Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Financial Statements for year ended 31st March 2025

· Issued by Sri Lanka Telecom Plc


Sri Lanka Telecom PLC Interim Condensed Consolidated Financial Statements For the Quarter ended 31 March 2025 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 )

Group

Company

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

Jan - Mar Jan - Mar

27,851

(15,029)

26,929

(16,154)

12,822

10,775

(2,962)

(2,805)

(6,170)

(5,912)

3,690

2,058

512

398

(1,839)

(2,285)

(17)

399

323

251

24

1

2,693

822

(692)

(666)

2,001

156

170

245

(52)

94

118

339

2,119

495

2,000

154

1

2

2,001

156

2,118

493

1

2

2,119

495

1.11

0.09

17,831

(9,131)

17,714

(10,209)

8,700

7,505

(1,696)

(1,498)

(4,466)

(4,424)

2,538

1,583

508

461

(1,339)

(1,818)

31

(15)

158

188

24

1

1,920

400

(576)

(114)

1,344

286

168

245

(50)

74

118

319

1,462

605

1,344

286

-

-

1,344

286

1,462

605

-

-

1,462

605

0.74

0.16

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

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.)

-2-

Sri Lanka Telecom PLC Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )

31 Mar 2025

(Reviewed)

31 Dec 2024

(Reviewed)

31 Mar 2025

(Reviewed)

31 Dec 2024

(Reviewed)

169,342

172,637

125,432

127,935

922

946

2,992

3,044

5,725

5,360

797

223

10,171

10,606

2,765

2,860

-

-

14,341

14,341

539

515

539

515

14

14

-

-

867

1,013

160

218

3

3

-

-

3,330

3,353

3,330

3,353

190,913

194,447

150,356

152,489

3,073

3,143

2,270

2,204

32,074

30,733

21,616

21,658

311

274

261

235

1,072

1,150

111

132

1,539

868

1,502

830

7,672

8,546

3,321

3,347

45,741

44,714

29,081

28,406

236,654

239,161

179,437

180,895

18,049

18,049

18,049

18,049

300

300

300

300

75,120

73,002

53,355

51,893

93,469

91,351

71,704

70,242

125

124

-

-

93,594

91,475

71,704

70,242

109

111

-

-

56,836

57,360

49,500

49,500

-

7,502

-

7,502

3,321

3,892

312

22

1,515

1,671

1,515

1,671

806

873

806

873

12,307

11,626

9,212

8,586

6,212

6,317

5,134

5,272

2,969

3,517

1,963

2,528

84,075

92,869

68,442

75,954

22,204

14,365

13,915

7,284

2,917

6,536

-

2,015

1,923

1,982

561

295

1,158

1,130

1,038

1,018

2,922

2,819

222

223

35

83

-

-

27,826

27,902

23,555

23,864

58,985

54,817

39,291

34,699

143,060

147,686

107,733

110,653

236,654

239,161

179,437

180,895

Group Company

Assets

Non-Current Assets Property,plant and equipment Investment Property

Right-of-use assets Intangible assets Investments in subsidiaries Investments in associates Deferred tax assets Contract cost assets

Investments In equity Shares Other receivables

Total Non-current Assets

Current Assets

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 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 09 May 2025.

Signed for and behalf of the Board.

Signed Signed

Dr.Mothilal de Silva Mr.H.C.D.L.Silva

Director Director

(All amounts in LKR Millions )

Group

At

tributable to o

wners of the Group

Stated

Insurance

Retained

Total

Non controlling

Total

capital

reserve

earnings

interest

equity

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 period

Net profit for the period

-

-

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 period

-

-

258

258

-

258

Total comprehensive income for the period

-

-

3,374

3,374

4

3,378

Balance as at 31 December 2024

18,049

300

73,002

91,351

124

91,475

Balance as at 1 January 2025

18,049

300

73,002

91,351

124

91,475

Total comprehensive income for period

Net profit for the period

-

-

2,000

2,000

1

2,001

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

118

118

-

118

Total other comprehensive income for period

-

-

118

118

-

118

Total comprehensive income for the period

-

-

2,118

2,118

1

2,119

Balance as at 31 March 2025

18,049

300

75,120

93,469

125

93,594

(All amounts in LKR Millions )

Company

Attribut

able to owners of the Com

pany

Stated

Insurance

Retained

Total

capital

reserve

earnings

Balance as at 1 January 2024

Total comprehensive income for period

18,049

300

49,555

67,904

Net profit for the period

-

-

2,113

2,113

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

225

225

Total other comprehensive income for period

-

-

225

225

Total comprehensive income for the period

-

-

2,338

2,338

Balance as at 31 December 2024

18,049

300

51,893

70,242

Total comprehensive income for period

Net profit for the period

-

-

1,344

1,344

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

118

118

Total other comprehensive income for period

-

-

118

118

Total comprehensive income for the period

-

-

118

118

Balance as at 31 March 2025

18,049

300

53,355

71,704

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Cash Flows For the three months ended 31 March 2025

(All amounts in LKR Millions)

GROUP COMPANY

2025

2024

2025

2024

Operating activities

Cash generated from operations

9,652

5,924

7,734

4,044

Interest received

324

262

159

199

Interest paid

(1,730)

(2,962)

(1,373)

(2,687)

Tax paid

(122)

(335)

-

-

Gratuity paid

(206)

(190)

(180)

(149)

Net cash generated from operating activities

7,918

2,699

6,340

1,407

Cash flows from Investing activities

Acquisition of property,plant and equipment

(2,805)

(7,304)

(1,848)

(3,939)

Acquisition of intangible assets

(236)

(736)

(241)

(437)

Proceeds from disposal of property, plant

and equipment

205

117

125

78

Proceeds / (Purchase) of short term investments

(672)

(49)

(673)

(11)

Net cash used in investing activities

(3,508)

(7,972)

(2,637)

(4,309)

Cash flows from Financing activities

Proceeds from borrowings

11,050

11,000

5,750

3,000

Cash payment for the principle portion of lease liability

(806)

(614)

(178)

(160)

Re-payment on borrowings

(5,718)

(9,344)

(2,000)

(2,202)

(Decrese) / Increase in vendor financing and other non

current liabilities

(11,723)

1,103

(10,108)

(359)

Net cash generated from / (used) financing activities

(7,197)

2,145

(6,536)

279

(Decrease) / Increase in cash and cash equivalents

(2,787)

(3,128)

(2,833)

(2,623)

Movement in Cash and cash equivalents

Cash and cash equivalents at beginning of the year

4,389

5,058

750

(211)

Effect on exchange fluctuation on cash and cash

equivalents

47

(636)

42

(275)

Increase/(Decrease) in cash and cash equivalents

(2,787)

(3,128)

(2,833)

(2,623)

Cash and cash equivalents at 31 March (Note)

1,649

1,294

(2,041)

(3,109)

Note

Cash and cash equivalents

7,672

11,174

3,321

4,932

Bank overdraft

(6,023)

(9,880)

(5,362)

(8,041)

1,649

1,294

(2,041)

(3,109)

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 March 2025

  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 31 March 2025 and for the three months ended 31 March 2025 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.

  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.

    These interim financial statements were authorized for issue by the Company's Board of Directors on 09 May 2025.

  3. Significant accounting policies

    The accounting policies applied in these interim financial statements are the same as those applied in the most recent audited financial statements.

  4. 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 most recent audited financial statements.

    Notes to the Interim Condensed Consolidated Financial Statements

    For the quarter ended 31 March 2025

  5. Operating segments

Information relevant to the operating segments are 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

IPTV

operation *

Other Segments Operations**

Total

Jan - Mar

Jan - Mar

Jan - Mar

Jan - Mar

Jan - Mar

2025

2024

2025

2024

2025

2024

2025

2024

2025

2024

External revenues

16,135

15,974

11,439

10,574

81

71

196

310

27,851

26,929

Inter- segment revenue

1,696

1,740

356

372

977

945

667

554

3,696

3,611

Reportable segment revenue

17,831

17,714

11,795

10,946

1,058

1,016

863

864

31,547

30,540

Reportable segment profit /(loss) - before tax

1,920

400

535

50

203

430

50

(39)

2,708

841

Reportable Segments

Interest expenses & Finance costs

(1,339)

(1,818)

(527)

(490)

-

-

(7)

(11)

(1,873)

(2,319)

Foreign exchange gain / (loss)

31

(15)

(43)

277

(5)

137

-

-

(17)

399

Interest income

158

188

166

62

-

3

1

2

325

255

Depreciation and amortization

(4,213)

(4,774)

(2,713)

(2,604)

(51)

(35)

(5)

(8)

(6,982)

(7,421)

* IPTV operation is identified as a reportable segment in accordance with quantitative thresholds as per SLFRS 8

-Operating Segments.

Revenues

Jan - Mar

2025

Jan -Mar

2024

Total revenue for reportable segments

30,684

29,676

Revenue for other segments

863

864

Reportable segment revenue

31,547

30,540

Elimination of inter- segment revenue

(3,696)

(3,611)

Consolidated revenue

27,851

26,929

Profit or loss

Total profit for reportable segments

2,658

880

Profit or (loss) for other segments

50

(39)

Reportable segment of profit before tax before elimination

2,708

841

Inter- segment profits adjustment

(15)

(19)

Consolidated profit or (loss) before tax



2,693

822

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 March 2025

31 Mar

2025

31 Dec

2024

Assets

Total assets for reportable segments

263,503

266,557

Assets for other segments

1,585

1,389

265,088

267,946

Elimination of inter-segment assets

(28,434)

(28,785)

Consolidated total assets

236,654

239,161

Liabilities

Total liabilities for reportable segments

155,989

161,062

Liabilities for other segments

1,188

1,103

157,177

162,165

Elimination of inter- segment liabilities

(14,117)

(14,479)

Consolidated total liabilities

143,060

147,686

  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 three months ending 31 March 2025, the Group acquired assets at a cost of Rs 5,041 Mn (three months ended 31 March 2024- Rs.7,347 Mn).

      2. Assets with a written down value of Rs.0.91 Mn were disposed during the three months ended 31 March 2025 (three months ended 31 March 2024 written down value of Rs 11 Mn), resulting in a gain on disposal of Rs.206 Mn (three months ended 31 March 2024 gain of Rs.106 Mn), which was included in 'Other Income' in the Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income.

    2. Impairment of Property, plant, and equipment

      During the three months ended 31 March 2025 Company has not recognized impairment on property, plant, and equipment (three months ended 31st March 2024 Company has recognized an impairment loss of Rs. NIL)

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 31 March 2025

    3. Capital commitments.

      Group (Rs. Mn)

      Company (Rs. Mn)

      31 Mar 2025

      31 Dec 2024

      31 Mar 2025

      31 Dec 2024

      Property plant and equipment

      Approved but not contracted

      7,697

      6,931

      6,563

      7,960

      Approved and contracted

      6,115

      4,717

      4,635

      14,218

  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 year under review:

    Additions

    Currency

    Amount (Rs. Mn.)

    Bank loan - 31 Mar 2025

    LKR

    11,050

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

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 31 Mar 2025

    LKR

    5,718

  6. Contingencies

    There were no significant changes to the list of contingencies disclosed in the most recent annual report and interim condensed consolidated financial statements for the quarter ended 31 December 2024.

  7. 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 Mar 2025

    31 Mar 2024

    31 Mar 2025

    31 Dec 2024

    Mobitel (Private) Limited

    Sale of goods and services

    1,665

    1,706

    2,173

    2,047

    Purchase of goods and services

    518

    355

    (7,200)

    (7,138)

  8. Events after the Reporting date Proposed dividend declaration

The Board of Directors of the company has recommended a first and final dividend of Rs. 0.25 per share (2023-Nil) on voting shares of the company to be paid by way of cash dividend for the financial year ended 31 December 2024.

Further, this dividend is to be approved at the Annual General Meeting to be held on 26 June 2025. This proposed first and final dividend has not been recognized as a liability as at 31 December 2024 and Interim Condensed Consolidated Financial Statements for the quarter ended 31st March 2025. The proposed dividend for the year amounts to LKR 451 Mn in compliance with Section 56 and 57 of Companies Act No.07 of 2007. As required by

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 March 2025

Section 56 of the Companies Act No.07 of 2007, the Board of Directors of the Company satisfied the solvency test in accordance with Section 57, prior to recommending the final dividend. A statement of solvency completed and duly signed by the Directors on 21st March 2025 has been audited by Messrs Ernst & Young on behalf of National Audit Office.

Members Voluntary Winding up of SLT Property Management (Pvt) Ltd

In line with the Board's strategic direction, Sri Lanka Telecom PLC had decided to liquidate SLT Property Management (Pvt) Ltd by way of members' voluntary winding up. SLT Property Management (Pvt) Ltd has been dissolved on 22nd April 2025.

Except as disclosed above, no other events have arisen since the statement of the Financial Position date which require changes to, or disclosure in the Financial Statements.

Investor Information Ratios

31-Mar

2025

31-Dec

2024

51.79

50.61

0.93

1.00

0.72

0.76

31-Mar

2025

31-Dec

2024

39.73

38.92

0.90

0.95

0.68

0.76

Group Company

For the 3 months ended

31 Mar 2025

31 Mar 2024

2.25

1.09

For the 3 months ended

31 Mar 2025

31 Mar 2024

2.16

0.93

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

31 Mar 2025

3 Months to

31 Mar 2024

72.50

101.00

53.10

88.00

60.30

90.00

Market Value of Shares

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

  • Highest

  • Lowest

  • Last traded price

    Share trading from 1 January to 31 March 2025

    5,094

    2,670,192

    175,815,041

3 Months to

31 Mar 2025

  • 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 - 9.74%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 1,2025

  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 Bank of Ceylon A/C Ceybank Unit Trust

    8,678,842

    0.48

    6 Employees Trust Fund Board

    3,302,188

    0.18

    7 Sri Lanka Insurance Corporation Ltd-General Fund

    2,041,538

    0.11

    8 Seylan Bank PLC / Karagoda Loku Gamage Udayananda

    1,580,141

    0.09

    9 Peoples Leasing & Finance PLC / K.L. Udayanada

    962,247

    0.05

    10 Bank of Ceylon A/C Ceybank Century Growth Fund

    780,032

    0.04

    11 Senthilverl Holdings (Pvt) Ltd

    476,534

    0.03

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

    405,000

    0.02

    13 Merchant Bank of Sri Lanka and Finance PLC / N.N.Dissanayaka

    320,683

    0.02

    14 Senkadagala Finance PLC/S.Gobinath

    310,000

    0.02

    15 Mrs.H.K.H.Gunawardena

    290,303

    0.02

    16 Merchant Bank of Sri Lanka and Finance PLC / R.R.S.Ananda

    255,587

    0.01

    17 Dialog Finance PLC/S.A.De Silva and D.R.De Silva

    221,108

    0.01

    18 Bank of Ceylon No.1 Account

    214,000

    0.01

    19 The incorporated Trustees of the Church of Ceylon

    198,590

    0.01

    20 PMF Finance PLC/R.M.Samarakkody

    189,345

    0.01

    1,781,586,255

    98.70

  2. Percentage of public holding as at 31 March 2025 4.78%

  3. Number of shareholders representing the public holding 14,456

  4. Float adjusted market capitalization 5,205,210,449

    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 1,824

  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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