Quarterly Financial Report as of 31-12

Income StatementInterim Financial Statements for nine months ended 31st December 2008.Interim Period of 03 MonthsAccumulated Period of 09 MonthsGroup Company Group Company03 Months 03 Months 03 Months 03 Months 09 Months 09 Months 09 Months 09 MonthsEnded Ended Ended Ended Ended Ended Ended Ended31/12/2008 31/12/2007 31/12/2008 31/12/2007 31/12/2008 31/12/2007 31/12/2008 31/12/2007Rs"000 Rs"000 Rs"000 Rs"000 Rs"000 Rs"000 Rs"000 Rs"000Revenue 545,619 502,991 414,939 341,871 1,587,355 1,356,303 1,212,619 991,652Cost of Services (251,261) (256,811) (155,674) (130,976) (738,620) (639,450) (459,935) (373,019)Gross Profit 294,358 246,180 259,265 210,895 848,736 716,853 752,684 618,633Other Operating Income 3,676 5,500 2,059 4,070 15,548 12,078 7,707 9,712Distribution Costs (7,873) (6,166) (6,916) (5,571) (19,987) (17,538) (18,531) (15,867)Administration Expenses (202,138) (166,003) (180,458) (150,178) (599,171) (481,224) (532,246) (436,562)Other Operating Expenses (20,032) (20,341) (17,453) (16,077) (57,851) (51,044) (50,743) (41,126)Finance Cost (22,113) (12,040) (22,268) (11,658) (61,513) (31,668) (60,537) (30,655)Profit Before Taxation 45,878 47,130 34,229 31,481 125,761 147,457 98,334 104,135Taxation (8,087) (8,946) (7,685) (9,000) (19,569) (27,454) (18,992) (27,000)Net Profit for the Period 37,791 38,184 26,544 22,481 106,192 120,003 79,342 77,135Attributable to:Equity holders of the Parent 34,706 33,612 26,544 22,481 98,187 107,657 79,342 77,135Minority Interest 3,085 4,572 - 8,005 12,346 -37,791 38,184 26,544 22,481 106,192 120,003 79,342 77,135EPS (Basic) 1.34 1.30 1.03 0.87 3.79 4.16 3.07 2.98The above figures are provisional and subject to audit(Sgd .) A E TudaweChairman(Sgd .) A D P A WijegoonewardeneDirectorCeylon Hospitals PLC - 2 -

Balance SheetInterim Financial Statements for nine months ended 31st December 2008.Group Company Group CompanyAs at As at As at As at As at As at31/03/08 31/03/08 31/12/08 31/12/07 31/12/08 31/12/07Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000ASSETSNon-Current Assets1,887,441 1,421,670 Property, Plant & Equipment, net 1,904,368 1,798,470 1,439,279 1,695,3771,342 - Goodwill - 1,342 - -228,087 - WIP-Buildings in Construction 677,995 186,452 - 186,4522,700 Deferred Expenditure 2,625 3,513 - 788- 585,297 Investments in Subsidiaries - 815,297 85,2972,119,570 2,006,967 2,584,988 1,989,777 2,254,576 1,967,914Current Assets108,360 71,394 Inventories 135,799 125,956 90,513 81,01470,585 50,867 Other Investments 181,484 66,436 137,064 38,631121,004 102,652 Trade and Other Receivables 130,139 133,029 104,500 117,3648,400 112,784 Amount due from Related Parties 33,911 69,513 3,51829,443 16,820 Cash and Cash Equivalents 51,002 37,334 17,616 12,919337,792 354,517 498,424 396,666 419,206 253,4462,457,362 2,361,484 Total Assets 3,083,412 2,386,443 2,673,782 2,221,360EQUITY AND LIABILITIESEquity Attributable to Equity holders of the parent395,389 395,389 Stated Capital 395,389 395,389 395,389 395,389746,672 746,672 Revaluation Reserves 746,672 746,672 746,672 746,672471,915 509,885 Revenue Reserves 571,377 453,561 550,414 401,6661,613,975 1,651,946 1,713,438 1,595,622 1,692,475 1,543,72744,623 - Minority Interest 324,414 55,014 - -1,658,599 1,651,946 Total Equity 2,037,852 1,650,636 1,692,475 1,543,727Non-Current Liabilities265,681 265,681 Interest Bearing Loans & Borrowings 522,579 276,020 522,578 276,020- 36,725 Deferred Revenue - - 35,720 37,06042,578 39,721 Provisions & Other Liabilities 49,457 36,066 47,041 33,88711,922 11,922 Deferred Tax 11,922 5,122 11,922 5,122320,181 354,049 583,958 317,208 617,261 352,089Current Liabilities108,859 83,695 Bank Overdraft 111,764 98,459 62,315 98,459125,204 124,142 Interest Bearing Loans & Borrowings 130,614 102,399 130,614 69,379214,670 123,789 Trade and Other Payables 212,209 202,656 133,484 120,77619,008 - Dividend Payable - - - -(6,638) (7,422) Taxation Payable (2,052) 14,131 (3,601) 12,95617,479 31,285 Amount due to Related Parties 9,067 954 41,234 23,974478,582 355,489 461,602 418,599 364,046 325,5442,457,362 2,361,484 Total Equity and Liabilities 3,083,412 2,386,443 2,673,782 2,221,360The above figures are provisional and subject to auditThe Chief Financial officer certifies that the financial statements have been prepared in accordance with therequirement of the companies Act No.07 of 2007(Sgd .) A E TudaweChairman(Sgd .) A D P A WijegoonewardeneDirectorCeylon Hospitals PLC - 3 -

Statement of Changes in EquityInterim Financial Statements for nine months ended 31st December 2008.For the period ended 31st December 2008GroupAttributable to equity holders of the parent Minority TotalRevaluation General Accumulated Total Interest EquityStated CapitalReserves Reserve ProfitsOrdinary SharesVoting Non-Voting Share PremiumRs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000Balance as at 01st April 2007 195,000 63,750 136,639 746,672 4,822 379,895 1,526,778 42,668 1,569,446Net Profit for the year 126,010 126,010 20,963 146,973Dividend Paid - Ordinary Shares (38,813) (38,813) (19,008) (57,821)Balance as at 31st March 2008 195,000 63,750 136,639 746,672 4,822 467,092 1,613,975 44,623 1,658,598Subsidiary's Reserves O/B Adjustment 3,628 3,628 - 3,628Effect of Changes in MI during the period 271,786 271,786Negative Goodwill 36,460 36,460 36,460Net Profit for the period 98,187 98,187 8,005 106,192Dividend Paid - Ordinary Shares (38,813) (38,813) (38,813)Balance as at 31st December 2008 195,000 63,750 136,639 746,672 4,822 566,554 1,713,438 324,414 2,037,852CompanyStated CapitalOrdinary SharesVoting Non-Voting Share PremiumRevaluation General Accumulated TotalReserves Reserve ProfitsRs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000Balance as at 01st April 2007 195,000 63,750 136,639 746,672 4,822 358,521 1,505,405Net Profit for the year 185,354 185,354Dividend Paid - Ordinary Shares (38,813) (38,813)Balance as at 31st March 2008 195,000 63,750 136,639 746,672 4,822 505,062 1,651,946Net Profit for the period 79,342 79,342Dividend Paid - Ordinary Shares (38,813) (38,813)Balance as at 31st December 2008 195,000 63,750 136,639 746,672 4,822 545,592 1,692,475Ceylon Hospitals PLC 4 -

Statement of Changes in EquityInterim Financial Statements for nine months ended 31st December 2008.For the period ended 31st December 2007.Group Attributable to equity holders of the parent Minority TotalStated CapitalOrdinary SharesRevaluation General Accumulated Total Interest EquityReserves Reserves ProfitsVoting Non-Voting Share PremiumRs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000Balance as at 01st April 2006 195,000 63,750 136,639 240,866 4,822 248,231 889,308 36,563 925,871Revaluation Reserves 505,806 505,806 505,806Net Profit for the year 169,897 169,897 25,113 195,010Negative Goodwill Tfrd 580 580 580Dividend Paid - Ordinary Shares (38,813) (38,813) (19,008) (57,821)Balance as at 31st March 2007 195,000 63,750 136,639 746,672 4,822 379,895 1,526,778 42,668 1,569,446Net Profit for the period 107,657 107,657 12,346 120,003Dividend Paid - Ordinary Shares (38,813) (38,813) (38,813)Balance as at 31st December 2007 195,000 63,750 136,639 746,672 4,822 448,739 1,595,622 55,014 1,650,636CompanyStated CapitalOrdinary SharesVoting Non-Voting Share PremiumRevaluation General Accumulated TotalReserve Reserve ProfitsRs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000 Rs "000Balance as at 01st April 2006 195,000 63,750 136,639 240,866 4,822 241,851 882,928Revaluation Reserves505,806 505,806Net Profit for the year 155,484 155,484Dividend Paid - Ordinary Shares (38,813) (38,813)Balance as at 31st March 2007 195,000 63,750 136,639 746,672 4,822 358,523 1,505,405Net Profit for the period 77,135 77,135Dividend Paid - Ordinary Shares (38,813) (38,813)Balance as at 31st December 2007 195,000 63,750 136,639 746,672 4,822 396,845 1,543,727Note:Ceylon Hospitals PLC - 5 -

Interim Financial Statements for nine months ended 31st December 2008.Cash Flow StatementGroup Company Group CompanyYear Year 09 Months 09 Months 09 Months 09 MonthsEnded Ended Ended Ended Ended Ended31/03/08 31/03/08 31/12/2008 31/12/2007 31/12/2008 31/12/2007Rs "000 Rs "000 Rs"000 Rs"000 Rs"000 Rs"000Cash Flows from/(Used in) Operating Activities169,555 206,654 Net Profit before Income Tax Expenses 125,761 147,457 98,334 104,135Adjustments for501 501 Bad Debt Written-off1,311 1,311 Stock Written-off84,436 67,404 Depreciation 76,841 46,442 59,139 44,374(7,816) (52,656) Income from Investments (15,548) (12,078) (7,707) (2,244)44,262 43,145 Finance Costs 61,513 31,668 60,537 30,6553,252 1,813 Amortization of Deferred Rent & Expenses 75 2,439 (1,005) 1,359(1,117) (61,367) Profit on Disposal of PPE - (817) - (817)12,448 11,435 Provision for Defined Benefit Plan 10,170 4,833 9,900 4,500306,832 218,239 Operating Profit/(Loss) before Working Capital Changes 258,812 219,944 219,198 181,962(21,034) (16,114) Increase/(Decrease) in Inventories (27,439) (37,320) (19,119) (24,423)(24,850) (20,060) Increase/(Decrease) in Trade and Other Receivables (9,134) (36,373) (1,849) (34,271)(6,462) (52,541) (Increase)/Decrease in Trade and Other Payables (2,461) (18,474) 9,695 (55,553)(25,836) (39,390) (Increase)/Decrease Related Party Dues (12) (28,219) 53,219 62,564228,650 90,135 Cash Generated from Operations 219,766 99,558 261,144 130,279(44,262) (43,145) Finance Costs Paid (61,513) (31,668) (60,537) (30,655)(2,517) (2,382) Defined Benefit Plan Costs Paid (3,291) (1,352) (2,580) (1,281)(23,311) (21,984) Income Tax Paid (15,414) (14,133) (15,171) (14,105)(70,090) (67,511) Cash Flow before Extraordinary Items (80,218) (47,153) (78,288) (46,041)158,560 22,624 Net Cash From/(Used in) Operating Activities 139,548 52,405 182,856 84,238Cash Flows from/(Used in) Investing Activities(384,053) (115,877) Acquisition of Property, Plant & Equipment (93,773) (112,741) (76,747) (70,747)- - WIP-Building Construction (449,908) (141,301) - (141,301)- - Proceeds from Share Issue 311,875 - - -3,787 3,787 Proceeds from Sale of PPE 5 2,280 - 2,280- - Positive Goodwil w/off 1,342- (100,000) Investment in Subsidiary - - (230,000) -31,152 (7,719) Acquisition of other Investments (110,898) 35,301 (86,197) 4,5167,816 52,655 Income from Investments 15,548 12,078 7,707 2,244(341,300) (167,154) Net Cash Flows from/(Used in) Investing Activities (325,809) (204,383) (385,237) (203,008)Cash Flows from/(Used in) Financing Activities296,178 297,258 Receipts from Interest Bearing Loans & Borrowings 355,500 253,753 355,500 220,735(115,810) (112,570) Re-Payments of Interest Bearing Loans & Borrowings (92,763) (85,855) (92,131) (80,472)(57,821) (38,813) Dividends Paid - Ordinary Shares (57,821) (57,821) (38,813) (38,813)122,547 145,875 Net Cash Flows from/(Used in) Financing Activities 204,916 110,077 224,556 101,450(60,193) 1,345 Net Increase/(Decrease) in Cash and Cash Equivalents 18,654 (41,901) 22,176 (17,320)(19,223) (68,220) Cash and Cash Equivalents at the beginning of the year (79,416) (19,224) (66,875) (68,220)(79,416) (66,875) Cash and Cash Equivalents at the end of the year (60,762) (61,125) (44,699) (85,540)Analysis of Cash & Cash Equivalents(108,859) (83,695) Cash at Bank - Overdrawn (111,764) (98,459) (62,315) (98,459)29,443 16,820 Cash in Hand and at Bank 51,002 37,334 17,616 12,919(79,416) (66,875) (60,762) (61,125) (44,699) (85,540)Ceylon Hospitals PLC - 6 -

Interim Financial Statements for nine months ended 31st December 2008.Share Information & Explanatory NotesShare InformationMarket Prices recorded during the quarterHighest Lowest LastTraded Price Traded Price Traded Price2008/2009 2007/2008 2008/2009 2007/2008 2008/2009 2007/2008Rs Rs Rs Rs Rs RsVoting 60.00 60.00 43.00 52.00 44.75 53.7508-10-2008 19-11-2007 10-12-2008 10-12-2007 30-12.2008 28-12-2007Non - Voting 34.00 44.00 28.00 38.00 29.00 38.2510-11-2008 01-11-2007 16-12-2008 20-12-2007 19-12-2008 31-12-2007Per Share RatiosGroup Company Group CompanyAs at As at As at As at As at As at31/03/2008 31/03/2008 31/12/2008 31/12/2007 31/12/2008 31/12/2007Rs Rs Rs Rs Rs Rs4.87 7.16 Earnings Per Share 3.79 4.16 3.07 2.9862.37 63.84 Net Asset Per Share 66.22 61.65 65.41 59.66Explanatory Notes01. These Financial Statements are prepared and presented in accordance with the Sri Lanka AccountingStandards02. The Accounting Policies and Methods of computation are consistent with those followed duringprevious financial year.03. All known expenses have been provided in the Financial Statements.04. There were no contingent Liabilities as at the Balance Sheet date.05. No dividends have been declared for the period in consideration.Ceylon Hospitals PLC - 7 -