Chief Executive Officer’s Review

Customer experience remains a cornerstone of our transformation strategy. We are leveraging AI-driven analytics, predictive maintenance, and real-time network optimisation to enhance service reliability and minimise disruptions.

If I were to recap SLT-MOBITEL’s performance in 2025, it could be defined as a year of turnaround and transformation.

I am proud to report that strategic clarity, combined with operational discipline, has yielded exceptional financial and operational results for the year 2025.

Our team has demonstrated extraordinary resilience, operating in a macroeconomic environment still recovering from previous shocks. Chief amongst these being slow growth and flattened demand due to reduced consumer disposable income, and ongoing financial struggles experienced by SMEs. These pressures were compounded by the cyclone in late 2025, which heavily impacted a number of provinces, businesses, and consumers.

SLT-MOBITEL Group has navigated headwinds and gained momentum in the ongoing strategic pivot from traditional Telecommunications provider (Telco) to Technology Company (TechCo).

Financial Turnaround Defined by Operational Excellence

The year under review saw the Group achieve steady revenue growth of 3% YoY, primarily driven by Mobitel’s gains in increasing Average Revenue Per User (ARPU) and success of prepaid broadband; alongside SLT’s continued expansion in fibre and broadband services.

Boosted by bottom-line growth, SLT-MOBITEL Group posted a staggering 221% increase in profits after tax, surging from LKR 3 Bn. to LKR 10 Bn.

At Company level, SLT recorded a 196% profits after tax increase, growing from LKR 2 Bn. to LKR 6 Bn.; while Mobitel achieved a 2,123% increase in profits after tax, from LKR 139 Mn. to LKR 3 Bn.

This monumental profit growth was not accidental; it was the direct result of an uncompromising focus on cost management and internal efficiencies, a feat we couldn't have achieved without the steadfast support of our employees. Success of these efforts contained operating costs at a marginal 3% increase YoY.

We successfully achieved a 21% reduction in interest costs through timely loan settlements, at both SLT and Mobitel, made possible by the tremendous improvement to cash flows experienced during the year.

The Facility Management division contributed positively to the Group’s financial performance through the strategic monetisation and optimisation of underutilised assets, reinforcing our broader operational efficiency and value creation agenda.

Additionally, our innovative Waste-to-Cash project, involving the sustainable disposal of e-waste, used cables, and old vehicles, generated a further LKR 658 Mn.

Our Supply Chain management function has proactively leveraged synergistic advantages at Group level, identifying and addressing common requirements across the Group and directly integrating with Original Equipment Manufacturers (OEMs), which eliminated non-value-adding intermediaries and significantly drove down procurement costs. The function has also been an exemplar of harnessing the ongoing digital transformation drive; where a recently introduced reverse auctioning through e-tendering platform has optimised negotiations and contributed many financial benefits.

Segment Performance: Leading the Market

Our Enterprise Business experienced a highly successful year, successfully positioning us so that we now cater to the entire Banking, Financial Services, and Insurance (BFSI) sector.

Recognising the shifting technological landscape, we successfully transitioned a number of enterprise customers from reliance on legacy MPLS, towards advanced SD-WAN technologies. We have now firmly established ourselves as a premier System Integrator, partnering directly with global OEMs like Cisco and Fortinet to deliver comprehensive, customised IT solutions rather than just standard connectivity. On the global front, our international brand, Xyntac, expanded its footprint by securing operations in Singapore and partnering with Over-The-Top (OTT) providers like Google and Amazon as capacity suppliers; positioning us favourably in the international carrier market.

Our Consumer Business also witnessed a number of dynamic and historic shifts during the year 2025. Consumer segmental revenue grew by 6.5% YoY, driven by double-digit growth in our core Fibre offering.

Recognising changing consumer demands, we transitioned away from volume-capped legacy models and introduced unlimited fibre broadband packages, which became a key market differentiator.

Further, to stimulate new growth amidst saturated traditional lines and better support an emerging stream of entrepreneurs in the economy, we successfully introduced a new Micro Business segment in 2025: specifically catering to the needs of Small Office/Home Office (SOHO) entrepreneurs. Strategic capital deployment for refurbishment and modernisation of physical outlets went hand-in-hand with ongoing improvements to our digital footprint, including the MySLT app. Together with a number of dedicated regional campaigns, these multi-front efforts have continued to improve the overall consumer experience.

Empowering a People First Transformation

The Group has not been complacent with operational successes achieved during the year. As an organisation, we are cognisant that SLT-MOBITEL’s evolution into a TechCo requires a fundamental cultural and capability shift. This is why our Human Resources strategy in 2025 was anchored in a People-First Transformation Agenda.

New features were rolled out to improve the employee experience, while ongoing structured efforts like the Executive Development Programme, Smart Sales Officer, and Smart Technician programmes accelerated capability development in priority areas.

We were also successful in resolving long-standing salary anomalies among executives and non-executives, which was a significant milestone for employee satisfaction. I am pleased to note that we maintained a strong, consensus-driven dialogue with all 25 of our trade unions, throughout the year; discussing and amicably resolving industrial issues.

To ensure our workforce is future-ready, we initiated comprehensive reskilling programmes, particularly in areas like Artificial Intelligence (AI) and data analytics, and widened our focus from purely technical training to include holistic leadership development.

The Group’s skill development efforts continue to be bolstered by our very own premier education and training provider – the Nebula Institute of Technology (NIT). The Institute has been pivotal in enriching and maintaining a strong base of knowledge within the Group. In 2025, they extended partnerships with additional international institutions and introduced new categories of programmes, such as top-up degrees, providing standardised part-time learning opportunities to upskill our employees. With new programmes for Engineering, Robotics, Artificial Intelligence (AI), and Data Science set to kick off in 2026, we expect NIT’s influence, as a Centre of Expertise, to grow steadily in the years to come.

Sustainability and Disaster Resilience

As the National ICT Solutions Provider, SLT-MOBITEL demonstrated strong operational resilience during Cyclone Ditwah, rapidly restoring critical network services despite extensive infrastructure damage. The Sri Lanka Backbone Network (SLBN) was restored within 24 hours, enabling swift nationwide recovery with priority support extended to essential services.

In parallel, the Group continued to advance its sustainability agenda through expanded investment in renewable energy and energy efficiency initiatives.

During the year, SLT PLC commissioned 33 solar photovoltaic (PV) sites with a total capacity of 1,524 kWac, generating annual savings of 105,040 kWh and reducing emissions by approximately 76 MTCO2e. SLT-MOBITEL also completed 840 PV sites with an installed capacity of 1,880 kWac, reinforcing the Group’s transition towards cleaner and more resilient energy operations.

These efforts are further supported by ongoing initiatives to enhance energy efficiency across operations, including the adoption of high-efficiency systems, optimised facility design, and integration of energy-conscious building practices. The Group is also progressing towards ISO 50001:2018 certification, strengthening its commitment to structured energy management and long-term decarbonisation.

Looking Ahead to 2026

In 2026, we will heavily focus on retaining and expanding our market share. Acquisition of high-value 5G customers through the introduction of next-generation Customer Premises Equipment (CPE) on the back of new device partnerships should serve to strengthen our existing revenue streams.

We will be moving toward more converged products that seamlessly combine our fixed, mobile, and television offerings, and will adapt to the needs of the market as they evolve.

Furthermore, following the success of our unlimited fibre packages, we are piloting a number of changes to the customer Fair Usage Policy (FUP), whilst maintaining service quality and standards within our network capacity. These changes, scheduled to take shape in 2026, are expected to meet and surpass the expectations of our customers, while also boosting our revenue and market-share.

To continue transforming and improving our customer experience through dedicated support, we are targeting the deployment of a Unified Contact Centre with omni-channel support by the end of 2026.

This will feature the deep integration of AI, and tools specifically tested for local language interactions; empowering customers with immediate, automated responses and moving us toward a proactive, predictive service model.

Because SLT-MOBITEL’s digital transformation depends on our workforce, 2026 will be defined by the Group’s People First Transformation Agenda. Having initiated consultations with external and internal experts to critically redesign our organisational structure, we expect to institute a tiered structural overhaul; including realigning our variable pay and incentive schemes to better reward high performance. We will also implement a rigorous succession plan up to the managerial level with a priority for HR convergence talent mobility programmes that would assemble agile teams from across the Group’s subsidiary companies to foster cross-pollination of skills and drive efficiencies.

Acknowledgements

Our achievements this year are a testament to the collective effort of the entire SLT-MOBITEL family. I extend my deepest gratitude to our Group Chairman and the Board of Directors for their visionary guidance. I sincerely thank all our dedicated employees and trade union partners for their unwavering commitment to our shared goals. To our business partners, government stakeholders, and above all, our loyal customers — thank you for your continued trust in SLT-MOBITEL as we build a smarter, digitally empowered Sri Lanka.

M Riyaaz Rasheed
Chief Executive Officer