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Downloadannual Report Sri Lanka Telecom PLC Annual Report 2018 DIGITALLY BEING Vision All Sri Lankans seamlessly connected with world-class information, communication and entertainment services Mission Your trusted and proven partner for innovative and exciting communication experiences delivered with passion, quality and commitment. Values Customer Caring Teamwork We put our customers at the centre of We are one team with a common everything we do purpose to achieve common goals Trustworthy Excellence We are true to our promises We are committed to exceptional performance Innovative We continuously invent new Results Driven opportunities through creative thinking We are committed to enhancing shareholder value Responsive We are ready to listen and act promptly DIGITALLY BEING... SLT is in the vanguard of an emerging “digital existence” that is already changing life in Sri Lanka. This new way of life leverages the technology of today...and tomorrow...providing era changing detail, perspective and opportunity across the gamut of life. In journeying towards our goal of becoming Sri Lanka’s preferred digital lifestyle provider by 2022, we’re honoured to guide the Nation and its people into an exciting new digital world. ContentsCONTENTS 03 70-102 Introducing the report Stewardship Board of Directors – 70 04 Leadership Team – 74 About SLT Corporate Governance – 84 Audit Committee Report 95 Remuneration and nomination committee report – 97 10 Report of the related party Highlights of the year transactions review committee – 98 Risk management – 99 12 Group Chairman’s review 103 14 Financial reports Annual Report of the Board of Directors on Chief Executive Officer’s review the Affairs of the Company – 104 Statement of Directors in Relation to their Responsibility 16 for the Preparation of Financial Statements – 109 Independent Auditors’ Report – 110 Chief Operating Officer’s review Statement of Profit or Loss and Other Comprehensive Income – 114 18 Statement of Financial Position – 115 A Smarter Sri Lanka with SLT Statement of Changes in Equity – Group – 116 Statement of Changes in Equity – Company – 117 21-24 Cash Flow Statement – 118 Notes to the Consolidated Financial Statements – 119 Operating environment 25 174 Our strategy Supplementary information Ten year progress – Group – 174 28 Portfolio of lands – 175 Our value creation model GRI content index – 179 Abbreviations – 183 Notice of Annual General Meeting – 184 30 Form of Proxy – Enclosed Stakeholders 2018 Corporate Information – Inner Back Cover 34-69 Management discussion and analysis Annual Report Financial capital – 34 | Institutional capital – 42 Awards – 46 Investor capital – 48 Customer capital – 51 Business partner capital – 58 Employee capital – 60 Social and environmental capital – 64 Sri Lanka Telecom PLC PLC Telecom Sri Lanka Regulatory capital – 68 02 INTRODUCING THE REPORT Report boundary Precautionary principle and compliance The Company applies a stringent The overall boundary of this Annual precautionary principle with regards to Report comprises Sri Lanka Telecom social and environmental sustainability. PLC and its subsidiaries, duly identified We are highly cognisant that our as “SLT” or the “Company” individually, operations cause reciprocal impacts and “Group” collectively. Consistent on society and the environment, and with the framework adopted in the we take all necessary actions to previous year, key financial aspects alleviate such risks. are discussed in the context of the Company and the Group. SLT Group’s Queries business is dominated by two principal We welcome your comments or segments, namely, fixed ICT operations questions on this Report. and mobile ICT operations. Our You may contact: Management Discussion and Analysis thus treats these two segments either separately or as one ‘ICT business’ as Mr Mahesh Athukorale, appropriate and duly identified as such. Company Secretary, Sri Lanka Telecom, This Report covers the 12-month period Lotus Road, Colombo 01, This integrated Annual Report 1 January to 31 December 2018 and Sri Lanka. communicates the relationships is consistent with our usual annual and interdependence of the many reporting cycle for financial and +94 11 239 9478 aspects of our business – such as sustainability reporting. strategy, governance, performance [email protected] and prospects – in the context of The information contained herein, creating value over time. www.slt.lk as in the past, is in compliance with all applicable laws, regulations, The approach to reporting we and standards. have adopted balances the need to communicate effectively through In preparing this Report we have drawn concise, relevant information (to a on concepts, principles and guidance large and diverse stakeholder group), given in the following where applicable: while at the same time providing comprehensive compliance-related – Global Reporting Initiative (GRI) disclosures (that would interest only Sustainability Reporting Guidelines a few). Our Annual Report thus is GRI Standards presented in two primary formats. – International Integrated Reporting Framework (IIRC) – Smart Integrated Reporting Methodology™ 2018 Annual Report | Scan to view the A concise integrated annual report This Annual Report is also Sri Lanka Telecom PLC PLC Telecom Sri Lanka Online report in print, PDF and CD formats available on our website http://slt.lk/en/about-us/investors/financial-reports/annual 03 ABOUT SLT Sri Lanka Telecom PLC Group structure (“SLT” or the “Company”) is the national Information and Communications Technology (ICT) solutions provider and the leading broadband and backbone infrastructure services provider in 100% 99.99% Sri Lanka. For over 160 years, SLT has been enabling SERVICES SLT VisionCom (Private) Limited Sri Lanka Telecom opportunities and fulfilling IPTV support services (Services) Limited the dreams and aspirations Network solutions for corporate customers and small businesses of all Sri Lankans – from delivering basic connectivity 100% 100% to an ever-evolving range of applications that distinguish the ICT Mobitel (Private) Limited SLT Digital Info Services Mobile service provider industry today. Today, SLT (Private) Limited is on a transformational Directory information, event management & activations and journey to transition from 87.59% digital services a communications service provider into a digital service 99.94% eChannelling provider and become the Software development and nation’s preferred digital ICT service provider – Healthcare industry lifestyle provider. Sky Network (Private) Limited Wireless broadband operations 100% 100% SLT Human Capital Solutions (Private) Limited 2018 Total HR solutions provider SLT Campus (Private) Limited Higher education services 100% 40% Annual Report | SLT Property Management Galle Submarine (Private) Limited Cable Depot (Private) Limited Managing SLT’s Submarine cable depot real estate resources service provider Sri Lanka Telecom PLC PLC Telecom Sri Lanka 04 About SLT Principal lines of business One of the SLT Group’s key strategic With this introduction and being objectives is to drive adoption of the only 4.5G/4G+ Mobile Network The Sri Lanka Telecom Group provides broadband-based consumer and in Sri Lanka, SLT Mobitel possesses diversified services and an entire range enterprise services by expanding the the fastest broadband speeds in the of ICT solutions that cover fixed and broadband footprint through the Next country. The award received from mobile telephony, broadband, data Generation Network (NGN) and National Ookla Speedtest for being the Fastest services, Internet Protocol Television Backbone Network (NBN). These Mobile Network in Sri Lanka attests to (IPTV), cloud computing, hosting efforts are supplemented by an array SLT Mobitel’s unparalleled broadband services, and networking solutions of technologies including optical fibre, network experience. to its varied customers via the latest ADSL2+, VDSL2, carrier-grade Wi-Fi, technologies. and both fixed and mobile 4G LTE Further Mobitel was the first to deploy technologies. The Company also uses its a Sub-1G Mobile Broadband Network by The SLT Group primarily focuses on multiple international submarine cable using 900MHz spectrum in Sri Lanka. three operating segments which are the networks to offer state-of-the-art global In the year 2018 Mobitel commenced Group’s strategic segments: services, securing its position as a key rolling out its largest ever 4G LTE y Fixed ICT operations global player in the telecom industry. Expansion Project with over 1,600 LTE sites across the nation together with y Mobile ICT operations Mobile ICT operations VoLTE (Voice over LTE) service which y Other segment operations enables the ability to make high quality Sri Lanka Telecom Mobitel (Private) voice calls over the LTE network for its Fixed and mobile ICT operations Limited (Mobitel), a fully-owned customers. constitute the SLT Group’s core subsidiary of SLT, offers mobile ICT business. In 2018, they collectively services including mobile telephony Leading the way in 5G in Sri Lanka, accounted for 95% of revenue, 98% of services, high-speed broadband, Mobitel publicly demonstrated total assets, and nearly 100% of capital enterprise solutions, international Sri Lanka’s first 5G Massive MIMO expenditure of the SLT Group. services, and a range of value-added deployment over 3.5GHz spectrum. services. SLT Mobitel has been the Products and markets pioneer in South Asia: Taking another innovative step towards y To launch a Super 3.5G HSPA network the digital transformation,
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