Sri Lanka telecom FDI: Is this the high point?

Posted on August 26, 2008 / 3 Comments

Meeting the traget of a billion dollars of FDI in 2008 seems to rest on foreign investment continuing at a high rate in telecom. After all, in the first half of the year, telecom brought in USD 291 million, out of a total of USD 425. However, the increasing hostility to the sector driven by the JHU plus the decline in people’s buying power pulled down profits last quarter. The largest mobile operator, Dialog, stated that its capital expenditures for the coming year will be cut by about 25 percent at an investment briefing recently.

One cannot draw conclusions from one quarter, but do not be surprised if the first half of 2008 turns out to be the high point of investment in the sector.

3 Comments

TheWhackster
August 27, 2008, 9:42 am
Well I don’t want to sound like a broken record (to those of you in the telecom sector), but Airtel is yet to fully launch into SL. and even though their predicted USD 200 Million investment over 18 months might have been downscaled, we are still looking at a significant investment from them. they have already set up basic firm infrastructure and also started on their main coverage network infrastructure as well. They could speed it up in the latter half and make up the deficit you mentioned.
Rohan Samarajiva
August 27, 2008, 6:25 pm
Why Airtel is so late in offering services is a mystery.

The general inhospitable conditions would affect their investment decisions as well.
Tatiana
October 22, 2008, 10:33 pm
Very useful post. where can i find more articles about ka telecom FDI: Is this the high point? at LIRNEasia ?