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Annual Report 2025

SLFRS S1 and S2 Disclosures

5.0 Metrics and Targets

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5.1 Climate-Related Metrics (Cross-Industry)

In line with our risk management processes and strategy, SLT tracks several metrics to measure and manage the climate-related risks and opportunities in Section 5.2 Climate-Related Targets. SLT keeps reviewing them in line with potential regulatory changes and guidance.

5.1.1 Greenhouse Gas (GHG) Emissions

Organisational Boundary

The Greenhouse gas (GHG) inventory of SLT for the reporting period from 01 January 2025 to 31 December 2025 has been prepared in accordance with the principles of the Greenhouse Gas Protocol and relevant guidance of the Intergovernmental Panel on Climate Change Sixth Assessment Report.

Operational Boundary (GHG Reporting)

Within the defined organisational boundary, greenhouse gas emissions are categorised and reported according to the Scope 1 and Scope 2 framework defined by the GHG Protocol.

  • Scope 1 emissions represent direct greenhouse gas emissions from sources owned or controlled by the organisation. These include emissions from the combustion of fuels in stationary sources such as generators and cooking gas (LPG), mobile sources such as company-owned vehicles, rented vehicles and employee commuting, fuel paid by SLT, and fugitive emissions due to fire extinguishers and refrigerant leakage.
  • Scope 2 emissions represent indirect greenhouse gas emissions associated with the generation of purchased electricity consumed by the organisation. For SLT, Scope 2 emissions arise from grid-connected electricity supplied by the national grid. SLT has used the location-based approach to calculate Scope 2 emissions.

Emission sources with an estimated contribution of less than 1 tCO2e or where sufficient activity data was unavailable were excluded from the inventory.

Greenhouse gas emissions (tCO2e) 2025
Group Investment in
Joint Ventures* 		Total
Scope 1 12,380 – 12,380
Scope 2 67,916 – 67,916
Total 80,296 – 80,296

*Note: Scope 1 and Scope 2 emissions of Joint Ventures have not been included, as they were assessed to be immaterial to the Group’s overall emission profile.

Scope Scope 1 Scope 2
Emission category Stationary combustion Mobile combustion Fugitive Emissions Purchased electricity
Activity Diesel consumption in standby generators Cooking gas (LPG consumption) Diesel/Petrol used in company-owned vehicles Diesel/Petrol used in rented vehicles Diesel/Petrol used in employee commuting Fire extinguisher refilling Refrigerant Leakage Electricity use
Data source Fuel invoices Invoices Fuel invoices Fuel invoices Fuel cards issued by company (LKR values) Invoices from service providers Invoices from service providers Monthly Electricity Bills
Emission Factor (EF) Source IPCC Volume 2 – Stationary combustion IPCC Volume 2 – chapter 2 – Stationary combustion IPCC Volume 2 – chapter 3 – mobile combustion IPCC Volume 2 – chapter 3 – mobile combustion IPCC Volume 2 – chapter 3 – mobile combustion IPCC AR 6 IPCC AR 6 https://www.energy.gov.lk/images/energy-balance/energy-balance-2022.pdf
Source of Global Warming Potential (GWP) values IPCC AR 6 IPCC AR 6 IPCC AR 6 IPCC AR 6 IPCC AR 6 IPCC AR 6 IPCC AR 6 IPCC AR 6

Calculation Methodology

The first step in calculating the organisation’s carbon footprint is establishing organisational boundaries, which determine the operations and emission sources that are included in the inventory.

For the 2025 inventory year, SLT adopted the financial control approach under the control methodology. Under this approach, the organisation accounts for 100% of the greenhouse gas emissions from operations over which it has financial control, regardless of its ownership share, while emissions from operations where the company has an interest but does not exercise financial control are excluded from the inventory.

All calculations were carried out based on GHG activity data multiplied by an appropriate GHG emission factor. Unless stated otherwise, all emission factors were obtained from the Inter-governmental Panel on Climate Change (IPCC).

Emission Factors and other Constants

Emission factors, unit cost, fuel economy values attributed to different emission sources are used for quantifying GHGs.

5.1.2 Vulnerability of Assets or Business Operations to Climate-Related Physical Risks

SLT has not performed a quantified assessment of the percentage of assets or business activities vulnerable to climate related physical risks.

5.1.3 Vulnerability of Assets or Business Operations to Climate-Related Transition Risks

SLT has not performed a quantified assessment of the percentage of assets or business activities vulnerable to climate related Transitional risks.

5.1.4 Amount and Percentage of Assets or Business Activities Aligned with Climate-Related Opportunities

Climate related opportunities are reflected in the energy saving by energy efficiency improvements.

2025
Energy efficiency improvements (GWh) 12.64

5.1.5 Climate-Aligned Capital Deployment

Climate-related capital deployment during the reporting period included renewable energy installations, across the regional offices, with a total cost of LKR 420 Mn. SLT currently does not have material amounts allocated for climate-aligned capital deployment. Future allocations will be guided by the short, medium, and long-term targets to be established under the SLT’s climate transition plan, which is currently under development.

5.1.6 Internal Carbon Pricing

SLT has not implemented internal carbon pricing as at 31 December 2025. This reflects the prevailing regulatory environment in Sri Lanka, where no mandatory carbon pricing or emissions trading framework is currently in operation.

5.1.7 Remuneration Linkage

Climate-related metrics are not presently linked to Board or executive remuneration structures.

5.2 Climate–Related Targets

5.2.1 Climate-Related Risks

Climate-related risks Physical risks
(Physical threats to network infrastructure from extreme weather events) 		Transitional risks
Metric
  • Discussion of systems to provide unimpeded service during service Disruptions (Qualitative).
  • Reduce customer average interruption duration to under a specific threshold
  • Scope 1 Greenhouse Gas emissions
  • Scope 2 Greenhouse Gas emissions (location-based)
Target To ensure network resilience against extreme weather events by maintaining customer average interruption duration below 24 hours during climate related service disruptions. Generation of 90% of energy from Solar power within the total energy consumption of SLT by 2045.
Objective of the target
  • To minimise service disruptions arising from climate related events.
  • To enhance network reliability, availability, and customer experience.
  • To protect critical infrastructure and support business continuity.
  • To reduce financial and reputational impacts from prolonged outages
  • To reduce operational carbon emissions.
  • Decrease reliance on the grid electricity.
  • Mitigate long-term energy cost volatility.
Scope All critical telecommunication network infrastructure, including mobile base stations, transmission towers, data centres, and core network systems It covers all SLT-owned buildings, including head office, regional offices, data centres, warehouses and maintenance centres.
Period 2025–2045 2025–2045
Base period Year 2024 Year 2024
Milestones and interim targets
  • Deployment of weather resilient power backup and elevated infrastructure in high risk locations.
  • Expansion of real time network monitoring and predictive maintenance systems
  • SLT aims to install 4,000 kW of solar capacity by end-2026, and 6,000 kW by end-2027.
Target type (absolute or intensity)
  • Intensity Target (Reduction in Average interruption duration per customer)
  • Intensity Target (Implementation of energy efficiency initiatives, including LED retrofits, inverter air conditioners, and optimising of vehicle fleet management).
  • Absolute Target (for total installed capacity in kW and total GHG emissions reduced).
Alignment with jurisdiction and commitments
  • Consistent with SLFRS S1 and SLFRS S2 requirements on climate related risk management and metrics.
  • Aligned with internal sustainability and business continuity commitments
  • This target is aligned with Sri Lanka’s Nationally Determined Contributions (NDCs), reflecting the national objective to achieve 70% renewable electricity generation by 2030, while ensuring compliance with SLFRS S1 and SLFRS S2.
Validation The target and methodology have not been externally validated. The target and methodology have not been externally validated.
Review process
  • Reviewed annually by senior management and the risk management committee.
  • Outcomes incorporated into enterprise risk management (ERM), capital allocation, and infrastructure planning decisions
Annual progress is reviewed internally and disclosed in the Annual Report with Quarterly review in ESG Strategic Committee.
Revision No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period.
Performance against target 85% achieved customer average interruption duration below 24 hours. Enabled completion of solarisation of 873 sites.

5.2.2 Climate-Related Opportunities

Climate-related Opportunities Climate-driven innovation and digital diversification Cost savings by energy efficiency improvements
Metric Revenue contribution from climate related digital solutions (ICT, IoT, smart infrastructure solutions). Total energy consumption (MWh) and energy cost savings (LKR) from efficiency initiatives.
Target Increase contribution of climate focused digital solutions to overall ICT services revenue. Achieve continuous reduction in network and facility energy consumption.
Objective of the target To diversify revenue streams and position SLT as a digital enabler of Sri Lanka’s low carbon transition.
  • To reduce operating costs.
  • To reduce the exposure to energy price volatility.
Scope Group-wide ICT, digital solutions, data centres, IoT platforms. Network infrastructure, data centres, buildings, cooling systems, and vehicle fleet.
Period 2025-2045 2025-2045
Base period 2024 2024
Milestones and interim targets
  • Development of smart energy and digital infrastructure offerings.
  • Establish strategic partnerships with government and development agencies.
  • Gradual expansion into energy tech and climate focused digital services.
  • Annual energy efficiency projects (LED retrofits, inverter ACs).
  • Completion of green building certifications.
Target type (absolute or intensity) Intensity based (Growth in climate related revenue share). Absolute and intensity based (MWh reduction and energy intensity per network unit).
Alignment with jurisdiction and commitments Aligned with Sri Lanka’s NDC 3.0. Aligned with Sri Lanka’s NDC 3.0.
Validation The target and methodology have not been externally validated. The target and methodology have not been externally validated.
Review process Reviewed periodically by senior management through strategy. Reviewed periodically through management performance reviews and operational dashboards.
Revision No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period.
Performance against target Early stage development; climate driven digital innovation is growing but not yet a material revenue contributor. Positive progress demonstrated through measurable annual energy savings (LED retrofits and inverter ACs).

5.3 Sustainability-Related Metrics (Industry-Specific)

The following index presents cross-references to industry-specific metrics disclosed throughout the report. These metrics are aligned with the Sustainability Accounting Standards Board (SASB) Telecommunication Services Sustainability Accounting Standard (Version 2023-12).

Sustainability Disclosure Topics and Metrics
Topic Metric Category Unit of measure Code Disclosure Page
Environmental Footprint of Operations (1) Total energy consumed,
(2) percentage grid electricity and
(3) percentage renewable 		Quantitative Gigawatt(GWh), Percentage (%) TC-TL-130a.1 170.5 GWh
96.1%
3.9%
Data Privacy Description of policies and practices relating to targeted advertising and customer privacy Discussion and Analysis n/a TC-TL-220a.1 Cybersecurity and Digital Trust 96–97
Number of customers whose information is used for secondary purposes Quantitative Number TC-TL-220a.2 For reasons driven by operational security, SLT does not publicly disclose details regarding data privacy unless otherwise required by law
Total amount of monetary losses as a result of legal proceedings associated with customer privacy Quantitative Presentation currency TC-TL-220a.3 Nil
(1) Number of law enforcement requests for customer information,
(2) number of customers whose information was requested,
(3) percentage resulting in disclosure 		Quantitative Number, Percentage (%) TC-TL-220a.4 For reasons driven by operational security, SLT does not publicly disclose details regarding data privacy unless otherwise required by law
Data Security (1) Number of data breaches,
(2) percentage that are personal data breaches,
(3) number of customers affected 		Quantitative Number, Percentage (%) TC-TL-230a.1 For reasons driven by operational security, SLT does not publicly disclose details regarding data security unless otherwise required by law
Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards Discussion and Analysis n/a TC-TL-230a.2 Cybersecurity and Digital Trust 96–97
Product End of-life Management (1) Materials recovered through take-back programmes, percentage of recovered materials that were
(2) reused,
(3) recycled, and
(4) landfilled 		Quantitative Metric tonnes (t), Percentage (%) TC-TL-440a.1
  • Copper sold for recycling: 4.8 tonnes (2025)
  • Customer Premises Equipment (CPE) recovered: 32,460 units (2025)
  • Batteries recycled: 11,794 units (2025)
Sustainability Disclosure Topics and Metrics
Topic Metric Category Unit of measure Code Disclosure Page
Competitive Behaviour and Open Internet Total amount of monetary losses as a result of legal proceedings associated with anti-competitive behaviour regulations Quantitative Presentation currency TC-TL-520a.1 Nil
Average actual sustained download speed of
(1) owned and commercially associated content and
(2) non-associated content 		Quantitative Megabits per second (Mbps) TC-TL-520a.2 For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.
Description of risks and opportunities associated with net neutrality, paid peering, zero-rating, and related practices Discussion and Analysis n/a TC-TL-520a.3 Cybersecurity and Digital Trust 96–97
Managing Systemic Risks from Technology Disruptions (1) System average interruption duration,
(2) system average interruption frequency and
(3) customer average interruption duration 		Quantitative Minutes, Number TC-TL-550a.1 For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.
Discussion of systems to provide unimpeded service during service disruptions Discussion and Analysis n/a TC-TL-550a.2 Cybersecurity and Digital Trust 96–97
Activity Metrics
Activity metric Category Unit of measure Code Disclosure Page
Number of wireless subscribers Quantitative Number TC-TL-000.A For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.
Number of wireline subscribers Quantitative Number TC-TL-000.B For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.
Number of broadband subscribers Quantitative Number TC-TL-000.C For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.
Network traffic Quantitative Petabytes TC-TL-000.D For reasons driven by commercial sensitivity, SLT does not publicly disclose details on this.

5.4 Sustainability-Related Targets (Industry-Specific)

5.4.1 Sustainability-Related Risks

1. High energy consumption in network infrastructure and dependence on fossil fuel-based grid electricity
Source SASB TC-TL-130a.1 SASB TC-TL-130a.1 SASB TC-TL-130a.1
Target Reduce total energy consumption by 8% per year through efficiency upgrades. Decrease dependence on fossil-fuel grid electricity by 2.5% per year. Increase renewable electricity share to at least 5% by 2026, 10% by 2030.
Metric Total Energy Consumed Percentage Grid Electricity Percentage Renewable
Period 2025-2045 2025-2045 2025-2045
Base period Year 2024 Year 2024 Year 2024
Milestones and interim targets Annual rollout of energy efficient equipment and data centre optimisation. Gradual shift to hybrid power solutions at network sites.
  • Solar deployment at base stations and offices.
  • Power purchase agreements for renewable electricity.
Performance against target 7.4% 1.5% 3.9%
Revision No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period.
2. Lack of circularity in equipment and devices
Source SASB TC-TL-440a.1
Target
  • Achieve 75% recycling and reuse rate of network hardware and customer devices within 3 years.
  • Reduce landfilled electronic waste to <10% of total end-of-life products.
  • Introduce take-back programs in all regions served, targeting 50,000 devices.
Metric (1) Materials recovered through take-back programmes, percentage of recovered materials that were:
(2) reused
(3) recycled
(4) landfilled
Period 2025-2028
Base period Year 2024
Milestones and interim targets
  • Year 1: Launch take back programs nationwide; achieve ≥60% recovery rate.
  • Year 2: Expand certified recycling partners; reduce landfill share to ≤15%.
  • Year 3: Achieve ≥75% reuse/recycling rate and landfill rate below 10%.
  • Annual increase in returned devices through customer awareness initiatives.
Performance against target
  • Copper reused: 4.8 tonnes (2025).
  • Customer Premises Equipment (CPE) recovered: 32,460 units (2025).
  • Batteries recycled: 11,794 units (2025).
3. Breaches of customer privacy, misuse of personal data, or unauthorized disclosure of information
Source SASB TC-TL-220a.3 SASB TC-TL-230a.2
Target Zero monetary losses from customer privacy-related litigation.
  • Conduct quarterly penetration testing and staff cybersecurity training.
  • Implement ISO 27001 or equivalent cybersecurity standard across all operations by 2028.
Metric Total amount of monetary losses as a result of legal proceedings associated with customer privacy. Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards.
Period 2025-2030 2025-2028
Base period Year 2024 Year 2024
Milestones and interim targets
  • Strengthen data governance and privacy controls.
  • Zero reportable litigation related monetary losses each year.
  • Annual review of privacy incidents and corrective actions.
  • Quarterly penetration testing initiated.
  • Annual mandatory cybersecurity awareness training for employees.
  • ISO 27001 implemented in the Company.
  • Certification or equivalent control alignment achieved by 2028.
Performance against target Zero Achieved ISO 27001 by the Company.
Revision No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period.

5.4.2 Sustainability-Related Opportunities

1. Low adoption and usage of services owing to digital divide and digital inclusion Note: The following targets apply to both the sustainability-related risk (low adoption and usage of services owing to the digital divide) and the related opportunity (digital inclusion).
Source GRI 413-1 Capital Deployment
Target Expand digital literacy and inclusion programs to underserved communities in 25 districts by 2027. Increase investment in rural and hard to reach digital infrastructure to reduce connectivity gaps.
Metric Number of people reached with digital skills training programmes. Investment in rural/hard-to reach digital access infrastructure (FTTP/5G).
Period 2025-2027 2025-2030
Base period Year 2024 Year 2024
Milestones and interim targets
  • Partnerships with community organisations and NGOs.
  • Annual increase in participants of digital literacy programs.
 Year on year increase in capital deployment toward rural network build out.
Performance against target Number of Code clubs sessions conducted in 2 centres of NEBULA Institute of Technology, 17 public libraries, 285 students, and 209 programmes. Group Project Cost for Network expansion: LKR 21,666 Mn.
Revision No revisions were made to the target during the reporting period. No revisions were made to the target during the reporting period.
  • Issuance and utilisation of green bonds or sustainability linked financing.
    • 2. Low carbon value proposition and Green innovation
    Source Internal innovation and sustainability strategy; national climate commitments.
    Target Position core connectivity services and infrastructure as low carbon or net zero ready offerings and progressively reduce operational carbon intensity.
    Metric
    • Share of network sites with renewable energy.
    • Revenue from green or low carbon digital solutions.
    Period 2025-2045
    Base period 2024
    Milestones and interim targets
    • Integration of renewable energy and energy efficient cooling into new and upgraded network sites.
    • Embedding carbon criteria into procurement and vendor selection.
    • Expansion of green digital solutions (eSIM, e billing, smart agriculture, energy IoT).
    Performance against target Progress underway through green innovations such as eSIM adoption, digital billing, solar panel installations, real time energy monitoring dashboards, and reduced diesel dependency at network sites.
    Revision No revisions were made to the target during the reporting period.