Wednesday Mar 19, 2025
Wednesday Mar 19, 2025
Tuesday, 30 July 2013 00:07 - - {{hitsCtrl.values.hits}}
Group CEO/Director Dr. Hans Wijayasuriya noted that the investment was likely to benefit all customers and was not targeted for a specific group.
“We have close to 3,000 transmission sites, with which we would be able to provide a footprint of infrastructure throughout the country. We are now connecting all those sites with fibre optic cabling and part of the investment will go to complete this around Sri Lanka,” he said.
The most recent areas to be thus connected were Jaffna and the deep south. “On top of that we will ride the various generations of technology. We have islandwide coverage on 2G, of which approximately 60% is now 3G. However, it is still too early for 4G.”
Currently data accounts for around 7.5% of revenue for the company. However, judging by global standards, this is set to move close to 30% in the next three years, the CEO said. Three years from today, 3G is likely to have 100% coverage, with 4G moving to 30-40%.
“We are also channelling part of this investment towards an international cable landing station, which we announced few months ago. This will bring in the single largest infusion of international bandwidth to Sri Lanka. Construction of this will commence construction very soon and will bring in the Bay of Bengal cable to Sri Lanka.”
For the US$ 150 million investment, retained earnings due to shareholders’ large proportion will be ploughed back as has been done in previous years, Wijayasuriya said, expressing that the quantum that is ploughed back often exceeds the annual profits of the company.
“In that sense there is a large amount of shareholders funds going in. We bring a large amount of income into the country due to the international gateway operation where a lot of foreign income hits Sri Lankan books from foreign operators. We operate foreign liabilities within this natural hedge that the company has.”
Commenting on the announcement by Dialog last year on the proposed establishment of a Malaysian Ringgit-denominated Islamic medium term note program under the Shariah principle, Wijayasuriya stated that the company had not contracted the sukuk and was now negotiating alternative financing.
“We have been evaluating all the foreign borrowing options available,” Wijayasuriya said. “Taking into account strength of currencies and forward forecast of stability on currencies as well as arrangements of swapping currencies. On this basis we are now negotiating alternative financing based on a mix of using our own cash flows to fund this investment, retain earnings plus a moderate amount of foreign borrowings which would round up to an approximate 50% as to be drawn from foreign borrowing.”
Commending the Government for an enabling environment and “excellent regulatory” work, the CEO noted that the only thing consistent during the multiple phases of economic development in the country was the Government’s approach to foreign investment and foreign investors.
He added: “Our experience and that of Axiata Group is that of an enabling, facilitating environment; progressive regulation has been one of the best in the entire region, if not across all countries in which Axiata has operated.”
Such favourable advances is what prompted successive investment and introduction of the most modern technologies to the country, making Sri Lanka a flagship country in terms of telecommunication infrastructure reach.
He noted that it has today been recognised that Sri Lanka has the lowest data and high speed data rates and tariffs in the world, with the country’s voice rates are listing among the lowest in the world. “The telecom sector, looking beyond Dialog, is an industry that has reached best of class standard worldwide,” he said.
BoI Chairman Dr. Lakshman Jayaweera, while appreciating the scale of investment borne by the company, noted that Dialog’s new venture had shown the way to new promotional strategies on FDI attraction, especially in the sectors of tourism, manufacturing, IT, IT-enabled services, infrastructure and other such vital areas for the economy. “Dear Dialog, we are there to help you and Sri Lanka needs you,” he asserted.
Agreeing with Jayaweera, Investment Promotion Minister Lakshman Yapa Abeywardena and Deputy Minister Faiszer Mustapha noted that Dialog’s continued investment had become a source of strength to the country.
Dialog’s first quarter results (which ends in March) are due to be out in the next few weeks.
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