By: Staff Writer
September 06, Colombo (LNW): Sri Lanka’s ambitious digital-economy programme is quietly creating an enormous strategic responsibility for SLT-Mobitel. From digital identity and Government services to artificial intelligence, broadband expansion and nationwide connectivity, the State-owned telecommunications group is being positioned as one of the main pillars of the country’s technological transformation.
Digital Economy Deputy Minister Eng. Eranga Weeraratne has made clear that the Government no longer views SLT-Mobitel simply as another State enterprise. Following the decision not to proceed with the previous administration’s divestment programme, the company is now being treated as a strategic national institution.
The timing is significant because SLT-Mobitel has emerged from a difficult financial period.
The group suffered a Rs.3.9 billion loss after tax in 2023 but returned to profitability with Rs.1 billion PAT in 2025. During the latest period under review, PAT increased by 54.4% to Rs.6.6 billion, while second-quarter group PBT rose 55.8% to Rs.3.1 billion.
The Government sees this recovery as evidence that State ownership does not necessarily mean inefficiency. According to Weeraratne, the results show what can happen when strategy, leadership and organisational culture are changed.
But the bigger challenge is now beginning.
SLT-Mobitel is expected to help deliver the infrastructure required for an economy increasingly dependent on digital technology. Its 5G spectrum acquisition in the 3.5 GHz band last December is central to this strategy.
The technology could deliver faster broadband, lower latency and greater capacity for both residential and enterprise customers. More importantly, it creates infrastructure capable of supporting AI-enabled services and other data-intensive technologies.
The Government’s plans extend into almost every major sector. Education, agriculture, healthcare, transport and tourism are all being targeted for digital transformation.
A digital identity system is among the most immediate projects. The Government expects to issue the first digital ID within the coming months and move towards a fully digital identity system by August next year.
The scale of the transition is enormous. Approximately 17 million people currently holding existing identity cards are expected to migrate to the new system over roughly two years.
Without reliable nationwide connectivity, such ambitions could quickly encounter practical limits.
Sri Lanka currently has mobile coverage across about 94% of its geographical area. The Government wants to raise this to 98%, requiring an additional 600–800 telecommunications towers.
It also plans to establish minimum broadband speeds of approximately 2 Mbps throughout the country within two to three years.
This raises an important policy dilemma. SLT-Mobitel must simultaneously remain profitable, invest in expensive new technology and support Government objectives that may not always deliver immediate commercial returns.
The pressure will intensify as artificial intelligence becomes more deeply integrated into public services and the wider economy.
The Government and SLT-Mobitel are already collaborating through AI School, with a second edition planned for September-October.
Ultimately, the success of Sri Lanka’s US$15 billion digital-economy ambition may depend partly on whether SLT-Mobitel can perform these competing roles successfully.
Its turnaround has strengthened the case for retaining the company. The next challenge is proving that State ownership can deliver not merely profits, but the digital infrastructure on which Sri Lanka’s future growth depends.
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