Dialog Axiata and BoI sign Rs.24.6bn Investment Agreement

Published : 9:28 am  October 22, 2015 | No comments so far |  |  (501) reads | 

dialog2

Total investment by largest FDI in Sri Lanka to reach US $ 1.96bn
Dialog Axiata PLC, the largest foreign direct investor (FDI) operating under the aegis of the Board of Investment (BoI) of Sri Lanka, yesterday entered into agreements with the BoI for the investment of an additional sum of Rs.24.6 billion (US $ 175 million) in Sri Lanka’s ICT infrastructure.  

The investment agreements span a broad scope of ICT infrastructure development by the Dialog Axiata group encompassing the expansion of third generation and fourth generation high-speed broadband services alongside further development of the group’s fibre optic transmission network, international telecommunications network and digital satellite television infrastructure.

The Dialog group will also direct targeted investments towards the expansion of its digital services portfolio spanning ventures and initiatives in digital payment, commerce, education and health.

Dialog Axiata PLC is a subsidiary of Axiata Group Berhad, Asia’s second largest telco with operations in eight countries spanning Malaysia, Indonesia, Bangladesh, Cambodia, Sri Lanka, Singapore and India.  The Axiata group (formerly known as Telekom Malaysia International) has been a committed and long-term investor in Sri Lanka since 1994.

Speaking soon after the inking of the investment agreements, Axiata Group President and CEO Dato Sri Jamaludin Ibrahim stated, “The Axiata group is proud and privileged to have had the opportunity to work alongside the Government of Sri Lanka in developing the country’s connectivity sector to one of the best in the region.

Axiata is a long-term partner of Sri Lanka and as evidenced by the investment agreements entered into today, we have singular confidence in the Government of Sri Lanka and its vision for the forward development of the country’s ICT sector and economy through the prioritization of inclusive connectivity and digital infrastructure.”

The additional investment pledged through the agreements entered into with the BoI will take the total investment of Dialog Axiata to Rs.206.0 billion (US $ 1.96 billion), the highest among all FDI operating under the aegis of the BoI. In 2011, Dialog and the Axiata group secured the distinction of being the first FDI to reach a cumulative investment in excess of US $ 1 billion.

“The commitment by the Axiata group and Dialog, to enter into a new phase of its development journey with an investment of US $ 175 million demonstrates the confidence placed by this leading multi-national telecommunications provider in the growth prospects of Sri Lanka’s economy and the investment environment fostered by the BoI and adjacent agencies of the Government of Sri Lanka.
The BoI is confident that this next phase of investment embarked upon by Dialog will greatly support the thrust of the Government of Sri Lanka in enabling a digitally empowered society,” said BoI Chairman and Director General Upul Jayasuriya.

“We are most welcoming of this renewed investment thrust by the largest investor operating under the BoI. A repeat investment by an existing investor is a singular endorsement of the excellent investment environment in Sri Lanka,” he added.
In addition to leading in the sphere of FDI, the operations of the Dialog Axiata group contribute significantly to the national economy, with the taxes and levies remitted in the year 2014 alone, totalling to Rs.11.1 billion, alongside an additional Rs.13.3 billion in consumption taxes collected on behalf of the government.

“We wish to thank the Board of Investment of Sri Lanka, as well as the Telecommunications Regulatory Commission of Sri Lanka, Media Ministry and Central Bank of Sri Lanka for providing us with an exceptionally progressive enabling environment which has facilitated us in delivering an inclusive portfolio of advanced ICT services, which have in turn contributed to the socio-economic advancement of a wide spectrum of citizens and communities,” said Dialog Axiata PLC Director/Group Chief Executive Dr. Hans Wijayasuriya.

“As espoused in our investment pledge, we will continue our thrust in supporting the vision of the Government of Sri Lanka in accelerating the advancement of Sri Lanka’s digital economy through the delivery of affordable and plural available services of the highest quality,” he added.