Sri Lanka Telecom-Mobitel recorded an 11.1 per cent surge in group revenue during the first half of 2026, despite experiencing severe operational cost pressures driven by global trade headwinds.
The state-owned national telecommunications provider delivered a Rs. 6.1 billion top-line gain during the period, though imported hardware requirements caused operational expenditure to rise alongside earnings.
Network infrastructure deployments, which rely heavily on imported components such as microchips, optical fibre, and satellite transmission links, accounted for a 9.6 per cent expenditure increase, absorbing 53 per cent of the total revenue expansion in the first six months.
The cost pressures intensified during the second quarter, where operational expenses accounted for 64 per cent of revenue, despite quarterly top-line growth accelerating to 11.7 per cent.
To mitigate foreign exchange exposure arising from earning in local currency while acquiring network hardware in US dollars, SLT-Mobitel Chairperson Dr. Mothilal de Silva explained that the entity had accumulated US dollar reserves to hedge against currency fluctuations.
He also noted that the enterprise had avoided privatization under the current government through structural reform, enhanced procurement transparency, and waste reduction measures.
Meanwhile, Deputy Minister of Digital Economy Eranga Weeraratne confirmed that ongoing consultations were taking place between management and key stakeholders regarding the structural consolidation of the organization.
The proposed corporate restructuring aims to enhance operational efficiency by creating a unified architecture across state entities