Sri Lanka Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: October 2024

Report Pages: 150

Analyst: Henry Lancaster

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Summary
Table Of Contents

Sri Lanka’s telecom market continues to experience the effects of economic turmoil

Sri Lanka’s telecom sector has suffered from the various economic crises which have engulfed the country since at least 2019. Consumers have battled high inflation, and shortages of commodities including fuel and essentials such as medicine. The economy is expected to show moderate improvement in 2024 as the government works on a recovery program approved by the IMF, though GDP is still expected to contract by 1.3% in 2024. Telcos have struggled to raise sufficient revenue to fund their necessary investment in network upgrades, while Hutchison Lanka has reported a significant impairment on its assets.

One area of the telecom sector which has experienced a fall is the mobile segment. Until the start of the pandemic in 2020, Sri Lanka had a very high mobile penetration rate, which reflected the preponderance for subscribers to carry multiple SIM cards to take advantage of cheaper on-net call rates. The reduction in demand led to a sharp drop in the number of active subscribers. This continued into 2023, when the number of subscribers fell 3.1% in the year to September.

The mobile market has seen some significant consolidation in recent years. In 2018, Etisalat Sri Lanka was sold to Hutchinson and became a part of Hutchison Sri Lanka. In mid-2023, Dialog acquired Airtel Sri Lanka in a cash and share swap deal which had first been mooted in 2015. The deal reduced the market from five key players to three, and made the case for the delayed implementation of number portability stronger.

Key developments:

Regulator delays implementation of MNP until later in 2024.
Hutchison reports impairment of HK$962 million amidst Sri Lanka’s challenging market following various political and economic crises.
Dialog announces plans to shut down its 3G data network to free up spectrum and increase the capacity of its LTE network.
Dialog in talks to merge with Airtel Lanka, reducing the number of MNOs to three.
Sectoral Oversight Committee advises government not to privatise the incumbent telco SLT to raise cash.
Government increases VAT on mobile devices and increases Telecom Levy to address revenue crisis.
Report includes the regulator's market data to September 2023, telcos' financial and operating data updates to Q3 2023, updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

SLT (Sri Lanka Telecom), Mobitel, Dialog Axiata, DBN (Dialog Axiata Group), Etisalat Lanka, Hutchison Lanka (Hutch), Airtel Lanka.

Key statistics
Regional Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market
Regulatory environment

Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
Information and Communication Technology Agency (ICTA)
National Telecommunications Policy
Telecom Levy
Mobile network developments

Pricing
Mobile Number Portability (MNP)
Spectrum Road Map – 2024 – 2029

Mobile market

Mobile statistics
Mobile infrastructure

Towers
5G
4G (LTE)
3G

Mobile broadband
VoLTE
MIMO
Major mobile operators

Dialog Axiata
Mobitel
Hutchison Lanka
Airtel Lanka
Etisalat Sri Lanka

Mobile content and applications

m-Commerce

Fixed-line broadband market

Broadband statistics
National Broadband Network
Fixed-line broadband technologies

Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Fixed network operators

Sri Lanka Telecom (SLT)
Lanka Bell
Dialog Broadband Networks (DBN)

Telecommunications infrastructure

Fixed-line statistics
Domestic infrastructure
International infrastructure

Submarine

Data centres
Smart infrastructure

Internet of Things (IoT)
Smart Cities

Digital economy

e-commerce
e-government
e-Health
e-Education

School Net project
Connect To Learn Project
Nenasa 1377

Appendix – Historical data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – 2024 (e)
Table 2 – Telecom revenue by sector (LKR million) – 2010 – 2018
Table 3 – Telecom investment by sector (LKR million) – 2010 – 2019
Table 4 – Total fixed and mobile ARPU (LKR / month) – 2010 – 2019
Table 5 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 6 – Change in the number of mobile connections by type – 2021 – 2023
Table 7 – Development of mobile outgoing voice traffic (million minutes) – 2011 – 2022
Table 8 – Growth in the number of mobile towers – 2014 – 2019
Table 9 – Population coverage by type of mobile network – 2015 – 2020
Table 10 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Table 11 – Change in the number of mobile subscribers by operator (million) – 2009 – 2023
Table 12 – Change in the market share of mobile subscribers by operator – 2009 – 2022
Table 13 – Increase in the number of Dialog Axiata’s mobile subscribers, annual growth – 2011 – 2023
Table 14 – Development of Dialog Axiata’s subscribers by type (million) – 2016 – 2023
Table 15 – Development of Dialog Axiata’s revenue, capex, and net income (LRK billion) – 2009 – 2023
Table 16 – Development of Dialog Axiata’s mobile ARPU (LKR/month) – 2011 – 2023
Table 17 – Growth in the number of Mobitel’s subscribers – 2009 – 2022
Table 18 – Growth in Mobitel’s revenue and EBITDA (LKR billion) – 2009 – 2023
Table 19 – Development of Mobitel’s mobile capex – 2009 – 2020
Table 20 – Growth in the number of Hutchison Lanka’s mobile subscribers – 2013 – 2023
Table 21 – Development of Hutchison Lanka’s financial data (HK$ million) – 2017 – 2021
Table 22 – Growth in the number of Airtel Lanka’s subscribers – 2016 – 2022
Table 23 – Development of Airtel South Asia Lanka’s financial data (INR million) – 2017 – 2023
Table 24 – Development of Airtel Lanka’s financial data (LKR) – 2019 – 2023
Table 25 – Development of Airtel Lanka’s revenue by type (LKR million) – 2019 – 2023
Table 26 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Table 27 – Growth in the number of SLT’s fixed broadband subscribers – 2015 – 2022
Table 28 – Growth in SLT's fibre network length – 2014 – 2022
Table 29 – Development of SLT Group’s revenue by sector (LKR billion) – 2011 – 2023
Table 30 – Development of SLT Group’s capex by sector (LKR billion) – 2009 – 2022
Table 31 – Development of SLT Group’s profit (LKR billion) – 2016 – 2023
Table 32 – Development of DBN’s fixed broadband and fixed LTE subscriber base (million) – 2009 – 2020
Table 33 – Growth in DBN’s revenue – 2009 – 2023
Table 34 – Development of DBN’s EBITDA and net profit (LKR billion) – 2014 – 2023
Table 35 – Change in the number of fixed-line connections and penetration – 2011 – 2026
Table 36 – Change in the number of fixed-line connections by type – 2021 – 2023
Table 37 – Growth in international internet bandwidth – 2011 – 2020
Table 38 – Increase in value of internet banking transactions per capita – 2017 – 2021
Table 39 – Historic - Mobile subscribers, annual change, and penetration – 1995 – 2011
Table 40 – Historic - Dialog Axiata prepaid /postpaid subscribers (millions) – 2004 – 2010
Table 41 – Historic - Hutchison Lanka’s mobile subscribers – 2009 – 2013
Table 42 – Historic - Etisalat Sri Lanka subscribers – 2004 – 2010
Table 43 – Historic - Fixed broadband subscribers and penetration – 2002 – 2011
Table 44 – Historic - DSL subscribers – 2003 – 2014
Table 45 – Historic - WLL subscribers – 1996 – 2011
Table 46 – Historic - SLT fixed-line subscribers – 1999 – 2014
Table 47 – Historic - Lanka Bell fixed-line subscribers – 1999 – 2014
Table 48 – Historic - Fixed-line subscribers and penetration – 1995 – 2011
Table 49 – Historic - Fixed subscribers – wireline and wireless (WLL) – 2009 – 2016
Table 50 – Historic - International internet bandwidth – 1998 – 2010
Table 51 – Historic - Development of Dialog Axiata’s mobile ARPU (LKR/month) – 2007 – 2010

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Central Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Central Asia – Fixed and mobile broadband penetration
Chart 8 – Telecom revenue by sector – 2010 – 2018
Chart 9 – Telecom investment by sector (LKR million) – 2010 – 2019
Chart 10 – Total fixed and mobile ARPU (LKR / month) – 2010 – 2019
Chart 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 12 – Development of mobile outgoing voice traffic – 2011 – 2022
Chart 13 – Growth in the number of mobile towers – 2014 – 2019
Chart 14 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 15 – Change in the number of mobile subscribers by operator – 2013 – 2023
Chart 16 – Change in the market share of mobile subscribers by operator – 2009 – 2022
Chart 17 – Increase in the number of Dialog Axiata’s mobile subscribers, annual growth – 2011 – 2023
Chart 18 – Development of Dialog Axiata’s subscribers by type – 2016 – 2023
Chart 19 – Development of Dialog Axiata’s revenue, capex and NPAT – 2009 – 2023
Chart 20 – Development of Dialog Axiata’s mobile ARPU – 2011 – 2023
Chart 21 – Growth in the number of Mobitel’s subscribers – 2009 – 2022
Chart 22 – Growth in Mobitel’s revenue and EBITDA – 2009 – 2021
Chart 23 – Development of Mobitel’s mobile capex – 2009 – 2020
Chart 24 – Growth in the number of Hutchison Lanka’s mobile subscribers – 2013 – 2023
Chart 25 – Development of Hutchison Lanka’s financial data – 2017 – 2021
Chart 26 – Growth in the number of Airtel Lanka’s subscribers – 2016 – 2022
Chart 27 – Development of Airtel Lanka’s financial data – 2017 – 2023
Chart 28 – Development of Airtel Lanka’s revenue by type – 2019 – 2023
Chart 29 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Chart 30 – Growth in the number of SLT’s fixed broadband subscribers – 2015 – 2022
Chart 31 – Development of SLT Group’s revenue by sector – 2011 – 2023
Chart 32 – Development of SLT Group’s capex by sector – 2009 – 2022
Chart 33 – Development of SLT Group’s profit – 2016 – 2023
Chart 34 – Growth in DBN’s revenue – 2009 – 2023
Chart 35 – Development of DBN’s EBITDA and net profit – 2014 – 2023
Chart 36 – Change in the number of fixed-line connections and penetration – 2011 – 2027
Chart 37 – Growth in international internet bandwidth – 2011 – 2020

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – Number of telecom operator licenses by category –2021 -023
Exhibit 7 – Mobile operator licence expiry dates
Exhibit 8 – Hutch Lanka’s spectrum concessions
Exhibit 9 – Data communication operator license expiry dates
Exhibit 10 – Fixed telecom operator license expiry dates

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Sri Lanka Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Sri Lanka’s telecom market continues to experience the effects of economic turmoil

Key developments:

Companies mentioned in this report:

Key statistics

Regional Asia market comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Digital economy

Appendix – Historical data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views