Mukesh Ambani's Jio Platforms Explores Stake in Sri Lanka Telecom PLC
Mukesh Ambani, through his firm Jio Platforms, is considering a strategic move into the telecommunications market in Sri Lanka by expressing interest in acquiring a stake in Sri Lanka Telecom PLC, the state-owned telecom company of the neighboring country.
The Sri Lankan government, grappling with financial challenges, has been actively seeking to privatize various sectors to revive the economy. As part of this effort, Colombo invited applications from potential bidders for Sri Lanka Telecom PLC, and Jio Platforms, led by Mukesh Ambani, was among the three companies that expressed interest in acquiring a stake in the telecom firm, according to Moneycontrol.
In a press release issued on January 12, the Sri Lankan government officially named Jio Platforms as one of the potential bidders for the state-owned telecom company. The other two companies in contention are Gortune International Investment Holding Ltd and Pettigo Comercio International LDA. The proposals submitted by these companies will be evaluated based on the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers.
The move aligns with Sri Lanka's commitment to the International Monetary Fund (IMF) to privatize non-core sectors in the country, aiming to address the deep cash shortage that triggered anti-government protests in 2022. For Jio Platforms, an investment in Sri Lanka Telecom PLC represents an opportunity to enter and potentially dominate the global telecom market, expanding beyond its current position as the market leader among Indian telecom service providers.
Recent figures from the Telecom Regulatory Authority of India (TRAI) highlight Jio's continued success, adding 31.59 lakh mobile users in October 2023, surpassing its top competitor, Bharti Airtel.