Axiata sees Sri Lanka emerging as digital investment hub says Group CEO
Daily FT: Axiata Group Berhad Group CEO/Managing Director Vivek Sood said the Malaysian telecoms giant remains committed to Sri Lanka as a long-term strategic investment destination, despite challenges and market exits elsewhere in the region, citing the country’s digital ambitions, talent base and regulatory openness as decisive factors.
Speaking at the Sri Lanka Economic Summit last week, Sood said Axiata’s investment decisions are never driven solely by shareholder returns, but by a broader ‘return to stakeholders’, shaped by a country’s vision, regulatory stability, market structure, macroeconomic signals and the strength of local talent.
“Every business has to decide where to put its capital. For us, the decision is always based on not just profit to shareholders. It’s the returns to the stakeholders. That starts with the vision of the Government, the regulatory environment, the macro situation, the opportunity and the level of talent,” he explained.
Sood noted that Axiata is a long-term strategic investor, insisting that telecom infrastructure is a 10–15-year investment horizon. “We are not fly-by investors coming to monetise and leave. Some markets we exited because the market structure wasn’t conducive or the Government’s future vision wasn’t very clear. In Sri Lanka, it’s different,” he said.
He identified several reasons the group continues to see Sri Lanka as a long-term play, beginning with the Government’s digital economy vision, including its stated commitment to attract $ 15 billion in investments by 2030. “Connectivity plays a very important role in enabling that digital economy. We believe we can add value not just to the Government’s vision, but to society in healthcare, financial services, education and more,” Sood said.
He also cited Sri Lanka’s market scale and structure, the population’s appetite for innovation, and what he described as a constructive regulatory culture. “There are challenges in every market,” he acknowledged. “But what we find attractive is the willingness to consult and have a dialogue. If you have that willingness to discuss and debate, you find solutions that are long-term and value-accretive.”
Axiata, which owns Dialog Axiata, has used Sri Lanka for decades as a test bed for new technologies, including early rollouts of 2G, 3G, 4G and now 5G trials. Sood said the country’s talent and mindset were central to those decisions. “The desire of Sri Lankans to innovate and try out new things is an attractive proposition,” he added.
OSL take:
Sri Lanka’s ongoing economic activities and overall economic expansion have opened many business/investment opportunities in the country, especially in the digital industry. The fast-evolving global digital industry and the need for Sri Lanka to be on par with the latest developments on its path towards becoming a hub in the South Asian region have expanded business/investment opportunities in Sri Lanka’s digital industry and related sectors. Realizing the need for fast expansion of Sri Lanka’s digital industry and related sectors, the government of Sri Lanka has already launched an aggressive digitization drive covering all sectors of the country as part of transforming the country into a digital economy. Also, the growing business potential in Sri Lanka’s digital industry and related sectors is evident by the growth and profits recorded by businesses already engaged in the industry as well as by the increasing number of joint ventures and partnerships being formed between local businesses and foreign businesses. Given all these developments and the statement by a key figure in the global digital industry about Sri Lanka becoming a digital investment hub, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s digital industry and related sectors.
| Article Code : | VBS/AT/20251211/Z_3 |