EDOTCO secures first independent tower licence in Sri Lanka

EDOTCO Sri Lanka Country Managing Director Gayan Koralage (right) and EDOTCO Group Director of Governance, Risk and Compliance Datin Azzahraa Annuar 

• A milestone for Sri Lanka’s digital future

By Divya Totawatte

EDOTCO Group has become the first independent tower company licenced to operate in Sri Lanka, marking a historic step in the country’s telecommunications sector. Headquartered in Kuala Lumpur, EDOTCO is among the world’s six largest tower companies, managing more than 54,000 towers across eight Asian markets, and carrying approximately 2% of global mobile traffic.

Since entering Sri Lanka in 2015, the company has invested over $ 20 million to build 750 sites, working with all major operators and more than 300 municipal councils. The newly awarded licence from the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) is expected to accelerate network expansion, promote infrastructure sharing, and unlock sustainable investment. 

In conversation with Daily FT, EDOTCO Sri Lanka Country Managing Director Gayan Koralage, and EDOTCO Group Director of Governance, Risk and Compliance Datin Azzahraa Annuar, shared why this development is a turning point for Sri Lanka’s digital future. 

In response to why is this licence a milestone for Sri Lanka, Gayan said: “Recent amendments to the Telecom Act and regulations have allowed independent tower companies to operate under TRCSL. We are proud to have secured the telecom tower licence – and being the first to be awarded is a recognition of confidence.” 

 “Sri Lanka is at a turning point in its economic recovery following the IMF program. The amendments to the Act and the introduction of this licence represents a pivotal shift in how telecommunications infrastructure is governed, signalling regulatory clarity and policy maturity. For investors and operators, it provides the certainty needed to scale sustainably and invest with confidence.”

With Sri Lanka targeting 4G densification, 5G readiness, and rural digital inclusion, the demand for infrastructure is steep. The country will need to double its tower count from 7,000 to 14,000 and significantly boost capacity to meet surging demand – mobile data traffic alone has risen by over 60% in the past three years. Neutral-host tower companies like EDOTCO are positioned to deliver this growth faster and more cost-effectively, reducing operator capex while ensuring wider and deeper coverage.

Driving investment and innovation

A structured licensing regime also transforms towers into an investable asset class. “For investors, it signals long-term policy stability. For the industry, it creates a transparent and scalable ecosystem,” Gayan explained.

Sri Lanka’s tenancy ratio currently stands at just 1.4x, far below Malaysia’s 2.4x. “Through greater infrastructure sharing, we can close this gap, reduce duplication, lower costs, and shrink the carbon footprint. Approximately 40% of the cost per GB is infrastructure-related, and 45% is energy-related. The only sustainable way forward is sharing. On a single tower, you can have three or four tenants sharing the equipment and power system. We also need to bring the cost per GB down so that marginalized communities have a chance to be part of the digital economy. That’s the way forward.” 

“At EDOTCO Group, we are equipped with the knowledge and expertise from other markets, and we hope to help Sri Lanka achieve in half the time of what others took years, delivering faster decision-making, production efficiencies, and better service for customers and stakeholders.”

Beyond connectivity: sustainability in action

EDOTCO’s approach extends beyond digital access to environmental stewardship. At Galle Fort, a UNESCO World Heritage Site, the company recently deployed real-time air quality sensors integrated into its telecom infrastructure. This initiative provides valuable data for public health, environmental preservation and urban planning. 

“This is about using our assets for public good,” said Datin Azzahraa. “From urban planning to public health, data-driven insights add tangible value. Sustainability isn’t an afterthought for us — it’s at the core of our operations.”

EDOTCO has pledged carbon neutrality by 2030, complementing initiatives such as EV charging stations, smart street furniture, and shareable green power systems across its portfolio. Last year, EDOTCO Group was honoured with the Environmental Leadership Award at the Sustainability and CSR Malaysia Awards.

Aligning with Sri Lanka’s sustainability and inclusion goals

The company’s shared infrastructure model directly supports Sri Lanka’s green and inclusive digital vision. “Each shared site avoids the need for up to three individual towers, reducing CO₂ emissions by roughly 30-40 tons over its lifecycle. This is vital in a country where preserving ecological balance is critical. From a digital inclusion lens, shared infrastructure dramatically improves rural connectivity economics.” Datin Azzahraa explained.

EDOTCO is already extending its network into the Northern, North Central, Eastern, and Uva provinces, bringing previously unconnected communities online. Each deployment narrows the digital divide and empowers communities to participate in the digital economy.

EDOTCO envisions its role in accelerating Sri Lanka’s digital economy

The company views its role as more than just infrastructure development. By co-creating solutions with public and private stakeholders, EDOTCO aims to fuel economic growth, strengthen environmental stewardship, and create jobs, ensuring the digital economy is both resilient and inclusive.

“Sri Lanka is at a digital tipping point. While mobile penetration has surpassed 130%, coverage quality remains uneven, particularly in Tier 2 cities where 60% of users still experience speeds too low for modern applications. Robust infrastructure is critical if these communities are to be meaningfully included in the digital economy,” said Gayan.

“We are just coming out of the IMF-led economic recovery and as a country, we put our faith in three things: eradicating poverty, the ‘Clean Sri Lanka’ initiative, and building a deeply symbiotic digital economy.”

Over the next three years, EDOTCO plans to deploy more than 1,000 new towers, achieve 1,600 tenancy rollouts, install over 600 green energy systems, and integrate smart features such as CCTV, sensors, and urban analytics. Recognising that 70% of mobile data traffic happens indoors, the company will also focus on large public spaces such as malls, airports, heritage sites, and transport hubs, offering its in-building solutions.

Navigating challenges, seizing opportunities

Gayan describes Sri Lanka as a high-potential market navigating a complex economic transition. While the acute economic crisis has eased, the outlook in 2025 remains cautious, with rising tariffs, consumer spending pressure, and currency depreciation weighing on operators. These macro headwinds, combined with high energy costs, are prompting operators to prioritize network maintenance over expansion in the near term.

Despite these challenges, there are clear opportunities for long-term growth. The market is experiencing steady 4G densification and laying the groundwork for 5G migration. Studies have shown that each generational upgrade (i.e. 3G to 4G) improves GDP by 0.5-1%. Initiatives such as the Dialog-Airtel collaboration point to a shift toward infrastructure optimization, making EDOTCO’s shared tower model more relevant than ever.

Average monthly mobile data usage in Sri Lanka is around 8 GB, slightly below the regional benchmark of 10–18 GB. As digital lifestyles expand and IoT adoption grows, demand for capacity upgrades will accelerate. “Tourism too is a powerful opportunity,” noted Gayan. “With 5G, Sri Lanka can pioneer digital tourism — immersive VR and AR experiences at heritage sites, beaches, and safaris. The country’s dual challenge of economic recovery and digital transformation makes EDOTCO’s neutral-host model particularly relevant, allowing Sri Lanka to leapfrog legacy models and build efficient, scalable infrastructure.”

Harnessing AI and data-driven tools

EDOTCO has developed Network and Planning Analytics (NaPA), a proprietary geospatial analytics platform that integrates data such as operator performance, population density, and user activity to map coverage gaps. NaPA applies advanced modelling — from inter-site distance to environmental morphology — enabling data-driven decisions for rollout and upgrades. Updated quarterly, the platform also supports evidence-based engagement with operators and regulators. 

“This allows us to accurately identify where the network coverage is lacking. It benefits not only our operator customers but also regulators like TRCSL, giving them visibility of capacity gaps,” Gayan noted.

Innovation is embedded across the Group through the ENNOVATE program, which encourages employees to experiment with new technologies, including AI applications and sustainable materials. “For EDOTCO, AI is not just about buzzwords,” said Datin Azzahraa. “It is about meaningful application. From analytics to operations, our teams are trained and empowered to harness AI in ways that improve efficiency, resilience, and service quality.”

A long-term partner for national progress

The company sees itself as more than an investor: it is a long-term partner to Sri Lanka, aligning its investments with national development goals to build a resilient, inclusive, and sustainable digital backbone. “As the first independent tower licencee, we are here to help Sri Lanka leapfrog legacy models, accelerate network rollout, and deliver prosperity through connectivity,” Gayan concluded.