Kelani Tyres PLC has published its 2025/26 annual report. It is the company's first fully aligned with SLFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and SLFRS S2 (Climate-related Disclosures), the Sri Lankan adoption of the ISSB standards.
The report marks a step change in how a Sri Lankan listed manufacturer communicates sustainability performance: governance, strategy, risk management and metrics are now set out alongside the financials, on the same reporting cycle, with the same assurance expectations. Ennacle advised Kelani Tyres through the materiality assessment, climate scenario analysis, Scope 1–3 inventory boundary setting, and the drafting of the S1 and S2 disclosures that sit in the report.
Highlights from the 2025/26 report
Inaugural year of full SLFRS S1 & S2 compliant disclosures, published alongside the audited financial statements.
Climate oversight formally embedded at Board level with defined management responsibility and reporting cadence.
Expanded GHG inventory covering direct operations, purchased energy and material value-chain categories.
Material share of manufacturing load now served by on-site rooftop solar at the CEAT-Kelani facility.
On the ground at the CEAT-Kelani factory
As part of the engagement, the Ennacle team visited the CEAT-Kelani manufacturing facility. Two things stood out in person, the kind of thing that is easy to under-represent on a disclosure page but difficult to miss on the ground.
Workplace wellbeing and training. We were impressed by the depth of the company's attention to employee welfare and the frequency of hands-on training. The fire drill and extinguisher-handling session pictured at the top of this article is one of a regular cycle of safety, health and skills programmes run across the workforce. Training hours, incident rates and wellbeing programmes are now reported against targets in the sustainability disclosures.
Significant solar energy investment. The rooftop solar installation visible above represents a material commitment to on-site renewable generation. It directly reduces the facility's Scope 2 emissions and anchors the energy-transition narrative in the S2 climate disclosures with real, metered data rather than ambition statements.
Sustainability built into capex decisions. Equally striking, and arguably more consequential over a decade, is management's stated commitment to including sustainability metrics in the procurement of machinery and equipment. Energy efficiency, emissions intensity and end-of-life considerations are being written into capital expenditure evaluation, not bolted on afterwards. This is the kind of upstream decision architecture that compounds over an asset's lifetime, and it is the single clearest signal that climate considerations have moved from the sustainability report into the operating playbook.
Disclosures presented at the Annual General Meeting
Ennacle presented the sustainability disclosures at the Kelani Tyres PLC Annual General Meeting, held at Marino Beach Colombo on 22nd September 2026. Shareholders were walked through the SLFRS S1 and S2 methodology, the materiality outcomes, the climate scenario analysis, and the forward glidepath on emissions and energy intensity.
Read Kelani Tyres PLC's 2025/26 annual report in full here.
A disclosure standard is only as credible as the operating decisions behind it.
Ennacle advises listed companies and large private groups across Sri Lanka and the region on SLFRS S1 and S2 implementation, climate scenario analysis, GHG inventory and sustainability assurance readiness.