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Group revenue grew 3.0 percent to 12.2 billion rupees, while revenues of the standalone company fell 3.
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0 percent to 8.1 billion rupees.
The group recovered from a loss of 379 million rupees in the December quarter.
In the March quarter interest costs fell to 299 million rupees from 502 million a year earlier.
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Interest expense has dropped with bullet repayment of a 100 million US dollar bond in November 2009 which used the balance of a sinking fund.
The group had also spent 188 million rupees on a voluntary retirement scheme.
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Chairperson Leisha De Silva Chandrasena said efforts would be made to keep costs down.
Profits at Mobitel were improving.
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"Mobitel, our mobile arm has contributed significantly to increase SLT Group profit through good performance in the face of strong competition," chairperson Leisha De Silva Chandrasena said.
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Sri Lanka Telecom is 44.98 percent owned by Malaysia's UT group.
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The Sri Lanka government owns 49.50 percent and state run funds and banks