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High corporate earnings and dividend payments spur stock market trading

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By Hiran H.Senewiratne

The stock market was bullish yesterday due to heightening market expectations among investors over currently high corporate earnings plus dividend payments for the quarter. Thus an impetus was given to the stock market, analysts said.

Further, the bourse saw a day of positive sentiment and heightened momentum amid an improvement in investor confidence in the wake of the unveiling of the 2025 Budget.

Amid those developments both indices moved upwards. The All Share Price Index went up by 27.96 points while S and P SL20 rose by 32.23 points. Turnover stood at Rs 5.5 billion with ten crossings.

Those crossings were reported in Commercial Bank, which crossed 1.6 million shares to the tune of Rs 240 million; its shares traded at Rs 50 million, Sierra Cables 12.2 million shares crossed for Rs 220 million; its shares sold at Rs 18.20, LOLC Holding 230,000 shares crossed for Rs 158.7 million; its shares traded at Rs 690, Lanka IOC 1 million shares crossed to the tune of Rs 135 million; its shares sold at Rs 135, Melstacope 525,000 shares crossed to the tune of Rs 73.5 million; its shares traded at Rs 140, Sampath Bank 510,000 shares crossed for Rs 53.6 million; its shares traded at Rs 120.50, JKH 1.96 million shares crossed for Rs 43.8 million; its shares sold at Rs 22.50, CIC Holdings 300,000 shares crossed to the tune of Rs 37.8 million; its shares traded at Rs 126, ACL Cables 258,000 shares crossed for Rs 35.4 million; its shares traded at Rs 137.50 and Central Industries 150,000 shares crossed for Rs 24.6 million, its shares traded at Rs 164.

In the retail market top six companies that mainly contributed to the turnover were; Sampath Bank Rs 517 million (4.1 million shares traded), Sierra Cables Rs 369 million (20.4 million shares traded), HNB Rs 274 million (806,000 shares traded), JKH Rs 206 million (9.2 million shares traded), Lanka IOC Rs 186 million (1.3 million shares traded) and Hemas Holdings Rs 180 million (1.4 million shares traded). During the day 166 million share volumes changed hands in 27000 transactions.

Further Hemas Holdings announced a sub-division of shares, i.e. one share split into five shares in order to enhance the liquidity level.

It is said high net worth and institutional investor participation was noted in Sampath Bank, LOLC Holdings and Melstacorp. Mixed interest was observed in First Capital Holdings, HNBl and Dialog Axiata, while retail interest was noted in SMB Leasing nonvoting, LOLC Finance, and Hela Apparel Holdings.

The Insurance sector was the top contributor to the market turnover to a considerable extent. The share price of Ceylinco Holdings increased by Rs. 235.25 to Rs. 3,935.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to First Capital Holdings and LOLC Holdings), while the sector index increased.

Yesterday, the rupee was quoted at 295.30/50 to the US dollar in the spot market, broadly flat from the previous day’s close of Rs 295.25/50, dealers said, while bond yields were down. A bond maturing on 15.02.2028 was quoted at 10.03/05 percent, down from 10.05/10 percent. A bond maturing on 01.05.2028 was quoted at 10.13/15 percent, down from 10.15/20 percent. A bond maturing on 15.09.2029 was quoted at 10.75/77 percent, down from 10.75/80 percent. A bond maturing on 15.10.2030 was quoted at 11.18/22 percent, down from 11.20/25 percent.



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Dialog delivers strong growth, stronger national contribution in FY 2025

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Dialog Axiata PLC announced, Friday 6th February 2026, its consolidated financial results (Reviewed) for the year ended 31st December 2025. Financial results included those of Dialog Axiata PLC (the “Company”) and of the Dialog Axiata Group (the “Group”).

Group Performance

The Group delivered a strong performance across Mobile, Fixed Line and Digital Pay Television businesses recording a positive Core Revenue growth of 16% Year to Date (“YTD”). Group Headline Revenue reached Rs179.6Bn, up 5% YTD, despite the continued strategic scaling down of low-margin international wholesale business. In Q4 2025, Revenue was recorded at Rs46.5Bn up 2% Quarter-on-Quarter (“QoQ”) and 2% Year-on-Year (“YoY”).

The Group Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) reached Rs86.0Bn up 30% YTD supported by Core Revenue performance and Cost Rescaling Initiatives. On a QoQ basis Group EBITDA demonstrated a modest growth to record at Rs23.0Bn up 2% QoQ with an EBITDA margin of 49.5% in line with the Revenue performance. Group EBITDA margin reached 47.9% for FY 2025, up 9.2pp.

Group Net Profit After Tax (“NPAT”) reached Rs20.8Bn for FY 2025, up 67% YTD mainly resulting from robust EBITDA growth, despite higher tax and net finance costs. Normalized for forex impact, NPAT growth was recorded at +>100% YTD to reach Rs22.1Bn. On a QoQ basis NPAT grew 3% to reach Rs5.9Bn resulting from strong EBITDA performance.

On the back of strong operational performance, the Group recorded Operating Free Cash Flow (“OFCF”)

of Rs49.3Bn for FY 2025 up >100% YTD.

Dividend Payment to Shareholders

In line with the dividend policy and financial performance of the Group and taking into account the forward investment requirements to serve the nation’s demand for Broadband and Digital services, the Board of Directors of Dialog Axiata PLC at its meeting held on 6th February 2026, resolved to propose for consideration by the Shareholders of the Company, a dividend to ordinary shareholders amounting to Rs1.50 per share. The said dividend, if approved by shareholders, would translate to a Dividend Yield of 5.0% based on share closing price for FY 2025. The dividend so proposed will be considered for approval by the shareholders at the Annual General Meeting (AGM) of the Company, the date pertaining to which would be notified in due course.

Company and Subsidiary Performance

At an entity level, Dialog Axiata PLC (the “Company”) continued to be the primary contributor to Group Revenue (76%) and Group EBITDA (74%). Aided by sustained growth in the Data segment and cost-rescaling initiatives, Company revenue was recorded at Rs135.8Bn for FY 2025, up 18% YTD, EBITDA rose 32% YTD to reach Rs63.6Bn. On a QoQ basis, Q4 2025 Revenue was recorded at Rs34.8Bn, down 1% QoQ due to a reclassification of Hubbing Revenue, while EBITDA decline 1% QoQ to record Rs17.0Bn, largely attributable to network restoration costs and donations made in relation to the Cyclone Ditwah relief efforts. Furthermore, NPAT was recorded at Rs15.6Bn for FY 2025, up 41% YTD. Normalised for forex impacts, the company NPAT was up +>100% YTD to reach Rs17.0Bn. On a QoQ basis, Company NPAT was recorded at Rs4.5Bn, down 6% QoQ.

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Ceylinco Life’s Pranama Scholarships reach 25-year milestone

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Ceylinco Life has announced the launch of the 25th consecutive edition of its flagship Pranama Scholarships programme, marking a significant milestone in the company’s long-standing commitment to recognising and rewarding excellence among the children of its policyholders.

Under the 2026 programme, the life insurance market leader will present scholarships with a total cumulative value of Rs. 22.7 million, continuing a rewards initiative that has now been conducted without interruption for a quarter of a century. Since its inception, the Ceylinco Life Pranama Scholarships programme has benefitted 3,466 students across the country, representing a total investment of Rs. 240 million in nurturing academic achievement and outstanding performance in sports, arts and other extracurricular pursuits.

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Sri Lankans’ artistic genius glowingly manifests at Kala Pola ‘26

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The spirit of Sri Lanka as it was ably captured by an artist.

The artistic genius of Sri Lankans was amply manifest all over again at ‘Kala Pola ‘26’ which was held on February 8th at Ananda Coomaraswamy Mawatha Colombo 7; the usual, teeming and colourful venue for this annual grand exhibition and celebration of the work of local visual artists.

If there is one thing that has flourished memorably and resplendently in Sri Lanka over the centuries it is the artistic capability or genius of its people. It is something that all Sri Lankans could feel a sense of elation over because from the viewpoint of the arts, Sri Lanka is second to no other nation. With regard to the visual arts a veritable dazzling radiance of this inborn and persisting capability is seen at the annual open air ‘Kala Pola’.

A bird of Sri Lanka created from scraps of iron waste.

All capable visual artists, wherever they hail from in Sri Lanka, enjoy the opportunity of exhibiting their work at the ‘Kala Pola’ and this is a distinctive ‘positive’ of this annual event that draws numberless artists and viewers. There was an abundance of paintings, sketches and sculptures, for instance, and one work was as good as the other. Ample and equal space was afforded each artist. Its widely participatory and open nature enables one to describe the exhibition as exuding a profoundly democratic ethos.

Accordingly, this time around at ‘Kala Pola ‘26’ too Sri Lankans’ creative efforts were there to be viewed, studied and enjoyed in the customary carnival atmosphere where connoisseurs, local and foreign, met in a sprit of camaraderie and good cheer. Many thanks are owed once again to the George Keyt Foundation for the presentation of the event in association with the John Keells Group and the John Keells Foundation, not forgetting the Nations Trust Bank, which was the event’s Official Banking Partner. The exhibition was officially declared open by Chief Guest Marc-Andre Franche, UN Resident Coordinator in Sri Lanka.

By Lynn Ockersz

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