Tuesday Aug 18, 2026
Tuesday Aug 18, 2026
Tuesday, 18 August 2026 09:41 - - {{hitsCtrl.values.hits}}
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| SLT Group Chairman Dr. Mothilal de Silva, SLT-Mobitel CEO Riyaaz Rasheed |
The Sri Lanka Telecom (SLT) Group yesterday reported a powerful first half for 2026, with consolidated Profit After Tax (PAT) rising 54.4% to Rs 6.6 billion for 1H 2026 compared to Rs. 4.3 billion in 1H 2025, as strong demand for broadband and enterprise services offset escalating cost pressures from currency depreciation and higher fuel and utility prices.
Doubledigit 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 1H 2026 reached Rs. 61,314 million, up 11.1% from Rs. 55,167 million in 1H 2025. The growth was anchored in strong broadband subscription at SLT PLC and Mobitel, which lifted Group Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) by 13.7% to Rs. 24,126 million.
Operating profit boosted to Rs. 10,165 million, a 34.6% rise from Rs. 7,551 million a year earlier, Profit Before Tax (PBT) advanced 51.4% to Rs. 8,555 million during the first half of the year. Group PAT reached Rs. 6,601 million, a 54.4% growth from Rs. 4,276 million reported in 1H 2025. The Group’s contribution to the Government of Sri Lanka during 1H 2026 amounted to Rs. 18,559 million.
Group operating expenses (excluding depreciation and amortisation) rose 9.6% to Rs. 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 pushing costs, particularly for imported equipment and repair items which are dollar denominated.
SLT Group Chairman Dr. Mothilal de Silva said: “The 1H 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.”
Addressing the media yesterday, he described the performance as a fundamental transformation of the Group rather than an incremental improvement, as revenue and EBITDA also recorded double-digit growth.
Dr. de Silva said the Group had deliberately shifted its strategy away from defending declining voice revenues towards broadband, covering both fixed-line fibre and mobile data.
He also noted that the Group has simultaneously reduced its financial costs by retiring expensive foreign-currency debt and building dollar reserves to hedge against currency volatility.
“This is a productive hedge; spending in dollars, while earning in rupees,” Dr. de Silva said, adding that the resulting savings are being redirected towards network investment, with every major project subjected to return-on-investment assessments.
The Chairman said SLT-Mobitel was balancing short-term profitability with substantial investment requirements covering fibre, 5G, data centres, IT systems, and a major transformation of its optical and core network.
He said the Group is also seeking greater infrastructure sharing with other operators, including towers, fibre, and radio spectrum, which Dr. de Silva said could reduce capital intensity and foreign-exchange requirements.
Looking ahead, Dr. de Silva said the Group’s priorities for the remainder of 2026 would centre on 5G, cloud, Artificial Intelligence (AI), data centres, international business, small and medium enterprise (SME) broadband, and microbusiness services.
He also reaffirmed the Government’s decision to retain SLT-Mobitel as a strategic State enterprise, noting the firm had moved away from the brink of privatisation through improved governance, procurement reforms, greater transparency, and cost discipline.
“SLT-Mobitel is not the struggling company it was two years ago. We are profitable, self-financing our growth, and building the digital Sri Lanka from the ground up,” he said.
SLT PLC growth led by core services
SLT PLC’s revenue grew 10.7% to Rs. 39,309 million in 1H 2026, from Rs. 35,513 million a year earlier, with broadband once again the notable performer. EBITDA followed suit, rising 11.3% to Rs. 14,854 million.
Profitability gains were even more pronounced, with operating profit gaining 39.8% to Rs. 6,663 million and PBT elevating 66.5% to Rs. 6,127 million, while PAT rose 74.9% to Rs. 4,630 million compared with Rs. 2,647 million in 1H 2025. Operating expenses (excluding depreciation and amortisation) rose 10.3%, a rate the company’s revenue and profit growth comfortably outpaced. The results demonstrate effective cost management, turning growth into stronger earnings despite inflationary headwinds.
SLT-Mobitel CEO Riyaaz Rasheed added: “Our 1H performance of 2026 was driven by sustained demand for broadband, a strong contribution from the enterprise and carrier businesses, and continued growth at Mobitel. As we move forward with our 5G and FTTH rollouts, the SLT Group remains focused on providing customers and businesses in Sri Lanka the connectivity and digital infrastructure they need to grow, in line with the Government’s ambitions for the growth of Sri Lanka’s digital economy.”
He said the performance demonstrated that the Group’s recovery was being sustained despite external cost pressures. “Our future is going to be very different. We are now catering to the future,” he said, pointing to the shift from connectivity towards businesses built around the digital ecosystem.
SLT is targeting cybersecurity, data centres, and cloud services as three major growth areas, with the CEO noting these businesses could also generate foreign exchange by serving customers beyond Sri Lanka.
Beyond domestic connectivity, he said SLT is seeking to strengthen Sri Lanka’s international digital links.
“The company currently has connectivity through five submarine cable systems, with a fifth cable expected to become operational around the first quarter or early second quarter of next year, subject to delays arising from the Middle East situation,” he disclosed.
Rasheed said Sri Lanka’s strategic location between major global markets offered an opportunity to position the country as a regional connectivity and digital services hub, provided the necessary investments, businesses, and supporting infrastructure could be secured.
Energy availability and cost, he said however, remain key challenges, particularly for attracting large-scale data centre investments.
With broadband adoption continuing to rise, Rasheed said the group would focus on converting its expanding connectivity infrastructure into higher-value digital services, while managing energy and other external cost pressures.
Mobitel sustains momentum with broadband and subscriber growth
Mobitel’s revenue climbed 12.9% to Rs. 26,340 million in 1H 2026, boosting Rs. 3,007 million over the previous year, driven mainly by continued broadband growth.
EBITDA rose 16.9% to Rs. 8,739 million and operating profit improved 30.3% to Rs. 2,595 million. PBT surged 60.5% to Rs. 2,086 million, with PAT accelerating 62% to Rs. 1,724 million. Operating expenses grew 11%, largely on account of network costs including licence fees tied to the 5G spectrum acquired in December 2025, along with escalated input prices across other areas of the business.
Pioneering 5G and AI adoption across Sri Lanka
Recognising the powerful synergy between 5G and AI, SLT-Mobitel Mobile is further accelerating the expansion of its 5G network, delivering faster speeds, greater reliability, and enhanced connectivity experiences for customers and businesses while laying the foundation for an AI-powered digital future.
The latest initiative with the Digital Economy Ministry to host Sri Lanka AI Week 2026, the nation’s premier AI event, reflects the Group’s broader commitment to ensuring that the people of Sri Lanka are not left behind in the global race towards digital advancement, while providing them with first-hand opportunities to experience cutting-edge technologies and showcase the transformative potential of AI.
2Q 2026 mirrors strong 1Q momentum
The second quarter continued the positive trend mirroring robust gains of 1Q.
Group revenue rose 11.7% to Rs. 30,517 million compared with 2Q 2025, while Mobitel’s 2Q revenue strengthened even faster to 16% on continued strength in broadband. Group EBITDA for the quarter expanded 10.9% to Rs. 11,960 million, and operating profit boosted 30.4% to Rs. 5,033 million.
At company level, SLT PLC’s 2Q performance was particularly strong as EBITDA advanced 9.4% to Rs. 7,219 million, operating profit advanced 44.1% to Rs. 3,212 million, PBT 83.5% to Rs. 3,228 million, and PAT surged 97.2% to Rs. 2,570 million. Operating expenses (excluding depreciation and amortisation) grew 11.6%. Mobitel’s 2Q EBITDA improved 11.8% to Rs. 4,369 million, with operating profit rising 11.7% to Rs. 1,266 million, PBT 44.3% to Rs. 1,104 million, and PAT 60.6% to Rs. 943 million, with an operating expense growth of 18.0%.
Group PAT for 2Q grew 55.3% to Rs. 3,533 million and operating expenses (excluding depreciation and amortisation) for the quarter rose 12.2% to Rs. 18,557 million, driven by the same pressures seen during the first six months of the year.
