Friday May 15, 2026
Friday May 15, 2026
Friday, 15 May 2026 06:45 - - {{hitsCtrl.values.hits}}
SLT Group Chairman Dr. Mothilal de Silva (left) and SLT-Mobitel CEO Riyaaz Rasheed
Sri Lanka Telecom (SLT) Group yesterday said it has posted a strong start to the year, posting double-digit revenue growth and significantly higher profitability in the first quarter of 2026 compared to the previous year, driven by notable gains in operating profit and net earnings and a sustained demand for broadband (internet) services.
The Group’s results signal a decisive turnaround and significant momentum heading into the rest of the year, the telco said.
The Group recorded a strong start to 2026, with its consolidated revenue rising to Rs. 30.8 billion, up 10.6% from Rs. 27.9 billion in 1Q 2025. Gross profit expanded to Rs. 14.6 billion, a 14.1% increase year-on-year (YoY), supported by higher broadband demand.
Operating profit surged to Rs. 5.1 billion, compared with Rs. 3.7 billion in the preceding year, highlighting a 39.1% improvement. Profit Before Tax (PBT) climbed to Rs. 4.2 billion, up 55.4% from Rs. 2.7 billion in 1Q 2025. Profit After Tax (PAT) for the period rose to Rs. 3.1 billion, compared with Rs. 2 billion last year, a 53.3% increase.
Direct costs rose 7.6% YoY, driven by higher electricity tariffs, fuel prices, and sustained currency pressures, though revenue growth significantly outpaced these increases. Finance costs declined during the period, and foreign exchange movements delivered a net gain compared to losses recorded in 1Q 2025, providing an additional boost to profitability. Income tax expenses rose 61.3% in line with the sharp increase in profitability.
SLT Group Chairman Dr. Mothilal de Silva said: “Our strong 1Q performance demonstrates the resilience of the SLT Group and the success of our strategy. Delivering double-digit revenue growth and significantly higher profitability, we have signalled a decisive turnaround and built momentum for the rest of the year. As Sri Lanka’s National ICT Solutions Provider, the Group is committed to drive innovation, strengthen connectivity, and create sustainable value for customers, shareholders, and the country.”
At company level, SLT PLC delivered robust growth. Revenue increased to Rs. 19.7 billion, elevated by 10.6% from Rs. 17.8 billion in 1Q 2025. Gross profit rose to Rs. 9.9 billion, a 13.4% increase.
Operating profit improved to Rs. 3.5 billion, compared with Rs. 2.5 billion a year ago, setting a 36% rise. PBT reached Rs. 2.9 billion, rising 51% from Rs. 1.9 billion in 1Q 2025. PAT for the quarter was Rs. 2.1 billion, compared with last year’s Rs. 1.3 billion, a 53.3% increase. Direct costs increased 7.9%, reflecting similar tariff and fuel pressures, though revenue momentum and efficiency gains more than offset these pressures.
The performance highlights SLT PLC’s ability to sustain revenue growth and maintain cost discipline, resulting in stronger profitability and returns.
SLT-Mobitel CEO Riyaaz Rasheed said: “The quarter’s results demonstrate SLT-Mobitel is well-positioned to deliver continued growth, expand digital services, and drive the next wave of Artificial Intelligence (AI) and 5G innovation, reinforcing its role as the trusted technology partner powering national progress. Moreover, Mobitel’s sustained subscriber growth and rising broadband demand highlight the effectiveness of our customer-centric approach and digital transformation agenda. With revenue increases and broadband growth, we are capturing opportunities of a data-driven future, maintaining cost discipline and efficiency.”
Mobitel posted a 9.9% revenue increase in 1Q 2026, adding Rs. 1.2 billion compared to the previous year. Growth was fuelled through a 28% rise in broadband revenue, alongside gains in value-added services, solution revenues, and roaming, though voice and international termination revenues declined.
Subscriber momentum also turned positive during the quarter, continuing from the growth seen last year, reiterating the success of Mobitel’s acquisition and retention strategies.
