IFC gives $150m in funds to Dialog Axiata PLC

Dialog Axiata PLC (Dialog), the leading connectivity provider in Sri Lanka, plans to increase broadband access nationwide with assistance from the International Finance Corporation (IFC).

With a loan from IFC of up to $150 million, Dialog will be able to upgrade current locations and build new 4G locations, increasing the capacity of its network. In order to improve the capabilities and efficiencies of its core network operations, Dialog also aims to expand the area covered by its fibre optic network and undertake modifications.

Dialog is well-positioned to effectively increase the availability of high-quality connectivity options in underserved areas of Sri Lanka because it is the country’s largest provider of telecommunications services, accounting for over 50% of both the mobile and fixed broadband markets in the island nation.

With over 32 million mobile customers, Sri Lanka has significantly increased the penetration of mobile services, with a mobile penetration rate of 149% compared to an average of 85% among its South Asian counterparts.

Sri Lanka is in the top 20 countries for broadband affordability, but its internet quality and speed are subpar, with the country’s download speed ranked 125th out of 141 countries worldwide. The market’s pronounced reliance on mobile services for data usage and the use of outmoded technologies like 3G are the key causes of this huge quality difference.