Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Report Q2 2025

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

Group

Company

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

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

27,316

(14,261)

26,618

(16,484)

13,055

10,134

(3,081)

(2,902)

(6,113)

(5,672)

3,861

1,560

510

253

(1,810)

(2,233)

52

297

322

239

23

-

2,958

116

(683)

(595)

2,275

(479)

(172)

(21)

62

14

(110)

(7)

2,165

(486)

2,274

(479)

1

-

2,275

(479)

2,164

(486)

1

-

2,165

(486)

1.26

(0.27)

17,682

17,249

55,167

53,547

35,513

34,963

(9,053)

(10,087)

(29,290)

(32,638)

(18,184)

(20,296)

8,629

7,162

25,877

20,909

17,329

14,667

(1,880)

(1,607)

(6,043)

(5,707)

(3,576)

(3,105)

(4,520)

(4,171)

(12,283)

(11,584)

(8,986)

(8,595)

2,229

1,384

7,551

3,618

4,767

2,967

508

267

1,022

651

1,016

728

(1,257)

(1,821)

(3,649)

(4,518)

(2,596)

(3,639)

100

39

35

696

131

24

156

160

645

490

314

348

23

-

47

1

47

1

1,759

29

5,651

938

3,679

429

(456)

(43)

(1,375)

(1,261)

(1,032)

(157)

1,303

(14)

4,276

(323)

2,647

272

(172)

(20)

(2)

224

(4)

225

51

(7)

10

108

1

67

(121)

(27)

8

332

(3)

292

1,182

(41)

4,284

9

2,644

564

1,303

(14)

4,274

(325)

2,647

272

-

-

2

2

-

-

1,303

(14)

4,276

(323)

2,647

272

1,182

(41)

4,282

7

2,644

564

-

-

2

2

-

-

1,182

(41)

4,284

9

2,644

564

0.72

(0.01)

2.37

(0.18)

1.47

0.15

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-

Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )

30 Jun 2025

(Reviewed)

31 Dec 2024

(Audited)

30 Jun 2025

(Reviewed)

31 Dec 2024

(Audited)

167,642

172,637

124,040

127,935

478

946

2,941

3,044

4,399

5,360

837

223

9,695

10,606

2,606

2,860

-

-

14,429

14,341

562

515

562

515

13

14

-

-

897

1,013

207

218

3

3

-

-

3,488

3,353

3,488

3,353

187,177

194,447

149,110

152,489

3,074

3,143

2,393

2,204

30,050

30,733

21,688

21,658

391

274

282

235

1,060

1,150

93

132

1,977

868

1,940

830

8,894

8,546

2,251

3,347

45,446

44,714

28,647

28,406

232,623

239,161

177,757

180,895

18,049

18,049

18,049

18,049

300

300

300

300

76,833

73,002

54,086

51,893

95,182

91,351

72,435

70,242

126

124

-

-

95,308

91,475

72,435

70,242

108

111

-

-

55,052

57,360

46,500

49,500

-

7,502

-

7,502

3,311

3,892

293

22

2,377

1,671

2,377

1,671

108

873

108

873

12,874

11,626

9,616

8,586

6,537

6,317

5,425

5,272

2,793

3,517

1,943

2,528

83,160

92,869

66,262

75,954

22,682

14,365

13,231

7,284

1,790

6,536

-

2,015

1,568

1,982

606

295

1,340

1,130

1,201

1,018

2,886

2,819

90

223

104

83

-

-

23,785

27,902

23,932

23,864

54,155

54,817

39,060

34,699

137,315

147,686

105,322

110,653

232,623

239,161

177,757

180,895

Group Company

Assets

Non-Current Assets Property,plant and equipment Investment Property

Right-of-use assets

Intangible assets and Goodwill 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 14 August 2025.

Signed for and behalf of the Board.

Signed Signed

Dr.Mothilal de Silva Chandrasiri Kalupahana

Chairman

-3 -

Director

Interim Condensed Consolidated Statement of Changes In Equity For the six months ended 30 June 2025

(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 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

-

-

4,274

4,274

2

4,276

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

8

8

-

8

Total other comprehensive income for period

-

-

8

8

-

8

Transactions with owners,recorded directly in equity

Contribution by and distribution to owners

Dividends to equity share holders

-

-

(451)

(451)

-

(451)

Total comprehensive income for the period

-

-

3,831

3,831

2

3,833

Balance as at 30 June 2025

18,049

300

76,833

95,182

126

95,308

Company Registration No. PQ 7 Interim Condensed Consolidated Statement of Changes In Equity For the six months ended 30 June 2025

(All amounts in LKR Millions )

Company Attributable to owners of the Company Stated Insurance Retained Total

capital reserve earnings

Balance as at 1 January 2024

18,049

300

49,555

67,904

Total comprehensive income for period

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

Balance as at 1 January 2025

18,049

300

51,893

70,242

Total comprehensive income for period

Net profit for the period

-

-

2,647

2,647

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

(3)

(3)

Total other comprehensive income for period

-

-

(3)

(3)

Total comprehensive income for the period

-

-

(3)

(3)

Transactions with owners,recorded directly in equity

Contribution by and distribution to owners

Dividends to equity share holders

-

-

(451)

(451)

Balance as at 30 June 2025

18,049

300

54,086

72,435

Interim Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2025

(All amounts in LKR Millions)

GROUP COMPANY

2025

2024

2025

2024

Cash flows from operating activities

Cash generated from operations

20,024

12,917

14,935

9,797

Interest received

646

501

315

359

Interest paid

(3,839)

(6,251)

(3,174)

(5,658)

Tax paid

(164)

(531)

-

-

Gratuity paid

(334)

(393)

(277)

(319)

Net cash generated from operating activities

16,333

6,243

11,798

4,179

Cash flows from Investing activities

Acquisition of property,plant and equipment

(6,645)

(14,805)

(4,589)

(8,090)

Acquisition of intangible assets

(273)

(2,394)

(259)

(516)

Investment in subsidiary

-

-

(88)

(60)

Proceeds from disposal of property, plant

and equipment

461

200

295

129

Proceeds / (Purchase) of short term investments

(1,110)

(1,283)

(1,111)

(1,326)

Net cash used in investing activities

(7,567)

(18,282)

(5,752)

(9,863)

Cash flows from Financing activities

Proceeds from borrowings

24,275

42,585

11,875

26,085

Cash payment for the principle portion of lease liability

(1,572)

(1,326)

(340)

(497)

Re-payment on borrowings

(23,560)

(39,133)

(13,875)

(26,711)

(Decrese) / Increase in vendor financing and other non

current liabilities

(12,816)

2,056

(10,110)

(958)

Net cash generated from / (used) financing activities

(13,673)

4,182

(12,450)

(2,081)

Increase/(Decrease) in cash and cash equivalents

(4,907)

(7,857)

(6,404)

(7,765)

Movement in Cash and cash equivalents

Cash and cash equivalents at beginning of the year

4,389

5,058

749

(211)

Effect on exchange fluctuation on cash and cash equivalents

89

(436)

84

(174)

Increase/(Decrease) in cash and cash equivalents

(4,907)

(7,857)

(6,404)

(7,765)

Cash and cash equivalents at 30 June (Note)

(429)

(3,235)

(5,571)

(8,150)

Note

Cash and cash equivalents

8,894

7,936

2,251

2,114

Bank overdraft

(9,323)

(11,171)

(7,822)

(10,264)

(429)

(3,235)

(5,571)

(8,150)

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 June 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 30 June 2025 and for the six months ended 30 June 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 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 2024 and for the year ended 31 December 2024.

    These interim financial statements were authorized for issue by the Company's Board of Directors on 14 August 2025.

  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 2024 and for the year ended 31 December 2024.

  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 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 2024 and for the year ended 31 December 2024.

    Notes to the Interim Condensed Consolidated Financial Statements

    For the quarter ended 30 June 2025.

  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

2025

2024

2025

2024

2025

2024

2025

2024

External revenues

32,090

31,831

22,439

21,039

638

677

55,167

53,547

Inter- segment revenue

3,423

3,132

894

746

3,249

3,269

7,566

7,147

Reportable segment revenue

35,513

34,963

23,333

21,785

3,887

3,946

62,733

60,694

Reportable segment profit

/(loss) - before tax

3,679

429

1,300

(23)

696

578

5,675

984

Interest expenses & Finance costs

(2,596)

(3,639)

(1,105)

(958)

(15)

(19)

(3,716)

(4,616)

Foreign exchange gain / (loss)

131

24

(81)

558

(16)

114

34

696

Interest income

314

348

333

137

1

12

648

497

Depreciation and amortization

(8,581)

(9,696)

(5,486)

(5,260)

(125)

(86)

(14,192)

(15,042)

Jan - Jun

Jan -Jun

Revenues

2025

2024

Total revenue for reportable segments

58,846

58,767

Revenue for other segments

3,887

1,927

Reportable segment revenue

62,733

60,694

Elimination of inter- segment revenue

(7,566)

(7,147)

Consolidated revenue

55,167

53,547

Profit or loss

Total profit for reportable segments

4,979

997

Profit or (loss) for other segments

696

(13)

Reportable segment profit before tax before eliminations

5,675

984

(24)

Inter- segment profits adjustment

(46)

Consolidated profit or (loss) before tax

5,651

938

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 June 2025.

30 Jun

31 Dec

2025

2024

Assets

Total assets for reportable segments

259,116

264,048

Assets for other segments

3,859

3,898

262,975

267,946

Elimination of inter - segment assets

(30,352)

(28,785)

Consolidated total assets

232,623

239,161

Liabilities

Total liabilities for reportable segments

150,813

159,012

Liabilities for other segments

2,436

3,153

153,249

162,165

Elimination of inter- segment liabilities

(15,934)

(14,479)

Consolidated total liabilities

137,315

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 six months ended 30 June 2025, the Group acquired assets at a cost of Rs 8,408 Mn (six months ended 30 June 2024- Rs.15,187 Mn).

      2. Assets with a written down value of Rs.4 Mn were disposed during the six months ended 30 June 2025 (six months ended 30 June 2024 written down value of Rs 15 Mn), resulting in a gain on disposal of Rs.457 Mn (six months ended 30 June 2024 gain of Rs.185 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 Jun 2025

      31 Dec 2024

      30 Jun 2025

      31 Dec 2024

      Property plant and equipment

      Approved but not contracted

      6,200

      6,931

      6,037

      5,135

      Approved and contracted

      2,452

      4,717

      1,850

      3,049

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 30 June 2025.

  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 Jun 2025

    LKR

    24,275

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

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 30 Jun 2025

    LKR

    23,560

  6. Contingencies

    There were no significant changes to the list of contingencies disclosed in the latest annual report of 2024 and interim condensed consolidated financial statements for the quarter ended 30 June 2025.

  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 Jun 2025

    30 Jun 2024

    30 Jun 2025

    31 Dec 2024

    Mobitel (Private) Limited

    Sale of goods and services

    3,362

    3,060

    2,453

    2,047

    Purchase of goods and services

    1,006

    850

    (8,422)

    (7,138)

  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.

For the six months ended 30 June 2025 Investor Information

Ratios

30-Jun

2025

31-Dec

2024

52.74

50.61

0.89

1.00

0.78

0.76

30-Jun

2025

31-Dec

2024

40.13

38.92

0.84

0.95

0.67

0.76

Group Company

For the 6 months ended

30 Jun 2025

30 Jun 2024

2.33

1.00

For the 6 months ended

30 Jun 2025

30 Jun 2024

2.14

0.89

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 2025

3 Months to

30 Jun 2024

67.50

92.00

57.00

82.30

61.30

82.50

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 2024 - Rs. 0.25 per share paid on 03 July 2025

    Share trading from 1 April to 30 June 2025

    4,494

    2,331,032

    143,749,430

3 Months to

30 Jun 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 - 8.74%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 2,2025

For the six months ended 30 June 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

    1,403,043

    0.08

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

    935,057

    0.05

    10 Bank of Ceylon A/C Ceybank Century Growth Fund

    780,032

    0.04

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

    560,000

    0.03

    12 Senthilverl Holdings (Pvt) Ltd

    476,534

    0.03

    13 Senkadagala Finance PLC/S.Gobinath

    382,000

    0.02

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

    304,200

    0.02

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

    255,587

    0.01

    16 Mr.M.R.M.Simsan

    236,345

    0.01

    17 Mrs.H.K.H.Gunawardena

    230,072

    0.01

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

    221,108

    0.01

    19 Bank of Ceylon No.1 Account

    214,000

    0.01

    20 PMF Finance PLC/R.M.Samarakkody 212,645 0.01

    1,781,593,308 98.69

  2. Percentage of public holding as at 30 June 2025 4.78%

  3. Number of shareholders representing the public holding 14,518

  4. Float adjusted market capitalization 5,291,532,347

    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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