Home » Govt. receives 3 RfQs to divestiture of  Sri Lanka Telecom shares

Govt. receives 3 RfQs to divestiture of  Sri Lanka Telecom shares


Three submissions in total were received for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday. 

Accordingly, Jio Platforms Ltd. in Gujrat, India, Fortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.

On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilisation, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded yesterday. 

The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023. 

The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.

The Ministry of Finance has called for requests for qualifications (RfQs) from potential investors for the divestiture of its shares in Sri Lanka Telecom PLC (SLT).

According to the State Owned Enterprises Restructuring Unit, the deadline for the submission of proposals ended at 02:00 p.m.yesterday (12 Jan.)

A 50.23 -percent majority stake in Sri Lanka Telecom is offered to investors according to a pre-qualification call by the island’s State Enterprise Restructuring Unit.

Prospective investors must apply by December 18. Successful candidates will be selected by January 05 and given tender documents.

Sri Lanka’s ruling Sri Lanka Podujana Peramuna has hinted that it does not agree with President Ranil Wickremesinghe on the matter of privatizing Sri Lanka Telecom, the national telecommunications services provider in the island nation of just over 22 million people.

In March 2023, the Cabinet of Ministers granted their approval in principle for the divestment of major shareholding in Sri Lanka Telecom PLC.

Sri Lanka Telecom PLC in a letter to the Colombo Stock Exchange noted that the Treasury Secretary has informed the Board of Directors of SLT that the Cabinet of Minister granted its approval in principle for the divestment of the state held by the Secretary to the Treasury in SLT.

It added that the divestment will be implemented by the State-Owned Enterprise Restructuring Unit established under the Ministry of Finance.

However, two months later in May 2023, the Sectoral Oversight Committee on National Security said it will NOT recommend privatizing Sri Lanka Telecom, as matters sensitive to national security could be exposed.

 Later the same day (9th May 2023), The President’s Media Division issued a statement noting that the Government has focussed its attention to the Sectoral Oversight Committee report, emphasizing the concerns surrounding the potential risk to national security resulting from the privatization of Sri Lanka Telecom.

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