Sri Lanka’s Dialog Axiata gets US$ 250 million investment from Axiata Group Berhad
Axiata Group Berhad of Malaysia has signed an agreement to invest US$ 250 million (Rs. 45.3 billion) in its subsidiary Dialog Axiata PLC, Sri Lanka’s leading mobile telecom services provider, The Sunday Morning Business has reported.
Market sources have been quoted as saying by the report that this agreement was signed last Friday (14) and the cash infusion is to be made in phases by Axiata over a three-year period for Dialog’s network expansion and new product development.
This is the largest investment in Dialog by its parent since US$ 175 million (LKR 24.6 Billion) was invested in 2015 through Sri Lanka’s Board of Investment (BOI).
Axiata Group Berhad is Asia’s second largest Telco and is the largest foreign direct investor in Sri Lanka.
Dialog Group has announced its consolidated financial results for the year ended 31st December 2019 last week, continuing its growth momentum across all business segments including Mobile, Fixed Line, Digital Pay Television and International and Tele-infrastructure businesses to record a consolidated revenue of Rs. 116.8 billion, a growth of 7 percent Year-to-Date.
The Group revenue resumed growth trajectory on a Quarter-on-Quarter basis to record at Rs. 29.7 billion, up 2 percent and 4 percent Year-on-Year for Q4 2019.
OSL take:
The investment of US$ 250 million received by Sri Lanka’s Dialog Axiata is one of the largest foreign investments received by a private sector company in the country. It is also indicative of the strength and growth of Sri Lanka’s private sector. The country’s economic policies as well as the growing economy would boost confidence amongst foreign businesses/investors to engage with Sri Lanka. Also, Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/25022020/Z_7 |