Sri Lanka Telecom spinning off Mobitel within the year

Sri Lanka Telecom spinning off Mobitel within the year

Sri Lankan number two Mobitel is set to be spun off from its parent firm, the state-owned Sri Lanka Telecom.

The country’s government is divesting its interests in several state-owned businesses in order to narrow the focus of its investment portfolio. This move is intended to raise around $1 billion that will go towards paying down some of the country’s debt.

The government is looking to shift some or all of its 49.5% stake in Mobitel at some point this year, and will list its holding on the Colombo Stock Exchange, although details have not yet been disclosed.

Mobitel has been a subsidiary of STL for over 14 years, and brings in 45% of the parent firm’s total revenue. It is the country’s second largest operator with a 22% market share, significantly lower than the 46% share enjoyed by market leader Dialog Axiata.

The operator is in the process of building out its network to cover 100% of Sri Lanka’s population; it currently has 3,300 base stations across the island nation and is aiming to boost this number by 2000.

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