Reliance Industries’ Telecom Arm Eyes Strategic Entry into Sri Lankan Market
Jio Platforms, the telecommunications subsidiary of Reliance Industries, has formally communicated its interest in acquiring a stake in Sri Lanka Telecom PLC, the state-owned telecommunications company. The financially burdened Sri Lankan government, seeking to alleviate economic strain, has initiated the privatization of various sectors, including telecommunications, as a means of generating funds. Proposals were invited from potential investors starting November 10, and post the January 12 deadline, the Sri Lankan government identified Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the three potential bidders.
In an official press release, the Sri Lankan government outlined that the evaluation process will adhere to the “Special Guidelines on Divestiture of State-Owned Enterprises,” approved by the Cabinet of Ministers. This move aligns with the country’s commitment to International Monetary Fund (IMF) programs, which advocate for the privatization of non-core sectors.
Jio Platforms’ interest in Sri Lanka Telecom signifies a strategic move to establish a foothold in the neighboring market. According to brokerage firm BofA, Jio Platforms is currently valued at $107 billion. In a recent note, BofA expressed expectations that Jio Platforms will continue to gain subscribers throughout the year, emphasizing advancements with its feature phone, JioBharat, and the wireless broadband device, JioAirFiber.
