Sri Lanka Telecom : Annual Report 2021

2 |Sri Lanka Telecom PLC

CONTENTS

About the Report ............................... 3

About Us ............................................ 4

Our Socioeconomic Impact ............... 6

Digital Innovator ................................ 6

Our Coverage .................................... 8

Group Structure ............................... 11

Performance Highlights ................... 12

2021 at a Glance ............................. 14

EXECUTIVE REVIEWS

Group Chairman's Message ............ 16 Group Chief Executive Officer's

Message .......................................... 20 Chief Executive

Officer's Message ............................ 24 Chief Operating

Officer's Review ............................... 26

Board of Directors ........................... 28

Executive Management ................... 33

Subsidiary Chief Officers ................. 42

FINANCIAL STATEMENTS

Independent Auditors' Report .................... 119 Statement of Profit or Loss and Other

Comprehensive income ............................... 123

Statement of Financial Position ................... 124 Consolidated Statement of

changes in Equity - Group ........................... 126 Consolidated Statement of

changes in Equity - Company ..................... 127

Statement of Cash Flows ............................. 128 Notes to the Financial

Statements .................................................. 129

SUPPLEMENTARY INFORMATION

Investor Information ...................... 199

GRI Index ....................................... 207 Notice of Annual

General Meeting ........................... 214

Form of Proxy ................................ 215

CORPORATE GOVERNANCE

Corporate Governance .................... 46

Audit Committee Report ................ 55 Remuneration and Nomination

Committee Report ........................... 58 Report of the Related Party

Transactions Review Committee ...... 60

Sri Lanka Telecom PLC | Annual Report 2021

STRATEGY & ENTERPRISE RISK MANAGEMENT

Our Business Model ........................ 62

Operating Environment ................... 64

Responsive to Stakeholders ............ 67

Strategy ........................................... 70

Determining Material Issues ............ 71

Enterprise Risk Management ........... 72

CAPITAL REPORTS

Financial Capital .............................. 78

Social and Relationship Capital ....... 84

Manufactured Capital ...................... 92

Human Capital ................................. 96

Our Employee Profile ...................... 96

Natural Capital .............................. 104

Intellectual Capital ......................... 107

Annual Report 2021

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ABOUT THE REPORT

ABOUT OUR REPORT

Sri Lanka Telecom's 9th Annual Integrated Report presents a composite view of its performance for the financial year ending 31st December 2021, clearly setting out the financial, environmental, social and governance aspects, evidenced with appropriate metrics. It follows up on the progress reported in the previous annual report for the financial year ending 31st December 2020 which is available for download atwww.sltmobitel.lk.

REPORTING FRAMEWORK

This report is prepared in compliance with the below given regulatory and voluntarily adopted frameworks.

SCOPE & BOUNDARY

The report provides financial and non-financial information of Sri Lanka Telecom PLC and its 9 subsidiaries. Information relating to the Group and the Company is duly identified where relevant to provide clarity.

It focuses on material themes that can significantly impact the Group's ability to create value over the short, medium and long term which are set out on page 71. The report adopts a multi capital reporting approach in line with the Framework.

ASSURANCE

Assurance on Financial Statements are provided by Ernst & Young while assurance on non-financial information has been provided by GCEO/DIRECTOR, CEO and relevant Management personnel.

FORWARD LOOKING STATEMENTS

We have provided forward looking statements based on our assessment of the Group's ability to create value. These rely on trends observed and external forecasts and existing policy environment. As the operating environment remains fluid with high levels of uncertainty, these are subject to change and investors are advised to seek updated information at the time of reading the report. All forward looking statements are provided without recourse or any liability whatsoever to the Board or other preparers of the Annual Report due to the reasons enumerated above.

PRECAUTIONARY PRINCIPLE SLT Group is committed to taking cost effective measures to prevent environmental degradation where there are threats of serious or irreversible damage despite lack of full scientific certainty in compliance with

VOLUNTARY

Integrated Reporting Framework published by IIRC

GRI Standards issued by the Global Reporting Initiative

Code of Best Practice on Corporate Governance issued by the Institute of Chartered Accountants of Sri Lanka

principle 15 of The Rio Declaration on Environment and Development.

RESPONSIBILITY

The Management of the Sri Lanka Telecom PLC has prepared and reviewed the Integrated Annual Report for the financial year 2021.

The Board and the management of Sri Lanka Telecom acknowledges its responsibility to provide a balanced view of its performance in 2021, addressing all material issues as at the date of the report.

The report is signed on behalf of the Board by

Rohan Fernando Chairman

Mohan Weerakoon. PC Audit Committee Chairman

Janaka Abeysinghe

Chief Executive Officer

WHAT WE CHANGED THIS YEAR

• 1. We redefined our capitals in line with the 6 capitals set out in the Framework

• 2. Improved presentation to enhance readability of the report.

We welcome feedback on this report which can be directed to:

Mr.Mahesh Athukorale

Group Company Secretary Sri Lanka Telecom PLC Lotus Road, Colombo 01 Sri Lanka

Tel: [phone]

Email:[e-mail]