IFC Provides US$150 Million Funding Package to Dialog Axiata PLC Towards Broadband Infrastructure Development in Sri Lanka

Colombo, Sri Lanka, July 27, 2022—Sri Lanka’s premier connectivity provider, Dialog Axiata PLC

(Dialog), is set to expand and improve broadband connectivity across the country with International

Finance Corporation’s (IFC) support.

IFC’s loan of up to $150 million will help Dialog expand and improve its network capacity through the

upgrading of existing sites and the construction of new 4G sites. Dialog also seeks to increase its fibre

optic network footprint and implement upgrades to increase both capacities and efficiencies in core

network operations.



As the leading telecommunication services provider in Sri Lanka, Dialog represents over 50 percent of

both the mobile and fixed broadband market in the country and is well equipped to effectively expand

quality connectivity options to underserved areas in Sri Lanka.



With over 32 million mobile subscribers, Sri Lanka has made substantial progress in terms of penetration

of mobile services, with 149 percent mobile penetration versus an average 85 percent of its South Asian

peers. While Sri Lanka ranks amongst the top 20 countries for Broadband affordability, the internet quality

and speed has been weak with Sri Lanka ranking 125 th globally (among 141 countries) in download

speed. This significant quality gap in the market is mainly due to heavy reliance on mobile services for

data usage and use of older technologies such as 3G.



“Quality and reliable telecommunication infrastructure has a multiplier effect on a country’s economic

growth. It provides the opportunity to unlock new and innovative sources of growth and jobs—spurring

digital economy, trade, and entrepreneurship—while bringing communities closer,” said Hector Gomez

Ang, IFC’s Regional Director for South Asia. “IFC’s investment in this partnership shows our commitment

to support the development of Sri Lanka’s private sector, even amid current uncertainties.”



Speaking at the occasion, David Nai Pek Lau, Chairman of Dialog Axiata PLC said, “It is heartening to

note the continuing collaboration between IFC, Axiata and Dialog. We are grateful to IFC for their faith in

Dialog and Sri Lanka over the years, and their steadfast support to help address some of the biggest

challenges we are currently facing in our journey of advancing the country’s connectivity infrastructure in

line with our mission of empowering and enriching Sri Lankan lives and enterprises. IFC’s funding will be

critical in meeting Sri Lanka’s future digital connectivity needs, which is fundamental in helping people

and businesses flourish during these challenging times.”



Dialog, part of a leading regional telecom service provider Axiata Group Berhad, has been a longstanding

client of IFC. Apart from previous debt and equity investments in 2004 and 2007, IFC also helped

strengthen the business skills of Dialog’s retail distributors in Sri Lanka, benefitting more than 3,000 small

business owners from rural and post conflict regions of the country. Axiata Group has been a key partner

for IFC in Asia—including in Bangladesh—promoting the development of digital infrastructure and digital

economy in markets where it operates.



Commenting, Director/Group Chief Executive, Supun Weerasinghe of Dialog Axiata PLC said, “Dialog’s

association with IFC goes back to 2004, and we’re grateful for their continued confidence placed in Dialog

and Sri Lanka as a nation. Today, we’re at a crucial juncture as a country, as well as an organization.

With the support of IFC and Axiata, we are able to initiate this next phase of connectivity infrastructure

development in the country and continue our commitment to delivering uninterrupted services and world-

class technology to all Sri Lankans and Enterprises.”



IFC will also ensure that Dialog adopts an enhanced environmental and social management system

(ESMS) according to IFC Performance Standards for their mobile network deployment, in line with

Dialog’s endeavors of pursuing green connectivity, supporting global climate action goals and achieving

net-zero CO2 emission by 2050.



“The need to strengthen connectivity and accelerate growth is critical for Sri Lanka now more than ever.

With this latest investment, IFC-Dialog Axiata synergy marks yet another significant milestone in the

partnership to improve the quality of connectivity for people and businesses across the country,” said

Isabel Chatterton, IFC's Regional Industry Director for Infrastructure Asia and the Pacific. “Continuing to

harness the power of technology can help drive innovation and create better opportunities for more Sri

Lankans.”



As the sector rapidly grows and advances technologically, IFC continues to be one of the leading

development financiers in digital infrastructure across emerging markets, supporting all aspects of the

ecosystem. Over the past decade, IFC committed and mobilized more than $6.5 billion in digital

infrastructure and services, and more than $2 billion over the last two years alone. In addition to

enhancing and enabling digital infrastructure, IFC is helping its portfolio companies to align their

environmental and social practices with IFC's performance standards.

Photographed from Left to Right: Trinesh Fernando, Group General Counsel/Vice President - Group

Legal and Regulatory, Dialog Axiata PLC, Wong Hong Zhou, Group Chief Financial Officer, Dialog Axiata

PLC, Victor Antonypillai, Country Officer, IFC Sri Lanka and Maldives, Supun Weerasinghe,

Director/Group Chief Executive, Dialog Axiata PLC, David Nai Pek Lau, Chairman, Dialog Axiata PLC,

and Ahmed Riza, Head – Corporate Finance, Dialog Axiata PLC.

About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the

private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and

influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed

a record $31.5 billion to private companies and financial institutions in developing countries, leveraging

the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple

with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

About Dialog

Dialog Axiata Group, a subsidiary of Axiata Group Berhad (Axiata), operates Sri Lanka’s Leading Quad-

Play Connectivity Provider. Dialog Axiata PLC, listed on the Colombo Stock Exchange, supplements its

market leading position in the Mobile Telecommunications sector with a robust footprint and market

presence in Sri Lanka’s Fixed Telecommunications, Digital Pay Television, Digital Services, Financial

Services, and IT services markets through its subsidiaries, Dialog Broadband Networks (Private) Limited

(DBN), Dialog Television (Private) Limited (DTV), Digital Holdings Lanka (Private) Limited, Dialog Finance

PLC, and H One (Private) Limited. Dialog Axiata Group is Sri Lanka's largest Foreign Direct Investor

(FDI) with investments totalling USD 3 Billion.

 

Dialog has been at the forefront of innovation and digitisation in the mobile industry in Sri Lanka since the

late 90’s, propelling the nation’s mobile telephony infrastructure to a level of advancement on par with the

developed world. The Company delivers advanced mobile telephony and high speed mobile broadband

services to a subscriber base of over 17 Million Sri Lankans, via 2.5G and 3G/3.5G and 4G/4.5G

networks, and in December 2018, Dialog showcased the first 5G pilot transmission in South Asia.

 

The winner of six Global Mobile Awards, Dialog has the distinction of being voted by Sri Lankan

Consumers as the ‘Telecommunication Brand of the Year’ for a record eleventh year and the ‘Service

Brand of the Year’ for the third consecutive year at the SLIM-KANTAR People’s Awards 2022. The

Company was also awarded ‘Sri Lanka's Most Valuable Brand’ for the fourth consecutive year and ‘Most

Valuable Telecommunications Brand’ for the fifteenth consecutive year in the Brand Finance league table.

Dialog is an ISO 9001 certified company, which is certified with the 27001:2013 standard for its

Information Security Management System as well. The company’s Environmental Management System

also received the ISO 14001:2015 standard for its full scope of operations, becoming the first Quad-play

in South Asia to do so. Dialog has received numerous local and international awards, including the

National Quality Award and the Sri Lanka Business Excellence Award. For more information, visit

www.dialog.lk.