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Financial Reports
  Annual Report of the Board of directors for the year    ended 31 december 2008
  Statement of the Directors’ Responsibility for the    preparation of Financial Statements
  Audit Committee Report
  Independent Auditors' Report
  Income Statement
  Balance Sheet
  Consolidated Statement of Changes in Equity
  Cash Flow Statement
  Notes to the consolidated Financial Statements
  Ten Year Progress
 
 
Page   
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
15. Property, Plant & Equipment
Group
 

Freehold
land

Freehold
buildings

Ducts, cables and other
outside plant

Telephone exchanges

Transmission equipment

Other fixed assets Capital work-in- progress Total

At 1 January 2007

Cost

337

1,943

68,736

18,532

27,287

9,988

3,978

130,801

Accumulated depreciation

–

(345)

(46,438)

(10,879)

(12,943)

(5,994)

–

(76,599)

Net book amount

337

1,598

22,298

7,653

14,344

3,994

3,978

54,202

Year ended 31 December 2007

Opening net book amount

337

1,598

22,298

7,653

14,344

3,994

3,978

54,202

Additions at cost

–

–

176

16

986

1,896

6,861

9,935

Transfers from capital work-in-progress

10

290

1,170

214

3,799

191

(5,674)

–

Disposals at cost

–

–

–

–

(30)

(40)

–

(70)

Adjustments

–

(35)

2

–

(40)

70

–

(3)

Accumulated depreciation on disposal

–

–

–

–

8

29

–

37

Depreciation charge

–

(52)

(4,970)

(1,254)

(2,351)

(1,593)

–

(10,220)

Closing net book amount

347

1,801

18,676

6,629

16,716

4,547

5,165

53,881

At 31 December 2007

Cost

347

2,197

70,084

18,762

32,002

12,105

5,165

140,662

Accumulated depreciation

–

(396)

(51,408)

(12,133)

(15,286)

(7,558)

–

(86,781)

Net book amount

347

1,801

18,676

6,629

16,716

4,547

5,165

53,881

Year ended 31 December 2008                

Opening net book amount

347

1,801

18,676

6,629

16,716

4,547

5,165

53,881

Additions at cost

–

–

162

70

2,854

1,482

9,117

13,685

Transfers from capital work-in-progress

–

179

836

–

4,656

1,339

(7,010)

–

Disposals at cost

–

–

(79)

–

(5)

(119)

–

(203)

Write-offs at cost

–

–

(1,089)

–

–

–

–

(1,089)

Adjustments

–

(43)

(62)

(79)

128

30

14

(12)

Accumulated depreciation on disposal

–

–

58

–

3

91

–

152

Accumulated depreciation on write-offs

–

–

1,089

–

–

–

–

1,089

Depreciation charge

–

(56)

(4,130)

(1,246)

(3,219)

(1,780)

–

(10,431)

Closing net book amount

347

1,881

15,461

5,374

21,133

5,590

7,286

57,072

At 31 December 2008

Cost

347

2,332

69,847

18,733

39,659

14,839

7,286

153,043

Accumulated depreciation

–

(451)

(54,386)

(13,359)

(18,526)

(9,249)

–

(95,971)

Net book amount

347

1,881

15,461

5,374

21,133

5,590

7,286

57,072
                 
Company
 

Freehold
land

Freehold
buildings

Ducts, cables and other outside plant

Telephone exchanges

Transmission equipment

Other fixed assets Capital work-in- progress Total

At 1 January 2007

Cost

337

1,943

68,586

18,532

14,542

9,368

3,198

116,506

Accumulated depreciation

–

(345)

(46,256)

(10,878)

(8,812)

(5,582)

–

(71,873)

Net book amount

337

1,598

22,330

7,654

5,730

3,786

3,198

44,633

Year ended 31 December 2007

Opening net book amount

337

1,598

22,330

7,654

5,730

3,786

3,198

44,633

Additions at cost

–

–

176

16

90

1,705

3,615

5,602

Transfers from capital work-in-progress

10

290

1,170

214

353

191

(2,228)

–

Disposals at cost

–

–

–

–

–

(17)

–

(17)

Adjustments

–

(35)

2

–

(40)

72

–

(1)

Accumulated depreciation on disposal

–

–

–

–

–

17

–

17

Depreciation charge

–

(52)

(4,970)

(1,254)

(1,119)

(1,489)

–

(8,884)

Closing net book amount

347

1,801

18,708

6,630

5,014

4,265

4,585

41,350

At 31 December 2007

Cost

347

2,197

69,934

18,762

14,944

11,321

4,585

122,090

Accumulated depreciation

–

(396)

(51,226)

(12,132)

(9,930)

(7,056)

–

(80,740)

Net book amount

347

1,801

18,708

6,630

5,014

4,265

4,585

41,350

Year ended 31 December 2008

Opening net book amount

347

1,801

18,708

6,630

5,014

4,265

4,585

41,350

Additions at cost

–

–

162

70

4

1,196

3,965

5,397

Transfers from capital work-in-progress

–

179

836

–

377

1,339

(2,731)

–

Disposals at cost

–

–

(79)

–

–

(39)

–

(118)

Write-offs at cost

–

–

(1,089)

–

–

–

–

(1,089)

Adjustments

–

(43)

(62)

(79)

128

30

14

(12)

Accumulated depreciation on disposal

–

–

58

–

–

24

–

82

Accumulated depreciation on write-offs

–

–

1,089

–

–

–

–

1,089

Depreciation charge

–

(56)

(4,130)

(1,246)

(1,111)

(1,667)

–

(8,210)

Closing net book amount

347

1,881

15,493

5,375

4,412

5,148

5,833

38,489

At 31 December 2008

Cost

347

2,332

69,697

18,733

15,477

13,849

5,833

126,268

Accumulated depreciation

–

(451)

(54,204)

(13,358)

(11,065)

(8,701)

–

(87,779)

Net book amount

347

1,881

15,493

5,375

4,412

5,148

5,833

38,489

                 
On 1 September 1991, the Department of Telecommunications (DoT) transferred its entire telecommunications business and related assets and liabilities to SLT. A valuation of the assets and liabilities transferred to SLT was performed by the Government of Sri Lanka. The net amount of those assets and liabilities represents SLT's Contributed Capital on incorporation, and the value of property, plant & equipment as determined by the Government of Sri Lanka valuers was used as the opening cost of fixed assets on 1 September 1991 in the first statutory accounts of SLT.

Further, SLT was converted into a public limited company, Sri Lanka Telecom Limited (SLTL), on 25 September 1996 and on that date, all of the business and the related assets and liabilities of SLT were transferred to SLTL as part of the privatisation process.

(a) The cost of fully-depreciated assets still in use as at 31 December 2008 was Rs. 32,725 million
(2007 - Rs. 22,545 million).

(b) No assets have been mortgaged or pledged as security for borrowings of the Company. However,
Mobitel (Pvt) Limited, a subsidiary of the Company, has pledged its assets at a value of
Rs 4,298 million as at 31 December 2008 for bank borrowings [Note 22 (h)].

(c) The Directors believe that the Company has freehold title to the land and buildings transferred on incorporation (Conversion of SLT into a public limited company on 25 September 1996), although the vesting orders specifying all the demarcations and extents of such land and buildings have not been formally issued.

(d) The property, plant & equipment is not insured except for third party motor vehicle insurance. An insurance reserve has been created together with a sinking fund investment to meet any potential losses with regard to uninsured property, plant & equipment. At the balance sheet date, the insurance reserve amounted to Rs. 236 million (2007 - Rs. 204 million) (Note 27). The sinking fund investment is included under cash and cash equivalents [Note 21 (a)].

(e) Additions include assets costing Rs. 13 million (2007 - Rs. 33 million) obtained under finance leases (where the Group/Company is the lessee).

(f) The property, plant & equipment includes motor vehicles acquired under finance leases, the net book value of which is made up as follows:
  Group Company
  2008 2007 2008 2007
Cost 56 43 56 43
Accumulated depreciation (16) (8) (16) (8)
Net book amount 40 35 40 35
 
 
 
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