Dialog Axiata Q1 net profit more than doubles to Rs.9.2bn

Friday May 15, 2026 6:46 pm

ECONOMYNEXT — Sri Lanka’s Dialog Axiata, a leading telecommunications company, posted a net profit of of Rs.9.2 billion for the quarter ended March 31, 2026, marking a 122.3% increase from Rs.4.1 billion recorded in the same period of 2025.

The group’s revenue grew by 9.2% year-on-year to reach Rs.47.3 billion, up from Rs.43.3 billion in the first quarter of the previous year.

Direct costs for the period were managed at Rs.20.5 billion, down from Rs.21.4 billion.

Higher revenue and lower direct cost in the quarter resulted in a gross profit of Rs.26.9 billion.

The Mobile operation remained the primary driver of top-line performance, contributing Rs.36.4 billion in revenue from external customers and generating a segment operating profit of Rs.10.1 billion.

The Fixed Telephony and Broadband segment contributed Rs.6.9 billion in external revenue with an operating profit of Rs.2.6 billion.

The Television operation saw its external revenue rise to Rs.4 billion, returning a segment operating profit of Rs.103.7 million compared to a loss in the previous year.

Dialog’s operating profit rose to Rs.12.9 billion, up from Rs.8.2 billion in Q1 2025.

Net finance costs for the quarter decreased to Rs.2 billion from Rs2.5 billion. The group also reported a net foreign exchange loss of Rs.11 million, compared to a much larger loss of Rs.247.3 million in the same quarter last year.

Basic earnings per share (EPS) for the quarter stood at Rs.1.00, up from Rs.0.45 in 2025.

Following the strong performance, the Board of Directors has proposed an interim dividend of Rs.0.70 per share for the financial year 2026.

Shares closed 6.5 percent up at Rs.37.50 rupees on Friday. (Colombo/May 15/2026)

Saturday May 16, 2026 2:48 pm

ECONOMYNEXT – Sri Lanka has imposed a temporary 50 percent surcharge on Customs Import Duty on new personal vehicles for three months effective May 16, aiming to restrict imports and reduce the depreciation of the rupee currency, Deputy Finance Minister Anil Jayantha said.

With the new surcharge, vehicle buyers who place their order within the next three months through August 15 will pay 45 percent Customs Import Duty compared to the current 30 percent.

“The objective of this tax is to delay the import of new personal vehicles by three months,” Junior Finance Minister Jayantha said.

He said the reason behind the move was due heavy import of vehicles has been leading to “unnecessary pressure on the exchange (rate).

The rupee has depreciated 4.5 percent against the US dollar so far this year as of 15 May 2026, the Central Bank data showed.

“At the same time that would leave room for opportunistic the traders and dealers as well. Because we want to protect and continue and navigate the country based on the stabilization that we have already achieved. So therefore, this increase of the imposition of surcharge is only for the three month period for limited categories of vehicle.”

“It has no reason to affect the market price. This is only for a period of three months by requesting importance to differ the importation for three months if possible. But in any case, if any importer is need of importing a particular vehicle within three months, just you have to pay this additional amount.”

He said motor bicycles, three wheelers, and commercial vehicles were excluded from the new surcharge.

“We have allowed people to import vehicles if it is essential. If the LCs (Letter of Credits) are opened up to May 15, they still can import without any additional taxes,” he said. (Colombo/May 16/2026)

Friday May 15, 2026 6:05 pm

ECONOMYNEXT – Sri Lanka will have to compromise higher economic growth if it chooses to reduce the inflation target, Central Bank Governor Nandalal Weerasinghe told a Parliament Panel this week.

The Central Bank has been formulating monetary policies based on a 5% medium term inflation target with a flexible exchange rate.

Under a new Act in 2023, the Central Bank is allowed to maintain 3%-7% inflation with the 5% medium term target decided between the Bank and the country’s Finance Ministry under a three-year agreement.

That agreement comes to an end in August and some government officials have already indicated that the inflation target should be reduced when the Finance Ministry enters into the new agreement later this year.

Governor Weerasinghe, however, says such lower targets may need more compromise.

“If we are to reduce the inflation target to 2% next year onwards, we have to very strictly tighten the monetary policy, raise interest rates unnecessarily to bring down current inflation and 5% to 2%,” Weerasinghe told the Parliament Committee on Public Finance on Thursday.

“I think that is not growth supporting. So for country like us to balance the growth and inflation, it has to be a balance between both. And we can achieve a low inflation at compromising the growth.”

“If we achieve a slightly higher inflation that will slightly support growth. So that’s where we have a consultation with the Ministry of Finance and the government to identify what is the desirable rate of growth for the country from the government’s point of view.”

“So if government says we need 5% growth and the government same says we need 2% inflation that is not consistent at the current growth. We can bring 2% down to 2%, but then we have to raise interest sales value that will have impact on the growth.” (Colombo/May 15/2026)

Friday May 15, 2026 5:25 pm

ECONOMYNEXT – There was no spot quote for Sri Lanka’s rupee on Friday after trades at 325.10 (low) and 326.00 (high) to the dollar in the day, dealers said, while bond yields closed broadly steady.

The telegraphic transfer rate for the dollar was 325.0000 buying, 332.0000 selling.

A bond maturing on 01.07.2028 closed at 9.70/80 percent, up from 9.65/75 percent.

A bond maturing on 15.12.2028 closed flat at 9.75/85 percent.

A bond maturing on 15.10.2029 closed flat at 9.95/10.00 percent.

A bond maturing on 15.12.2029 closed flat at 9.95/10.05 percent.

A bond maturing on 01.07.2030 closed at 10.12/20 percent, up from 10.05/10 percent.

A bond maturing on 01.10.2032 closed flat at 10.70/80 percent.

A bond maturing on 01.06.2033 closed flat at 10.90/11.00 percent.

A bond maturing on 15.06.2034 closed at 11.17/20 percent, up from 11.10/20 percent. (Colombo/May15/2026)

Friday May 15, 2026 4:24 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed flat on Friday, CSE data showed, with the benchmark All Share Price Index moving up a marginal 0.03 percent.

The ASPI was up 6.22 points at 22,905, while the more liquid S&P SL20 was up 0.27 percent, or 16.98 points, at 6,284.

The ASPI ended the week down 115 points from last Friday, amidst a mixed week of trading.

Positive contributors to the ASPI were Dialog Axiata (up 6.53 percent at 37.50 rupees), Hayleys (up 0.83 percent at 242 rupees), Commercial Bank (up 0.48 percent at 209.50 rupees), and Hunter and Company (up 17.46 percent at 1,588 rupees).

Ceylinco Insurance (down 2.91 percent at 3,107 rupees), Richard Pieris and Company (down 2.57 percent at 34.10 rupees), Nations Trust Bank (down 1.23 percent at 320.25 rupees), and Central Finance Company (down 1.00 percent at 247.75 rupees) were top negative contributors.

Market turnover was 2.84 billion rupees. Capital goods led turnover with 1.072 billion rupees.

Amana Bank announced a change in its auditors, with Ernst & Young departing from the role after five years. KPMG will take over the auditing responsibilities of the bank. (Colombo/May15/2026)

Friday May 15, 2026 3:54 pm

ECONOMYNEXT – PayPal services will soon be available in Sri Lanka through initial banking partners Bank of Ceylon, Commercial Bank and Sampath Bank, with more banks expected to join in the coming months.

Freelancers, entrepreneurs, small businesses, start-ups and digital service providers are likely to benefit from improved payment interoperability and secure and trusted methods of transacting with customers worldwide.

“Sri Lanka is home to a dynamic and highly skilled community of freelancers, entrepreneurs, start-ups and businesses that are well-positioned to meet growing global demand,” Nadia Syed, Senior Vice President, International Cross Border Trade and General Manager, APAC, PayPal said.

“Through our partnerships with Bank of Ceylon, Commercial Bank of Ceylon and Sampath Bank, we are supporting enhanced access to cross-border payment capabilities for customers of these banks, enabling more seamless and trusted ways to receive payments from overseas.”

The expansion of cross-border payment services would enable small businesses, start-ups and enterprises to participate more actively in global commerce.

“The SME sector, online services, e-commerce and the digital economy are all closely linked, and I believe this is a rapidly expanding sector where we can expect some of the most exciting growth opportunities,” Prime Minister Harini Amarasuriya said at a launch event.

She welcomed the initiative by Sri Lankan banks to collaborate with PayPal.

Sri Lanka’s micro, small and medium-sized enterprises are estimated to contribute approximately 52% of the country’s GDP, underscoring the importance of improving global market access for the sector.

“I think it is extremely important that online services and payments come under a more secure, legitimate and accountable system. We have seen increasing concerns globally about scams, insecure systems and dubious transactions, so establishing a globally accepted and integrated platform that ensures accountability and security is essential as we move forward.”

Representatives of the participating financial institutions highlighted the importance of these partnerships in strengthening Sri Lanka’s digital financial ecosystem, enabling compliant cross-border payment flows and improving customer access to international payment networks. (Colombo/May15/2026)

Friday May 15, 2026 12:29 pm

ECONOMYNEXT – Sri Lanka has signed agreements with Belarus on bilateral cooperation in health care and education, and a bilateral Air Services Agreement, foreign minister Vijitha Herath said.

“Pleased to sign the MoU on Health Care, marking an important step in strengthening bilateral collaboration in medical education, healthcare services and research.”

Herath, who is currently on a tour of Belarus, met Belarus Minister of Health, Aliaksandr Khajayeu, to discuss expanding cooperation in the health sector.

He also met Belarus Minister of Education A I Ivanets with whom he signed a memorandum of understanding on cooperation in higher education, and Transport Minister of Belarus, Alexei Lyakhnovich to sign a bilateral Air Services Agreement.

Herath met several other ministers and called on President Aleksandr Lukashenko during his visit.

Over 3,000 Sri Lankan medical students are currently studying in Belarus, according to Herath.

The Sri Lanka Medical Council (SLMC) recognizes Doctor of Medicine (MD) degrees from select state universities in Belarus. (Colombo/May15/2026)