Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Financial Statements for year ended 31st December 2024

Feb 27, 2025 at 10:26 AM UTC · Issued by Sri Lanka Telecom Plc

Sri Lanka Telecom PLC

Interim Condensed Consolidated Financial Statements

For the Quarter ended

31 December 2024

Sri Lanka Telecom PLC

Company Registration No. PQ 7

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

(All amounts in LKR Millions )

Revenue

Direct costs

Gross Profit

Sales and marketing costs

Administrative costs

Operating profit

Other income

Dividend Income from subsidiaries - and associates

Interest expenses and 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

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.)

Group

Oct-Dec

2024	2023
(Reviewed)	(Reviewed)

29,058	25,979
(16,121)	(17,357)
12,937	8,622
(2,338)	(2,422)
(6,604)	(4,989)
3,995	1,211
868	474
-	71
(2,190)	(2,904)
81	(297)
368	515

31
3,122 (899)

(320)

2,350

(1,219)

(354)

48127

(226)
2,340 (1,445)

2,349

(1,219)

2,350 (1,219)

2,339

(1,445)

2,340 (1,444)

1.30 (0.68)

Company

Oct-Dec

2024	2023
(Reviewed)	(Reviewed)
18,253	17,576
(9,926)	(10,673)
8,327	6,903
(1,621)	(1,167)
(4,864)	(4,161)
1,842	1,575
776	401

71
(1,615) (2,377)

(308)

311430

31
1,255 (177)

909(80)

41(442)

28 (339)

937 (419)

909(80)

937(419)

937 (419)

0.50 (0.04)

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Group

Jan-Dec

2024	2023
(Reviewed)	(Reviewed)
111,148	106,418
(65,009)	(67,840)
46,139	38,578
(10,940)	(11,100)
(24,010)	(23,376)
11,189	4,102
1,850	2,079

71
(8,979) (11,292)

1,087

1,685

175

6,037 (2,651)

(2,917)	(1,270)
3,120	(3,921)

222384

35(41)

258343

3,378 (3,578)

3,116

(3,925)

3,120 (3,921)

3,374

(3,582)

3,378 (3,578)

1.73 (2.17)

Company

Jan-Dec

2024	2023
(Reviewed)	(Reviewed)
71,309	69,711
(39,941)	(41,256)
31,368	28,455
(6,370)	(5,589)
(17,709)	(17,785)
7,289	5,081
1,841	2,074

19071

(6,977) (9,772)

(420)

812 1,280

175

3,020 (1,611)

2,113	(1,132)
-	-

322295

(118)

225177

2,338 (955)

2,113	(1,132)
-	-
2,113	(1,132)
2,338	(955)
-	-
2,338	(955)

1.17 (0.63)

Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )
	Group			Company

	31 Dec 2024		31 Dec 2023-		31 Dec 2024	31 Dec 2023-
		Restated		Restated

	(Reviewed)		(Audited)		(Reviewed)	(Audited)
Assets


Non-Current Assets
Property,plant and equipment	170,546		174,466		127,942	135,865
Investment Property	3,037		-		3,037	-
Right-of-use assets	5,360		5,761		223	813
Intangible assets	10,606		10,364		2,860	3,200
Investments in subsidiaries	-		-		14,341	14,431
Investments in associates	515		514		515	514
Deferred tax assets	14		365		-	-
Contract assets	1,013		1,091		218	350
Investments In equity Shares	3		2		-	-
Other receivables	3,353		3,496		3,353	3,471
Total Non-current Assets	194,447		196,059		152,489	158,644
Current Assets
Inventories	3,143		4,078		2,204	3,240
Trade and other receivables	30,733		32,015		21,658	21,650
Current tax receivables	274		181		235	142
Contract assets	1,150		1,511		132	146
Other investments	868		117		830	-
Cash and cash equivalents	8,546		12,377		3,347	5,330
Total Current Assets	44,714		50,279		28,406	30,508
Total Assets	239,161		246,338		180,895	189,152
Equity and Liabilities
Equity
Stated capital	18,049		18,049		18,049	18,049
Insurance reserve	300		300		300	300
Retained earnings	73,002		69,916		51,893	49,555
Equity attributable to equity share - holders
of the company	91,351		88,265		70,242	67,904
Non controlling Interest	124		120		-	-
Total Equity	91,475		88,385		70,242	67,904
Non Current Liabilities
Grants	111		-		-	-
Borrowings	57,360		36,318		49,500	34,851
Vendor financing	7,502		12,770		7,502	12,770
Lease liability	3,892		3,617		22	267
Contract liabilities	1,671		1,776		1,671	1,776
Deferred income	873		1,250		873	1,250
Deferred tax liabilities	11,626		9,501		8,586	7,582
Employee benefits	6,317		6,117		5,272	5,221
Trade and other payables	3,517		5,225		2,528	3,399
Total Non Current Liabilities	92,869		76,574		75,954	67,116
Current Liabilities
Borrowings	14,365		27,456		7,284	19,778
Vendor financing	6,536		7,278		2,015	4,178
Lease liability	1,982		2,619		295	617
Contract liabilities	1,130		1,236		1,018	956
Deferred income	2,819		3,677		223	325
Current tax liabilities	83		411		-	-
Trade and other payables	27,902		38,702		23,864	28,278
Total Current Liabilities	54,817		81,379		34,699	54,132
Total Liabilities	147,686		157,953		110,653	121,248
Total Equity and Liabilities	239,161		246,338		180,895	189,152

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 27 February 2025.

Signed for and behalf of the Board.

Signed		Signed
Dr.Mothilal de Silva		Mr.Chandrasiri Kalupahana
Chairman	-3-	Director

Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Changes In Equity

For the twelve months ended 31 December 2024

(All amounts in LKR Millions )
Group		Attributable to owners of the Group
					Non
	Stated	Insurance	Retained	Total	controlling	Total
	capital	reserve	earnings		interest	equity
Balance as at 1 January 2023	18,049	300	74,024	92,373	115	92,488
Subsidiary liquidation impact	-	-	157	157	-	157
Non Controlling interest	-	-	-	-	5	5
Total comprehensive income for the year
Net loss for the year	-	-	(3,921)	(3,921)	-	(3,921)
Other comprehensive income
Defined benefit plan actuarial gain,net of tax	-	-	343	343	-	343
Total other comprehensive income for the year	-	-	343	343	-	343

Total comprehensive income for the year	-	-	(3,578)	(3,578)	-	(3,578)
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 2023	18,049	300	70,152	88,501	120	88,621
Prior year depreciation adjustment net of tax	-	-	(236)	(236)	-	(236)
Adjusted balance as at 31 December 2023	18,049	300	69,916	88,265	120	88,385
Balance as at 1 January 2024	18,049	300	69,916	88,265	120	88,385
Deferred tax and other assets write off after
-amalgamation of subsidiaries	-	-	(288)	(288)	-	(288)
Total comprehensive income for the year
Net profit for the year	-	-	3,116	3,116	4	3,120
Other comprehensive income
Defined benefit plan actuarial gain,net of tax	-	-	258	258	-	258
Total other comprehensive income for the year	-	-	258	258	-	258

Total comprehensive income for the year	-	-	3,374	3,374	4	3,378

Balance as at 31 December 2024	18,049	300	73,002	91,351	124	91,475

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Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Changes In Equity

For the twelve months ended 31 December 2024

(All amounts in LKR Millions )
Company	Attributable to owners of the Company
	Stated	Insurance	Retained	Total
	capital	reserve	earnings
Balance as at 1 January 2023	18,049	300	51,197	69,546
Total comprehensive income for the year
Net loss for the year	-	-	(1,132)	(1,132)
Other comprehensive income
Defined benefit plan actuarial loss,net of tax	-	-	177	177
Total other comprehensive income for the year	-	-	177	177

Total comprehensive income for the year	-	-	(955)	(955)
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 2023	18,049	300	49,791	68,140
Prior year depreciation adjustment net of tax	-	-	(236)	(236)

Adjusted balance as at 31 December 2023	18,049	300	49,555	67,904
Balance as at 1 January 2024	18,049	300	49,555	67,904
Total comprehensive income for the year
Net profit for the year	-	-	2,113	2,113
Other comprehensive income
Defined benefit plan actuarial gain,net of tax	-	-	225	225
Total other comprehensive income for the year	-	-	225	225


Total comprehensive income for the year	-	-	2,338	2,338

Balance as at 31 December 2024	18,049	300	51,893	70,242

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Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Cash Flows

For the twelve months ended 31 December 2024

(All amounts in LKR Millions)

GROUP

COMPANY

Operating activities

Cash generated from operations

Interest received

Interest paid

Tax paid

Gratuity paid

Net cash generated from operating activities

Cash flows from Investing activities

Acquisition of property,plant and equipment Acquisition of intangible assets Investment in subsidiary

Proceeds from disposal of property, plant and equipment

Proceeds / (Purchase) of short term investments

Net cash used in investing activities

Cash flows from Financing activities

Proceeds from borrowings

Cash payment for the principle portion of lease liability Finance lease principal re-payments

Re-payment on borrowings

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

Dividend paid to equity share holders

Net cash generated from / (used) financing activities

(Decrease) / Increase in cash and cash equivalents

Movement in Cash and cash equivalents

Cash and cash equivalents at beginning of the year

Effect on exchange fluctuation on cash and cash equivalents

Increase/(Decrease) in cash and cash equivalents

Cash and cash equivalents at 31 December (Note)

Note

Cash and cash equivalents

Bank overdraft

2024	2023	2024	2023
33,921	33,306	26,586	25,272
1,098	1,681	823	1,276
(10,353)	(15,505)	(9,095)	(14,109)
(798)	(1,645)	-	(401)
(719)	(613)	(573)	(458)
23,149	17,224	17,741	11,580
(23,108)	(32,214)	(12,475)	(25,060)
(2,565)	(4,884)	(673)	(700)
-	-	(60)	-
378	540	200	217
(762)	3,882	(841)	3,980
(26,057)	(32,676)	(13,849)	(21,563)
63,500	28,179	36,500	14,750
(2,827)	(2,488)	(1,001)	(572)
	(15)	-	(14)
(51,489)	(12,945)	(30,461)	(3,924)
(6,290)	835	(7,686)	(397)
-	(451)	-	(451)
2,894	13,115	(2,648)	9,392
(14)	(2,337)	1,244	(591)
5,058	8,587	(211)	873
(690)	(1,192)	(284)	(493)
(14)	(2,337)	1,244	(591)
4,354	5,058	749	(211)
8,546	11,203	3,347	5,330
(4,192)	(6,145)	(2,598)	(5,541)
4,354	5,058	749	(211)

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Sri Lanka Telecom PLC

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 2024.

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 31 December 2024 and for the year ended 31 December 2024 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 include 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.

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 of 31 December 2023 and for the year ended 31 December 2023.

These interim financial statements were authorized for issue by the Company's Board of Directors on 27 February 2025.

Significant accounting policies

The accounting policies applied in these interim financial statements are the same as those applied in the audited financial statement as of 31 December 2023 and for the year ended 31 December 2023.

IV. Use of Judgments and estimates

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 expense 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 2023 and for the year ended 31 December 2023.

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Sri Lanka Telecom PLC

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 2024.

Operating segments

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

Information about reportable segments (All amounts in Rs.Mn)

	Fixed ICT	Mobile	IPTV	Other Segments	Total
	Operations	Operations	operation *	Operations**
	Jan - Dec	Jan - Dec	Jan - Dec	Jan - Dec	Jan - Dec

	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023

External revenues	65,028	63,637	44,390	41,103	284	302	1,446	1,376	111,148	106,418

Inter- segment revenue	6,281	6,074	1,390	1,533	3,856	3,856	2,387	1,126	13,914	12,589

Reportable segment
revenue	71,309	69,711	45,780	42,636	4,140	4,158	3,833	2,502	125,062	119,007
Reportable segment
profit /(loss) - before tax	3.020	(1,611)	1,878	(1,825)	1,196	692	18	190	6,112	(2,554)

Interest expenses &	(6,977)	(9,772)	(2,101)	(1,643)	-	(1)	(67)	(53)	(9,145)	(11,469)
Finance costs
Foreign exchange gain /	(136)	(420)	619	604	217	443	(1)	2	698	629
(loss)
Interest income	812	1,280	276	391	5	3	32	11	1,125	1,632

Depreciation and	(18,937)	(18,868)	(10,715)	(10,263)	(162)	(78)	(32)	(30)	(29,846)	(29,239)
amortization

IPTV operation is identified as a reportable segment in accordance with quantitative thresholds as per SLFRS 8 -Operating Segments.

	Jan - Dec	Jan -Dec
Revenues	2024	2023

Total revenue for reportable segments	121,229	116,605

Revenue for other segments	3,833	2,502
Reportable segment revenue	125,062	119,007

Elimination of inter- segment revenue	(13,914)	(12,589)
Consolidated revenue	111,148	106,418

Profit or loss


Total profit for reportable segments	6,094	(2,744)
Profit or (loss) for other segments	18	190
Reportable segment profit before tax before elimination	6,112	(2,554)

Inter- segment profits adjustment	(75)	(97)
Consolidated profit or (loss) before tax	6,037	(2,651)
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Sri Lanka Telecom PLC

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 2024.

Operating segments (Continued) Assets & Liabilities

			31 Dec	31 Dec
			2024	2023

		Assets

		Total assets for reportable segments	266,557	270,126
		Assets for other segments	1,389	1,806
			267,946	271,932

		Elimination of inter - segment assets	(28,785)	(25,594)
		Consolidated total assets	239,161	246,338


		Liabilities

		Total liabilities for reportable segments	161,062	168,090

		Liabilities for other segments	1,103	1,138
			162,165	169,228

		Elimination of inter- segment liabilities	(14,479)	(11,275)
		Consolidated total liabilities	147,686	157,953

VI.	Seasonal or cyclical factors

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

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.

VII.	Property Plant and equipment

Acquisitions and Disposals
1. During the year ended 31 December 2024, the Group acquired assets at a cost of Rs 21,849 Mn (year ended 31 December 2023- Rs.33,195 Mn).
2. Assets with a written down value of Rs.17 Mn were disposed during the year ended 31 December 2024 (year ended 31 December 2023 written down value of Rs 86 Mn), resulting in a gain on disposal of Rs.361 Mn (year ended 31 December 2023 gain of Rs.454 Mn), which was included in 'Other Income' in the Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income.
Impairment of Property, plant and equipment
During the year ended 31 December 2024 Company has recognized a reversal of impairment of Rs.91 mn on IPTV (year ended 31st December 2023 impairment loss of Rs. 91 mn and Rs. 320 mn has been recognized on IPTV assets and LTE assets respectively)

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Sri Lanka Telecom PLC

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 2024.

Capital commitments.

		Group (Rs. Mn)	Company (Rs. Mn)
		31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023

	Property plant and equipment

	Approved but not contracted	6,931	15,188	5,135	7,960

	Approved and contracted	4,717	19,009	3,049	14,218

VIII.	Capital and Reserves
(a)	Stated Capital
Stated capital of the Company consists of 1,804,860,000 ordinary shares.
IX.	Loans and Borrowings

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

Additions	Currency	Amount (Rs. Mn.)

Bank loan - 31 Dec 2024	LKR	63,500

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

Repayments	Currency	Amount (Rs. Mn.)

Bank loan - 31 Dec 2024	LKR	51,489

X.	Contingencies

There were no significant changes to the list of contingencies disclosed in the latest annual report of 2023 and interim condensed consolidated financial statements for the quarter ended 30 September 2024.

XI.	Related Parties

Material related party transactions during the period under review:

Company	Nature of Transaction	Transaction Value (Rs. Mn)	Amount due from/(to) related
					parties (Rs. Mn)
			31 Dec 2024	31 Dec 2023	31 Dec 2024	31 Dec 2023

	Mobitel	Sale of goods and	6,147	6,132	2,047	1,941
	(Private)	services
	Limited	Purchase of goods and	1,737	1,483	(7,128)	(3,072)
		services
XII.	Restatement of prior year balances

Prior year Depreciation amounting to Rs.337 Mn and related deferred tax impact of Rs.101 Mn adjusted in the retained earnings, Property, plant and equipment (PPE) and deferred tax liability of the company and group.

XIII.

Disposal of Talentfort (Pvt) Ltd

On 30 August 2024, the company sold 100% of its investments in Talentfort (Pvt) Ltd for Rs. 80 Mn and net assets at disposal was Rs. 35 Mn.The Group reported a disposal gain of Rs. 45 Mn

XIV.	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.

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