Hollow Tone

Sri Lanka Telecom’s group net profits fell 43 percent for the year ended Dec. 31, 2004, dragged down by tsunami related costs and a new levy on international calls. Sri Lanka Telecom’s group net profits fell 43 percent for the year ended Dec. 31, 2004, dragged down by tsunami related costs and a new levy on international calls. The cash rich operator posted net profits of Rs. 1,293 mn, while revenues surged 16 percent to Rs. 29,588 mn for the year ended 2004.

During the fourth quarter of last year, the telco posted a Rs. 683 mn net loss (down 248 percent) over revenues of Rs. 7,538 mn (up 18 percent).

The Boxing Day tsunami left SLT Rs. 330 mn poorer, after some 60,000 of its customers dotted along the coastline were disconnected during the early days. The bulk of the service has now been restored.

SLT had to fork out Rs. 2,469 mn (Rs. 403 mn during the fourth quarter) by way of a new tax – International telecommunication operators’ levy – which kicked with retrospective from March 3, 2003. SLT is required to share US$ 0.038 per international incoming traffic minute with the government, for rural connectivity.

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