Better Financial Foundation
To put our plans into better perspective, let us examine some financial highlights for the year.

Our total revenue increased by 13%, from Rs. 19.6 billion to Rs. 22.1 billion. Operating costs increased from Rs. 8.5 billion to
Rs. 8.9 billion. Profits before depreciation rose from Rs. 11.1 billion to Rs. 13.2 billion, up by 19% over the previous year. Depreciation increased over last year, Rs. 6.86 million as against Rs. 6.3 million; we were still able to contain the quantum of increase to under a billion.

Our net profits reflect the amazing turn around we were able to achieve. From Rs. 221 million for the previous year, to Rs. 2.1 billion for the year under review.

According to current trends, the international telecommunications market has seen tariffs and revenues plummeting almost overnight. SLT experienced this adverse phenomena in late 1999 and the year 2000. Our volume of international traffic fell by almost 50% due to the prevalence of unauthorized by-pass measures in the market.

However, in 2001, SLT adopted improved commercial and technical strategies to protect itself from such by-pass, and coupled with the assistance we received from the relevant Government authorities, we were able to regain lost custom and begin to usher in considerable improvement in the overall position. We were able to earn almost double this quantum of traffic again as new business.

In the history of the international telecommunications industry, this is the first time that a right about turn of such completeness has been achieved. Indeed, it prompted our counterparts in India to liken it to "reversing the tide of the Ganges"! We also took several other far reaching measures to improve our financial well being.

A Company-wide Cost Management programme served to rationalize and reduce costs, contributing significantly to our bottom line. We increased our Network capacity thereby growing our business and reaping the resultant returns. Another significant improvement has been the increased productivity levels we were able to achieve from our Human Resource factor.

This turn of events has resulted in SLT achieving a very healthy financial position overall, and has led to a resurgence in its international services.