Jio Is Seeking to Purchase Government Shares in Sri Lanka Telecom PLC

The largest telecom company in India, Jio Platforms, has indicated interest in purchasing the government's holding in Sri Lanka Telecom PLC. Due to the government's and the telecom company's precarious financial situations, Sri Lanka is actively seeking to privatize state-owned businesses. This will assist the nation in creating jobs and progressively strengthening its economy. Jio Platforms is seeking to invest in a global telecom business in preparation for its impending IPO (Initial Public Offer), which would mark the company's independence.

At present, Global Telecommunications Holdings, based in Amsterdam, owns 44.9% of the corporation, while Sri Lanka's Secretary of the Treasury owns over 49.5%. The public owns the very small amount of remaining equity. Jio already has the experience growing a telecom business from the ground up to become the biggest service provider in a country like India, where the regulatory environment and statutory obligations are difficult to navigate.

According to a MoneyControl article, Colombo had started accepting offers for its share in Sri Lanka Telecom PLC on November 10. As to the latest press release issued by the government of Sri Lanka, Jio Platforms is among the three prospective bidders that have indicated their interest in obtaining a portion of the national telecom service provider.

Jio's interest in Sri Lanka Telecom Plc demonstrates the company's goal of expanding both domestically and globally. On January 19, 2024, Reliance Industries is scheduled to release its quarterly results. When it comes to wireless subscriber market share in India, Jio leads the competition, with Bharti Airtel coming in second. With over 450 million wireless customers under its belt, Jio's numbers are rising with each passing quarter.