The SLT Group reported a powerful first half for 2026, with consolidated Profit After Tax (PAT) rising 54.4% to LKR 6.6 billion for H1 2026 compared to LKR 4.3 billion in H1 2025, as strong demand for broadband and enterprise services offset escalating cost pressures from currency depreciation and higher fuel and utility prices. Double-digit revenue growth and a sharp improvement in profitability at SLT PLC and Mobitel, extended the momentum established in the first quarter of 2026.

Revenue growth drives strong Group profitability

Group revenue for the first half of 2026 reached LKR 61,314 million, 11.1% from LKR 55,167 million in H1 2025. The growth was anchored in strong broadband subscription at SLT PLC and Mobitel, which lifted Group EBITDA by 13.7% to LKR 24,126 million.

Operating profit boosted to LKR 10,165 million, a 34.6% rise from LKR 7,551 million a year earlier, Profit Before Tax (PBT) advanced 51.4% to LKR 8,555 million during first half of the year. Group PAT reached LKR 6,601 million, a 54.4% growth from LKR 4,276 million reported in H1 2025. The Group’s contribution to the Government of Sri Lanka during H1 2026 amounted to LKR 18,559 million.

Group operating expenses (excluding depreciation and amortization) rose 9.6% to LKR 37,188 million over the same period. Majority outlays were due to external cost pressures, a roughly 10% depreciation of the rupee, inflation running above 6%, higher electricity tariffs, and a spike in global fuel prices all pushed costs, particularly for imported equipment and repair items which are dollar denominated.

Commenting on the results, Dr. Mothilal De Silva, Chairman of the SLT Group said, “The first half of 2026 marks a pivotal moment for SLT-MOBITEL. I extend my deepest gratitude to the staff, whose exceptional performance has been the cornerstone of this success. Every member of our team has demonstrated extraordinary commitment to delivering excellence, enabling us to exceed our targets and set new industry benchmarks. We are incredibly proud of these collective achievements.”

SLT PLC growth led by core services

SLT PLC’s revenue grew 10.7% to LKR 39,309 million in H1 2026, from LKR 35,513 million a year earlier, with broadband once again the notable performer. EBITDA followed suit, rising 11.3% to LKR 14,854 million.

Profitability gains were even more pronounced with operating profit gaining 39.8% to LKR 6,663 million, PBT elevated 66.5% to LKR 6,127 million, while PAT rose 74.9% to LKR 4,630 million compared with LKR 2,647 million in H1 2025. Operating expenses (excluding depreciation and amortization) rose 10.3%, a rate the company’s revenue and profit growth comfortably outpaced.

By Sanath Nanayakkare

Sri Lanka’s macroeconomic landscape continues to present a nuanced picture of post-crisis recovery, characterised by steady industrial expansion and monetary stability on one front, alongside lingering external challenges in the tourism sector on the other.

Recent data released by the Central Bank of Sri Lanka (CBSL) underscores the delicate balancing act facing policymakers as the economy strives to cement its growth trajectory amid evolving domestic and international headwinds.

On the monetary policy front, the Central Bank has maintained its Overnight Policy Rate at 8.75% following its July review, preserving a measured stance designed to anchor expectations after earlier adjustments aimed at curbing inflationary pressures.

Headline inflation, as measured by the Colombo Consumer Price Index (CCPI), edged up slightly to 7.3% in July, moving up from 6.8% in June. This modest uptick has been largely attributed to housing rent adjustments and the direct pass-through effects of energy price adjustments.

Meanwhile, the external sector demonstrates underlying buffers, with gross official reserves standing at USD 6.45 billion at the end of June, while the Sri Lankan rupee has traded within a stable band against the US dollar.

A notable area of scrutiny in the latest economic updates is the performance of the tourism industry. The sector experienced a challenging first half of 2026, with cumulative earnings dropping by 11.8% year-on-year to USD 1.51 billion. Tourism revenue for June specifically stood at USD 151.1 million, reflecting a contraction weighed down by regional air connectivity disruptions stemming from ongoing geopolitical tensions in the Middle East.

In response to these developments, authorities have revised their full-year projections, adjusting targets to 2.5 million tourist arrivals and USD 3.5 billion in cumulative revenue. Industry stakeholders, however, remain optimistic that targeted promotional strategies emphasising high-spending regional markets can help bridge the gap during the upcoming peak seasons.

Conversely, the domestic industrial and manufacturing landscapes offer a strong counterweight to external leisure sector pressures.

According to the Central Bank’s Purchasing Managers’ Indices, the Manufacturing PMI registered a robust index value of 55.0 in July, signaling an accelerated expansion compared to the previous month.

This upward momentum was propelled primarily by strong performances in the food and beverages sector, alongside encouraging gains in new orders and production sub-indices.

Furthermore, the Services sector PMI recorded an even stronger expansion at 61.4, driven by broad-based improvements across transportation, financial services, and upcoming cultural events, signaling that domestic economic engines are gathering momentum.

“As Sri Lanka presses ahead with structural and macroeconomic reforms, sustaining this industrial momentum while revitalising tourism inflows will remain critical to achieving long-term stability. Ultimately, external shocks and supply-chain pressures continue to demand vigilant economic management to make the recovery sustainable,” economic analysts say.

By Ifham Nizam

The proposed introduction of Customs Paperless Declarations from October 1, 2026, could become a landmark step in modernising Sri Lanka Customs and facilitating trade, but only if it goes beyond replacing physical documents with electronic uploads, Customs House Agents Association president Channa Ranathunga has cautioned.

Ranathunga, speaking to The Island Financial Review, said a genuinely paperless Customs system should eliminate unnecessary paperwork, physical attendance, repetitive approvals and manual intervention throughout the entire cargo clearance process.

“Paperless must mean paperless. Digital must mean end-to-end digital. Reform must mean process reform—not simply computerisation of existing procedures, he said.

He noted that the initial implementation is proposed for CBHQ1, Colombo Headquarters 1, among about 56 office-of-declaration entry/exit codes currently used by Customs House Agents.

While starting with a selected category was understandable, Ranathunga said CBHQ1 involved a substantial number of declarations requiring multiple regulatory approvals and Customs interventions. The pilot therefore needed to demonstrate the benefits of a complete paperless process rather than merely test electronic submission of Customs declarations.

At present, Customs House Agents submit CusDecs with numerous supporting documents, depending on the nature of an import. These include commercial invoices, packing lists, bills of lading, delivery orders, letters of credit, catalogues, technical literature, certificates of origin, quality, health and phytosanitary certificates, import licences and various regulatory approvals.

Ranathunga said the current electronic attachment capacity of around 300 KB per attachment could also pose difficulties when hard-copy documents are eliminated.

“Many commercial documents, certificates, catalogues and technical documents cannot always be compressed to that level without compromising readability and quality, he said, stressing that the electronic document management system must be capable of receiving and retaining clear, complete and legally reliable documents”.

Another major challenge was the involvement of multiple other government agencies in Customs clearance, including the Sri Lanka Standards Institution, health and medicines regulators, Animal and Plant Quarantine authorities, the National Medicines Regulatory Authority, Atomic Energy regulatory authorities and Import and Export Control.