Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Report Q3 2025

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Sri Lanka Telecom PLC Interim Condensed Consolidated Financial Statements For the Quarter ended 30 September 2025

Group

Company

Group

Company

Jul-Sep Jul-Sep Jan - Sep Jan - Sep

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

29,479

28,543

18,406

18,093

(15,609)

(16,233)

(9,136)

(9,702)

13,870

12,310

9,270

8,391

(3,314)

(2,895)

(2,095)

(1,644)

(6,315)

(5,839)

(4,693)

(4,267)

4,241

3,576

2,482

2,480

1,085

521

1,085

527

(1,721)

(2,271)

(1,204)

(1,723)

159

(78)

25

(101)

29

229

160

153

-

24

-

24

-

3,817

1,977

2,572

1,336

(1,629)

(884)

(1,150)

(404)

2,188

1,093

1,422

932

1

-

-

-

7

57

7

56

6

(121)

(2)

(151)

14

(64)

5

(95)

2,202

1,029

1,427

837

2,186

1,092

1,422

932

2

1

-

-

2,188

1,093

1,422

932

2,200

1,028

1,427

837

2

1

-

-

2,202

1,029

1,427

837

1.21

0.61

0.79

0.52

84,646

82,090

53,919

53,056

(44,899)

(48,871)

(27,320)

(29,998)

39,747

33,219

26,599

23,058

(9,357)

(8,602)

(5,671)

(4,749)

(18,598)

(17,423)

(13,679)

(12,862)

11,792

7,194

7,249

5,447

2,107

1,172

2,101

1,255

(5,370)

(6,789)

(3,800)

(5,362)

194

618

156

(77)

674

719

474

501

71

1

71

1

9,468

2,915

6,251

1,765

(3,004)

(2,145)

(2,182)

(561)

6,464

770

4,069

1,204

1

-

-

-

5

281

3

281

16

(13)

(1)

(84)

22

268

2

197

6,486

1,038

4,071

1,401

6,460

767

4,069

1,204

4

3

-

-

6,464

770

4,069

1,204

6,482

1,035

4,071

1,401

4

3

-

-

6,486

1,038

4,071

1,401

3.58

0.42

2.25

0.67

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

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.)

30 Sep 2025

(Reviewed)

31 Dec 2024

(Audited)

30 Sep 2025

(Reviewed)

31 Dec 2024

(Audited)

164,403

172,637

121,994

127,935

877

946

2,952

3,044

4,661

5,360

668

223

9,277

10,606

2,517

2,860

-

-

14,429

14,341

538

515

538

515

12

14

-

-

1,223

1,013

199

218

4

3

-

-

3,705

3,353

3,704

3,353

184,700

194,447

147,001

152,489

3,161

3,143

2,308

2,204

30,715

30,733

22,440

21,658

434

274

293

235

821

1,150

77

132

1,785

868

1,748

830

8,954

8,546

2,661

3,347

45,870

44,714

29,527

28,406

230,570

239,161

176,528

180,895

18,049

18,049

18,049

18,049

300

300

300

300

79,033

73,002

55,513

51,893

97,382

91,351

73,862

70,242

128

124

-

-

97,510

91,475

73,862

70,242

105

111

-

-

51,320

57,360

43,700

49,500

-

7,502

-

7,502

3,756

3,892

167

22

2,416

1,671

2,416

1,671

102

873

102

873

14,413

11,626

10,768

8,586

6,554

6,317

5,406

5,272

2,267

3,517

1,359

2,528

80,933

92,869

63,918

75,954

20,987

14,365

13,159

7,284

1,820

6,536

-

2,015

1,295

1,982

553

295

1,239

1,130

1,199

1,018

2,824

2,819

57

223

36

83

-

-

23,926

27,902

23,780

23,864

52,127

54,817

38,748

34,699

133,060

147,686

102,666

110,653

230,570

239,161

176,528

180,895

Group Company

Ass ets

Non-Current Ass ets 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 Ass ets

Current Ass ets

Inventories

Trade and other receivables Current tax receivables Contract cost assets

Other investments

Cash and cash equivalents

Total Current Ass ets Total Ass ets

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 13 November 2025.

Signed for and behalf of the Board.

Signed

Signed

Dr.Mothilal de Silva Chandrasiri Kalupahana

Chairman Director

Interim Condensed Consolidated Statement of Changes In Equity For the nine months ended 30 September 2025

(All amounts in LKR Millions )

Group Attributable to owners of the Group

Stated capital

Insurance reserve

Retained earnings

Total

Non

controlling interest

Total 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

-

-

6,460

6,460

4

6,464

Other comprehensive income

Net change in fair value financial assets

-

-

1

1

-

1

Defined benefit plan actuarial gain,net of tax

-

-

21

21

-

21

Total other comprehensive income for period -

-

22

22

-

22

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

-

-

6,031

6,031

4

6,035

Balance as at 30 September 2025

18,049

300

79,033

97,382

128

97,510

Sri Lanka Telecom PLC Company Registration No. PQ 7 Interim Condensed Consolidated Statement of Changes In Equity For the nine months ended 30 September 2025

(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 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

Total comprehensive income for period

Net profit for the period

-

-

4,069

4,069

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

2

2

Total other comprehensive income for period

-

-

2

2

Total comprehensive income for the period

-

-

2

2

Transactions with owners,recorded directly in equity

Contribution by and distribution to owners

Dividends to equity share holders

-

-

(451)

(451)

Balance as at 30 September 2025

18,049

300

55,513

73,862

Sri Lanka Telecom PLC

Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Cash Flows For the nine months ended 30 September 2025

(All amounts in LKR Millions )

GROUP COMPANY

2025

2024

2025

2024

Operating activities

Cash generated from operations

31,623

21,326

21,712

18,994

Interest received

675

730

475

512

Interest paid

(5,452)

(8,197)

(4,275)

(7,261)

Tax paid

(347)

(836)

-

-

Gratuity paid

(580)

(595)

(505)

(465)

Net cash generated from operating activities

25,919

12,428

17,407

11,780

Cash flows from Investing activities

Acquisition of property,plant and equipment

(9,344)

(18,981)

(6,301)

(10,504)

Acquisition of intangible assets

(371)

(2,464)

(351)

(595)

Investment in subsidiary

-

-

(88)

(60)

Proceeds from disposal of property, plant

and equipment

691

317

459

153

Proceeds / (Purchase) of short term investments

(918)

(645)

(919)

(722)

Net cash used in investing activities

(9,942)

(21,773)

(7,201)

(11,728)

Cash flows from Financing activities

Proceeds from borrowings

33,200

49,085

18,800

27,085

Cash payment for the principle portion of lease liability

(2,644)

(1,911)

(510)

(699)

Re-payment on borrowings

(39,134)

(42,722)

(24,600)

(26,711)

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

(12,856)

1,207

(10,189)

(2,172)

Dividend paid to equity share holders

(451)

-

(451)

-

Net cash generated from / (used) financing activities

(21,885)

5,659

(16,950)

(2,497)

(Decreas e) / Increase in cash and cash equivalents

(5,908)

(3,686)

(6,744)

(2,445)

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

140

(574)

115

(245)

Increase/(Decrease) in cash and cash equivalents

(5,908)

(3,686)

(6,744)

(2,445)

Cash and cash equivalents at 30 September (Note)

(1,379)

798

(5,880)

(2,901)

Note

8,954

(10,333)

9,480

(8,682)

2,661

(8,541)

3,654

(6,555)

Cash and cash equivalents Bank overdraft

(1,379)

798

(5,880)

(2,901)

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 September 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 September 2025 and for the nine months ended 30 September 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 13 November 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 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 2024 and for the year ended 31 December 2024.

    Notes to the Interim Condensed Consolidated Financial Statements

    For the quarter ended 30 September 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 - Sep

Jan - Sep

Jan - Sep

Jan - Sep

2025

2024

2025

2024

2025

2024

2025

2024

External revenues

49,053

48,354

34,433

32,411

1,160

1,325

84,646

82,090

Inter- segment revenue

4,866

4,702

1,015

1,025

4,755

4,585

10,636

10,312

Reportable segment revenue

53,919

53,056

35,448

33,436

5,915

5,910

95,282

92,402

Reportable segment profit

/(loss) - before tax

6,251

1,765

2,340

439

909

769

9,500

2,973

Interest expenses & Finance costs

(3,800)

(5,362)

(1,649)

(1,515)

(21)

(37)

(5,470)

(6,914)

Foreign exchange gain / (loss)

156

(77)

42

513

(5)

182

193

618

Interest income

474

501

550

210

2

16

1,026

727

Depreciation and amortization

(12,846)

(14,140)

(8,486)

(7,970)

(199)

(140)

(21,531)

(22,250)

Jan - Sep

Jan -Sep

Revenues

2025

2024

Total revenue for reportable segments

89,367

86,492

Revenue for other segments

5,915

5,910

Reportable segment revenue

95,282

92,402

Elimination of inter- segment revenue

(10,636)

(10,312)

Consolidated revenue

84,646

82,090

Profit or loss

Total profit for reportable segments

8,591

2,204

Profit or (loss) for other segments

909

769

Reportable segment profit before tax before eliminations

9,500

2,973

(32)

Inter- segment profits adjustment

(58)

Consolidated profit or (loss) before tax

9,468

2,915

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 30 September 2025.

30 Sep

31 Dec

2025

2024

Assets

Total assets for reportable segments

257,646

264,048

Assets for other segments

4,160

3,898

261,806

267,946

Elimination of inter - segment assets

(31,236)

(28,785)

Consolidated total assets

230,570

239,161

Liabilities

Total liabilities for reportable segments

147,266

159,012

Liabilities for other segments

2,602

3,153

149,868

162,165

Elimination of inter- segment liabilities

(16,808)

(14,479)

Consolidated total liabilities

133,060

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 nine months ended 30 September 2025, the Group acquired assets at a cost of Rs 18,873 Mn (nine months ended 30 September 2024- Rs. 18,526Mn).

      2. Assets with a written down value of Rs.12 Mn were disposed during the nine months ended 30 September 2025 (nine months ended 30 September 2024 written down value of Rs 13 Mn), resulting in a gain on disposal of Rs.679 Mn (nine months ended 30 September 2024 gain of Rs.302 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 Sep 2025

      31 Dec 2024

      30 Sep 2025

      31 Dec 2024

      Property plant and equipment

      Approved but not contracted

      6,550

      6,931

      6,392

      5,135

      Approved and contracted

      5,325

      4,717

      4,636

      3,049

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 30 September 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 Sep 2025

    LKR

    33,200

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

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 30 Sep 2025

    LKR

    39,134

  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 September 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 Sep 2025

    30 Sep 2024

    30 Sep 2025

    31 Dec 2024

    Mobitel (Private) Limited

    Sale of goods and services

    4,777

    4,600

    2,724

    2,047

    Purchase of goods and services

    1,194

    1,154

    (8,973)

    (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.

Investor Information

Ratios

30-Sep

2025

31-Dec

2024

53.96

50.61

0.81

1.00

0.82

0.76

30-Sep

2025

31-Dec

2024

40.92

38.92

0.78

0.95

0.70

0.76

Group Company

For the 9 months ended

30 Sep 2025

30 Sep 2024

2.55

1.22

For the 9 months ended

30 Sep 2025

30 Sep 2024

2.36

1.10

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 Sep 2025

3 Months to

30 Sep 2024

70.00

84.00

58.00

54.90

65.40

65.90

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

    3 Months to

    30 Sep 2025

    6,563

    10,258,799

    637,833,474

    Share trading from 1 July to 30 September 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 - 9.00%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 3,2025

  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

    4,001,276

    0.22

    6 Employees Trust Fund Board

    3,302,188

    0.18

    7 Sri Lanka Insurance Corporation Ltd-General Fund

    2,041,538

    0.11

    8 Mr.R.P.Weerasooriya

    1,733,150

    0.10

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

    1,424,974

    0.08

    10 Mr.D.G.Wijemanna

    1,300,000

    0.07

    11 Sampath Bank PLC/Senthilverl Holdings (Pvt) Ltd

    1,083,041

    0.06

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

    935,057

    0.05

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

    920,000

    0.05

    14 Bank of Ceylon A/C Ceybank Century Growth Fund

    720,244

    0.04

    15 Senthilverl Holdings (Pvt) Ltd

    511,839

    0.03

    16 Mr.B.T.De S Weerasooriya

    400,000

    0.02

    17 Senkadagala Finance PLC/S.Gobinath

    386,999

    0.02

    18 Mr.M.R.M.Simsan

    261,862

    0.01

    19 Mr.R.C.D. De Silva

    255,202

    0.01

    20 PMF Finance PLC/R.M.Samarakkody 245,887 0.01

    1,780,883,374 98.65

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

  3. Number of shareholders representing the public holding 14,385

  4. Float adjusted market capitalization 5,645,452,129

    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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