SLT-Mobitel turnaround underscores State’s potential in digital infrastructure as the state-backed telecom operator reported a strong financial recovery, positioning itself as a key driver of Sri Lanka’s digital future.
SLT-Mobitel turnaround underscores State’s potential in digital infrastructure recovery
Following a sharp 221% turnaround in 2025, SLT-Mobitel recorded a Group profit after tax of Rs. 10 billion, marking one of the most notable corporate recoveries in recent years. Officials used this performance to challenge long-standing perceptions about the inefficiency of State-run enterprises and to reinforce the Government’s role in critical infrastructure sectors.
The company’s resurgence comes amid evolving dynamics in Sri Lanka’s digital economy, including rising data consumption, shifting consumer behaviour, and sustained cost pressures within the telecommunications industry. Despite these challenges, SLT-Mobitel turnaround underscores State’s potential in digital infrastructure by demonstrating that operational discipline and strategic direction can yield tangible results even in a complex market environment.
Digital Economy Deputy Minister Eng. Eranga Weeraratne said the turnaround reflects a broader shift in how State-owned enterprises can be managed. He noted that public sentiment had previously leaned towards privatisation due to concerns over inefficiency, but SLT-Mobitel’s performance illustrates that effective governance can reverse such perceptions.
He further emphasised that the State continues to play a critical role in telecommunications, particularly given that private operators already account for a significant share of the market. In this context, maintaining a State-linked operator is viewed as essential for safeguarding data security, strengthening national connectivity, and supporting public digital systems.
SLT Group Chairman Dr. Mothilal de Silva highlighted that 2025 had been designated as a turnaround year, with the company achieving improvements in profitability, cost management, and debt reduction. He described the recovery as a structural shift in management practices rather than incremental gains.
Mobitel, the Group’s mobile arm, also contributed significantly to the overall performance by returning to profitability after a period of subscriber decline. This recovery was supported by pricing adjustments, an expanded distribution network, and increased data usage. While traditional voice revenues continued to decline due to changing consumer habits and the rise of digital communication platforms, broadband services recorded robust growth, offsetting these losses.
SLT-Mobitel CEO Riyaaz Rasheed attributed the turnaround to tighter financial controls, disciplined capital management, and sustained investment in infrastructure. He noted that the company had reduced its debt exposure while maintaining operational continuity during a challenging economic period.
The company is also shifting towards a more locally driven operational model, aiming to reduce reliance on foreign suppliers and minimise exposure to dollar-denominated costs. This approach aligns with broader national priorities to strengthen economic resilience and reduce external vulnerabilities.
Operational enhancements are also underway, including the expansion of 24/7 service capabilities across the country. The establishment of 14 Outside Plant Maintenance Centres (OPMCs) in key regions ensures continuous service delivery, a critical factor highlighted during recent disruptions such as Cyclone Ditwah.
Looking ahead, SLT-Mobitel is investing in next-generation technologies, including artificial intelligence, cloud computing, and digital platforms. Initiatives such as SmartChat Mega aim to support small and medium-sized enterprises with AI-driven solutions, while the newly introduced Ceylon Remit platform facilitates seamless remittances for Sri Lankans abroad.
As these initiatives gain momentum, SLT-Mobitel turnaround underscores State’s potential in digital infrastructure, positioning the company as a model for how State-linked enterprises can contribute to long-term digital transformation and economic growth in Sri Lanka.