Jio Platforms, the telecommunications subsidiary of Reliance Industries, has expressed interest in acquiring a stake in Sri Lanka Telecom PLC, the state-owned telecom company. Sri Lanka’s financially strained government is seeking to privatize sectors to generate funds, with Jio Platforms among the potential investors.
Following the January 12 deadline for proposals, the Sri Lankan government identified Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the three potential bidders. The proposals will undergo evaluation based on the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers.
Driven by the International Monetary Fund’s (IMF) directives, Sri Lanka aims to privatize non-core sectors. Jio Platforms sees the potential investment in Sri Lanka Telecom as an opportunity to establish a strategic presence in the neighboring market.
BofA, a brokerage firm, values Jio Platforms at $107 billion, anticipating continued subscriber growth and expanded market penetration with initiatives like the advanced feature phone JioBharat and wireless broadband device JioAirFiber.