Weak Signals

Fixed line giant Sri Lanka Telecom reported a 55 percent drop in its after tax profits, on the back of higher operating costs and provisions to the telecom development fund. Fixed line giant Sri Lanka Telecom reported a 55 percent drop in its after tax profits, on the back of higher operating costs and provisions to the telecom development fund. Sri Lanka Telecom released its second quarter unaudited accounts on Tuesday which shows revenues for the three months at the telco was only marginally up at Rs. 7.62 bn or 3 percent up on 2003’s Rs. 7.44 bn.

Operating costs meanwhile notched up 14 percent to Rs. 3.58 bn.

SLT also set aside Rs. Rs. 441 million as dues to the International Telecommunications levy.

The provision for the 2005 second quarter however does not have an earlier year comparative figure despite the telco operator making a Rs. 2.3 million provision for 2004 in a one time set off at the end of the year.

The government introduced a levy on all international telecom operators in late 2004, effective in retrospect beginning from March 2003.

The levy of Rs. 2.5 bn payable by SLT in FY04 was in respect of 2003 and 2004.

Industry ana