Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Financial Statements for the Quarter ended 30th June 2026

· Issued by Sri Lanka Telecom PLC


Sri Lanka Telecom PLC Interim Condensed Consolidated Financial Statements For the Quarter ended 30 June 2026

Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

(All amounts in LKR Millions )

Group

Company

Group

Company

Apr-Jun Apr-Jun Jan - Jun Jan - Jun

2026

(Reviewed)

2025

(Reviewed)

2026

(Reviewed)

2025

(Reviewed)

2026

(Reviewed)

2025

(Reviewed)

2026

(Reviewed)

2025

(Reviewed)

30,517

(15,455)

27,316

(14,261)

19,594

(9,965)

17,682

(9,053)

61,314

(31,625)

55,167

(29,290)

39,309

(19,817)

35,513

(18,184)

15,062

13,055

9,629

8,629

29,689

25,877

19,492

17,329

(3,122)

(3,081)

(1,655)

(1,880)

(6,279)

(6,043)

(3,456)

(3,576)

(6,907)

(6,113)

(4,762)

(4,520)

(13,245)

(12,283)

(9,373)

(8,986)

5,033

3,861

3,212

2,229

10,165

7,551

6,663

4,767

(83)

510

391

508

179

1,022

709

1,016

(1,731)

(1,810)

(1,181)

(1,257)

(3,452)

(3,649)

(2,409)

(2,596)

732

52

539

100

950

35

668

131

389

322

236

156

655

645

438

314

31

23

31

23

58

47

58

47

4,371

2,958

3,228

1,759

8,555

5,651

6,127

3,679

(838)

(683)

(658)

(456)

(1,954)

(1,375)

(1,497)

(1,032)

3,533

2,275

2,570

1,303

6,601

4,276

4,630

2,647

10

-

-

-

19

-

-

-

-

-

-

-

3

-

-

-

242

(172)

241

(172)

107

(2)

106

(4)

(75)

62

(72)

51

(32)

10

(32)

1

177

(110)

169

(121)

97

8

74

(3)

3,710

2,165

2,739

1,182

6,698

4,284

4,704

2,644

3,532

2,274

2,570

1,303

6,597

4,274

4,630

2,647

1

1

-

-

4

2

-

-

3,533

2,275

2,570

1,303

6,601

4,276

4,630

2,647

3,709

2,164

2,739

1,182

6,694

4,282

4,704

2,644

1

1

-

-

4

2

-

-

3,710

2,165

2,739

1,182

6,698

4,284

4,704

2,644

1.96

1.26

1.42

0.72

3.66

2.37

2.57

1.47

Revenue Direct costs Gross Profit

Sales and marketing costs Administrative costs Operating profit

Other income Finance cost

Foreign exchange gain/ (loss) Interest income

Share of profit / (loss) from equity

- accounted investee

Profit/(loss ) before tax for the period

Income tax (expenses)/reversal

Profit /(loss ) for the period

Other comprehensive income

Foreign currency translation reserve Net change in fair value financial assets

Defined benefit plan actuarial gain/ (loss) Tax on other comprehensive income

Other comprehensive income for the period (net of tax)

Total Comprehensive Income for the Period

Profit /(loss ) Attributable to :

Owners of the company Non-controlling interest

Total Comprehensive Income attributable to:

Owners of the company Non-controlling interest

Earnings per share

- Basic (Rs.)

Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )

30 Jun 2026

(Reviewed)

31 Dec 2025

(Audited)

30 Jun 2026

(Reviewed)

31 Dec 2025

(Audited)

160,005

161,002

117,168

119,933

810

856

2,801

2,906

6,456

6,687

295

541

12,979

14,027

2,258

2,441

-

-

14,429

14,429

531

568

531

568

100

97

-

-

1,215

1,290

175

197

8

6

-

-

3,821

3,549

3,821

3,549

185,925

188,082

141,478

144,564

2,419

3,209

1,696

2,503

30,578

28,496

22,937

21,358

726

578

369

335

1,248

919

71

65

7,255

3,131

7,215

3,092

12,040

9,935

2,500

2,220

54,266

46,268

34,788

29,573

240,191

234,350

176,266

174,137

18,049

18,049

18,049

18,049

300

300

300

300

16

(3)

-

-

87,775

82,454

60,915

57,565

106,140

100,800

79,264

75,914

133

129

-

-

106,273

100,929

79,264

75,914

98

103

-

-

52,615

54,360

47,050

47,450

2,814

-

-

-

5,195

4,447

15

47

2,353

2,425

2,353

2,425

85

97

85

97

14,483

12,605

11,901

10,372

6,777

6,776

5,512

5,577

2,033

2,034

1,070

1,106

86,453

82,847

67,986

67,074

9,901

14,089

2,497

5,645

550

776

-

-

1,965

2,763

305

501

1,281

1,226

1,255

1,193

2,711

2,706

27

23

279

249

-

-

30,778

28,765

24,932

23,787

47,465

50,574

29,016

31,149

133,918

133,421

97,002

98,223

240,191

234,350

176,266

174,137

Group Company

Assets

Non-Current Ass ets Property,plant and equipment Investment Property

Right-of-use assets

Intangible assets and Goodwill Investments in subsidiaries Investments in joint venture Deferred tax assets

Contract cost assets

Equity instruments designated at fair value through OCI Other receivables

Total Non-current Assets

Current Ass ets

Inventories

Trade and other receivables Current tax receivables Contract cost assets

Other investments

Cash and cash equivalents

Total Current Assets Total Assets

Equity and Liabilities Equity

Stated capital Insurance reserve

Foreign Currency Translation

Reserve

Retained earnings

Equity attributable to equity share - holders of the company Non controlling Interest

Total Equity

Non Current Liabilities

Grants Borrowings Vendor financing Lease liability Contract liabilities Deferred income

Deferred tax liabilities Employee benefits

Trade and other payables

Total Non Current Liabilities Current Liabilities Borrowings

Vendor financing Lease liability Contract liabilities Deferred income Current tax liabilities

Trade and other payables Total Current Liabilities Total Liabilities

Total Equity and Liabilities

I certify that these financial statements have been prepared in compliance with the requirements of the Companies Act No.07 of 2007.

Signed

Sanjeewa Samaranayake Chief Financial Officer

The Board of Directors is responsible for these financial statements.These financial statements were approved by the Board of Directors on 14 August 2026.

Signed for and behalf of the Board.

-

Signed Signed

Dr Mothilal De Silva

-3 -

Chandrasiri Kalupahana

Chairman Director

Interim Condensed Consolidated Statement of Changes In Equity For the six months ended 30 June 2026

(All amounts in LKR Millions )

Group

Attributable to owners of the Group

Foreign Currency

Non

Stated Insurance

Translation

Retained Total

controlling Total

capital reserve

Reserve

earnings interest equity

Balance as at 1 January 2025

18,049

300

-

73,002

91,351

124

91,475

Non-Controlling Interest

-

-

-

-

-

5

5

Total comprehensive income for the year

Net profit for the year

-

-

-

10,009

10,009

-

10,009

Other comprehensive income

Foreign currency translation reserve

-

-

(3)

-

(3)

-

(3)

Net change in fair value financial assets

-

-

-

2

2

-

2

Defined benefit plan actuarial gain,net of tax

-

-

-

(108)

(108)

-

(108)

Total other comprehensive income for the year

-

-

(3)

(106)

(109)

-

(109)

Total comprehensive income for the year

-

-

(3)

9,903

9,900

5

9,905

Transactions with owners,recorded directly in equity Contribution by and distribution to owners

Dividends to equity share holders

-

-

-

(451)

(451)

-

(451)

Balance as at 31 December 2025

18,049

300

(3)

82,454

100,800

129

100,929

Balance as at 1 January 2026

18,049

300

(3)

82,454

100,800

129

100,929

Non-Controlling Interest

-

-

-

-

-

4

4

Total comprehensive income for period

Net profit for the period

-

-

-

6,597

6,597

-

6,597

Other comprehensive income

Foreign currency translation reserve

-

-

19

-

19

-

19

Net change in fair value financial assets

-

-

-

3

3

-

3

Defined benefit plan actuarial gain,net of tax

-

-

-

75

75

-

75

Total other comprehensive income for period

-

-

19

78

97

-

97

Transactions with owners,recorded directly in equity Contribution by and distribution to owners

Dividends to equity share holders

-

-

-

(1,354)

(1,354)

-

(1,354)

Total comprehensive income for the period

-

-

19

5,321

5,340

4

5,344

Balance as at 30 June 2026

18,049

300

16

87,775

106,140

133

106,273

Company Registration No. PQ 7 Interim Condensed Consolidated Statement of Changes In Equity For the six months ended 30 June 2026

(All amounts in LKR Millions )

Company

Attribut

able to owners of the Company

Stated

Insurance

Retained

Total

capital

reserve

earnings

Balance as at 1 January 2025

18,049

300

51,893

70,242

Total comprehensive income for the year

Net profit for the year

-

-

6,245

6,245

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

(122)

(122)

Total other comprehensive income for the year

-

-

(122)

(122)

Total comprehensive income for the year -

-

6,123

6,123

Transactions with owners,recorded directly in equity

Contribution by and distribution to owners

Dividends to equity share holders

-

-

(451)

(451)

Balance as at 31 December 2025

18,049

300

57,565

75,914

Balance as at 1 January 2026

18,049

300

57,565

75,914

Total comprehensive income for period

Net profit for the period

-

-

4,630

4,630

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

74

74

Total other comprehensive income for period

-

-

74

74

Total comprehensive income for the period

-

-

4,704

4,704

Transactions with owners,recorded directly in equity

Contribution by and distribution to owners

Dividends to equity share holders

(1,354)

(1,354)

Balance as at 30 June 2026

18,049

300

60,915

79,264

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Cash Flows For the s ix months ended 30 June 2026

(All amounts in LKR Millions )

GROUP COMPANY

2026

2025

2026

2025

Operating activities

Cash generated from operations

24,689

20,024

15,924

14,935

Interest received

654

646

437

315

Interest paid

(3,159)

(3,839)

(2,672)

(3,174)

Tax paid

(193)

(164)

-

-

Gratuity paid

(427)

(334)

(392)

(277)

Net cash generated from operating activities

21,564

16,333

13,297

11,799

Cash flows from Investing activities

Acquisition of property,plant and equipment

(9,622)

(6,645)

(4,247)

(4,589)

Acquisition of intangible assets

(152)

(273)

(114)

(259)

Investment in subsidiary

-

-

-

(88)

Proceeds from disposal of property, plant

and equipment

70

461

42

295

Proceeds / (Purchase) of short term investments

(4,123)

(1,110)

(4,122)

(1,111)

Net cash used in investing activities

(13,827)

(7,567)

(8,441)

(5,752)

Cash flows from Financing activities

Proceeds from borrowings

7,400

24,275

3,100

11,875

Cash payment for the principle portion of lease liability

(1,892)

(1,572)

(248)

(340)

Re-payment on borrowings

(11,645)

(23,560)

(5,500)

(13,875)

(Decrese) / Increase in vendor financing and other non current liabilities

2,567

(12,816)

-

(10,110)

Dividend paid to equity share holders

(1,354)

-

(1,354)

-

Net cash generated from / (used) financing activities

(4,924)

(13,673)

(4,002)

(12,450)

(Decreas e) / Increase in cash and cash equivalents

2,813

(4,907)

854

(6,404)

Movement in Cash and cash equivalents

Cash and cash equivalents at beginning of the year

4,136

4,389

(625)

749

Effect on exchange fluctuation on cash and cash equivalents

980

89

574

84

Increase/(Decrease) in cash and cash equivalents

2,813

(4,907)

854

(6,404)

Cash and cash equivalents at 30 June (Note)

7,929

(429)

803

(5,571)

Note

12,040

(4,111)

8,894

(9,323)

2,500

(1,697)

2,251

(7,822)

Cash and cash equivalents Bank overdraft

7,929

(429)

803

(5,571)

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 June 2026.

  1. Reporting Entity

    Sri Lanka Telecom PLC (the 'Company') is a company domiciled in Sri Lanka. The address of the Company's registered office is Lotus Road, Colombo 1. The interim condensed separate financial statements relate to Sri Lanka Telecom PLC. These interim condensed consolidated financial statements (interim financial statements') as of 30 June 2026 and for the period ended 30 June 2026 comprise the Company and its subsidiaries (together referred to as the 'Group').

    The Group is primarily involved in providing a broad portfolio of telecommunication services across Sri Lanka. In addition, the range of services provided by the Group includes inter alia: internet services, data services, domestic and international leased circuits, broadband, satellite uplink, maritime transmission, IPTV service and directory publishing service. The Company is listed on the Colombo Stock Exchange.

  2. Basis of accounting

    These interim condensed consolidated financial statements have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34, 'Interim Financial Reporting' and do not include all the information required for a complete set of SLFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant for an understanding of the changes in the Group's financial position and performance since the last audited financial statements as at 31 December 2025 and for the year ended 31 December 2025.

    These interim financial statements were authorized for issue by the Company's Board of Directors on 14 August 2026.

  3. Significant accounting policies

    The accounting policies applied in these interim financial statements are the same as those applied in the audited financial statements as at 31 December 2025 and for the year ended 31 December 2025.

  4. Use of Judgments and es timates

    The management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses when preparing these interim financial statements. Actual results may differ from these estimates.

    The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation were the same as those applied to the audited financial statements as of 31 December 2025 and for the year ended 31 December 2025.

    Notes to the Interim Condensed Consolidated Financial Statements

    For the quarter ended 30 June 2026.

  5. Operating segments

Information relevant to the operating segments is presented in a method consistent with the management reporting provided to those charged with governance.

(a) Information about reportable segments

(All amounts in Rs .Mn)

Fixed ICT Operations

Mobile Operations

Other Segments Operations

Total

Jan - Jun

Jan - Jun

Jan - Jun

Jan - Jun

2026

2025

2026

2025

2026

2025

2026

2025

External revenues

34,898

32,090

25,276

22,439

1,140

638

61,314

55,167

Inter- segment revenue

4,411

3,423

1,064

894

3,365

3,249

8,840

7,566

Reportable segment revenue

39,309

35,513

26,340

23,333

4,505

3,887

70,154

62,733

Reportable segment profit

/(loss) - before tax

6,127

3,679

2,085

1,300

368

696

8,580

5,675

Interest expenses & Finance costs

(2,409)

(2,596)

(1,076)

(1,105)

(11)

(15)

(3,496)

(3,716)

Foreign exchange gain / (loss)

668

131

321

(81)

(40)

(16)

949

34

Interest income

438

314

216

333

2

1

656

648

Depreciation and amortization

(8,191)

(8,581)

(6,145)

(5,486)

(168)

(125)

(14,504)

(14,192)

Jan - Jun

Jan - Jun

Revenues

2026

2025

Total revenue for reportable segments

65,649

58,846

Revenue for other segments

4,505

3,887

Reportable segment revenue

70,154

62,733

Elimination of inter- segment revenue

(8,840)

(7,566)

Consolidated revenue

61,314

55,167

Profit or loss

Total profit for reportable segments

8,212

4,979

Profit or (loss) for other segments

368

696

Reportable segment profit before tax before eliminations

8,580

5,675

(25)

Inter- segment profits adjustment

(24)

Consolidated profit or (loss) before tax

8,555

5,651

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 June 2026.

30 Jun

31 Dec

2026

2025

Assets

Total assets for reportable segments

267,733

262,289

Assets for other segments

4,576

4,095

272,309

266,384

Elimination of inter - segment assets

(32,118)

(32,034)

Consolidated total assets

240,191

234,350

Liabilities

Total liabilities for reportable segments

148,857

148,489

Liabilities for other segments

2,705

2,513

151,562

151,002

Elimination of inter- segment liabilities

(17,644)

(17,581)

Consolidated total liabilities

133,918

133,421

  1. Operating segments (Continued) Assets & Liabilities
  2. Seasonal or cyclical factors

    The operations of the Group were not significantly affected by any seasonal or cyclical factors.

    1. Impact on Property, Plant and Equipment

      The Group has assessed the impact on property, plant and equipment and spectrum assigned to the Group. The Group will continue to take proactive measures to mitigate any potential impact and will continue its contingency plans and risk management measures as the situation evolves.

  3. Property Plant and Equipment
    1. Acquisitions and Disposals

      1. During the six months ended 30 June 2026, the Group acquired assets at a cost of Rs.4,864 Mn (six months ended 30 June 2025- Rs. 8,408 Mn).

      2. Group Assets with a written down value of Rs.168 Mn were disposed during the six months ended 30 June 2026 (period ended 30 June 2025 written down value of Rs. 4Mn), resulting in a gain on disposal of Rs.90 Mn (period ended 30 June 2025 gain of Rs.457 Mn), which was included in 'Other Income' in the Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income.

    2. Capital commitments.

      Group (Rs. Mn)

      Company (Rs. Mn)

      30 June 2026

      31 Dec 2025

      30 June 2026

      31 Dec 2025

      Property plant and equipment

      Approved but not contracted

      22,116

      6,334

      12,858

      2,438

      Approved and contracted

      17,909

      13,362

      12,013

      9,946

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 30 June 2026.

  4. Capital and Reserves

    1. Stated Capital

      Stated capital of the Company consists of 1,804,860,000 ordinary shares.

  5. Loans and Borrowings

    Material additions to loans and borrowings at Group level for the period under review:

    Additions

    Currency

    Amount (Rs. Mn.)

    Bank loan - 30 June 2026

    LKR

    7,400

    Material repayment of loans and borrowings at Group level for the period under review:

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 30 June 2026

    LKR

    11,645

  6. Contingencies

    There were no significant changes to the list of contingencies disclosed in the latest annual report of 2025 and interim condensed consolidated financial statements for the quarter ended 30 June 2026.

  7. Related Parties

    Material related party transactions during the period under review:

    Company

    Nature of Transaction

    Transaction Value (Rs. Mn)

    Amounts due from/(to) related parties (Rs . Mn)

    30 June 2026

    30 June 2025

    30 June 2026

    31 Dec 2025

    Mobitel (Private) Limited

    Sale of goods and services

    4,063

    3,362

    2,817

    2,589

    Purchase of goods and services

    1,136

    1,006

    (9,743)

    (8,846)

  8. Events After the Reporting Date

No material events have arisen since the date of the statement of financial position up to the date of this report which require changes to, or disclosure in the financial statements.

Company Registration No. PQ 7

Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2026

Investor Information

Ratios

30-Jun

2026

31-Dec

2025

58.81

55.85

0.69

0.76

1.09

0.85

30-Jun

2026

31-Dec

2025

43.92

42.06

0.63

0.71

1.14

0.87

Group Company

For the 6 months ended

30 Jun 2026

30 Jun 2025

3.29

2.33

For the 6 months ended

30 Jun 2026

30 Jun 2025

3.28

2.14

Net asset value per share (Rs.) Debt/equity ratio - Number of times Quick asset ratio - Number of times

Interest cover - Number of times

3 Months to

30 Jun 2026

3 Months to

30 Jun 2025

90.80

67.50

79.30

57.00

87.90

61.30

Market Value of Shares

Market Value of the Ordinary Shares of the Company (Rs.)

  • Highest

  • Lowest

  • Last traded price

    Dividend Payment

    First and final dividend for the year 2025 - Rs. 0.75 per share paid on 26 June 2026

    3 Months to

    30 Jun 2026

    3,146

    1,761,121

    152,344,151

    Share trading from 1 April to 30 June 2026

  • No. of Transactions

  • No. of Shares Traded

  • Value of Shares Traded (Rs.)

    Debenture Information

  • Interest yield as at date of last trade - Not traded after initial issue

  • Yield to maturity of last trade done with trade

    date - Not traded after initial issue

  • Interest rate of comparable government

    security - 9.84%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 2,2026

Company Registration No. PQ 7 Interim Condensed Consolidated Financial Statements For the six months ended 30 June 2026
  1. List of 20 Major Shareholders Name & Address Share Holding Percentage %

    1 Secretary to the Treasury

    906,564,409

    50.23

    2 Global Telecommunications Holdings NV

    811,757,869

    44.98

    3 Employee's Provident Fund

    25,324,104

    1.40

    4 Sri Lanka Insurance Corporation Ltd-Life Fund

    17,713,735

    0.98

    5 Seylan Bank PLC / K.L.G.Udayananda

    4,072,749

    0.22

    6 Bank of Ceylon A/C Ceybank Unit Trust

    4,001,276

    0.22

    7 Employees Trust Fund Board

    3,302,188

    0.18

    8 Sri Lanka Insurance Corporation Ltd-General Fund

    2,041,538

    0.11

    9 People's Leasing & Finance PLC/K.L.Udayananda

    1,473,134

    0.08

    10 Bank of Ceylon-First Capital Equity Fund

    1,170,000

    0.06

    11 Bank of Ceylon A/C Ceybank Century Growth Fund

    720,244

    0.04

    12 Dr.T.K.D.A.P.Samarasinghe

    648,445

    0.04

    13 Mr.S.Gurusinghe

    419,317

    0.02

    14 Mr.T.C.B.Maranthota

    410,000

    0.02

    15 People's Leasing & Finance PLC/Verite Research (Pvt) Ltd

    358,262

    0.02

    16 Senkadagala Finance PLC/S.Gobinath

    340,000

    0.02

    17 Winsland Reality (Pvt) Ltd

    271,300

    0.02

    18 Sampath Bank PLC/Yaden Capital (Private) Limited

    250,000

    0.01

    19 Seylan Bank PLC / Anuja Chamila Jayasinghe

    235,419

    0.01

    20 Mr.E.L.Karannagoda

    232,000

    0.01

    1,781,305,989

    98.67

  2. Percentage of public holding as at 30 June 2026 4.78%

  3. Number of shareholders representing the public holding 14,874

  4. Float adjusted market capitalization 7,587,855,164

    The Company is not in compliance with option 4 of the Listing Rule 7.13.1 (a) which requiries the Company to maintain a minimum public holding of 10%

  5. Directors' shareholding None

  6. Chief Executive Officer's shareholding -

  7. Number of shares representing the Company's stated capital 1,804,860,000 ordinary shares issued at Rs.10 per share.

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