Dialog to Double Sri Lankan Capacity

US$90 million more will be invested in Sri Lanka's telecom and internet sector by Malaysian communications outfit 'Telecom Malaysia'. The Company is already one of the larger investors in the island's communications infrastucture. The Government of Malaysia presently holds 40% of the Company while the balance is in private hands.

Telekom Malaysia Chairman, Tan Sri Ir. Muhammad Radzi bin Haji Mansoor signed the Agreement on behalf of the Company while Chairman/Director- General of the Board of Investment (BOI) of Sri Lanka, Mr. Arjunna Mahendran signed on behalf of the Board.

Chairman Mansoor said, "We have identified Sri Lanka as a potential growth centre in the Asian region and consider the country to be one of our best success stories outside Malaysia. Sri Lanka has an excellent human resource, an intelligent and sophisticated market and a telecom industry underpinned by forward thinking policies -this provides very fertile ground for a long term investor -our team in Sri Lanka has delivered impressive results over the last few years -today Sri Lanka has a GSM network second to none other in the region -and we are happy to make this investment with the objective of playing an even bigger role on the country's telecommunications landscape".

The US$90 million infusion brings the total lay out in 'Dialog GSM', its fully owned Sri Lankan subsidiary to US$200 million. Dialog GSM, the fourth player into to the "Mobile" network in 1995 has now become the largest mobile operator with a customer base in excess of 600,000 in all provinces.

"Malaysia is rapidly becoming a major partner of Sri Lanka in infrastructure development, and we acknowledge Telekom Malaysia's role in forging this partnership. The BOI is privileged to have Telekom Malaysia as an investor and recognizes its continued and committed track record of investment in Sri Lanka. It was with Telekom Malaysia's unifying support that infrastructure development was initiated in Jaffna and GSM coverage made possible in the peninsula, within a record 90 days of the signing of the ceasefire agreement", commented BOI Chief Mahendran.

Dialog GSM will improve its network into a dual band (GSM 900/1800) format. "Dialog GSM will thereby double its network capacity. Coverage will also be expanded in all districts with our 300 base station network being doubled", Wijayasuriya concluded."

Posted to the site on 21st April 2003