Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim report Q4 2025

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

‌Group

Company

Group

Company

Oct-Dec Oct-Dec Jan - Dec Jan - Dec

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

29,530

(16,125)

29,058

(16,138)

19,061

(9,626)

18,253

(9,943)

114,176

(61,024)

111,148

(65,009)

72,980

(36,946)

71,309

(39,941)

13,405

12,920

9,435

8,310

53,152

46,139

36,034

31,368

(3,310)

(2,338)

(1,768)

(1,621)

(12,667)

(10,940)

(7,439)

(6,370)

(7,686)

(6,587)

(5,638)

(4,847)

(26,284)

(24,010)

(19,317)

(17,709)

2,409

3,995

2,029

1,842

14,201

11,189

9,278

7,289

645

868

588

776

2,752

2,040

2,689

2,031

(1,684)

(2,190)

(1,179)

(1,615)

(7,054)

(8,979)

(4,979)

(6,977)

165

81

144

(59)

359

699

300

(136)

295

368

221

311

969

1,087

695

812

-

30

-

30

-

101

1

101

1

1,860

3,122

1,832

1,255

11,328

6,037

8,083

3,020

1,690

(772)

344

(346)

(1,314)

(2,917)

(1,838)

(907)

3,550

2,350

2,176

909

10,014

3,120

6,245

2,113

(3)

-

-

-

(3)

-

-

-

1

1

-

-

2

1

-

-

(200)

(59)

(177)

41

(195)

222

(174)

322

71

48

53

(13)

87

35

52

(97)

(131)

(10)

(124)

28

(109)

258

(122)

225

3,419

2,340

2,052

937

9,905

3,378

6,123

2,338

3,549

2,349

2,176

909

10,009

3,116

6,245

2,113

1

1

-

-

5

4

-

-

3,550

2,350

2,176

909

10,014

3,120

6,245

2,113

3,418

2,339

2,052

937

9,900

3,374

6,123

2,338

1

1

-

-

5

4

-

-

3,419

2,340

2,052

937

9,905

3,378

6,123

2,338

1.97

1.30

1.21

0.50

5.55

1.73

3.46

1.17

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.)

31 Dec 2025

(Reviewed)

31 Dec 2024

(Audited)

31 Dec 2025

(Reviewed)

31 Dec 2024

(Audited)

161,002

172,637

119,933

127,935

856

946

2,906

3,044

6,687

5,360

541

223

14,027

10,606

2,441

2,860

-

-

14,429

14,341

568

515

568

515

97

14

-

-

1,290

1,013

197

218

6

3

-

-

3,549

3,353

3,549

3,353

188,082

194,447

144,564

152,489

3,209

3,143

2,503

2,204

28,496

30,733

21,358

21,658

578

274

335

235

919

1,150

65

132

3,131

868

3,092

830

9,935

8,546

2,220

3,347

46,268

44,714

29,573

28,406

234,350

239,161

174,137

180,895

18,049

18,049

18,049

18,049

300

300

300

300

82,451

73,002

57,565

51,893

100,800

91,351

75,914

70,242

129

124

-

-

100,929

91,475

75,914

70,242

103

111

-

-

54,360

57,360

47,450

49,500

-

7,502

-

7,502

4,447

3,892

47

22

2,425

2,425

2,425

2,425

97

119

97

119

12,605

11,626

10,372

8,586

6,776

6,317

5,577

5,272

2,034

3,517

1,106

2,528

82,847

92,869

67,074

75,954

14,089

13,679

5,645

6,598

776

6,536

-

2,015

2,763

1,982

501

295

1,226

1,330

1,193

1,218

2,706

2,619

23

23

249

83

-

-

28,765

28,588

23,787

24,550

50,574

54,817

31,149

34,699

133,421

147,686

98,223

110,653

234,350

239,161

174,137

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 27 February 2026.

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 twelve months ended 31 December 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)

Non-Controlling Interest

-

-

-

-

4

4

Total comprehensive income for period

Net profit for the period

-

-

3,116

3,116

-

3,116

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

Non-Controlling Interest

-

-

-

-

5

5

Total comprehensive income for period

Net profit for the period

-

-

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 period -

-

(109)

(109)

-

(109)

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

-

-

9,449

9,449

5

9,454

Balance as at 31 December 2025

18,049

300

82,451

100,800

129

100,929

‌Company Registration No. PQ 7 Interim Condensed Consolidated Statement of Changes In Equity For the twelve months ended 31 December 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

Total comprehensive income for period

Net profit for the period

-

-

6,245

6,245

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

(122)

(122)

Total other comprehensive income for period

-

-

(122)

(122)

Total comprehensive income for the period

-

-

(122)

(122)

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

‌Company Registration No. PQ 7

Interim Condensed Consolidated Statement of Cash Flows

For the twelve months ended 31 December 2025

(All amounts in LKR Millions )

GROUP COMPANY

2025

2024

2025

2024

Operating activities

Cash generated from operations

47,772

33,722

29,099

26,586

Interest received

970

1,098

696

823

Interest paid

(7,544)

(10,353)

(5,599)

(9,095)

Tax paid

(370)

(798)

-

-

Gratuity paid

(851)

(738)

(756)

(573)

Net cash generated from operating activities

39,977

22,931

23,440

17,741

Cash flows from Investing activities

Acquisition of property,plant and equipment

(11,591)

(23,108)

(8,063)

(12,475)

Acquisition of intangible assets

(5,657)

(2,557)

(454)

(675)

Investment in subsidiary

-

(88)

(60)

Proceeds from disposal of property, plant

and equipment

758

370

531

202

Proceeds / (Purchase) of short term investments

(2,264)

(762)

(2,263)

(841)

Proceeds from disposal of subsidiary

-

80

-

-

Receipt of government grants

-

138

-

-

Net cash used in investing activities

(18,754)

(25,839)

(10,337)

(13,849)

Cash flows from Financing activities

Proceeds from borrowings

44,950

63,500

27,750

36,500

Cash payment for the principle portion of lease liability

(3,035)

(2,827)

(716)

(1,001)

Re-payment on borrowings

(49,182)

(51,454)

(31,000)

(30,461)

(Decrese) / Increase in vendor financing and other non

current liabilities

(13,994)

(6,290)

(10,275)

(7,686)

Dividend paid to equity share holders

(451)

-

(451)

-

Net cash generated from / (used) financing activities

(21,712)

2,929

(14,693)

(2,648)

(Decreas e) / Increase in cash and cash equivalents

(489)

21

(1,591)

1,244

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

236

(690)

217

(284)

Increase/(Decrease) in cash and cash equivalents

(489)

21

(1,591)

1,244

Cash and cash equivalents at 31 December (Note)

4,136

4,389

(625)

749

Note

Cash and cash equivalents

9,935

8,546

2,220

3,347

Bank overdraft

(5,799)

(4,157)

(2,845)

(2,598)

4,136

4,389

(625)

749

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 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 December 2025 and for the year ended 31 December 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 27 February 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 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 31 December 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 - Dec

Jan - Dec

Jan - Dec

Jan - Dec

2025

2024

2025

2024

2025

2024

2025

2024

External revenues

66,102

65,028

46,448

44,390

1,626

1,730

114,176

111,148

Inter- segment revenue

6,878

6,281

1,495

1,390

6,722

6,243

15,095

13,914

Reportable segment revenue

72,980

71,309

47,943

45,780

8,348

7,973

129,271

125,062

Reportable segment profit

/(loss) - before tax

8,083

3,020

2,321

1,878

972

1,214

11,379

6,112

Interest expenses & Finance costs

(4,979)

(6,977)

(2,168)

(2,101)

(35)

(67)

(7,182)

(9,145)

Foreign exchange gain / (loss)

300

(136)

71

619

(15)

216

356

699

Interest income

695

812

753

276

4

37

1,452

1,125

Depreciation and amortization

(17,083)

(18,938)

(11,658)

(10,715)

(293)

(181)

(29,034)

(29,834)

Jan - Dec

Jan -Dec

Revenues

2025

2024

Total revenue for reportable segments

120,923

121,229

Revenue for other segments

8,348

3,833

Reportable segment revenue

129,271

125,062

Elimination of inter- segment revenue

(15,095)

(13,914)

Consolidated revenue

114,176

111,148

Profit or loss

Total profit for reportable segments

10,404

6,094

Profit or (loss) for other segments

975

18

Reportable segment profit before tax before eliminations

11,379

6,112

(51)

Inter- segment profits adjustment

(75)

Consolidated profit or (loss) before tax

11,328

6,037

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 December 2025.

31 Dec

31 Dec

2025

2024

Assets

Total assets for reportable segments

262,289

266,557

Assets for other segments

4,095

1,389

266,384

267,946

Elimination of inter - segment assets

(32,034)

(28,785)

Consolidated total assets

234,350

239,161

Liabilities

Total liabilities for reportable segments

148,489

161,062

Liabilities for other segments

2,513

1,103

151,002

162,165

Elimination of inter- segment liabilities

(17,581)

(14,479)

Consolidated total liabilities

133,421

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 year ended 31 December 2025, the Group acquired assets at a cost of Rs 26,961 Mn (year ended 31 December 2024- Rs. 21,849Mn).

      2. Assets with a written down value of Rs.12 Mn were disposed during the year ended 31 December 2025 (year ended 31 December 2024 written down value of Rs 17 Mn), resulting in a gain on disposal of Rs.765 Mn (year ended 31 December 2024 gain of Rs.361 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)

      31 Dec 2025

      31 Dec 2024

      31 Dec 2025

      31 Dec 2024

      Property plant and equipment

      Approved but not contracted

      6,334

      6,931

      2,438

      5,135

      Approved and contracted

      13,362

      4,717

      9,946

      3,049

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 31 December 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 - 31 Dec 2025

    LKR

    44,950

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

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 31 Dec 2025

    LKR

    49,182

  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 31 December 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)

    31 Dec 2025

    31 Dec 2024

    31 Dec 2025

    31 Dec 2024

    Mobitel (Private) Limited

    Sale of goods and services

    6,606

    6,147

    3,065

    2,047

    Purchase of goods and services

    1,404

    1,736

    (9,322)

    (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 twelve months ended 31 December 2025 Investor Information

Ratios

31-Dec

2025

31-Dec

2024

55.85

50.61

0.76

1.00

0.85

0.76

31-Dec

2025

31-Dec

2024

42.06

38.92

0.71

0.95

0.87

0.76

Group Company

For the 12 months ended

31 Dec 2025

31 Dec 2024

2.38

1.46

For the 12 months ended

31 Dec 2025

31 Dec 2024

2.35

1.20

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 Dec 2025

3 Months to

31 Dec 2024

91.60

78.00

63.50

60.20

82.50

69.50

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

    3 Months to

    31 Dec 2025

    11,301

    18,973,597

    1,510,755,514

    Share trading from 1 October to 31 December 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 - 8.68%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 4,2025

‌ For the twelve months ended 31 December 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 Seylan Bank PLC / K.L.G.Udayananda

    3,365,484

    0.19

    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

    1,319,851

    0.07

    10 Mr.K.L.G.Udayananda

    1,064,893

    0.06

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

    925,000

    0.05

    12 Bank of Ceylon A/C Ceybank Century Growth Fund

    720,244

    0.04

    13 Senkadagala Finance PLC/S.Gobinath

    569,980

    0.03

    14 Mr.R.P.Weerasooriya

    520,710

    0.03

    15 People's Leasing & Finance PLC/K.A.D.R.M.K.Kariyapperuma

    460,011

    0.03

    16 Mr.S.Gurusinghe

    453,244

    0.03

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

    399,671

    0.02

    18 Mr.C.Dissanayake

    228,200

    0.01

    19 Assetline Finance Limited/H.M.Lalith

    217,472

    0.01

    20 Seylan Bank PLC / Anuja Chamila Jayasinghe 217,239 0.01

    1,781,167,118 98.68

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

  3. Number of shareholders representing the public holding 14,255

  4. Float adjusted market capitalization 7,121,707,065

    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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