive

Ms. Manoshi Tennakoon - Secretary

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HERITANCE AHUNGALLA - AT A GLANCE

Heritance Ahungalla is the perfect luxury base from which to go on a river safari along the MaduGanga, visit the Kosgoda turtle hatchery or take in the culture and history of Galle and SriLanka’s coastal villages.

Originally designed by legendary Sri Lankan architect Geoffrey Bawa, Heritance Ahungalla is afive-star luxury hotel with 152 rooms, located on 12 acres of beachfront on Sri Lanka’s southwestcoast. Heritance Ahungalla offers guests spacious and luxurious accommodation, award-winning cuisine, relaxing spa treatments and a range of outdoor activities in and around thelocale.

In 2015 Heritance Ahungalla won the Travelife Gold Award for Hotels & Accommodation.Travelife is an international sustainability certification scheme for hotels and accommodationsdesigned to improve environmental and social impacts and support local people, businesses andculture.

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A heady mix of style and substance, Heritance Ahungalla is a refreshing beach property thatoffers the finest hospitality and premium services together with a magical destination. One ofGeoffrey Bawa’s earliest masterpieces, the property is a stylish and striking five star beach resortthat blends in perfect harmony with the coastal splendour of Ahungalla.

The resort employs scores of people and sources supplies from the neighbouring villages as partof the ongoing investment drive to embrace sustainability. More than 65% of the total hotel staffhas been recruited from the local villages, many of them have not had previous hotel experience.Those from the local community, have risen up the ranks quickly, to enable Heritance Ahungallato secure multiple awards for cuisine, service and environment practice.

Heritance Ahungalla emerged as the Most Outstanding Culinary Team in Sri Lanka aftercompeting against both international and domestic star-class city and resort hotels at the 15thCulinary Art Competition organised by the Chefs Guild of Sri Lanka.

152 rooms with privatebalconies all facing the ocean.

Rooms are equipped withenergy-efficient air

conditioning, free Wi-Fiand TV with satelliteand local channels.

Heritance Ahungalla has wonnumerous awards for its fine

cuisine. The hotel offers severaldining options including the JuteRestaurant, the Upper Room and

theMustard Coffee Shop.

2 swimming poolsExcursions

The Diviyan SpaConference facilities

ACCOMMODATION CUISINE FACILITIES

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HUMAN RESOURCE POLICY

We at Heritance Ahungalla are committed to comply with the applicable labourlegislation in the country, ensure all our employees are provided healthy and safeworking conditions along with an environment that is free from all types ofdiscrimination and harassment. An "open door" policy is in place, where ouremployees are encouraged and permitted to communicate with members of theManagement on their views, grievances, etc. whilst encouraging career progressionand maximum opportunity for development of skills.

It is a policy of human resource department to monitor and evaluate the fairness indistribution of all remuneration to employees of the organization.

With the aim of uplifting the local community, the hotel maintains a policy on localemployment, where preference is given for candidates from locality on available jobopportunities. Locality is defined to be within the radius of 35 kilometers from the hotel.

In spurring innovative ideas stemming from youthful vigor, the hotel also encouragesstudents who have completed secondary level education to commence their career withthe hotel. We believe that molding this youth will benefit the individual, organization,society and the country as a whole.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General Manager

Heritance Ahungalla

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EMPLOYEESEmployees are the most important stakeholder in our organization. Our strength is in our staff.Heritace Ahungalla strives to ensure career progression, workplace satisfaction and personaldevelopment of our employees.

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CAREER PROGRESSION

We provide comprehensive training for our staff to enhance their technical knowledge as well as to improvetheir skills. Our main focus in the career progression of our team with in a reasonable time period. Wedevelop our staff to the next level and we groom them to take more new challenges in their career.

TRAINING HIGHLIGHTS

FIRE SAFETY FIRST AID LP GAS SAFETY HANDLING MTP HIV AWARENESS

ENVIRONMENT AUDITOR TRAINING ENERGY MANAGEMENT AWARENESS ON SDG'S

TRAINING HOURS

3.8HOURS/MONTHPER EMPLOYEE

FIRE TRAINING

FIRST AID

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WORK PLACE SATISFACTION

HIGH FLYEREvery month this will be offered to the employees those how have performed well during the month. Eachdepartment will be nominating two employees and all the nominees will get collaborative ranking fromHOD's/AM & GM. Based on the marks scored two team members will be selected from Face of the House(Front Office/F&B/Housekeeping Departments) and Heart of the House (Engineering/Kitchen/Finance/ HRDepartments). At the end of the financial year out of 24 winners, one best team member will be selected asthe HighflyerHighflyerHighflyerHighflyer ofofofof thethethethe YearYearYearYear.

MEDICAL CAMPEnsuring very healthy, strong and efficient work force at workplace, we annually conducts this MedicalCamp for our employees and their immediate family members. This will be done in corroboration withKalubowila Hospital and all employees will get the benefit for a fee medical check-up.

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SINHALA & TAMIL NEW YEAR CELEBRATION AND FESTIVALEvery year we celebrate our Sinhala & Tamil new year with out employees.

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STAFF DAYStaff day is the most important day of our employees. They are entitled to bring their families on that day to the hotel.At the entrance management team is welcoming all the staff with their families on the red carpet and take a familyphotograph. Then they were taken to the function area and

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SPORTS & RECREATIONAnnual interdependent sports festival is another one of main activities that we hold for our employees. Apart fromthat employees are encouraged to participate in Group Sport-O-Rama, Mercantile tournament by representingAitken Spence PLC etc... Apart from that the Heritance Battle which will be held annually is one of the mostimportant activities at Heritance Ahungalla.

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CELEBRATING CULTURAL AND RELIGIOUS FESTIVALS

On Vesak Day, Buddhists all over the world commemorate events of significance to Buddhists of all traditions:The birth, enlightenment and the passing away of Gautama Buddha. As Buddhism spread from India it wasassimilated into many foreign cultures, and consequently Vesak is celebrated in many different ways all overthe world. This year too, at Heritance Ahungalla family get together to organize the traditional customs andrituals to be shown not only to our own citizens but also to our visitors from round the globe.

MONTHLY BIRTHDAY CELEBRATION

Celebrating birthday of our every employee is a tradition at Heritance Ahungalla.

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CULINARYCULINARYCULINARYCULINARY CHAMPIONSCHAMPIONSCHAMPIONSCHAMPIONS

There are two ways of spreading light, that is to be the candle or the mirror that reflects it. You are our candle,you are our mirror that reflects your beam of light in our lives energizing motivating to be the best out of best.There is no doubt that you are the "NO 01" in the Culinary world, and we are most fortunate enough to haveyou with us based at Heritance Ahungalla. We are proud and honored to work with you, associate you andto take guidance from you. We would say you are none other than a pack of talents. When ever we needyou, you were with us not only in culinary field, but each and every area. You wouldn't mind assisting us atRestaurant, Garden, Housekeeping and even Security. We have no words to say how much gratitude wehave for you. We are most thankful to your enormous contribution in favor of Heritance Ahungalla at alltimes.

Being the President of the Chef Guild of Lanka, and being working in a very busy schedule you never forgotus. Your precious time, every minute was treasure to us. Under your guidance and support we, HeritanceAhungalla became No 01 Hotel in the culinary world in Sri Lanka and further more you took us tointernational level recognition. Our chefs were able to win many more medals at the World Culinary cup aswell as Culinary Olympic, and this time our aim is to participate 4 chefs and a mixologist at the CulinaryOlympic 2015.

DISTRIBUTINGDISTRIBUTINGDISTRIBUTINGDISTRIBUTING SPECTACLESSPECTACLESSPECTACLESSPECTACLES FORFORFORFOR STAFFSTAFFSTAFFSTAFF

Dr. Lal Thilakeratne a long standing patronage of Heritance Ahungalla has been able to give awayspectacles to Hotel staff with the collaboration of his Japanese VVIP guests who are very often visiting SriLanka.

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EEEEXECUTIVEXECUTIVEXECUTIVEXECUTIVE GATHERINGGATHERINGGATHERINGGATHERING ---- 7TH7TH7TH7TH JULYJULYJULYJULY

It is definitely a fortunate to have you in my team and I am most grateful and thankful for all those wonderfulsupport and assistance rendered on "07th July" a memorable and enjoyable one that we could ever have. Ibelieve that no one would forget how much they enjoyed and how much relationship built by attending the07th July annual program.

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WORK PLACE SAFETY

Workplace Health and Safety (WHS), often referred to as Occupational Health and Safety(OH&S) involves the assessment and migration of risks that may impact the health, safety orwelfare of those in our workplace. We ensure the health and safety of our customers, employees,visitors, contractors, volunteers and suppliers within the premises.

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HEALTHHEALTHHEALTHHEALTH ANDANDANDAND SAFETYSAFETYSAFETYSAFETY POLICYPOLICYPOLICYPOLICY

Heritance Ahungalla considers the safety, health and wellness of our stakeholders as a priority in thecourse of our business and remain committed to:

• Comply with the relevant legal and other requirements.

• Operate a functioning Health and Safety Committee that is tasked with the maintenance of Health andSafety Management System of the Hotel.

• Create a safer environment through preventive action, including via training and awareness, preventivemaintenance, and housekeeping best practice: thereby sustain a health and safety conscious workculture.

• Conduct regular assessments to identify and assess risks to health and safety of our stakeholders,including through daily inspections of our premises.

• Set health and safety due diligence as a compulsory agenda point in the routine management reviewsand take action to eliminate or control risks.

• Dedicate resources for planned implementation of health and safety management in incorporatingperformance targets in the annual budget and human resources plan.

• Maintain documentation relating to health and safety, including the risks identified, associated actionundertaken, proposed action and accident/incident register.

• Build specific capacity amongst our employees, so they may uphold their roles and responsibilitiesrelating to health and safety.

• Ensure emergency preparedness and response through continuous monitoring and implementation.

• Report on health and safety performance including types of injury, injury rates, occupational diseases,lost days and absenteeism.

The hotel will strive to continually improve its performance on health and safety. It plans achieve OHSAS 18001standard certification and will align its operations in line with this standard. The above commitments areapplicable to all stakeholders including our employees, guests, suppliers and service providers, and visitors.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General ManagerHeritance Ahungalla

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OUR GUESTS

GUESTSOur main focus is our Guests. To make the guest’s stay a memorable one for them with full of joy andhappiness is our at most wish. We do various things for them to experience during their stay with us and tomake them comfortable. We belive as long as the guests are happy we also can be happy as we are alwaysdepend on our guests.

The specialty of Heritance Ahungalla is the human touch in every part of it and it helped us to sustain in thiscompetitive market for about 30 years.

At present Heritance Ahungalla is practicing heap of entertainment and food promotional activities for guestto experience.

TRADITIONALTRADITIONALTRADITIONALTRADITIONAL WEDDINGSWEDDINGSWEDDINGSWEDDINGS

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CULTURALCULTURALCULTURALCULTURAL SHOWSHOWSHOWSHOW

EXCURSIONEXCURSIONEXCURSIONEXCURSION TOURSTOURSTOURSTOURS

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ANIMATIONANIMATIONANIMATIONANIMATION ACTIVITIESACTIVITIESACTIVITIESACTIVITIES

KIDSKIDSKIDSKIDS CLUBCLUBCLUBCLUB

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CELEBRATING NATIONAL & RELIGIOUS EVENTS WITH GUESTS

NATIONALNATIONALNATIONALNATIONAL DAYDAYDAYDAY

SINHALASINHALASINHALASINHALA TAMILTAMILTAMILTAMIL NEWNEWNEWNEW YEARYEARYEARYEAR

DEEPAWALIDEEPAWALIDEEPAWALIDEEPAWALI

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WESAKWESAKWESAKWESAK CELEBRATIONCELEBRATIONCELEBRATIONCELEBRATION

FLUTISTFLUTISTFLUTISTFLUTIST

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FISHINGFISHINGFISHINGFISHING

SINHALASINHALASINHALASINHALA &&&& TAMILTAMILTAMILTAMIL NEWNEWNEWNEW YEARYEARYEARYEAR CELEBRATIONCELEBRATIONCELEBRATIONCELEBRATION

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DINING EXPERIENCES

CHAMPAIGNCHAMPAIGNCHAMPAIGNCHAMPAIGN BREAKFASTBREAKFASTBREAKFASTBREAKFAST

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LIVELIVELIVELIVE COOKINGCOOKINGCOOKINGCOOKING

DINEDINEDINEDINE WITHWITHWITHWITH CHEFSCHEFSCHEFSCHEFS

BEACHBEACHBEACHBEACH DINNERSDINNERSDINNERSDINNERS

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FISHFISHFISHFISH MARKETMARKETMARKETMARKET

LIVELIVELIVELIVE TRADITIONALTRADITIONALTRADITIONALTRADITIONAL COOKINGCOOKINGCOOKINGCOOKING DINNERDINNERDINNERDINNER ATATATAT HENAHENAHENAHENA

THEMETHEMETHEMETHEME NIGHTSNIGHTSNIGHTSNIGHTS

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KIDSKIDSKIDSKIDS ACTIVITIESACTIVITIESACTIVITIESACTIVITIES

At the Hotel, our little guests were taking part in their day today activities which adults do for them with greatenthusiasm. We were fascinated by their ability and knowledge on how to prepare their own bed, napkinfolding, preparing their own breakfast and how to arrange their meal table.

Normal several interactive activities are organized for the kids on this day, some being singing, dancing,painting, fancy dress, and games. But, we, Heritance Ahungalla thought to bring out the real essence ofChildren’s Day , by letting them to do what is in real life. It is such an privilege to witness these little anglesprepare their own meal table with the help of our Food & Beverage team.

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ENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENT POLICYPOLICYPOLICYPOLICY

We at Heritance Ahungalla are highly motivated and committed to comply with relevant laws andregulations, to continually improve our environment on a continual basis to protect in our dailyactivities together with the local community and committed to reduce green house gas emissions.

This policy focuses on reducing greenhouse gas emissions, enhancing energy efficiency,conservation and management of fresh water consumption, conservation of the ecosystem anddevelopment, improving land use planning and management, optimizing waste water management,minimizing, re-using and re-cycling waste, ensuring air quality protection and noise control andimproving the management of hazardous substances storage and use. Employment of suitable peopleprimarily from local communities and maximizing the purchase of local products and services will bepracticed.

The Heritance Ahungalla has implemented an environmental management system (EMS) based on ISO14001:2004 & Earth Check company standards in order to contribute to sustainable development,with a commitment to best practice in environment and will address significant environmental aspects.

Objectives and targets and environmental programs are established to achieve the environment policyand is communicated to all employees, external stakeholders and the general public.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General ManagerHeritance Ahungalla

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The hotel is driven by a greengreengreengreen modelmodelmodelmodel where the leadership in environmental sustainability has enabled toenhance business performance. Firstly by growing revenue due to increasing demand amongst travelers wholike to offset their carbon footprint and contribute to uplift the natural environment and communities.Secondly, by reducingreducingreducingreducing thethethethe costscostscostscosts ofofofof businessbusinessbusinessbusiness operationsoperationsoperationsoperations throughthroughthroughthrough greengreengreengreen operations,operations,operations,operations, green buildings, energyreduction and carbon off setting. These measures add value to the environment and to their profitability. As ahotel they adhere to the green philosophy of sustainable development that encompasses the following areas:

� Energy efficiency, conservation and management

� Reduction of freshwater consumption

� Waste water management

� Minimization of waste, reuse and recycling

� Air quality protection and noise control

� Land use planning

� Ecosystem conservation

Another unique concept of this hotel is they give theopportunity to every honeymoon couple & celebritiesto plant a tree within the property before theirdeparture as a living memory. With this project theyare expecting to contribute in developing a greeneryenvironment surround the hotel property. Some ofthe special environment related activities the hotelcarried out:

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BBBBESTESTESTEST PRACTICESPRACTICESPRACTICESPRACTICES

GREENGREENGREENGREEN PPPPAVILIONAVILIONAVILIONAVILION –––– WASTEWASTEWASTEWASTE SSSSEPARATIONEPARATIONEPARATIONEPARATION CCCCENTREENTREENTREENTRE

Heritance Ahungalla is an exemplary organization where waste minimization and waste managementpractices implemented in a notable stage. They are practicing the “Zero waste system”. “Green Pavilion” isthe place which is specifically designed to manage their waste. In here they categorized the waste intovarious groups such as dry waste, wet waste, hazardous waste, non-hazardous waste, perishing &non-perishing waste etc. Based on the category the waste treatment method vary from one another.

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BEACHBEACHBEACHBEACH SHRAMADANASHRAMADANASHRAMADANASHRAMADANAEvery month a beach shramadana champaign will be organized by the Hotel. At certain times beachcleaning is done in collaboration with the community and beach vendors.

BEACHBEACHBEACHBEACH CLEANINGCLEANINGCLEANINGCLEANING WITHWITHWITHWITH AITKENAITKENAITKENAITKEN SPENCESPENCESPENCESPENCE TRAVELSTRAVELSTRAVELSTRAVELS

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TREESTREESTREESTREES PLANTINGPLANTINGPLANTINGPLANTING PROJECTSPROJECTSPROJECTSPROJECTS

A tree planing project was scheduled to celebrate the Environment day of this year. It took place in fewplaces such as Temple, Rajapaksha Collage and the in the Hotel premises.

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100 mangrove tress planting project inMadhu River on World Tourism day 2015

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HENAHENAHENAHENAIn-house Hena - vegetables cultivation to support kitchen.

NATURALNATURALNATURALNATURAL COMPOSTCOMPOSTCOMPOSTCOMPOSTUse of natural compost manure for plants instead of artificial manure or urea

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EARTHEARTHEARTHEARTH HOURHOURHOURHOUREarth Hour celebrations by switching off lights and organizing candle light events.

WATERWATERWATERWATER DAYDAYDAYDAY CELEBRATIONCELEBRATIONCELEBRATIONCELEBRATIONAn awareness session on 'Importance of Water saving' was conducted at Ambalangoda DarmashokaCollege on the World Water Day.

FOODFOODFOODFOOD WASTEWASTEWASTEWASTE SEPARATIONSEPARATIONSEPARATIONSEPARATION WASTEWASTEWASTEWASTE SEPARATIONSEPARATIONSEPARATIONSEPARATION ININININ THETHETHETHE BEACHBEACHBEACHBEACH SIDESIDESIDESIDE

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SUSTAINABILITYSUSTAINABILITYSUSTAINABILITYSUSTAINABILITY MUSEUMMUSEUMMUSEUMMUSEUM

ENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENT QUIZQUIZQUIZQUIZ COMPETITIONCOMPETITIONCOMPETITIONCOMPETITION

Every year we conducts the interdepartmental environment quiz competition in celebration with theWorld Environment Day.

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ENERGYENERGYENERGYENERGY POLICYPOLICYPOLICYPOLICY

This energy policy of Heritance Ahungalla Hotel, will serve as the frame work for continuallyimproving energy efficiency within the Hotel thereby demonstrating the commitment to conserveenergy as well as reducing green house gas emissions.

This policy requires the hotel to develop its objectives and targets using the guidelines issuedperiodically and demonstrate effective energy management through management systems basedon ISO 50001:2011.

The management team of the Hotel is expected to provide information, resources and all otherrequirements needed to effectively implement the management system to achieve objectives andtargets identified, whilst meeting applicable requirements relating to its energy aspects, whetherlegally required or agreed by the hotel.

Management ensures purchase of energy efficient products and services to enable theorganization to effectively implement this policy.

The effective implementation of this policy will build confidence among all stakeholders ofHeritance Ahungalla Hotel on the capability of the hotel to meet escalating energy demandswhilst meeting sustainable development.It is communicated to all employees.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General ManagerHeritance Ahungalla

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Energy Efficient Practices

As a hotel that energy management concepts, we have given their priority consideration to theimplementation of energy efficiency practices. We have certifiedcertifiedcertifiedcertified forforforfor EnergyEnergyEnergyEnergy ManagementManagementManagementManagementSystemSystemSystemSystem ISOISOISOISO 50001:2011.50001:2011.50001:2011.50001:2011. The importance of this is that Heritance Ahungalla was the FFFFirstirstirstirst RRRResortesortesortesortHHHHotelotelotelotel totototo receivereceivereceivereceive ISOISOISOISO 50001:201150001:201150001:201150001:2011 CCCCertificationertificationertificationertification inininin thethethethe WWWWorld.orld.orld.orld. Further we have initiated tointroduce ISO 50001:2011 as a tool to reduce energy consumption, by recognizing the everescalating energy cost & the impact on global warming due to the efforts to generate moreenergy.

We at Heritance Ahungalla as a hotelthat we are doing continuousimprovement of the energymanagement system. With the everincreasing energy costs & limitations ofsupplies due to scarcity specially in SriLanka, the steps that we have taken isexpected to bring in a significantsaving of energy consumption as wellas reduce own cost of operations. Theimproved energy efficiency of theoperations drive the hotel towardsgreater productivity & this will enableus to be competitive while reducingits dependence on the national energysupply.

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We have already reduced the cost of energysignificantly through our improved bestpractices & was awarded with the BronzeFlame in the Large Hotel Sector at theNational Energy Efficiency Awards 2011.

Heritance Ahungalla has a comprehensiveenergy conservation policy with power cut-offswitches, energy efficient lighting (CFL bulbs),photo active garden lights & solar power hotwater systems. Geoffrey Bawa’s visionaryarchitectural design has ensured that no lightsare required anywhere in the hotel duringdaytime. All spaces are designed to receivean adequate amount of natural light. As aresult of, something as simple as theallowance for natural lighting, the hotelmakes a substantial saving in the energyconsumption .Other state of the art methodsare utilized in every aspect of the hotel toensure efficient use of energy & resourcessuch as water.

Heritance Ahungalla emerged victorious atSri Lanka National Energy Efficiency Awards2013, conducted by the Sri LankaSustainable Energy Authority for private andpublic sector institutions with the aim ofrecognizing their contribution towards anenergy efficient Sri Lanka. HeritanceAhungalla was awarded the Silver FlameAward, one of the highest accoladesawarded for the conscious commitment madeto enhancing energy efficiency practiceswithin the large scale hotel sector andrecognized as Sri Lanka’s First Five StarBeach Resort to award this.

Heritance Ahungalla is also the first hotel inthe world to receive the introduction of thisEnergy Management System. The hotel wasable to effectively manage energyconsumption without compromising guestcomfort. It has enabled the hotel to meet thecurrent and future mandatory energy

efficiency targets andrequirements ofgreenhouse gas (GHG)emission reductionlegislations and thusgiven it leverage toemerge as one of SriLanka’s most energyefficient hotels.

Heritance Hotels and Resorts believepassionately in sustainable tourism and havebeen very active in engaging both guests andcommunities in promoting these ethics. Thechain of resorts have a comprehensive policythat focuses on the conservation of energythrough the use of renewable energy.Heritance Ahungalla aim to reduce itsdependency on fossil fuels annually throughthe implementation of innovative energyefficient practices.

“WingWingWingWing OperationOperationOperationOperation” is another importantconcept for energy saving. During the offseasonal times the hotel staff reserve therooms which are located in the similar wingso that they can close the energy supply tothe other side. This reduce the requirement ofextra chillers. Chillers contribute a lot to theElectricity. By maintaining good chillermaintenance practices hotel has been ablereduce their electricity bills is another positiveside of Heritance Ahungalla.

Another important consideration is takingenergy measures. This is taken four times perday accordingly at 5.30am, 10.30am,6.30pm & 10.30pm. It identify the energyconsumption from the department basis likekitchen, laundry, pool boiler etc. Bymaintaining records they can identify overconsumption values and take preventivemeasures for that. To do all these thing hotelreceive the support from the top managementand head office through the “energy budget”

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THE COMMUNITYSocialSocialSocialSocial andandandand CulturalCulturalCulturalCultural DevelopmentDevelopmentDevelopmentDevelopment

This aspect is fully integrated into the business concept of Heritance Ahungalla Management. In thelong-term, the hotel management views its sustainability, focus to be a key not only to the financial andcommercial interest of the company but also to Sri Lanka as a destination. With a growing number oftravelers looking towards green destinations in an effort to minimize their own carbon footprints, thishotel is an indication in assistingassistingassistingassisting SriSriSriSri LankaLankaLankaLanka totototo achievingachievingachievingachieving aaaa greengreengreengreen destinationdestinationdestinationdestination status by protecting theenvironment. The culture within which it operates the group identifies its capacity to differentiate theproduct offer and retain a truly Sri Lankan identity.

There are various ways of making a difference and give positive contributions to the local communityand area by hotel sustainable practices. Heritance Ahungalla hotel believes in responsibleresponsibleresponsibleresponsible tourismtourismtourismtourism andthey contribute create responsible travelers during their holiday in Sri Lanka. Community in the area,Ahungalla is less privileged and schools do not have much facilities. Cinnamon cultivation and fishingare the main sources of income. Some are involved in tourism related various ways of income in thebeach area. Therefore the poor students were found to be the main target for a futuristic development forthe community.

We have launch numbernumbernumbernumber ofofofof projectsprojectsprojectsprojects forforforfor thethethethe benefitbenefitbenefitbenefit ofofofof communitycommunitycommunitycommunity andandandand enhanceenhanceenhanceenhance theirtheirtheirtheir qualityqualityqualityquality ofofofof lifelifelifelife andandandand totototoensureensureensureensure culturalculturalculturalcultural conservationconservationconservationconservation as the hotel believes that only by developing the community it will becomepracticable to create social & cultural development. This has been enable the hotel to improve theirpublic reputation.

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EMPLOYMENT OPPORTUNITIES

Recruit higher provision of employees from the host area. And also women employment ratio is fair andconsiderably high when comparing with other hotels in the area.

22222222 |||| 308308308308

58%EMPLOYEESARE WITH IN 35 KMS

TOTAL WORKFORCE

330

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EMPOWERING SRILANKA FIRSTAitken Spence PLC has launched ‘EmpoweringEmpoweringEmpoweringEmpowering SriSriSriSri LankaLankaLankaLanka FirstFirstFirstFirst,’ an English and IT teaching program forchildren from its neighbouring communities as its flagship corporate community engagement initiative. Theleading diversified conglomerate commenced the pilot phase of the English program benefiting 180 studentsin Dambulla, Ahungalla and Mawaramandiya in May 2013.

The eight-year old students follow a globally recognised British Council syllabus combined withaccompanying teaching material delivered by local teachers who have completed British Council conductedteacher training. Empowering Sri Lanka First is intended to add more focus to our community engagementsby concentrating on two key enablers for young students to achieve their true potential, thereby contributingto the sustainable development of the communities in which we operate.

At the begging there were 64 students for the English class and 39 students for the Computer Class in ourAhungalla Training Centre and we are happy to say that 38 students out of 64 have successfully completedtheir English programme, and 31 students out of 35 students have successfully completed their ComputerCourse in this August.

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BUSINESS OPPORTUNITIES

Have been given the opportunity for the local vendors to executive their businesses in the property itself.

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PROFESSIONALS IN THE AREA

Engaging with local artists to conduct cultural shows in the hotel – hotel management weekly organizemasks dancing shows, down south dancing shows etc.

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AWARENESS PROGRAMMES FOR SCHOOL STUDENTS

WORLDWORLDWORLDWORLD WATERWATERWATERWATER DAYDAYDAYDAY 2015201520152015 ---- RAJAPAKSHARAJAPAKSHARAJAPAKSHARAJAPAKSHA VIDYALAYAVIDYALAYAVIDYALAYAVIDYALAYA

AWARENESSAWARENESSAWARENESSAWARENESS ONONONON TABLETABLETABLETABLE ETIQUETTEETIQUETTEETIQUETTEETIQUETTE ANDANDANDAND FLOWERFLOWERFLOWERFLOWER ARRANGEMENTSARRANGEMENTSARRANGEMENTSARRANGEMENTS

WORLDWORLDWORLDWORLD CHILDREN'SCHILDREN'SCHILDREN'SCHILDREN'S DAYDAYDAYDAY

POSTERPOSTERPOSTERPOSTER &&&& ESSAYESSAYESSAYESSAY COMPETITIONCOMPETITIONCOMPETITIONCOMPETITION ATATATAT RAJAPAKSHARAJAPAKSHARAJAPAKSHARAJAPAKSHA VIDYALAYAVIDYALAYAVIDYALAYAVIDYALAYAAn essay and poster competition which was held on behalf of World Tourism Day 2015, was concluded on01st October 2015 at the Rajapaksha Maha Vidyalaya by distributing the certificates and prizes for thewinners of the competition. Heritance Ahungalla management was present at the main event of the school togive away these prizes.

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DONATIONS

BOOKSBOOKSBOOKSBOOKS ANDANDANDAND STATIONARYSTATIONARYSTATIONARYSTATIONARY ITEMSITEMSITEMSITEMS FORFORFORFOR ANULAANULAANULAANULA ORPHANAGEORPHANAGEORPHANAGEORPHANAGE

Heritance Ahungalla is the parent to Anula Girls Orphanage where more than 30 girls are protected andtaken care of. Some of these girls are the victims of Tsunami devastation which encountered in 2004 andsome were abandoned by their single parents. Not only at World's Children's Day, these lovely girls weretaken care around the year, with the help from our distinguished guests around the globe.

DONATIONDONATIONDONATIONDONATION TOTOTOTO NEWNEWNEWNEW MODULEMODULEMODULEMODULE PRIMARYPRIMARYPRIMARYPRIMARY SCHOOLSCHOOLSCHOOLSCHOOL

With the spirit of Avurudhu, and keeping in mind of helping the needy made us to form a "Wish Tree" atHeritance Ahungalla for the first time in the Avurudhu season. We were to help 76 girls and boys in the NewModule Primary School in Ahungalla. When inquired from the Teachers of the school we were made tounderstand that all of the children are need of under garments.

Family Heritance Ahungalla never take a step behind. We were geared to collect money as much aspossible to help these children. It was such a pleasure, we were able to collect a good amount of fundswithin a day, so that we could share the good values of sharing, caring and love to the children who are inneed of them in this festive season.

It is pleasing to inform you all that we, Family Heritance Ahungalla were fortunate enough to visit them on27th April 2015 and help the children of the School in Ahungalla just after they came to school afterAvurudhu. We were able to help these children and these young girls and boys are between the age of 7 -11 years who come from very low earning families.

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SUPPLIERS

PURCHASINGPURCHASINGPURCHASINGPURCHASING POLICYPOLICYPOLICYPOLICY

We at Heritance Ahungalla are committed to support sustainable purchasing practices by takingconscious decision to consider environmental friendly products. We shall take into consider theeffect on environment, our carbon footprint, where the purchases come from and the culturalappropriateness of the product.

We shall seek to purchase equipment, products and material that are recyclable, made ofrecycled contents and reduce waste. We shall also work to mitigate fuel waste and will createdemand for environmentally harvested products, by purchasing local products from localsuppliers.

All cleaning products and chemicals that are purchased shall be non phosphate, non toxic andbiodegradable.

We shall honor long standing relationships with reliable suppliers who charge fair prices forquality products and those who show their commitment to environmental stewardship throughtheir willingness to deliver products in environmentally safe packaging.

UpulUpulUpulUpul PeirisPeirisPeirisPeirisExecutive General ManagerHeritance Ahungalla

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ACHIEVEMENTSACHIEVEMENTSACHIEVEMENTSACHIEVEMENTS

AWARDS AND CERTIFICATIONS

CertificationCertificationCertificationCertification AwardingAwardingAwardingAwarding AuthorityAuthorityAuthorityAuthority

ISO 50001:2011 Energy Management System Quality International Certification Services

ISO 14001 :2004 Environment Management system Quality International Certification Services

Earth Check – Certified (Silver) Green Globe Earth Check

Responsible Hotels of the World MemberResponsible Travel.com

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ANIMAL WELFARE POLICY

AnnexureAnnexureAnnexureAnnexure totototo thethethethe AnimalAnimalAnimalAnimal WelfareWelfareWelfareWelfarePolicyPolicyPolicyPolicy ofofofof AitkenAitkenAitkenAitken SpenceSpenceSpenceSpence HotelsHotelsHotelsHotelsReference:Global Welfare Guidance for Animals in Tourism, ABTA, 2013The Brooke’s Happy Horse Holiday CodeTUI Travel PLC AnimalWelfare Policy

Version 2: September 2015PagePagePagePage1111 ofofofof 1111

GROUP SUSTAINABILITY DIVISION | AITKEN SPENCE PLC

AnimalWelfare Policy of Aitken SpenceHotel Holdings PLCAt Aitken Spence Hotels, we recognise our responsibility towards animal welfare when offering interactionand experience with animals and in utilising tourism infrastructure that may have impacts on tamed animals.

We respect the fundamental standards proposed by the Global Welfare Guidance for Animals in Tourismdeveloped by the Association of British Travel Agents and endorsed by leading animal welfare organisationsand are committed to uphold minimum standards of welfare for animals to ensure that all animalsencountered and possibly impacted through the activities of Aitken Spence Hotels are treated humanely andwith respect, and to protect animals from exploitation, neglect and cruelty.

We aspire to uphold the Five Freedoms which are;• FreedomFreedomFreedomFreedom fromfromfromfrom hungerhungerhungerhunger andandandand thirst:thirst:thirst:thirst: absence of prolonged hunger or thirst• FreedomFreedomFreedomFreedom fromfromfromfrom discomfort:discomfort:discomfort:discomfort: suitable living environment that provides opportunities to rest, comfort

while resting, ease of movement,• FreedomFreedomFreedomFreedom fromfromfromfrom pain,pain,pain,pain, injuryinjuryinjuryinjury orororor disease:disease:disease:disease: Absence of injuries, disease or potential to cause harm,

provide preventive and curative healthcare• FreedomFreedomFreedomFreedom totototo expressexpressexpressexpress normalnormalnormalnormal behaviour:behaviour:behaviour:behaviour: Good human – animal relationship, positive emotional

state and expression of natural behaviours, living space that encourages natural behaviour• FreedomFreedomFreedomFreedom fromfromfromfrom fearfearfearfear andandandand distress:distress:distress:distress: Absence of general fear/ distress/ apathy, ability to seek refuge

or privacy, absence of procedures that are harmful to the animal

In doing so, are committed to;• Educate our suppliers where necessary, encourage higher standards of welfare, and promote

awareness of the importance of animal conservation• Include compliance with this policy in supplier contracts and influence suppliers to meet minimum

standards of animals welfare set forth by the Global Welfare Guidance for Animals in Tourism• Educate our guests on the standards of welfare we mean to uphold and encourage good practices

as guests to ensure good standards of welfare and protection of animals• Educate suppliers, colleagues, associates and other relevant parties on the Five Freedoms and the

minimum standards for animal welfare through routine training and educational programmes• Encourage reporting practices to allow associates, guests and interested parties to inform the hotel

of practices that violate this policy• Encourage continual improvement in the practices of our hotels to raise standards of animal welfare

Managing DirectorAitken Spence Hotel Holdings PLC

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SUSTAINABILITY

INDICATORS

SUSTAINABILITY

INDICATORS

PERFORMANCE FOR THE YEAR ENDED 31ST MARCH

Indicators 2014 - 2015 2015 - 2016

Total Energy Consumption GJ 2926120 2928453

Energy Consumption per Guest Night - MJ 39.93 34.78

GHG Emissions Per Guest Night Kg 78.2 77.9

Water Consumption m^3 87300 84519

Water Consumption Per Guest Night - Liters 1.29 1.04

Waste to Landfill - Per Guest Night - Kg 227607 208505

Lost work days due to work related injuries 54 22

Average Training hours per Employee - Hours 38hrs 44hrs

Community Engagement - No. of Persons impacted (Approxi) 350 390

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