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Management Discussion and Analysis
Investor Capital

Our investors constitute individuals and institutions that provide us with financial capital; seeking reciprocal returns for the short, medium and long-term. They are similarly instrumental in helping propel our operations forward into the future.

Shareholder Profile

The two main shareholders of Sri Lanka Telecom PLC (SLT) as at the year end were the Government of Sri Lanka (holding a 49.50% stake in SLT through the Secretary to the Treasury) and Global Telecommunications Holdings (GTH) N.V. which owned a stake of 44.98%. The remainder of 5.52% constitute the shares that are publicly traded on the Colombo Stock Exchange.

Government of Sri Lanka

As the primary shareholder of SLT, the Government of Sri Lanka offers many consumers a feeling of reassurance and confidence in the products and services we offer. They are thus ensured of superior quality and levels of service. This position is further meliorated by SLT’s long-standing role as a figurehead in the telecommunications sector; and its current position as the national ICT services provider.

Global Telecommunication Holdings N.V.

Global Telecommunication Holdings N.V. is the holding company of Maxis, the Malaysia-based telecommunication company. Maxis provides technical and telecommunication expertise to SLT.

Stability

The stability and long-term viability of SLT is of supreme importance, not just for our shareholders but for the entire country. Our ratings are sound, as detailed below:

Fitch ratings

National long-term rating of AAA (lka) Long-term local currency and foreign currency rating B+.

Standard & Poor’s ratings

Local and foreign currency credit rating of B+.

Investor Relations

SLT briefs its shareholders and associated parties on performance through numerous means. These include, but are not limited to; press releases, release of interim financial results, the Annual General Meeting, our web portal and announcements on the Colombo Stock Exchange. SLT’s Annual Report offers comprehensive details on all relevant financial and non-financial information.

Distribution of shares

Shareholdings Resident Non-resident Total
  No. of
shareholders
No. of
shares
  (%) No. of
shareholders
No. of
shares
  % No. of
shareholders
No. of
shares
  %
1 – 1,000 shares 9,630 2,930,181 0.16 18 7,247 0.00 9,648 2,937,428 0.16
1,001 – 10,000 shares 2,287 9,036,410 0.50 29 152,656 0.01 2,316 9,189,066 0.51
10,001 – 100,000 shares 226 4,841,839 0.27 7 212,365 0.01 233 5,054,204 0.28
100,001 – 1,000,000 shares 7 1,162,081 0.07 2 401,480 0.02 9 1,563,561 0.08
Over 1,000,000 shares 8 974,357,872 53.99 1 811,757,869 44.98 9 1,786,115,741 98.97
  12,158 992,328,383 54.98 57 812, 531,617 45.02 12,215 1,804,860,000 100.00

Categories of shareholders

Category No. of
shareholders
No. of
shares
Individual 12, 076 16,490,028
Institution 139 1,788,369972
  12,215 1,804,860,000

List of 20 major shareholders as at 31 December 2016

  Name Shareholding %
1. Secretary to the Treasury 893,405,709 49.50
2. Global Telecommunications Holdings NV 811,757,869 44.98
3. Employees’ Provident Fund 25,324,104 1.40
4. Bank of Ceylon A/C Ceybank Unit Trust 17,986,362 1.00
5. Sri Lanka Insurance Corporation Limited-Life Fund 17,713,735 0.98
6. National Savings Bank 13,158,700 0.73
7. Employees Trust Fund Board 3,302,188 0.18
8. Sri Lanka Insurance Corporation Limited-General Fund 2,041,538 0.11
9. Bank of Ceylon A/C Ceybank Century Growth Fund 1,425,536 0.08
10. Mr Vandrevala 231,500 0.01
11. The Incorporated Trustees of the Church of Ceylon 223,590 0.01
12. Bank of Ceylon No. 1 Account 214,000 0.01
13. Mr Tanaka 169,980 0.01
14. Ceylon Biscuits Limited 162,000 0.01
15. Pinnacle Trust (Pvt) Limited 160,000 0.01
16. People’s Leasing & Finance PLC/C N Jayasooriya 150,000 0.01
17. Mrs Edirisinghe 145,000 0.01
18. Sinharaja Hills Plantation (Pvt) Limited 107,491 0.01
19. Mr Van Starrex 97,638 0.01
20. Elgin Investment Limited 93,531 0.01
    1,787,870,471 99.07

Percentage of public holding as at 31 December 2016 – 5.52%.

Number of shareholders representing the public holding – 12,213.

Share price trend

2016 2015 2014 2013 2012 2011 2010 2009
Highest value (Rs.) 46.40 54.90 57.30 50.00 50.00 64.50 51.00 48.00
Lowest value (Rs.) 31.20 43.00 33.33 36.10 34.00 44.00 35.00 39.50
Last traded price (Rs.) 36.00 47.00 49.90 37.00 44.50 48.00 49.00 46.00
Market capitalisation (Rs. billion) 64.97 84.83 90.00 66.78 80.32 86.63 88.44 83.02

Trading activity

  2016 2015
No. of transactions 3,328 3,173
No. of shares traded 3,082,282 2,062,507
Value of shares traded (Rs.) 112,724,951.40 99,644,736.70

Highlights

  2016 2015
Earnings per share (Rs.) 2.65 2.06
Net assets per share (Rs.) 38.05 36.15
Gearing ratio (Debt to Rs. 1/- of total equity) 0.32 0.27
Quick asset ratio (No. of times current liabilities) 0.57 0.62
Interest cover (Earnings before interest and taxes divided by interest expense) 4.53 5.62
Dividend payout ratio (%) 33.5 43.1