Financial Statements

The average enrolment was 311 with 257 full fee-paying students at the end of the academic year, which was 3% more than the prior year. The comprehensive loss for the year was LKR 476 million with an operating loss of LKR 514 million. The operating loss was mainly due to the unprecedented increase of taxes, exchange rate fluctuation and loss on enrolment. Included in the comprehensive loss are revaluation of currency (loss) of LKR 309 million and property and land valuation gain amounting to LKR 85 million.

The rupee appreciated during the year with an opening rate of LKR 369 to a US Dollar at the beginning of the school year, to LKR 334 to a US Dollar by the end of the year. The exchange loss of LKR 309 million (USD 925,000) on the revaluation of the school’s foreign currency reserves are unrealised losses and should not be considered as an additional cost since approximately 85% of school expenses are transacted in US Dollars.

Direct expenditure increased by LKR 901 million primarily due to the effective income tax increase on all expat staff salaries and benefits (48%). Other operating expenses were relatively less during the said school year.

Capital expenditure was allocated towards the new security building and related upgrades, mainly funded by the US Embassy soft target grant. Due to the uncertainty created by the economic and political unrest, plans for constructing the new gymnasium were put on hold for a fourth year in a row.

The Board will continue to focus on the financial stability of the school, ensuring adequate resources are available for maintaining and improving the school’s infrastructure whilst providing an excellent academic experience for our learners.