By: Staff Writer
April 01, Colombo (LNW): Sri Lanka’s digital transformation agenda has entered a decisive phase, with the resurgence of SLT-Mobitel being positioned as both proof of concept and policy justification for a stronger State role in the sector.
After a dramatic 221% turnaround in 2025 and a profit surge to Rs. 10 billion, the State-backed telecom giant is now at the center of a broader debate: can public enterprises effectively lead a nation’s digital future?
Officials argue the answer is increasingly yes. The recovery comes amid rapidly shifting dynamics in Sri Lanka’s digital economy rising data consumption, declining traditional voice revenues, and intensifying cost pressures.
The ability of SLT-Mobitel to reverse losses, reduce debt, and regain operational stability is being framed as evidence that Government-linked entities can compete in a technology-driven market.
Deputy Minister Eranga Weeraratne has been vocal in challenging past narratives that favored privatization. With private firms already accounting for nearly 75% of telecom services, the Government sees its role as strategic rather than dominant focused on safeguarding critical infrastructure, enabling secure data ecosystems, and ensuring nationwide connectivity.
This positioning reflects a deeper policy shift. Telecommunications is no longer viewed as a standalone utility but as the backbone of digital governance, economic modernization, and national security. A State-linked operator, officials argue, allows sensitive data from public administration systems to financial transactions to remain within national control.
Operationally, SLT-Mobitel’s turnaround appears rooted in tighter financial discipline and strategic recalibration.
Under the leadership of Riyaaz Rasheed, the company has emphasized cost control, infrastructure investment, and service expansion.
Its mobile arm has returned to profitability, driven by pricing adjustments and a rebound in subscriber growth, while broadband services recorded a notable 22.5% increase offsetting the decline in voice revenues due to apps like WhatsApp.
Yet, challenges remain. The telecom sector is capital-intensive and heavily exposed to foreign exchange risks. Efforts to localize operations and reduce dependence on dollar-denominated inputs signal a pragmatic shift, but sustainability will depend on continued investment and policy consistency.
On the infrastructure front, the company’s move toward a 24/7 service model supported by 14 regional maintenance centers reflects lessons learned from disruptions such as Cyclone Ditwah. Reliable connectivity is no longer optional; it is essential for economic resilience, particularly during crises.
Beyond connectivity, SLT-Mobitel is expanding into emerging domains such as artificial intelligence, cloud computing, and digital services. Initiatives like SmartChat Mega and Ceylon Remit aim to integrate SMEs and diaspora communities into the digital economy, signaling a broader ecosystem approach.
However, the larger question persists: can one company’s recovery translate into nationwide digital acceleration? While SLT-Mobitel’s performance is encouraging, Sri Lanka’s digital transformation will ultimately depend on cross-sector collaboration, regulatory clarity, and sustained investment.
The turnaround is real but whether it marks a lasting structural shift or a temporary rebound remains to be seen.