The National Development Bank recently signed an agreement with Celltel to provide financing for the expansion of its network.
Celltel is a pioneer in cellular technology in Sri Lanka and is today the market leader in the field. It is backed by the prestigious Millicom International Cellular SA (MIC) Corp. and has a subscriber base of over 24,000.
The Rs.600 mn loan is the largest loan approval by the NDB to a single company. The Manager handling the portfolio, Kithsiri Herath says, “Telecommunications technology entails a high investment cost. But, it is a vital sector that requires development, considering the increasing demand for telephones. The country’s advancement into the information age is dependent on keeping pace with its neighbours in the region in the field of telecommunications.”
The potential for the expansion of cellular services is very high in the Sri Lankan market. Celltel because of its pioneering role and excellent positioning in the market is definitely at an advantage. The National Development Bank is pleased to finance its expansion, so the consumer and the country will benefit through the development of infrastructure facilities.
With the proposed expansion, Celltel is expected to cater upto 50,000 customers. Work on the new project commenced last year and is expected to be completed by end 1996.