Business
SLT Group net profit up by 35%, revenue recorded at Rs. 67.2 bn. in first nine months 2020
The broadband revenue of the Group surged significantly over the same period last year underpinned by the increase of FTTH (Fiber-to-the-Home) footprints across the country by the ongoing accelerated Fiber Expansion Program by SLT and the increase of mobile broadband services by Mobitel (Pvt) Ltd. PEOTV revenues too soared during the period under review. However, the Group experienced a de-growth in Voice revenues in both SLT and Mobitel (Pvt) Ltd.
The Group’s stringent cost management measures maintained the Group’s Operating Costs before Depreciation and Amortization at the same level compared to last year, pushing the EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margin up to 39.3% from 34.9%. The EBITDA increased to Rs. 26.4 Bn, up by 18.4% YoY. The Depreciation and Amortization of the Group increased by 9.8% YoY to Rs. 16.7 Bn. The Group recorded an impressive growth in Operating Profits of 37.0% YoY to Rs. 9.7 Bn mainly due to the elevated EBITDA of the period.
The Interest Expenses and Finance Costs rose to Rs. 2.1 Bn from Rs. 1.4 Bn YoY as a result of increased borrowings to finance the growing capital expenditure in order to align with the global technological trends and fulfilling the changing customer demands. FOREX losses of the Group mounted to Rs. 0.8 Bn from Rs. 58 Mn in the same period last year stemming from the depreciation of the Sri Lankan Rupee against USD, mainly due to the adverse impacts during the early stages of Covid-19 pandemic.
Group Profit Before Tax (PBT) recorded at Rs. 8.3 Bn, a 18.9% growth compared to the year before, while Profit After Tax (PAT) posted at Rs. 6.7 Bn, demonstrating a YoY increase of 35.4%. The PAT margin went up to 10.0% from 7.8% for the same period the year earlier.
During the first nine months of 2020, SLT Group paid out a total of Rs. 11.8 Bn as Direct and Indirect Taxes and Levies to the Government of Sri Lanka.
Rohan Fernando, the Group Chairman, commented, “Our performance in the first nine months is strong evidence of SLT Group’s ability to navigate during uncertain times. This performance is a testament to the vital role that our products play in our customers’ lives. Our goal is to make the SLT Group the number one in the telecommunication and digital market. In order to realize that goal we explore new local and international markets, join hands with new funding partners and utilize/ monetize the underutilized assets within the Group. We need to build and improve positive attitudes in the mindsets of our customers, employees and all other stakeholders to accomplish better than yesterday. The progress we have achieved in the first nine months will help us to gradually reduce the accumulated borrowing incurred on developing the National Fiberization program. This initiative which began in 2017 has placed the company on a strong platform to move further in the Digital world”.
Lalith Seneviratne, the Group Chief Executive Officer, remarked, “As a Group with widespread operations across the country in both fixed and mobile operating services, resourced with expertized human capital and physical capital, we strive to leverage the synergies within the Group and thereby to improve efficiency and lower the operational expenses. We have already made several initiatives on the same and we will continue to reap the benefits of Group collaborations over the years to come”.
Mr. Kiththi Perera, Chief Executive Officer of SLT stated, “SLT proudly launched ‘SLTGO’ the community WiFi network recently, in partnership with FON Wireless Limited, the world’s largest community WiFi network operator. This solution provides an opportunity to SLT customers to access internet anywhere from SLTGO WiFi hotspots in Sri Lanka and from 23 million WiFi hotspots all over the world. In addition, as a responsible corporate citizen, SLT is involved in many CSR activities including the ‘e-waste’ collection week in partnership with the Central Environmental Authority and the Department of Posts, and joined hands with Mobitel to transform discarded buses into libraries. We always believe delivering value to our customers, communities and all other stakeholders is the most promising way to build long term value”.
Mr. Priyantha Fernandez, Chief Operating Officer of SLT added, “We have successfully commenced the Phase 3 of accelerated Fiber Expansion Program to provide FTTH (Fiber-to-the-Home) connections across the country to provide an ultra-speed experience to our valued customers. We extended PEO TV GO services to our 4G LTE customers too to enjoy their favourite TV programs. I’m pleased to announce that our cloud based ‘SLT Storage’ facility reached one million files recently. Further, as the digital lifestyle partner of the country SLT entered into the mobile gaming arena with ‘SLT Kimaki’ in partnership with Arimac Lanka (Pvt) Ltd”.
An International Monetary Fund (IMF) team led by Evan Papageorgiou visited Colombo from April 3 to 11, 2025. After constructive discussions in Colombo, Mr. Papageorgiou issued the following statement:
“Sri Lanka’s ambitious reform agenda supported by the IMF Extended Fund Facility (EFF) continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is impressive. Inflation declined considerably in recent quarters and has fallen to ‑2.6 percent at end-March 2025. Gross official reserves increased to US$6.5 billion at end-March 2025 with sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances.
“The recent external shock and evolving developments are creating uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis. More time is needed to assess the impact of the global shock and how its implications for Sri Lanka can be addressed within the contours of its IMF-supported program.
“The government’s sustained commitment to program objectives is ensuring policy continuity and program implementation remains strong. Going forward, sustaining the reform momentum is critical to safeguard the hard-won gains of the program and put the economy on a path toward lasting macroeconomic stability and higher inclusive growth.
“Against increased global uncertainty, sustained revenue mobilization efforts and prudent budget execution in line with Budget 2025 are critical to preserve the limited fiscal space. Boosting tax compliance, including by reinstating an efficient and timely VAT refund mechanism, will help contribute to revenue gains without resorting to additional tax policy measures. Avoiding new tax exemptions will help reduce fiscal revenue leakages, corruption risks and build much needed fiscal buffers, including for social spending to support Sri Lanka’s most vulnerable. Restoring cost recovery in electricity pricing will help minimize fiscal risks arising from the electricity state-owned enterprise.
“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to redouble efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.
“While inflation remains low, continued monitoring is warranted to ensure sustained price stability and support macroeconomic stability. Against ongoing global uncertainty, it remains important to continue rebuilding external buffers through reserves accumulation.
“Discussions are ongoing, and the authorities are encouraged to continue to make progress on restoring cost-recovery electricity pricing, strengthening the tax exemptions framework, and other important structural reforms.
“The IMF team held meetings with His Excellency President and Finance Minister Anura Kumara Dissanayake, Honorable Prime Minister Dr. Harini Amarasuriya ; Honorable Labor Minister and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, Senior Economic Advisor to the President Duminda Hulangamuwa, and other senior government and CBSL officials. The team also met with parliamentarians, representatives from the private sector, civil society organizations, and development partners.
“We would like to thank the authorities for the excellent collaboration during the mission. Discussions are continuing with the goal of reaching staff-level agreement in the near term to pave the way for the timely completion of the fourth review. We reaffirm our commitment to support Sri Lanka at this uncertain time.”
The Commercial Bank of Ceylon has transformed its iconic ‘Foreign Branch’ into the ‘Corporate Branch,’ reaffirming its commitment to delivering dedicated, comprehensive financial solutions to corporate and trade customers.
The Bank said this transformation represents a new milestone in its illustrious journey, and resonates with the rich commercial heritage of Colombo, a city that has long served as a vital trading hub in the region.
Strategically located at the Bank’s Head Office at Commercial House, 21, Sir Razeek Fareed Mawatha (Bristol Street), Colombo 1, this rebranded Corporate Branch stands as a first of its kind in Sri Lanka —a premier financial hub tailored exclusively to the needs of corporate customers, the Bank said. The transformation aligns with the Bank’s vision of providing unparalleled service excellence, bespoke financial solutions, and fostering long-term business partnerships.
Commenting on this strategic initiative, Commercial Bank’s Managing Director/CEO Sanath Manatunge stated: “It is our aspiration that just as the historic Delft Gateway, at which our Head Office is located, once opened the path to the Dutch Fort, our Corporate Branch will chart a new era of enduring and prosperous business collaborations, that will extend beyond Sri Lanka’s shores.”
Fits Retail has partnered with retail giant Abans PLC to showcase the iconic DeLonghi coffee machines at two of Colombo’s most prestigious locations: Abans Elite Colombo 3 and Abans Havelock City Mall showrooms.
At these dedicated demonstration zones, visitors can discover the unparalleled precision engineering and user-friendly technology that have made DeLonghi machines the preferred choice for discerning coffee lovers in more than 46 countries worldwide. Renowned for consistently delivering café-quality espresso, cappuccino, and even specialty cold brews, DeLonghi machines exemplify Italian innovation at its finest.
Yasas Kodituwakku, CEO of Fits Retail, expressed excitement about the collaboration: “This partnership represents our unwavering commitment to bringing global coffee excellence to Sri Lankan connoisseurs. With Abans PLC, we’re creating more than just demonstration spaces; we’re curating premium destinations for an authentic coffee experience.”
“As pioneers of premium lifestyle experiences in Sri Lanka, our collaboration with Fits Retail aligns seamlessly with our vision of elevating everyday moments into exceptional experiences,” said Tanaz Pestonjee, Director Business Development at Abans PLC.
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