Business

SLT Group stays resilient for Q3 overcoming external impacts

Published

4 years ago

2022/11/12

Sri Lanka Telecom Group (SLT Group), the National ICT Solutions Provider, has reported positive overall revenues of Rs 79.6 Bn, a consolidated growth of 3.9% for the first nine months of 2022 compared to the same period last year, driven largely by prudent and proactive measures undertaken in financial and operational management.

Demonstrating resilience in its business model, at Company level, SLT Q3 revenues grew to Rs 16.9 Bn, an increase of 7.4% when compared to the same period last year, also reflected in optimistic year-to-date growth of 10.6% at Rs 49.4 Bn. SLT Group’s contribution to the Government of Sri Lanka during the first nine months of 2022 amounted to Rs. 21 Bn. in direct and indirect taxes including levies and dividends.

The Group’s Gross Profit growth for Q3 witnessed a marginal 0.8% increase at Rs 11.1 Bn, in comparison to the previous quarter. Weighing down growth, a negative 3.4% in Gross Profit at Rs 33.4 Bn was recorded for the first nine months of the year, compared to the same period last year. Group Profit After Tax (PAT) growth declined to 27.1% (QoQ) while year-to-date also reflected a downward momentum at 34.1%.

At Company level, SLT posted a positive a 9.3% Gross Profit increase of Rs 7.2 Bn for Q3, QoQ and ended the nine months of the year also in a similar trend of 7.1% at Rs. 20.4 Bn. Furthermore, at Company level, Profit Before Tax for the first nine months recorded a significant increase of 136.1% when compared with the same period last year, owing to a forex gain of Rs. 5.6 Bn. attributable to USD deposits, Dividend Income of Rs. 2.3 Bn. and Rs. 1.1 Bn. of Interest Income earned from USD deposits. PAT for the same period saw considerable growth of 82.8% at Rs 9.3 Bn mainly due to forex gains as a result of LKR devaluation, and dividend income received from subsidiaries. PAT growth for the Company in Q3 was a negative 76.6% compared to last quarter (QoQ).

SLT Group Chairman, Rohan Fernando said, “I am pleased to announce yet another quarter of positive, revenue growth for the Group. The resilience in our results is primarily due to management intervention in containing costs, the reduction in energy costs, consolidation of operations moving into company owned premises, and asset monetization subject to government policy being stable to attract FDIs. These results demonstrate how we continue to make tangible progress in delivering steady revenues despite 2022 being one of the most difficult periods in the history of Sri Lanka. The company is cautiously moving into the fourth quarter meeting all obstacles with a positive outlook.”

Company revenue growth was primarily driven by increases in Carrier Domestic, Broadband and Carrier International revenue streams. Carrier Domestic growth was predominantly from expansion in provision of Ethernet, international private leased circuit (IPLC) and internet leased line (ILL) services. Broadband saw revenue growth mainly from FTTH Broadband while Carrier International growth was chiefly due to USD appreciation. However, domestic interconnection revenue dropped as a result of a direction by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to reduce charges from April 2022 onwards.

Commenting on the future, the Chairman added, “The vision of the SLT Group of becoming a regional tech conglomerate will be pursued vigorously with the unified brand and consolidation of operations under one roof taking place gradually with the deployment of our state-of-the-art, high-tech, green building by the middle of 2023.”

The mobile services arm of the Group, Mobitel has experienced a revenue decline in Q3’ 22 against the same period in the previous year, impacted by macro-economic challenges, tax changes and reduction of domestic interconnect charges. Nonetheless, Mobitel sustained growth in international business revenues while productivity and efficiency enhancing initiatives in all areas also enabled the subsidiary to remain profitable within the industry.

Meanwhile, SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) growth witnessed a marginal reduction of 1.3% in the first nine months of 2022, compared to the same period last year. However, at Company level, EBITDA posted a stronger 5.0% year-on-year growth, mainly attributed to various initiatives including containing costs and asset monetization. Notably, due to inflation operating costs have risen impacting the overall Group EBITDA margins.

The Group’s operating profit declined by 15.5%, the fall mainly led by devaluation of the LKR and high inflation costs in the first nine months of 2022. Operating expenses of the Group including SLT and Mobitel have increased due to forex devaluation, fuel costs and inflation that has prevailed in the country. Year-on-year electricity cost have decreased due to power outage whereas generator fuel cost has increased significantly due to power outage as well as fuel price increases.As a result of the sharp devaluation of the LKR against the USD during the previous quarter, Q2’22, SLT recorded a Rs.2.3 Bn forex gain. In contrast, the forex gain in Q3’22 was marginal at Rs.0.1 Bn due to the stability of forex movements during the period.

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Business

Committee to look at unified tripartite management of workers’ retirement funds

Published

50 mins ago

2026/07/16

Sahan Weerasooriya

Minister Dr. Nalinda Jayatissa

The government has initiated what could become one of the most significant reforms of Sri Lanka’s social security system in decades by appointing a Senior Officials’ Committee to examine the feasibility of bringing the Employees’ Provident Fund (EPF) and the Employees’ Trust Fund (ETF) under a unified tripartite governance framework representing the government, employers and employees.

Cabinet approval was granted following a proposal submitted by the Minister of Labour. According to Cabinet Spokesman and Minister Dr. Nalinda Jayatissa, the committee has been mandated to study whether the two institutions could operate under a common governance structure based on internationally recognised principles promoted by the International Labour Organization (ILO).

He stressed that the committee has been appointed only to examine the feasibility of the proposal, and no final decision has been taken to merge the two funds.

The official Cabinet statement notes that the EPF, established under the Employees’ Provident Fund Act No. 15 of 1958, has more than 2.5 million members and assets exceeding Rs. 4.9 trillion, making it Sri Lanka’s largest social security fund.

Custody of the fund, investment management, financial administration and payment of benefits are currently handled by the Central Bank of Sri Lanka, while the Department of Labour is responsible for member registration, employer compliance, recovery of arrears and safeguarding employee rights.

The ETF, created under Act No. 46 of 1980, is administered by a tripartite board comprising representatives of the government, employers and employees. It manages assets of approximately Rs. 637 billion and provides coverage to more than 2.5 million active members.

The Cabinet paper highlights that tripartite governance of social security institutions is an internationally recognised best practice and a fundamental principle promoted by the ILO, which forms the basis for examining a common governance model for both funds.

The proposal is expected to attract close scrutiny from the business community, trade unions and financial market participants, given that the combined assets of the EPF and ETF exceed Rs. 5.5 trillion, making them among the country’s largest institutional investors.

Economists note that any governance reforms should strengthen transparency, accountability, professional investment management and public confidence while safeguarding workers’ retirement savings.

By Ifham Nizam

Business

LOLC strengthens Pakistan operations with new Islamabad head office

Published

52 mins ago

2026/07/16

Sahan Weerasooriya

Opening ceremony of the new relocated LOLC Microfinance Head Office

LOLC Microfinance Bank Pakistan, a fully owned subsidiary of the LOLC Group, has strategically relocated its Head Office to Gulberg Greens, Islamabad, marking a significant milestone in its growth journey. As one of the LOLC Group’s largest overseas operations in Asia, the Bank continues to advance financial inclusion and sustainable economic development across Pakistan.

The new Head Office was formally inaugurated in the presence of Chief Guests H.E. Admiral Fred Seneviratne (Retd.), High Commissioner of Sri Lanka to Pakistan, and Mr. Krishan Thilakaratne, Chairman of LOLC Microfinance Bank Pakistan. The ceremony was attended by the Bank’s Board of Directors, senior management and employees, commemorating another important chapter in the Bank’s continued expansion.

LOLC Microfinance Bank Pakistan is a fully-fledged Microfinance Bank regulated by the State Bank of Pakistan, operating through a network of 88 branches and employing over 1,200 staff members across the key cities of Karachi, Lahore, Hyderabad, Faisalabad, Sialkot, Islamabad, Peshawar and Gilgit. The Bank offers a comprehensive range of financial solutions, including business loans, microfinance, vehicle financing, gold loans and other financial products. It currently manages a loan portfolio exceeding USD 70 million and a deposit portfolio exceeding USD 90 million, comprising savings deposits, term deposits and current accounts.

The relocation to the new Head Office reflects the Bank’s expanding operations and its commitment to widening access to responsible financial services for individuals, micro-entrepreneurs and small businesses across Pakistan. In 2026, LOLC Microfinance Bank Pakistan was recognised as Pakistan’s fastest growing Microfinance Bank, highlighting its strong business momentum and growing market presence.

Addressing the gathering, H.E. Admiral Fred Seneviratne (Retd.), High Commissioner of Sri Lanka to Pakistan, stated, “The relationship between Sri Lanka and Pakistan continues to grow through meaningful partnerships such as this. LOLC Microfinance Bank Pakistan is making an important contribution by supporting entrepreneurs, strengthening the SME sector, and expanding financial access where it is needed the most. Institutions like these play a vital role in empowering communities and supporting sustainable economic growth.”(LOLC)

Business

CDB retains championship crown at MCA T10

Published

53 mins ago

2026/07/16

Sahan Weerasooriya

Citizens Development Business Finance PLC (CDB) lit up the CCC Grounds on June 28th, retaining the championship of the MCA T10 Cricket Tournament, further etching its record of being unbeaten and showcasing its signature persona of being determined and unstoppable.

Sealing the title without a single loss in the tournament from the first ball to the final cheer, Team CDB skippered by Tharindu Rathnayaka with Vice Captain Dunith Wellalage, both national players, showcased the calibre of a champion side.

Coached by national player Oshadha Fernando, CDB combined star power with relentless team spirit – the perfect combination of experience and youthful energy. CDB’s performance was not just about individual brilliance but about a collective drive that mirrors CDB’s corporate ethos of perseverance, leadership, and excellence.

The final match against the Abans Group was a fitting climax. Chasing 116, CDB powered to 120/4 in just 8.4 overs, sealing victory by six wickets. Vishad Randika rose to the occasion as Player of the Final. Nuwan Thushara’s consistent bowling prowess, including a hat trick — 2 overs, 11 runs, 4 wickets during the semi-finals — earned him the Best Bowler accolade.

This unbeaten run was more than a cricketing triumph. It was a statement by CDB of its dedication to excellence, which extends beyond financial services into fostering a high-performance culture through sports. The championship reinforced the company’s reputation as a leader in the financial sector while celebrating employee engagement, wellness, and community spirit.