21 Aug 2026 - {{hitsCtrl.values.hits}}
SLT Mobitel has aggressively built up its dollar reserves and retired expensive foreign debts ahead of schedule to self-fund its network expansion while shielding the telecom operator from future currency fluctuations.
Speaking at a media briefing held in Colombo this week to announce the group’s financial results for the first half of 2026, SLT Group Chief Executive Officer Dr. Mothilal De Silva outlined the company’s strategic shift to clean up its balance sheet.
He noted that the telco is proactively managing its currency mismatch, as the company primarily earns in local currency but incurs heavy capital expenditure in foreign exchange for imported tech infrastructure.
“We built up dollar reserves at the same time to protect ourselves against currency fluctuations. So we are earning rupees and we are spending dollars. So that’s why these dollar reserves are important,” De Silva explained.
The accumulated dollar reserves are being directly channeled into funding the operator’s capital-intensive projects, including island-wide fiber rollouts, intelligent 5G deployments, and the construction of new data centers. De Silva emphasized that this strategy allows the company to aggressively advance its infrastructure without relying on external credit lines.
“We are using our dollar reserves to fund network expansion without external borrowings. This dollar reserve strategy represents a proactive hedge, that is spending in dollars while earning in rupees,” he said. This strategic focus is part of what the CEO termed a virtuous cycle for the organisation. By retiring expensive foreign debts ahead of schedule and renegotiating contracts with foreign vendors, the company has freed up significant cash flows that are now being redirected into critical network upgrades. This disciplined approach to cost control and currency hedging helped propel the group’s profit after tax to Rs. 7 billion for the first half of 2026, an impressive 63.6 percent increase over the same period last year.
Looking ahead, SLT Mobitel is executing a major pivot from a traditional telecommunications provider to a comprehensive digital services technology company. De Silva noted that the operator is moving aggressively into adjacent sectors such as financial technology, medical technology, education technology, and agricultural technology. To support this transition, the company is preparing for its most significant capital expenditure in the coming years, termed a “transplanting” project, which will involve comprehensive upgrades to its IP, optics, and core networks.
Artificial intelligence and cloud services remain central to this future strategy. The company has already initiated nearly 15 AI applications internally and recently introduced AI tokenization for the first time in South Asia.
Furthermore, the operator is establishing an AI hub to empower local developers and enterprises to deploy solutions cost-effectively, while aiming to train its entire workforce in AI competencies to build a workforce ready for 2030.
To further optimise capital allocation, the company is prioritizing infrastructure sharing with other operators. By engaging in active and passive network sharing for towers, fiber, and radio spectrum, the operator aims to reduce capital intensity and save valuable foreign exchange in collaboration with the Telecommunications Regulatory Commission.
These strategic investments are directly aligned with the national agenda to build a US$ 15 billion digital economy by 2030. Beyond enterprise solutions and 5G rollouts, the operator is fast-tracking the connection of over 6,000 secondary schools to its fiber network. The company also expects to land its fifth submarine cable, SMW6, by early next year, ensuring Sri Lanka remains robustly connected to the global digital ecosystem.
Reassuring stakeholders about the company’s strong financial footing, De Silva highlighted the stark contrast from the financial struggles the state-owned enterprise faced just two years ago.
“SLT Mobitel is not the struggling company it was two years ago. We are profitable. We are self-funding our growth. We have built dollar reserves to protect the country from currency shocks. We are expanding 4G, rolling out 5G intelligently, and building world-class data centers, all without begging for new foreign loans or asking the government for bailouts,” De Silva stated.
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