Dialog inks $150 m agreement with BOI

By Sanjeevi Jayasuriya

Entering the next phase of development Dialog Axiata PLC inked an agreement for $ 150 million with Board of Investment (BOI) to upgrade customer service.

"This is the seventh agreement entered with BOI in the past 15 years. We have seen multiple phases of development in the country. There has been consistency in approach to foreign direct investments. We appreciate the enabling environment, progressive regulations and facilitation which is considered as the key to move forward," Dialog Axiata, Director and Chief Executive Officer Dr. Hans Wijayasuriya said.

With this agreement, Dialog's investment in Sri Lanka will reach the $ 1.5 billion mark. There is a consistency in the flow of investments to the country and projects to upgrade infrastructure will improve the quality of service in 3,000 base stations in the country. Sri Lankan consumers will enjoy the best service in telecommunication within the region, he said.

The infrastructure projects will be implemented within 24 months and there will be a service upgrade from 3G to 4G. The investment is significant in the area of telecommunication where Sri Lanka enjoys the lowest rates in the region.

"Being one of Sri Lanka's largest foreign direct investors with a total FDI exceeding $ 1.5 billion during the past two decades is a tribute to the trust and confidence the Axiata and Dialog have in the Sri Lankan economy," Investment Promotions Minister Lakshman Yapa Abeywardena said.

The government has provided all infrastructure facilities for foreign investors to set up businesses in Sri Lanka.

A massive transformation has taken place in the country during the recent past. There will be a three-pronged strategic plan for investment promotion to woo foreign investors after reassessing the relevance of previous plans, he said.

In facing this new challenge, it is imperative that Sri Lanka strengthens its ties with India, China, and other Asian countries to seek their support to develop the country's West and East. According to the World Bank's recent 'Doing Business Index 2013' report, Sri Lanka is one of the ten economies in the world that is improving the most in the ease of doing business index and the 'easiest' among the South Asian countries, the Minister said.