51 major State-Owned Enterprises (SOEs) reported a combined profit of Rs. 259.3 billion in the first half of 2026, marking a notable increase from Rs. 227.8 billion in the corresponding period of the previous year.
The official figures were released yesterday in Colombo within the Mid-Year Fiscal Position Report compiled by the Ministry of Finance, Planning and Economic Development.
The overall expansion in state sector earnings was anchored by strong financial performances across major state banks, offset by expanding losses at the national carrier and extensive Treasury interventions.
Bank of Ceylon posted a profit before tax of Rs. 62.6 billion following a 9.2 per cent rise in total operating income, while People’s Bank recorded an all-time high profit before tax of Rs. 32.6 billion driven by an 18.9 per cent increase in net interest income.
National Savings Bank recorded a 6.2 per cent decline in profit before tax to Rs. 22.6 billion, primarily due to rising personnel costs.
Middle East geopolitical tensions severely inflated petroleum import costs to USD 1.7 billion, but Ceylon Petroleum Corporation managed a net profit of Rs. 29.2 billion after receiving Rs. 41 billion in direct Treasury subsidies.
In contrast, SriLankan Airlines reported a loss before tax of Rs. 35.6 billion for the first quarter of the 2026/27 financial year as jet fuel expenditure escalated by 93 per cent to Rs. 41.2 billion, pushing negative equity to Rs. 351.5 billion.
State support for the airline included servicing selected bank loans, releasing USD 30 million in short-term funding, and absorbing USD 126.5 million in restructured guaranteed bonds into the national debt stock.
Within the energy sector, Ceylon Electricity Board operations were divided among six successor entities while sales revenue reached Rs. 231.2 billion, supported by targeted tariff hikes and a Rs. 15 billion subsidy to the National System Operator.
Transport and aviation entities displayed mixed results, with Sri Lanka Ports Authority increasing profits by 19 per cent to Rs. 29.1 billion and Airport and Aviation Services more than doubling pre-tax profits to Rs. 24.9 billion despite operational disruptions.
National Water Supply and Drainage Board recorded an 8.5 per cent profit decline to Rs. 16.2 billion due to elevated pumping expenses, while Sri Lanka Insurance Corporation raised pre-tax profits to Rs. 2.6 billion.
Furthermore, a specialised Ministry unit established in March 2026 is overseeing the liquidation of 33 selected SOEs alongside the settlement of outstanding employee statutory liabilities.