Sri Lanka Telecom faces cost-cutting restructure

Sri Lanka Telecom faces cost-cutting restructure

State-owned operator Sri Lanka Telecom (SLT-Mobitel) is reportedly facing a massive restructuring as the government announced plans to cut costs.

Local media quoted sources in the finance ministry, saying the government is planning to make the operator an efficient and accountable business enterprise, delivering connectivity services across Sri Lanka.

It has been reported the government is concerned the state-owned operator failed to reach objectives and maximising its budget, and optimising its use of government resources to become a commercially viable company.

The operator is running on a profit, in its 2021 yearly report the operator stated LKR12.16 billion (US$38 million) in profit after tax, up from LKR7.9 billion in 2020.

Sri Lanka has faced recent economic turmoil as citizens faced inflation rates as high as 50% in 2022, which led to protests across the country.


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