Sri Lanka Telecom PlcCSELK: SLTL.N0000

Interim Reports -Q1 2026

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‌Sri Lanka Telecom PLC Interim Condensed Consolidated Financial Statements For the Quarter ended 31 March 2026 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

Jan - Mar Jan - Mar

2026

(Reviewed)

2025

(Reviewed)

2026

(Reviewed)

2025

(Reviewed)

Revenue

30,797

27,851

19,715

17,831

Direct costs

(16,170)

(15,029)

(9,852)

(9,131)

Gross Profit

14,627

12,822

9,863

8,700

Sales and marketing costs

(3,157)

(2,962)

(1,801)

(1,696)

Administrative costs

(6,338)

(6,170)

(4,611)

(4,466)

Operating profit

5,132

3,690

3,451

2,538

Other income

262

512

318

508

Finance cost

(1,721)

(1,839)

(1,228)

(1,339)

Foreign exchange gain/ (loss)

218

(17)

129

31

Interest income

266

323

202

158

Share of profit / (loss) from equity

- accounted investee

27

24

27

24

Profit/(loss ) before tax for the period

4,184

2,693

2,899

1,920

Income tax (expenses)/reversal

(1,116)

(692)

(839)

(576)

Profit /(loss) for the period

3,068

2,001

2,060

1,344

Other comprehensive income

Foreign currency translation reserve

9

-

-

-

Net change in fair value financial assets

3

-

-

-

Defined benefit plan actuarial gain/ (loss)

(135)

170

(135)

168

Tax on other comprehensive income

43

(52)

40

(50)

Other comprehensive income for the period (net of tax)

(80)

118

(95)

118

Total Comprehensive Income for the Period

2,988

2,119

1,965

1,462

Profit /(loss) Attributable to :

Owners of the company

3,065

2,000

2,060

1,344

Non-controlling interest

3

1

-

-

3,068

2,001

2,060

1,344

Total Comprehensive Income attributable

to:

Owners of the company

2,985

2,118

1,965

1,462

Non-controlling interest

3

1

-

-

2,988

2,119

1,965

1,462

Earnings per share

- Basic (Rs.)

1.70

1.11

1.14

0.74

‌Interim Condensed Consolidated Statement of Financial Position

(All amounts in LKR Millions )

31 Mar 2026

(Reviewed)

31 Dec 2025

(Reviewed)

31 Mar 2026

(Reviewed)

31 Dec 2025

(Reviewed)

161,504

161,002

119,209

119,933

833

856

2,854

2,906

7,556

6,687

1,471

541

13,509

14,027

2,343

2,441

-

-

14,429

14,429

595

568

595

568

97

97

-

-

1,147

1,290

177

197

8

6

-

-

3,616

3,549

3,616

3,549

188,865

188,082

144,694

144,564

2,843

3,209

2,182

2,503

30,452

28,496

22,540

21,358

685

578

351

335

1,237

919

76

65

4,134

3,131

4,094

3,092

10,904

9,935

2,637

2,220

50,255

46,268

31,880

29,573

239,120

234,350

176,574

174,137

18,049

18,049

18,049

18,049

300

300

300

300

6

(3)

-

-

85,430

82,454

59,530

57,565

103,785

100,800

77,879

75,914

132

129

-

-

103,917

100,929

77,879

75,914

100

103

-

-

53,288

54,360

47,050

47,450

5,615

4,447

860

47

2,370

2,425

2,370

2,425

91

97

91

97

13,592

12,605

11,170

10,372

6,968

6,776

5,741

5,577

2,033

2,034

1,088

1,106

84,057

82,847

68,370

67,074

12,402

14,089

3,634

5,645

2,554

776

-

-

2,571

2,763

651

501

1,299

1,226

1,286

1,193

2,758

2,706

24

23

293

249

-

-

29,269

28,765

24,730

23,787

51,146

50,574

30,325

31,149

135,203

133,421

98,695

98,223

239,120

234,350

176,574

174,137

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

Equity instruments designated at fair value through OCI 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

Foreign Currency Translation Reserve

Retained earnings

Equity attributable to equity share - holders of the company Non controlling Interest

Total Equity

Non Current Liabilities

Grants Borrowings 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 May 2026.

Signed for and behalf of the Board.

Signed Signed

Dr.Mothilal de Silva T M Thilakaratne

Chairman Director

‌Interim Condensed Consolidated Statement of Changes In Equity For the three months ended 31 March 2026

(All amounts in LKR Millions )

Group

Attributable to owners of the Group

Foreign Currency

Non

Stated Insurance

Translation

Retained Total

controlling Total

capital reserve

Reserve

earnings interest equity

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 the year

Net profit for the year

-

-

-

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 the year

-

-

(3)

(106)

(109)

-

(109)

Total comprehensive income for the year

-

-

(3)

9,903

9,900

5

9,905

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 2025

18,049

300

(3)

82,454

100,800

129

100,929

Balance as at 1 January 2026

18,049

300

(3)

82,454

100,800

129

100,929

Non-Controlling Interest

-

-

-

-

-

3

3

Total comprehensive income for period

Net profit for the period

-

-

-

3,065

3,065

-

3,065

Other comprehensive income

Foreign currency translation reserve

-

-

9

-

9

-

9

Net change in fair value financial assets

-

-

-

3

3

-

3

Defined benefit plan actuarial gain,net of tax

-

-

-

(92)

(92)

-

(92)

Total other comprehensive income for period

-

-

9

(89)

(80)

-

(80)

Total comprehensive income for the period

-

-

9

2,976

2,985

3

2,988

Balance as at 31 March 2026

18,049

300

6

85,430

103,785

132

103,917

‌Company Registration No. PQ 7 Interim Condensed Consolidated Statement of Changes In Equity For the three months ended 31 March 2026

(All amounts in LKR Millions )

Company Attributable to owners of the Company Stated Insurance Retained Total

capital reserve earnings

Balance as at 1 January 2025

18,049

300

51,893

70,242

Total comprehensive income for the year

Net profit for the year

-

-

6,245

6,245

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

(122)

(122)

Total other comprehensive income for the year

-

-

(122)

(122)

Total comprehensive income for the year

-

-

6,123

6,123

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

Balance as at 1 January 2026

18,049

300

57,565

75,914

Total comprehensive income for period

Net profit for the period

-

-

2,060

2,060

Other comprehensive income

Defined benefit plan actuarial gain,net of tax

-

-

(95)

(95)

Total other comprehensive income for period

-

-

(95)

(95)

Total comprehensive income for the period

-

-

1,965

1,965

Balance as at 31 March 2026

18,049

300

59,530

77,879

‌Interim Condensed Consolidated Statement of Cash Flows

For the three months ended 31 March 2026

(All amounts in LKR Millions )

GROUP COMPANY

2026

2025

2026

2025

Operating activities

Cash generated from operations

11,420

9,652

7,827

7,734

Interest received

260

324

196

159

Interest paid

(1,627)

(1,730)

(1,012)

(1,373)

Tax paid

(132)

(122)

-

-

Gratuity paid

(212)

(206)

(187)

(180)

Net cash generated from operating activities

9,709

7,918

6,824

6,340

Cash flows from Investing activities

Acquisition of property,plant and equipment

(5,907)

(2,805)

(2,890)

(1,848)

Acquisition of intangible assets

(87)

(236)

(56)

(241)

Proceeds from disposal of property, plant

and equipment

36

205

14

125

Proceeds / (Purchase) of short term investments

(997)

(672)

(996)

(673)

Net cash used in investing activities

(6,955)

(3,508)

(3,928)

(2,637)

Cash flows from Financing activities

Proceeds from borrowings

-

11,050

-

5,750

Cash payment for the principle portion of lease liability

(992)

(806)

(174)

(178)

Re-payment on borrowings

(3,071)

(5,718)

(2,400)

(2,000)

(Decrese) / Increase in vendor financing and other non

current liabilities

1,759

(11,723)

-

(10,108)

Net cash generated from / (used) financing activities

(2,304)

(7,197)

(2,574)

(6,536)

(Decreas e) / Increase in cash and cash equivalents

450

(2,787)

322

(2,833)

Movement in Cash and cash equivalents

Cash and cash equivalents at beginning of the year

4,136

4,389

(625)

750

Effect on exchange fluctuation on cash and cash

equivalents

207

47

106

42

Increase/(Decrease) in cash and cash equivalents

450

(2,787)

322

(2,833)

Cash and cash equivalents at 31 March (Note)

4,793

1,649

(197)

(2,041)

Note

Cash and cash equivalents

10,904

7,672

2,637

3,321

Bank overdraft

(6,111)

(6,023)

(2,834)

(5,362)

4,793

1,649

(197)

(2,041)

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 March 2026.

  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 2026 and for the period ended 31 March 2026 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.

    These interim financial statements were authorized for issue by the Company's Board of Directors on 14 May 2026.

  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 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 most recent audited financial statements.

    Notes to the Interim Condensed Consolidated Financial Statements

    For the quarter ended 31 March 2026.

  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 - Mar

Jan - Mar

Jan - Mar

Jan - Mar

2026

2025

2026

2025

2026

2025

2026

2025

External revenues

17,638

16,135

12,491

11,439

668

277

30,797

27,851

Inter- segment revenue

2,077

1,696

468

356

1,630

1,644

4,175

3,696

Reportable segment revenue

19,715

17,831

12,959

11,795

2,298

1,921

34,972

31,547

Reportable segment profit

/(loss) - before tax

2,899

1,920

982

535

315

253

4,196

2,708

Interest expenses & Finance costs

(1,228)

(1,339)

(512)

(527)

(6)

(7)

(1,746)

(1,873)

Foreign exchange gain / (loss)

129

31

78

(43)

11

(5)

218

(17)

Interest income

202

158

64

166

1

1

267

325

Depreciation and amortization

(4,184)

(4,213)

(3,040)

(2,713)

(82)

(56)

(7,306)

(6,982)

Jan - Mar

Jan -Mar

Revenues

2026

2025

Total revenue for reportable segments

32,674

29,626

Revenue for other segments

2,298

1,921

Reportable segment revenue

34,972

31,547

Elimination of inter- segment revenue

(4,175)

(3,696)

Consolidated revenue

30,797

27,851

Profit or loss

Total profit for reportable segments

3,881

2,455

Profit or (loss) for other segments

315

253

Reportable segment profit before tax before eliminations

4,196

2,708

(12)

Inter- segment profits adjustment

(15)

Consolidated profit or (loss) before tax

4,184

2,693

Notes to the Interim Condensed Consolidated Financial Statements

For the quarter ended 31 March 2026.

31 Mar

31 Dec

2026

2025

Assets

Total assets for reportable segments

267,361

262,289

Assets for other segments

4,393

4,095

271,754

266,384

Elimination of inter - segment assets

(32,634)

(32,034)

Consolidated total assets

239,120

234,350

Liabilities

Total liabilities for reportable segments

150,808

148,489

Liabilities for other segments

2,568

2,513

153,376

151,002

Elimination of inter- segment liabilities

(18,173)

(17,581)

Consolidated total liabilities

135,203

133,421

  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 ended 31 March 2026, the Group acquired assets at a cost of Rs.3,681 Mn (three months ended 31 March 2025- Rs. 5,041Mn).

      2. Assets with a written down value of Rs.2 Mn were disposed during the three months ended 31 March 2026 (year ended 31 March 2025 written down value of Rs 0.91Mn), resulting in a gain on disposal of Rs.34 Mn (year ended 31 March 2025 gain of Rs.206 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 Mar 2026

      31 Dec 2025

      31 Mar 2026

      31 Dec 2025

      Property plant and equipment

      Approved but not contracted

      16,855

      6,334

      13,078

      2,438

      Approved and contracted

      12,912

      13,362

      9,433

      9,946

      Notes to the Interim Condensed Consolidated Financial Statements

      For the quarter ended 31 March 2026.

  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 Mar 2026

    LKR

    Nill

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

    Repayments

    Currency

    Amount (Rs. Mn.)

    Bank loan - 31 Mar 2026

    LKR

    3,071

  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 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 Mar 2026

    31 Mar 2025

    31 Mar 2026

    31 Dec 2025

    Mobitel (Private) Limited

    Sale of goods and services

    1,887

    1,665

    3,543

    3,065

    Purchase of goods and services

    550

    518

    (9,983)

    (9,322)

  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. 0.75 per share (2024-Rs. 0.25 per share) on voting shares of the company to be paid by way of cash dividend for the financial year ended 31 December 2025.

Further, this dividend is to be approved at the Annual General Meeting to be held on 19 June 2026. This proposed final dividend has not been recognised as a liability as at 31 December 2025 and Interim Condensed Consolidated Financial Statements for the quarter ended 31st March 2026. Final dividend proposed for the year amounts to LKR 1,354 Mn in Compliance with section 56 and 57 of Companies Act No.07 of 2007. As required by section 56 of the Companies Act No.07 of 2007, the Board of Directors of the Company satisfied the solvency test in accordance with the section 57, prior to recommending the final dividend. A statement of solvency completed and duly signed by the Directors on 13th March 2026 has been audited by Messrs. Ernst & Young on behalf of National Audit Office.

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.

‌Company Registration No. PQ 7

Interim Condensed Consolidated Financial Statements For the three months ended 31 March 2026

Investor Information

Ratios

31-Mar

2026

31-Dec

2025

57.50

55.85

0.74

0.77

0.93

0.85

31-Mar

2026

31-Dec

2025

43.15

42.06

0.67

0.72

0.98

0.87

Group Company

For the 3 months ended

31 Mar 2026

31 Mar 2025

3.28

2.25

For the 3 months ended

31 Mar 2026

31 Mar 2025

3.16

2.16

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 2026

3 Months to

31 Mar 2025

107.25

72.50

76.30

53.10

80.00

60.30

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 Mar 2026

    10,492

    13,189,941

    1,282,237,028

    Share trading from 1 January to 31 March 2026

  • 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 - 8.82%

  • Market prices (ex-interest) for the current

interim period - No trades during the Qtr 1,2026

‌Sri Lanka Telecom PLC Company Registration No. PQ 7 Interim Condensed Consolidated Financial Statements For the three months ended 31 March 2026
  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 Seylan Bank PLC / K.L.G.Udayananda

    4,045,749

    0.22

    6 Bank of Ceylon A/C Ceybank Unit Trust

    4,001,276

    0.22

    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

    1,473,134

    0.08

    10 Bank of Ceylon-First Capital Equity Fund

    1,000,000

    0.06

    11 Bank of Ceylon A/C Ceybank Century Growth Fund

    720,244

    0.04

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

    690,000

    0.04

    13 Mr.S.Gurusinghe

    413,244

    0.02

    14 Mr.T.C.B.Maranthota

    410,000

    0.02

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

    358,262

    0.02

    16 Senkadagala Finance PLC/S.Gobinath

    340,000

    0.02

    17 Seylan Bank PLC / Anuja Chamila Jayasinghe

    317,197

    0.02

    18 Mr.C.Dissanayake

    275,000

    0.02

    19 Sampath Bank PLC/Yaden Capital (Private) Limited

    250,000

    0.01

    20 Mr.E.L.Karannagoda

    232,000

    0.01

    1,781,229,949

    98.68

  2. Percentage of public holding as at 31 March 2026 4.78%

  3. Number of shareholders representing the public holding 14,614

  4. Float adjusted market capitalization 6,905,897,760

    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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