INTRODUCTION

Responsible labour practices and social responsibility remain integral to SAGT’s long-term business strategy and sustainability agenda. As a key contributor to the Port of Colombo’s position as a regional transhipment hub, SAGT recognises that sustainable value creation depends not only on infrastructure, equipment and technology, but also on the strength, wellbeing and commitment of its people.

The maritime and logistics sector continues to evolve rapidly in response to changing trade flows, digitalisation, customer expectations and increasing operational complexity. In this environment, SAGT’s approach to labour practices is centred on maintaining a capable, engaged and future-ready workforce supported by sound governance, fair employment standards and a culture of accountability. The Company seeks to provide an environment where individuals are respected, developed and empowered to contribute meaningfully to operational performance and organisational progress.

SAGT’s HR policies, including the Employee Code of Conduct, Whistleblowing Policy, and Anti-Sexual Harassment Policy, as well as its Health & Safety Policy provide a strong framework to uphold an ethical and responsible working environment.

Further, policy and procedures such as the Supplier Code of Conduct and Supplier Portal ensure that these ethics are permeated throughout the Company’s value chain.

SAGT Human Resource Management practices are aligned with International Labour Organisation (ILO) standards, ensuring adherence to global standards. SAGT strictly adheres to Sri Lankan laws and regulations pertaining to Human Rights and Occupational Health & Safety, and upholds a zero tolerance policy on Child Labour, Forced and Compulsory Labour and discrimination. The Company is committed to promoting Freedom of Association and non-discrimination amongst its employees, workforce and value chain partners. SAGT continuously monitors its workforce and value chain to ensure that non discrimination and instances of forced labour and child labour do not occur. Further, all new suppliers to the organisation are subject to a supplier social assessment at the point of registering on SAGT’s supplier portal.

The Company communicates all relevant and new initiatives and policies to employees through the Company’s routine team briefings, toolbox meetings, union meetings, emails and public announcements on the notice board.

The principle of collective bargaining is supported at SAGT, and the Company encouraging enters into Collective Labour Agreements (CLA) with the Trade Unions. This process creates a strong foundation of communication and transparency, through which employee concerns can be raised and addressed. Periodic surveys conducted by an external third-party global service providers are carried out, ensuring employees can escalate their concerns to the management. The Company’s sustainability management framework is utilised to track critical incidents related to forced labour and other related human rights violations, if any. These potential incidents are tracked quarterly through the relevant Key Sustainability Performance Indicators based on the identified material topics aligned to the GRI Topic Standards.

Beyond the workplace, SAGT recognises its broader responsibility as a major employer and facilitator of national trade. The Company contributes to economic development through employment generation, skills enhancement, efficient cargo connectivity and responsible stakeholder engagement. Employee family support initiatives, community investment programmes and long-term partnerships further reflect SAGT’s commitment to creating shared value beyond the boundaries of its terminal operations.

Through these efforts, SAGT continues to strengthen the human and social foundations required for sustainable growth.

By maintaining responsible labour practices, supporting employee wellbeing and contributing positively to society, the Company remains well positioned to support the continued development of the Port of Colombo while delivering lasting value to employees, customers, shareholders and the wider community.

Talent Management (401-1)

SAGT’s retention strategy is supported by a structured performance management framework that encourages accountability, dialogue and employee growth.

New Employee Hires

New employee hires provide an indication of the Company’s ability to attract talent required to support current and future operational needs. During the year under review, recruitment continued to be guided by principles of merit, equal opportunity and role suitability. Employment decisions are based on competence, qualifications, experience and alignment with organisational values.

During FY 2025/26, SAGT recorded a total of 56 new hires, compared with 93 new hires in FY 2024/25.

Employee Attrition and Workforce Stability

Employee attrition provides useful insight into workforce stability, employee engagement and the effectiveness of retention practices. Attrition may arise for several reasons, including retirement, resignation, migration, career changes, personal circumstances or health considerations.

During FY 2025/26, SAGT recorded lower turnover compared with the previous year, indicating improved workforce stability.

Benefits provided to full-time employees that are not provided to temporary or part-time employees (401-2)

The Company provides a range of benefits that extend beyond statutory requirements and are aligned with employee wellbeing priorities, market expectations and responsible employment practices. These benefits are intended to enhance quality of life, provide financial security, encourage work-life balance and reinforce employee commitment across the organisation.

EMPLOYEE BENEFITS, ENGAGEMENT AND WELFARE

SAGT continued to maintain a people centred approach to employee welfare, recognising that a motivated and supported workforce is essential to sustaining safe, efficient and dependable terminal operations. In a demanding operational environment that requires round-the-clock coordination, technical competence and strong teamwork, employee wellbeing remains closely linked to performance, engagement and long-term workforce stability. Accordingly, the Company’s employee welfare framework is designed to support employees not only in the workplace, but also in their family and personal lives.

Remuneration and Statutory Benefits

SAGT’s remuneration structure remains above the national minimum wage threshold and is guided by principles of fairness, equity and merit. Compensation is determined according to role responsibilities, capability, experience and performance, and is administered without discrimination on the basis of gender, age, race, ethnicity, religion, nationality, physical ability, political beliefs or other non-work related factors.

In addition to salaries and wages, the Company continues to meet all statutory obligations relating to employee benefits, including contributions under the Employees’ Provident Fund (EPF) Act and Employees’ Trust Fund (ETF) Act. These schemes provide important long term financial protection for employees.

The Company also maintains gratuity provisions for eligible employees completing more than five years of service, in line with the Sri Lanka Financial Reporting Standards (which mirror International Financial Reporting Standards-IFRS) and the Gratuity Act No 12 of 1983. The gratuity payment made at the end of the service period is half the employees’ last drawn monthly salary, multiplied by the number of years the employee was in service. These arrangements support financial wellbeing across the employment lifecycle and reflect SAGT’s commitment to responsible workforce management.

Workplace Support

SAGT continued to provide employees with access to three meals while on duty through the Company canteen at nominal rates, close to no cost. Snacks and beverages were also made available during morning and evening hours at highly subsidised rates.

Employees and Contractors also benefit from onsite changing room and rest area facilities, and internal transportation support within the Port of Colombo, contributing to convenience and smoother daily operations.

Family Assistance and Compassionate Support

The Company continued to demonstrate its commitment to employees and their families through welfare support during periods of hardship. In the event of the untimely death of an employee, SAGT provides a one-time cash bursary to support surviving family members.

Educational Support for Employees’ Children

Employee Engagement and Organisational Culture

SAGT continued to invest in initiatives that strengthen relationships, encourage belonging and promote a positive organisational culture. During the year, the Company organised its annual sports day at an external venue, enabling employees and family members to interact in a relaxed setting outside the workplace.

Such events help build camaraderie across departments, strengthen teamwork and foster stronger connections among employees who may otherwise work in different shifts or functions.

Employees and their families were also offered an annual one-night hotel stay at selected destinations. This benefit recognises the importance of rest, recreation and family time, while demonstrating appreciation for employee contribution in a meaningful manner

In May 2025, SAGT organised a “Bakthi Geetha” event with the participation of employees and their family members. The program served as a cultural engagement platform that promoted togetherness, wellbeing as well as community spirit. By encouraging participation in shared cultural experiences, the Company continued to nurture an inclusive and respectful workplace culture.

Parental Leave (GRI 401-3)

SAGT recognises that supporting employees through parenthood is an important element of responsible employment practice, gender inclusion and workforce retention. The Company therefore continued to provide parental leave benefits in line with statutory requirements while promoting a supportive and family friendly work environment.

Eligible female employees are granted maternity leave of 84 working days in accordance with Sri Lankan legal requirements. This enables mothers to recover from childbirth, care for newborn children and manage the transition into parenthood with employment continuity.

To further support working mothers, the Company provides flexible working hours for breastfeeding purposes upon return to work. This arrangement helps employees balance professional responsibilities with infant care needs during the post-maternity transition period.

SAGT also continued implementation of its paternity leave policy introduced in 2024. The policy enables new fathers to participate more actively in responsibilities associated with the birth or adoption of a child. The Paternity Leave policy which goes above and beyond statutory obligations entitles male employees to 21 days of paid leave within 12 months of the birth or adoption of their baby.

By extending parental support beyond maternity leave alone, the Company acknowledges the evolving role of fathers in caregiving and promotes a more balanced sharing of family responsibilities.

Through these initiatives, SAGT continued to reinforce its position as a responsible employer committed to employee wellbeing, family support and workforce engagement. The Company’s approach reflects the understanding that long-term business success depends on employees who feel valued, supported and empowered to contribute at their best.

Training and Development

SAGT continued to recognise employee capability development as an important enabler of safe operations, service quality and long term competitiveness. As the maritime and logistics sector evolves through digitalisation, automation, changing customer expectations and increasing operational complexity, workforce skills must continue to adapt accordingly. The Company therefore remained focused on strengthening technical knowledge, behavioural competencies and leadership capability across all levels of the organisation.

Average hours of training per year per employee (GRI 404-1)

Training needs are identified based on performance appraisals, employee feedback and supervisor recommendation. As such there were no fundamental changes in the process of overall identification of training needs during the period under review.

A 20% decline in total training requirements has been recorded in 2025/26 in comparison to the previous year. Further a 21% and 17% decline in training hours has been recorded year on year for male and female employees respectively. In 2024/25 long term trainings were identified and provided for upskilling for both male and female employees which has resulted in the relative decline in training hours provided in 2025/26.

In addition to the full-time workforce, the Company also provides numerous training opportunities to interns, and industrial trainees on a temporary basis with 91 individuals provided such an opportunity during the year under review.

Programs for upgrading employee skills and transition assistance programs (GRI 404-2)

Training and development form a key component of SAGT’s people strategy. By investing in employee learning, the Company seeks to enhance operational effectiveness, reinforce safety standards, support career progression and prepare the workforce for future business requirements. In a specialised terminal environment, continuous learning is particularly important given the need for technical competence, disciplined execution and readiness to respond to changing operational demands.

The diagram below outlines the trainings provided to employees throughout the reporting period.

Percentage of employees receiving regular performance and career development reviews (GRI 404-3)

Objectives are established for all employees at the executive level and above, with performance reviewed through both mid-year and year-end appraisal cycles. The review process includes self-assessment by employees followed by supervisor evaluation, enabling two-way discussion on achievements, expectations and development needs.

Employee performance is graded on a scale of one to five, with results reviewed by a cross-functional career committee. This helps ensure that career-related decisions are fair, balanced and based on objective criteria. The Company also uses a digital performance management system to improve efficiency, transparency and consistency.

During the period, 100% of employees in the executive and above categories went through the annual performance appraisal process.

The performance of contract personnel working at SAGT is monitored and managed by their respective employers in accordance with their contractual obligations.

Employee Diversity and Equal Opportunity (GRI 405-1)

SAGT continues to identify diversity, equity and inclusion as important priorities within its people strategy. While the ports industry has traditionally faced barriers to female participation, the Company has taken deliberate steps to create a more inclusive work environment.

HUMAN RIGHTS, FAIR EMPLOYMENT AND RESPONSIBLE LABOUR PRACTICES

SAGT continued to uphold a workplace culture founded on dignity, fairness, mutual respect and responsible employment practices during the year under review. As a leading participant in Sri Lanka’s maritime and logistics sector, the Company recognises that sustainable business performance depends not only on operational capability, but also on maintaining ethical labour standards and protecting the rights of all people connected to its operations. Accordingly, the Company remains committed to providing a work environment free from discrimination, harassment, child labour, forced labour and any form of unfair treatment.

The Company’s people policies are aligned with applicable Sri Lankan labour legislation, recognised international labour principles and internal standards of conduct. These principles apply across all stages of the employment lifecycle, including recruitment, onboarding, performance management, remuneration, promotion, training, disciplinary processes and separation. SAGT also expects contractors, service providers and other business partners operating within the terminal to uphold comparable standards of behaviour and labour responsibility.

Incidents of discrimination and corrective actions taken (GRI 406-1)

The Company maintains zero tolerance for discrimination on the basis of gender, age, race, ethnicity, nationality, religion, marital status, political belief, disability or any other protected characteristic.

During the reporting period, no incidents of discrimination requiring formal external sanction or regulatory action were reported. Any employee concerns raised through internal channels are subject to review in line with established grievance and disciplinary procedures. Where necessary, corrective action is taken promptly to maintain a respectful workplace environment.

Regular communication, policy awareness and leadership accountability continue to reinforce behavioural expectations across the business. Through these measures, SAGT seeks to ensure that all employees are treated fairly and with respect.

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk (GRI 407-1)

SAGT recognises the importance of employee voice, constructive dialogue and the right of workers to organise and participate in representative structures in accordance with applicable laws. The Company continued to support a positive industrial relations environment during the reporting year, based on mutual respect, transparency and good-faith engagement.

Employees are free to engage through recognised trade unions and representative mechanisms. SAGT encourages structured dialogue through Collective Labour Agreements and established communication channels that allow workplace matters to be discussed in an orderly and constructive manner.

During the FY 2025/26, 74% of employees were covered under collective bargaining agreements, reflecting strong workforce representation and mature employee relations practices.

There were no significant operational changes during the reporting period that materially restricted freedom of association or collective representation. Where organisational changes arise, the Company remains committed to timely communication and engagement with affected stakeholders. SAGT follows an Open-Door policy, allowing Trade Union representatives to approach management with issues and concerns, promoting a transparent and accessible communication environment. Additionally, the Company has implemented a dispute resolution procedure, designed to address and resolve issues that may not be covered in the CLA.

Employees and contractors are encouraged to share their suggestions with management through suggestion boxes at toolbox meetings and during monthly team briefings, ensuring that all voices are heard and contributing to a culture of continuous improvement.

Operations and suppliers at significant risk for incidents of child labour (GRI 408-1)

Operations and suppliers at significant risk for incidents of forced or compulsory labour (409-1)

SAGT maintains a strict zero-tolerance approach to child labour across all aspects of its operations. The Company does not employ individuals below the legal minimum working age and requires robust verification of age and identity during recruitment processes.

All prospective employees are subject to documented hiring procedures that include review of official identification records and supporting documentation before employment is confirmed. These controls are designed to prevent underage employment and ensure compliance with legal requirements.

The nature of SAGT’s operations involves heavy equipment, industrial traffic, lifting activity and technical work environments that are unsuitable for children and young persons outside legally permitted frameworks. Accordingly, strict employment controls remain essential to safeguarding vulnerable groups and maintaining responsible labour standards.

The Company also expects contractors and labour suppliers to comply fully with applicable employment laws, including minimum age requirements. Third-party personnel engaged within the terminal are subject to onboarding controls and site access requirements intended to reinforce responsible workforce practices.

During the year under review, no incidents of child labour were identified within SAGT’s direct operations. No material cases involving contractors or suppliers were reported through available oversight channels.

SAGT continued to prohibit all forms of forced or compulsory labour within its operations. Employment with the Company is entered into voluntarily, with terms and conditions communicated clearly to employees at the commencement of employment.

Employees are free to resign subject to applicable contractual notice requirements and are not required to lodge deposits, surrender identity documents or accept coercive employment conditions. Wages and benefits are administered through formal payroll systems, supporting transparency and lawful remuneration practices.

The Company’s recruitment processes are structured to ensure that employment relationships are based on informed consent and documented contractual terms. Working hours, leave entitlements and statutory benefits are governed by applicable laws and internal policies.

SAGT also expects contractors, outsourced labour providers and service partners to uphold the same standards. Where third-party personnel operate onsite, the Company requires compliance with relevant labour, ethical and safety expectations as a condition of engagement.

During the reporting period, no incidents of forced or compulsory labour were identified within direct operations or reported through contractor oversight mechanisms.

Grievance Handling and Ethical Conduct

The Company recognises that strong labour standards are supported by accessible reporting mechanisms and confidence in fair resolution processes. Employees may raise workplace concerns through line management, Human Resources, recognised representatives or other designated channels.

Matters relating to discrimination, misconduct, unfair treatment or labour concerns are reviewed in accordance with established procedures, with due regard for confidentiality, impartiality and timely resolution. Where substantiated issues arise, corrective or disciplinary action is taken as appropriate.

This framework supports early intervention, helps prevent escalation and reinforces a workplace culture grounded in accountability and respect.

Occupational Health and Safety

Occupational Health and Safety (OHS) remained one of the most critical priorities for South Asia Gateway Terminals (SAGT) during the financial year 2025/26. As a modern container terminal operating within a high-risk industrial environment, the Company’s activities involve continuous vessel operations, container handling, engineering maintenance, heavy mobile equipment, traffic movement and contractor-based activities that require rigorous safety discipline at all times. SAGT therefore recognises that strong safety performance is fundamental not only to protecting people, but also to sustaining reliable operations, productivity and stakeholder confidence.

The Company’s occupational health and safety framework encompasses two closely connected dimensions: workplace safety and health, and employee wellbeing. SAGT continues to maintain a proactive safety culture in which risk prevention, hazard awareness, accountability and continuous improvement are embedded across the organisation. The objective is to ensure that all employees, contractors and visitors return home safely each day while enabling terminal operations to be conducted efficiently and responsibly.

All stakeholders, including employees and contractors, adhere to internally developed Standard Operating Procedures (SOPs) and precautionary is designed to not only meet but exceed the basic legal requirements, ensuring the safety and well-being of employees, contractors, and third party visitors. measures when entering terminal premises. These procedures emphasise proactive risk management, continuous quality improvement, and contingency planning, ensuring that terminal operations are conducted in alignment with the highest safety standards.

Safety considerations are integrated into operational planning, work execution, supervision, contractor management and employee training. Rather than reacting only after incidents occur, the Company focuses on identifying risks early, implementing controls and continuously strengthening workplace conditions.

The Company continued to promote shared responsibility for safety across all levels of the organisation. Employees and contractors are expected to comply with procedures, use personal protective equipment correctly, report unsafe conditions and intervene where hazards are observed. All personnel are empowered to speak up and stop work where conditions are considered unsafe, reinforcing a culture in which safety ownership exists at the point of work.

From the point of recruitment, employees are trained in safety procedures and protocols. This ongoing training ensures that employees are well prepared for the specific risks associated with their roles and enhances the overall safety culture.

Moreover, the Company views occupational safety as an integral part of its culture, and by embedding safety into the Company’s ethos, it becomes a shared responsibility, making safety a continuous and natural consideration in day-to-day operations.

Occupational Health and Safety Management System (GRI 403-1)

Whilst Sri Lanka’s labour laws set minimum requirements to ensure worker safety, SAGT’s Occupational Health and Safety Management System (OHSMS) goes beyond these regulatory standards to provide a more robust and comprehensive approach to health and safety. SAGT has implemented a structured and well-defined OHSMS framework that is designed to not only meet but exceed the basic legal requirements, ensuring the safety and well-being of employees, contractors, and third party visitors.

The comprehensive OHSMS is, further reinforced by a Health & Safety Policy and Standard Operating Procedures (SOP’s) The Health & Safety Policy and SOP’s are applicable to all employees, contractors and all third parties visiting SAGT, ensuring 100% coverage to support the Company’s proactive management of risks.

The HSE Department, led by senior management, is responsible for operationalising the system across the terminal. Responsibilities include monitoring compliance, reviewing incidents, maintaining safety documentation, coordinating training and identifying areas requiring improvement.

The department plays a key role in ensuring that safety standards are not only adhered to but also continuously improved. The team is also responsible for the identification and rectification of any incidents or cases of non-conformity with the OHSMS. The OHSMS is audited by internal and external parties who review and determine its efficacy. Additionally, training programmes are reviewed to determine any potential improvements/advancements.

A comprehensive contractor management process ensures that contractors adhere to the same safety standards as SAGT permanent staff. This process includes weekly meetings and discussions with three of the critical contractor groups. These meetings provide an opportunity to review best practices which are followed by contractors, review operating conditions to ensure that working environment remain safe, identify unsafe activities or behaviours and to develop solutions to mitigate these risks. This collaborative approach not only strengthens the overall safety culture but also helps proactively address any safety concerns before they lead to incidents.

During the year, SAGT continued progressing its digital safety management strategy. Following earlier phases of implementation, the Digital Safety Management System further strengthened the management of risk assessments, incident reporting, task tracking and access to safety data. By consolidating safety processes within a digital platform, the Company improved efficiency, visibility and responsiveness in the execution of safety responsibilities.

The Company’s Occupational Safety and Health Committee continued to function as an important leadership and consultation platform. Chaired by the Chief Executive Officer and supported by a cross-functional membership, the Committee met regularly during the year to review performance, reinforce priorities and support continuous improvement.

Hazard Identification, Risk Assessment and Incident Investigation (GRI 403-2)

SAGT continued to apply a formal Hazard Identification and Risk Assessment (HIRA) process to identify workplace risks and ensure that appropriate controls are in place before work begins. Developed in alignment with best practices followed by A.P. Moller Terminals, a global leader in terminal operations, this grid plays a pivotal role in identifying and mitigating potential risks in the terminal environment. The HIRA grid sets the tone for SAGT’s operations by providing a structured approach to assessing hazards and ensuring that appropriate controls are in place to prevent accidents and ensure worker safety. The HIRA grid specifically targets the “Fatal Five” risk categories that are known to pose the most significant safety threats in terminal operations. These critical areas are thoroughly assessed for risks and continuously reviewed as part of the application of the relevant Standard Operating Procedures (SOPs). The Fatal Five are:

• Transportation
• Suspended loads and lifting
• Working at heights
• Stored energy
• Control of contractors

These categories remain priority focus areas due to their potential to result in serious injury if not effectively managed.

Daily toolbox meetings were conducted before each shift, particularly within operations and engineering functions, to discuss planned activities, site conditions, potential hazards and mitigation measures. These sessions help ensure that employees and contractors begin work with clear awareness of risks relevant to the day’s activities.

During the year, the Company also continued Safety Walks across high risk areas of the terminal. Employees are encouraged to identify unsafe conditions or behaviours, with observations escalated to relevant departments for timely action.

Where incidents occur, SAGT follows a structured investigation process. Immediate investigations are initiated to determine root causes, supported by formal incident reports containing details of the event, persons involved, possible rule violations, photographs and corrective actions. An Incident Report (IR) is raised by the executive on duty after each incident. An IR must include detailed information such as a description of the incident, the list of people involved, possible violations of safety rules and procedures that may have led to the incident, corrective action and photographs of the incident. The IR is then circulated amongst all managers of the Company within 24 hours of the incident taking place. Serious incidents trigger more comprehensive reviews and audits of associated procedures and controls.

STANDARD OPERATING PROCEDURES, RISK ASSESSMENTS AND LOTO PROCEDURE

A standard operating procedure (SOP) and Risk Assessment (RA) is mandatory for all activities that are conducted within the terminal. The SOPs and RAs are conducted by the relevant departmental functions under the guidance of the HSE Team. The Company also continues to adhere to its “Lock Our Tag Out” (LOTO) procedure which involves a colour coded tagging system for all malfunctioning equipment in order to prevent the uninformed use of such equipment that could cause injury. Furthermore, materials storage and hoarding areas are high risk areas and require a safety data sheet to be displayed.

Use of Personal Protective Equipment

SAGT enforces a rigorous Personal Protective Equipment (PPE) policy to ensure the safety of all personnel and visitors in high-risk areas. The PPE includes safety shoes, hard-hats and a high visibility jacket; which is mandatory for all who enter high risk areas within the terminal. Reminder to wear the required PPE are displayed prominently at key points of entry to the terminal premises. Depending on the work and area of the terminal that is being accessed, the Company may also mandate other PPE accessories such as gloves, goggles and mufflers. It is noteworthy that all PPE used by SAGT is certified as meeting international standards. Additionally, all visitors entering the terminal are required to watch a safety induction video and sign a safety induction sheet confirming that he or she has understood the safety requirements for entering the terminal, following which a safety card is issued to the visitor to be used for the duration of the stay.

Safety Enhancements and Operational Risk Reduction

SAGT continued to invest in practical initiatives that strengthen workplace safety and reduce operational risk.

During the year, the Company commenced installation of a fatigue monitoring system on yard cabs. The system monitors driver alertness indicators and issues warnings where signs of fatigue are detected. This initiative is intended to enhance the safety of drivers, surrounding personnel and equipment, particularly within shift-based operations involving mobile machinery.

Contractor Safety Management

Given the significant presence of third-party personnel within terminal operations, contractor safety remained a major priority during the year.

SAGT continued to require contractors to comply with the same high standards expected of direct employees. Weekly engagement sessions were held with critical contractor groups to review safe practices, site conditions, unsafe behaviours and required improvements.

Contractors engaged in lashing operations were required to use certified personal protective equipment pre-approved by the Company in line with recognised safety expectations. Tools used for lashing operations were also upgraded.

In response to contractor feedback regarding night visibility, SAGT provided head-mounted flashlights to improve working conditions during night operations.

The Company also reinforced standard PPE requirements for all contractors working onsite.

Occupational Health Services (GRI 403-3)

Employee health remained an important component of the Company’s overall safety strategy. All employees continue to undergo periodic medical examinations once every two years, with reports reviewed by qualified doctors and guidance provided where required. Key high-risk categories, including quay crane operators, RTG operators, and engineering maintenance staff, are prioritised for specific health monitoring and protection measures.

Pre-employment medical screening remains mandatory for new recruits to ensure fitness for role requirements. Additional monitoring is maintained for employees in higher-risk categories such as crane operators, equipment operators and maintenance personnel.

SAGT also maintained an onsite medical centre together with access to medical support for shift groups. Emergency medical assistance and ambulance facilities remained available where required. All medical services are provided free of charge to SAGT employees, emphasizing the Company’s commitment to employee health.

Ensuring emergency preparedness among its workforce is a key priority area for SAGT. Emergency Response Teams (ERT) are identified among its employees and contractors. The Emergency Response Team (ERT) undergoes regular training to ensure that members remain knowledgeable about the correct procedures for different emergency situations.

In addition to the ERT members, all SAGT employees are trained on how to manage and mitigate the impacts of any accidents that may occur. This training includes comprehensive safety protocols and clear actions to take in case of an incident, ensuring employees are equipped to act swiftly and appropriately.

Knowledge sharing sessions on health and safety topics are facilitated to raise greater awareness among employees. These sessions encourage adoption of best practices that promote work life balance, improving mental wellbeing and a healthy lifestyle. During the year awareness sessions were conducted on topics such as Hazard Identification, Drug Awareness, Defensive Driving Training, First Aid Training and Fire Fighting.

In 2024/25, SAGT launched a campaign to raise awareness on the harmful effects of smoking and betel chewing. In the year 2025/26 the Company has implemented a ban on betel chewing within its premises.

Worker Participation, Consultation and Communication (GRI 403-4)

The Company recognises that effective safety performance depends on active workforce participation.

Employees and contractors are encouraged to report unsafe conditions promptly and seek supervisory guidance where required. Trade unions and employee representatives may also raise health and safety matters through written communication or formal meetings.

The Occupational Safety and Health Committee continued to serve as a structured consultation platform, while monthly briefings, toolbox talks, electronic displays, noticeboards and suggestion mechanisms were used to reinforce awareness throughout the organisation.

Awareness sessions on the OSH policy are conducted for newly inducted operations and engineering executives. These sessions provide them with the essential knowledge and skills to lead their teams effectively and communicate the importance of maintaining safe working conditions.

During the year, SAGT held its annual Safety Week under the theme “We Start With Safety. Lead With Care.” Activities included emergency drills, competitions and awareness sessions for employees and contractors, promoting vigilance and collective responsibility.

A specialised defensive driving program was delivered to personnel operating vehicles within the terminal. First aid training was also provided to Emergency Response Team members to strengthen readiness during medical emergencies.

Promotion of Worker Health and Wellbeing (GRI 403-6)

SAGT continued to promote employee wellbeing beyond physical safety alone. Counselling support remained available for employees experiencing stress or anxiety, while awareness sessions were conducted on mental health and mindfulness by qualified medical professionals.

The Company also continued to support work-life balance and family wellbeing through employee engagement initiatives and family recreation benefits. A complimentary one night stay at a resort of choice is offered to all employees and their immediate family members.

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships (GRI 403-7)

The Company’s Occupational Health and Safety Management System (OHSMS), consisting of standard operating procedures (SOPs) and best practices, has been internally developed to ensure the safety of employees, contracted workers, and visitors on-site. Prior to entering SAGT premises, all individuals are required to undergo a mandatory safety induction, providing them with essential health and safety training to promote a safe working environment.

Workers covered by an occupational health and safety management system (403-8)

The Health & Safety Policy and SOP’s are applicable to all employees, contractors and all third parties visiting SAGT, ensuring 100% coverage to support the Company’s proactive management of risks.

Work-Related Injuries (GRI 403-9)

During the FY 2025/26, SAGT recorded no employee related fatalities, high consequence injuries or recordable injuries, resulting in zero lost time days and an employee work related injury rate of zero, calculated based on 200,000 hours worked per 100 employees, with a total of 1,346,000 hours worked during the reporting period. In comparison two employee related recordable injuries were recorded in 2024/25 resulting in 72 lost days and a work related injury rate on 0.3.

Two recordable injuries were reported among contractor personnel during the year, giving rise to a recordable injury rate of 0.23, calculated on the basis of 200,000 hours worked per 100 contractor personnel, with total contractor hours amounting to 1,762,000 hours; these incidents were primarily related to manual handling activities and minor injuries from sharp objects.

This represents a significant improvement compared to the 2024/25 financial year, during which contractor personnel experienced five recordable injuries, including one fatality resulting in a recordable injury rate of 0.62.

In response to this incident, SAGT strengthened its health and safety framework by reinforcing contractor safety management processes, enhancing risk assessments for high risk tasks, increasing safety oversight and supervision, and conducting targeted safety training and awareness programs.

These measures, together with SAGT’s continued focus on a strong safety culture, have contributed to improved safety outcomes during the period under review, with no high consequence injuries or recordable work related injuries reported among female contractors.

Dangerous Cargo Management

Given the nature of terminal operations, SAGT continued to apply strict procedures for the handling of dangerous cargo. Segregation within the yard is managed in accordance with international standards, supported by regular inspections and random audits by HSE and Operations teams.

Dedicated stacking areas remain available for leaking or compromised containers requiring controlled isolation.

Relevant employees continue to receive International Maritime Dangerous Goods (IMDG) training periodically, while emergency drills relating to dangerous cargo incidents are conducted to strengthen readiness.

Through continued investment in governance, training, technology, workforce participation and preventive controls, SAGT maintained a comprehensive occupational health and safety programme during FY 2025/26. The Company remains committed to continuously strengthening safety standards, protecting all personnel operating within the terminal and embedding responsible risk management into every aspect of its operations.

CUSTOMER HEALTH, SAFETY AND DATA PRIVACY

Incidents of non-compliance concerning the health and safety impacts of products and services (416-2)

SAGT continued to recognise that responsible service delivery extends beyond operational efficiency to include the protection of customer interests, cargo integrity, information security and the safe management of terminal services. As a leading container terminal serving global shipping lines, logistics operators, importers, exporters and other trade participants, the Company understands that customer confidence depends on reliable operations supported by strong governance, risk management and ethical business practices.

The nature of terminal operations means that customers entrust SAGT with the handling of cargo, vessel coordination, documentation flows and commercially sensitive operational information. Accordingly, the Company continued to maintain systems and controls designed to protect service quality, safeguard customer-related information and minimise risks that could adversely affect customers or supply chain stakeholders.

The Company’s Health & Safety Policy and Health & Safety Management System (HSMS) work in tandem to ensure a comprehensive approach to safety, for employees, contractors nd all other individuals within its premises, including customers. This integrated system is designed to maintain a safe working environment and mitigate risks, demonstrating SAGT’s commitment to protecting the health and well-being of everyone who interacts with the organisation. The HSMS includes specific Standard Operating Procedures (SOPs) that focus on safeguarding the customers, agents of shipping lines, and third parties who utilise SAGT’s services. It is designed to provide a safe and secure environment by minimising avoidable injuries, conducting timely hazard assessments, implementing risk mitigation strategies, and following principles of preventive maintenance.

All reported customer health and safety incidents, if any, are tracked and monitored on a quarterly basis. A consistent evaluation of the Company’s level of emergency preparedness is also carried out to ensure readiness in case of any unforeseen situations. In addition, Emergency Response Team (ERT) members have been appointed among contractors who provide services within SAGT, helping to propagate a safety culture throughout the value chain.

No incidents were reported during the year in which SAGT’s services resulted in significant customer health or safety impacts requiring regulatory sanction or large-scale corrective action. However, SAGT raised concerns with shipping lines regarding safety onboard vessels following vessel safety inspections carried out by SAGT staff when required.

Substantiated complaints concerning breaches of customer privacy and losses of customer data (418-1)

Customer relationships involve access to commercially sensitive information such as vessel schedules, cargo movements, customer identities, billing records, documentation data and operational communications. Protecting such information remained an important governance priority during the reporting year.

The Company continued to maintain internal controls relating to access management, authorised system use, confidentiality obligations and responsible handling of information. Customer data is accessed on a need-to-know basis within the normal course of operations, reducing unnecessary exposure and supporting accountability.

Digital systems used for operational and administrative purposes are supported through information technology controls, user permissions and monitoring processes intended to preserve confidentiality, integrity and availability of data. Employees handling customer information are expected to comply with internal standards of conduct and ethical business practices.

Where third-party service providers are engaged, SAGT expects them to maintain appropriate confidentiality and security standards relevant to the services performed.

The Company recognises that cyber risks and data protection expectations continue to evolve. Accordingly, management remains focused on strengthening digital governance, employee awareness and system resilience to protect customer trust over the long term. Regular audits are conducted to assess the adequacy of the Company’s security systems and measures. Any vulnerabilities identified during these audits are promptly addressed to enhance data protection. Additionally, incidents of data privacy/ security breaches and information loss, if any, are monitored by the Sustainability Division on a quarterly basis to ensure continuous vigilance.

During the reporting period, no substantiated complaints concerning breaches of customer privacy, loss of customer data or unauthorised disclosure of customer information were reported through formal channels.

Following a stringent quarterly risk assessment process, SAGT evaluates its environmental, social, and other regulatory requirements to ensure alignment with all relevant criteria. The results of this assessment are then used to implement any necessary modifications, allowing the Company to remain compliant and exceed regulatory standards, helping to prevent any potential breaches. During the year, no fines were imposed on SAGT, demonstrating the effectiveness of its proactive approach to compliance and risk management.

CORPORATE SOCIAL RESPONSIBILITY AND COMMUNITY INVESTMENT

SAGT continued to recognise that long-term business success is closely connected to the wellbeing of the communities, institutions and stakeholders that support the Port of Colombo and the wider national economy. As a major employer and strategic contributor to Sri Lanka’s trade infrastructure, the Company seeks to create positive social impact beyond its terminal boundaries through targeted community investment, partnerships and responsible citizenship initiatives.

The Company’s social responsibility agenda focuses on healthcare, education, environmental stewardship, social inclusion, industry development and support for vulnerable groups. During the year under review, SAGT continued to implement initiatives intended to create practical and lasting value for communities while aligning support with genuine social needs.

Healthcare Support

Education and Youth Development

Education remained a key pillar of SAGT’s community investment approach. The Company continued to support students and young people through programs that enhance learning opportunities, confidence and future employability.

School support initiatives included the provision of sanitary products to students, helping address practical barriers to school attendance and wellbeing. Such assistance contributes positively to dignity, inclusion and educational continuity.

SAGT also supported mentorship and youth development initiatives designed to guide students and young professionals in career planning, leadership development and confidence building. As a part of that initiative, SAGT continues to invest in the development of future generations by maintaining partnerships with institutions such as the University of Moratuwa and the Chartered Institute of Logistics and Transport (CILT) to deliver a mentorship program. The program offers students valuable insights into soft skills development, leadership potential, and career advancement preparation, while also providing a comprehensive understanding of terminal operations. SAGT ensures that each mentorship cohort is gender-diverse, aiming to increase female representation and exposure within the industry.

With gender equality as a strategic priority, SAGT maintains long-term partnerships with industry associations such as the Women’s International Shipping and Trading Association (WISTA) and Maritime SheEO. These collaborations provide a platform for SAGT to advance the gender equality agenda within the maritime and logistics sector, promoting the entry and professional development of women in the industry.

By investing in education and youth capability, the Company helps strengthen future talent pipelines and broader socio-economic resilience.

Environmental Responsibility and Community Clean-up

SAGT recognises that environmental stewardship is closely connected to community wellbeing. During the reporting year, SAGT continued its strategic partnership with the Marine Environment Protection Authority of Sri Lanka (MEPA) to support coastal ecosystem health. As part of the Clean Sri Lanka initiative, SAGT contributed personal protective equipment (PPE) and cleaning supplies for volunteers participating in MEPA-led beach clean-up events. Additionally, SAGT employees actively took part in the Company’s annual beach clean-up campaign conducted in collaboration with MEPA.

SAGT also supported and participated in MEPA’s World Oceans Day Program held at Port City Colombo, reinforcing its commitment to marine conservation.

These activities help protect coastal ecosystems, raise public awareness and promote shared responsibility for preserving Sri Lanka’s marine environment.

Support for Seafarers and Industry Stakeholders

Through its sustainability department, SAGT maintains ongoing engagement with the Mission to Seafarers (MtS) and collaborates to promote seafarer wellbeing. In addition, SAGT employees regularly interact with crews on vessels docking at the SAGT berth, extending appreciation for their service on key commemorative days such as New Year’s Day and the Day of the Seafarer.

Community-oriented initiatives benefiting seafarers reflected SAGT’s recognition of the demanding nature of life at sea and the importance of supporting those who enable international commerce.

This stakeholder-focused approach extends the Company’s social responsibility beyond land-based communities to include the wider maritime ecosystem.

Responsible Community Partnerships

SAGT seeks to direct community investment towards areas where support can deliver meaningful and measurable benefit. Rather than isolated donations, the Company prioritises partnerships and interventions linked to long-term wellbeing, education, health and environmental outcomes.

This approach helps ensure that resources are used responsibly, and that social investment remains relevant to evolving community priorities.

Through continued investment in healthcare, education, inclusion, environmental stewardship and stakeholder wellbeing, SAGT reaffirmed its commitment to responsible corporate citizenship during the year under review. The Company remains focused on creating positive and lasting impact for communities while supporting sustainable national development alongside commercial success.