📈 Sri Lanka SOE Profit Drops in 1H 2025, CEB Loss Offsets State Bank Gains

• Aggregate profit for 52 SOEs fell to Rs. 227.8 Bn in 1H 2025, down from Rs. 280.7 Bn in 1H 2024. • The decline was primarily due to the Ceylon Electricity Board (CEB), which swung from a Rs. 119.2 Bn profit (1H 2024) to a Rs. 13.2 Bn net loss (1H 2025) after steep electricity tariff reductions. • State Banks were the major bright spot, collectively boosting profits by Rs. 65.5 Bn. Bank of Ceylon's PBT surged to Rs. 61.1 Bn (up from Rs. 22.4 Bn), and People’s Bank reported its highest-ever half-year PBT of Rs. 28 Bn. • Other strong performances included the Sri Lanka Ports Authority (SLPA), with PBT rising to Rs. 29.2 Bn, and the National Water Board (NWSDB), up 28.3% to Rs. 17.7 Bn. • Ceylon Petroleum Corporation (CPC) profit declined 17.9% to Rs. 17 Bn, partly due to a stronger rupee and lower global prices. SriLankan Airlines reported a net loss of Rs. 10.7 Bn despite a rise in passenger volumes. • Reforms: The government is advancing structural changes, including the Cabinet approval of the Public Commercial Enterprises Bill and the restructuring of the CEB into four new entities for better governance and efficiency.