Japan is ready to undertake fresh loan projects for Sri Lanka since the country has completed its debt restructuring process, Japanese ambassador to Sri Lanka Akio Isomata said.

“Japan is ready to consider taking on such commitments if there is a request from the Sri Lankan end but the undertaking of such projects depends on Sri Lanka’s debt servicing ability, ambassador Isomata added.

The ambassador made these remarks in response to a query raised during a round table discussion organised by the Pathfinder Foundation recently at the Taj Samudra’s Colombo Club. The theme of the event was, “Japan’s response to the US reciprocal tariffs and Japan- Sri Lanka relations in a turbulent world”. The forum was presided over by Pathfinder Foundation chairman ambassador Bernard Goonetilleke.

The ambassador also said that Japan was a victim of corruption in Sri Lanka and expressed optimism that the government would tackle the issue.

“Earlier, there were reports about some Japanese companies facing issues in Sri Lanka in securing investments. Japanese companies strictly observe compliance obligations and therefore never offer bribes or kickbacks, ambassador Isomata explained. Ambassador Isomata said that he attended the function to mark the launch of the ‘National Anti -Corruption Action Plan’ and listened to President Anura Kumara Dissanayake speaking of efforts to address the issue. The ambassador emphasized the need to implement the plan.

Responding to the President’s remarks that politicians belonging to his National People’s Power (NPP) are not involved in any form of corruption, the ambassador said it is equally important to address the same involving Sri Lankan bureaucrats.

Commenting on Japan- Sri Lanka bilateral relations, Isomata said Sri Lanka is a very important partner for Japan in many ways.” As Sri Lanka’s economy is in the process of getting back on track with efforts underway to implement the IMF agreement, along with the debt restructuring agreement, I don’t think Japanese companies will come immediately to make new investments at this stage. But as the Sri Lankan economy goes back on track in a stable manner, I think we can cultivate the interest of Japanese investors to take a closer look at opportunities in Sri Lanka for further investment. We need cooperation with Sri Lankan people, he said.

The ambassador added: “We are seeing increasing numbers of young Sri Lankans going to Japan for employment in Japanese companies. There are two kinds of programmes for inviting young foreign workers into Japan right now.

“One is called the TITP -Technical Intern Training Programme. The second one, recently started, is SSW -Specified Skilled Worker Programme. Under these two programmes, an increasing number of Sri Lankan youngsters are going to Japan right now. We have opened up eight industrial sectors for Sri Lankan workers, starting with caregiving, hotel accommodation, food industry, agriculture, construction and most recently, the transportation sector, like bus driving and truck driving. This will strengthen Japan’s labour market. We need a young labour force because Japan is facing the problem of an ageing society.”

By Hiran H Senewiratne

The SLT Group has reported a Profit After Tax (PAT) of Rs. 2,001 million for the first quarter ended March 31, 2025, a surge from Rs. 156 million in Q1 2024, reflecting effective financial management and improved operational efficiency.

SLT Group demonstrated strong performance for the first quarter of 2025, with revenue increasing 3.4% to Rs. 27,851 million. The growth was primarily driven by Mobitel’s contribution of increased revenues while SLT PLC revenue remained stable.

The Group’s cost optimization initiatives continued to yield positive results, with operating expenses decreasing 2.9% amount to Rs. 710 million compared to the same period last year. The reduction, combined with revenue growth, led to a 13% increase in EBITDA to Rs. 10,443 million.

At company level, SLT PLC reported a marginal 0.7% increase in revenue of Rs. 117 million compared to Q1 2024, primarily driven by growth in enterprise, small and medium enterprises (SMEs) and broadband streams.

SLT PLC also achieved significant cost declines, with operating expenses decreasing 5.2% amount to Rs. 838 million Year-on-Year (YoY). Notably, electricity expenses fell 38.3% following tariff reductions in March and July 2024. Vehicle hiring and fuel costs also decreased 22.7%, and repair and maintenance expenses curtailed by 12.5%.

SLT PLC specifically demonstrated impressive profit growth, with PAT increasing by 369.9% to Rs. 1,344 million compared to Rs. 286 million in Q1 2024. The notable performance was supported by a 380% surge in Profit Before Tax (PBT) to Rs. 1,920 million and a 60.3% increase in Operating Profit to Rs. 2,538 million.

Mobitel demonstrated strong financial performance in the first quarter of 2025, reporting notable revenue growth supported by the growth of data services. Total revenue reached Rs. 11.8 billion, reflecting the company’s success in capitalizing on demand for digital connectivity. Enhanced top-line performance, combined with effective cost reduction initiatives, led to a significant improvement in profitability.

EBITDA increased by 28.5%, resulting in a healthy EBITDA margin of 30%. Operating profit (EBIT) also recorded a marked improvement by 392%, with a 7% EBIT margin. PBT saw considerable growth, and the company successfully turned around its financial position, moving from a net loss in the first quarter of 2024 to a net profit of Rs. 477 million in the same period of 2025.

Reaffirming its commitment to delivering superior network experiences and the widest coverage across the island, SLT-MOBITEL Mobile was recognized as the country’s fastest 4G network for 2024 by Ookla®, the global leader in internet testing and analysis at Mobile World Congress Barcelona, held in March 2025.

Leveraging strong Q1 results as a foundation for 2025 growth, the SLT Group aims to continue the ongoing digital transformation journey delivering innovative solutions and expanding services to meet customer needs. Through operational efficiency and digital advancement, investing in advanced technologies to strengthen market position, the Group remains committed to supporting Sri Lanka’s digital economy and creating value for all stakeholders.

In its continuous efforts to expand its reach and advocate financial inclusivity across Sri Lanka, Mercantile Investments recently opened two new branches in the Northern Province. These launches mark the 74th and 75th branches open by the company, further cementing its commitment to accessible, community-based financial services.

The 74th branch was open at No. 151, A9 Road, Kilinochchi on the 4th of April 2025, and the 75th branch at Ward Number 1, Parantha Road, Puthukkudiyirippu. Both ceremonies were attended by esteemed guests including Gerard Ondaatjie, Managing Director, Mercantile Investments, Laksanda Gunawardena, Chief Operating Officer, Mercantile Investments, other members of the senior management and local dignitaries.

These expansions are part of Mercantile Investments’ vision to accelerate its branch growth, across underserved regions of the country. The company’s approach is deeply rooted in financial inclusivity and servicing communities across all cultural, religious and social backgrounds. The ultimate goal being to deliver financial empowerment by providing tailormade services.

Each of the new branches offer a full spectrum of high-quality financial services including Leasing, Gold Loans, Fixed Deposits and Children’s Savings. By providing these services to more diverse customer segments, the company aims to foster sustainable development, especially among businesses and individuals in rural areas of the country.

Boasting an extensive track record of success and innovation, Mercantile Investments continues to pave the way in delivering reliable, personalised and inclusive financial solutions. This underscore the company’s belief that access to financial services is a means of transforming communities and uplifting lives.

As the Mercantile Investments continues to strengthen its footprint across Sri Lanka, customers are encouraged to experience the unparalleled warmth, convenience and expertise that are the very foundation of the Mercantile Investments brand.