Sri Lanka’s Mobile Market Enters the 5G Era After Consolidation

Sri Lanka’s telecoms market has moved through a difficult period since the economic crisis of 2022, when operators had to deal with currency depreciation, higher energy costs, power shortages and weaker consumer spending. The market now appears to be stabilising, but growth is no longer coming from basic mobile adoption. Instead, the story is increasingly about consolidation, mobile broadband usage, spectrum, and the first phase of commercial 5G.

According to data from GSMA Intelligence, by late 2025, Sri Lanka had 30.3 million cellular mobile connections, equivalent to around 130% of the population. That high penetration reflects the familiar pattern of multiple SIM ownership rather than universal individual adoption. At the same time, the total number of connections fell slightly, down by 314,000 or 1.0% during 2025, suggesting a saturated market still shaped by economic pressures.

On the technology side, the market continues to shift towards higher-speed networks. Around 91.3% of all connections are now classified as “broadband”, meaning they operate on 3G, 4G, or 5G networks. However, this should be interpreted with caution: not all of these subscriptions actively use mobile data, as some plans remain limited to voice and SMS services.

The operator landscape has also become simpler. Dialog Axiata completed its acquisition of Airtel Lanka in 2024, reducing the mobile market to three main network operators: Dialog, SLT-Mobitel and Hutch. This consolidation gives Dialog greater scale and spectrum efficiency, but it also increases the importance of regulatory oversight to ensure competition remains healthy.

The most significant change came in December 2025, when TRCSL awarded 5G spectrum following Sri Lanka’s first spectrum auction. Dialog and SLT-Mobitel each received 100 MHz in the 3.5 GHz band, while Dialog also secured 200 MHz in the 27 GHz band for high-capacity 5G deployments. This formally moved Sri Lanka from years of trials and pre-commercial activity into the commercial 5G phase.

Dialog Axiata remains the clear market leader in Sri Lanka, with a subscriber base of over 19 million users, giving it an estimated market share of around 55–60% of mobile connections. The operator has consistently led on technology, being the first to introduce successive generations of mobile networks including commercial 5G services, and continues to expand its next-generation footprint through partnerships such as its 5G RAN deployment with Ericsson and is now leading the country’s transition to 5G, having launched commercial services with over 220 live sites initially serving more than 1.5 million users, and rapidly expanding to over 800 sites nationwide within months of launch. Dialog’s early 5G rollout is underpinned by a strong spectrum position, including holdings in both the 3.5 GHz mid-band for coverage and 27 GHz mmWave spectrum for high-capacity use cases, positioning it well for advanced consumer and enterprise applications . The operator has further strengthened its leadership through the acquisition of Airtel Lanka, enabling greater scale, spectrum efficiency, and network synergies in an increasingly consolidated market.

Hutch, the Sri Lankan operation of CK Hutchison Holdings, remains the smallest of the country’s three mobile network operators but continues to position itself as a value-focused challenger. Hutch serves around 3.6–3.8 million subscribers, giving it an estimated market share of 10–12%, and positioning it as the third-largest provider.

The operator gained scale following its 2018 acquisition and integration of Etisalat Lanka, creating a combined entity with an estimated market share of around 25–26% and establishing it as the third-largest provider, just behind SLT-Mobitel. Hutch has since focused on expanding 4G coverage, having initially launched LTE services in the Western Province in 2018 before extending its footprint across the country, particularly in densely populated areas, while maintaining a strong emphasis on competitively priced data offerings.

On the technology front, Hutch has demonstrated early 5G readiness, conducting its first live 5G trial in March 2021 at its One Galle Face experience centre after receiving a trial licence from the Telecommunications Regulatory Commission of Sri Lanka. The trial, carried out in partnership with ZTE, achieved peak speeds of around 1.8 Gbps alongside low latency performance and showcased use cases including cloud gaming, remote collaboration, and high-definition video streaming. Despite these early demonstrations, Hutch has yet to move to large-scale commercial 5G deployment, reflecting a more measured investment approach compared to larger rivals.

SLT-Mobitel, the mobile arm of Sri Lanka Telecom, has a legacy stretching back over 160 years, originating with the first telegraphic circuit between Galle and Colombo in 1858, and the country’s first international telegraph link to India.. Today, SLT-Mobitel serves an estimated 6–6.5 million subscribers, representing roughly 18–20% of the market, positioning it as the second-largest operator after Dialog.

The operator has expanded its pre-commercial 5G network to key cities including Colombo, Kandy, Anuradhapura, Galle, and Jaffna, offering both mobile broadband and fixed wireless access (FWA) services. In 2021, SLT Group CEO Lalith Seneviratne confirmed plans for a pre-commercial 5G launch using spectrum in the 3.5 GHz band allocated by the Telecommunications Regulatory Commission of Sri Lanka, initially targeting enterprise applications. Full commercial deployment is contingent on final spectrum licensing, with an estimated one-year rollout period once approvals are issued. SLT-Mobitel has earmarked around USD 100 million for 5G network deployment, in addition to approximately USD 15 million for spectrum acquisition.

Sri Lanka’s mobile market has evolved rapidly since the economic turbulence of 2022, moving from a period of consolidation and cautious investment to one of technological advancement and 5G deployment. Dialog Axiata, with its dominant 55–60% market share, continues to lead the market through aggressive 5G rollout, spectrum strength, and the integration of Airtel Lanka, securing its position at the forefront of innovation. SLT-Mobitel leverages its long-standing infrastructure legacy and strategic investment in pre-commercial 5G to maintain its role as the second-largest operator, targeting both urban and enterprise users. Meanwhile, Hutch has carved out a value-focused niche, expanding 4G coverage nationwide and demonstrating early 5G capability through trials in partnership with ZTE, positioning itself as a smaller but agile competitor.

With 5G networks now operational in key cities, and operators investing in LTE densification and spectrum refarming for wider coverage, Sri Lanka is entering a new phase of digital connectivity. While challenges such as device affordability, rural coverage, and ROI considerations remain, the combination of network upgrades, regulatory support, and market consolidation suggests that Sri Lanka is well on its way to becoming a mature, 5G-enabled mobile market, offering both consumers and enterprises faster, more reliable, and innovative mobile services.

Overall, Sri Lanka is entering a more mature phase of mobile market development. Subscriber growth is limited, the number of operators has reduced, and 5G is now moving from demonstrations to commercial service. The key questions are no longer whether Sri Lanka will launch 5G, but how quickly coverage will expand, how affordable 5G devices and tariffs will be, and whether operators can turn new spectrum into profitable consumer and enterprise services.

Related Posts: 

• Operator Watch Blog: Dialog Launches First Immersive Metaverse, Futureverse, in Sri Lanka
• Operator Watch Blog: Sri Lanka Mobile Operators struggling in face of Rising Operational Costs and Inflation 

Dialog Launches First Immersive Metaverse, Futureverse, in Sri Lanka

We may not yet have a firm definition of Metaverse but that hasn't stopped operators launching their own Metaverse. Sri Lanka's Dialog is the latest operator to announce their 'Futureverse'. The press release noted:

Continuing to spearhead technology firsts in the country and the region, Dialog Axiata PLC, launched ‘Futureverse’ – Sri Lanka’s first fully immersive, interactive and experiential Metaverse where people can shop for Dialog products and services, socialize, attend events, and play games in one persistent virtual world.

Futureverse is an immersive and interactive virtual world where users can create their own custom avatars. This virtual world will enable visitors access to all Dialog products and services available at any Dialog Experience Centre, socialize with friends, watch movies, take part in workshops, visit exhibitions, and more. Powered by immersive technologies such as virtual reality (VR) and extended reality (XR), the Futureverse, from Sri Lanka’s premier connectivity provider, extends a seemingly borderless digital realm that delivers endless experiences and possibilities, where visitors can experience a unique virtual world filled with abstract landscapes and objects. Futureverse is a fun way to spend free time while interacting with friends virtually through voice or chat.

If you do not know the difference between AR, VR, MR and XR, we suggest you check out our short video here. The following is a video of Futureverse from Dialog:

With MWC just around the corner, we will see a lot more of Metaverse action in the coming weeks and months.

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Sri Lanka Mobile Operators struggling in face of Rising Operational Costs and Inflation

Sri Lanka’s fixed-line telephony market was one of the very few in the world to experience a significant upsurge in subscriptions in 2020. While the country suffers from a relatively poor fixed-line infrastructure and a correspondingly strong mobile sector, demand for traditional phone services increased 14% in 2020.

Preliminary results suggest a further jump of up to 13% can also be expected in 2021. This will take Sri Lanka’s fixed-line penetration to levels not seen since 2013.

The most likely reason behind the market’s reversal of fortunes is the Covid-19 crisis and Sri Lanka’s ensuring lockdowns. These forced much of the population back inside and reverting to ‘traditional’ methods of communication for both voice and data services. The fixed broadband market was equally robust, growing 20% in 2020 alone. Sri Lanka possesses a relatively low number of computers per household, however, so the fixed broadband market’s success comes off a small base.

The one area of the telecommunications market that experienced a fall was the mobile segment. Up until the start of the pandemic, Sri Lanka had a very high mobile penetration rate of 155%. This near-saturation level reflected the preponderance for subscribers to carry multiple SIM cards to take advantage of cheaper on-net call rates. The reduction in demand and traffic because of the pandemic led to a sharp drop in the number of active subscriptions, down to just 135% – a 17% decline in just one year.

The market was expected to bounce back again quickly, just as soon as the country eases back on its lockdown measures and reduces travel restrictions. It will also be boosted, in 2022, by the anticipated launch of commercial 5G mobile services.

Recently, The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has approved a 20% hike in mobile, fixed voice, fixed broadband plans and VAS services, covering both pre- and post-paid customers, even though the move will up the pressure on millions of struggling Sri Lankans amid the country’s ongoing financial crisis.

This is not the first time the authorities have increased charges. In June this year, the government implemented a wave of tax reforms including a rise in VAT from 8% to 12% and an increase in the Telecommunication Levy from 11.25% to 15%.

Sri Lanka has 4 network operators:

• Dialog (owned by Axiata)
• SLT-Mobitel (owned by Sri Lanka Telecom)
• Hutch (owned by Hutchison Whampoa) merged with Etisalat
• Airtel (owned by Bharti Airtel)

2G/GSM is on 900 and 1800 MHz up to EDGE, 3G/UMTS on 2100 MHz up to DC-HSPA+ and 4G/LTE started on Dialog, SLT-MOBITEL and Hutch on 1800 MHz (B3). Now 900 (B8) and 2100 MHz (B1) is also refarmed for 4G/LTE.

Dialog Axiata, formerly known as Dialog Telecom, is the biggest mobile provider in Sri Lanka. It has the best coverage in the country at the highest rates. 4G/LTE on 1800 MHz (B3) is given out on prepaid where available without surcharge.

It's the biggest provider with almost half of the subscribers in the country. In 2020 it has covered 92% of the population with 4G/LTE and started 5G on n78 in the capital.

In March 2022 Dialog Axiata trialed a 5G Standalone (SA) network, claiming a first in the South Asian region. Having demonstrated the capabilities of the technology back in 2018, the operator has now moved to the trial phase and claimed that the deployment of 5G SA will ‘open up innumerable next-generation opportunities for enterprises and bring forth the 4th industrial revolution (4IR) that will catalyse ground-breaking innovations’.

SLT-Mobitel (formerly Sri Lanka Telecom) has a history of over 160 years, having started its operations in 1858 with the establishment of the first Telegraphic Circuit between Galle and Colombo. In the same year it established its first international Telegraph Communication between then called Ceylon, and India. 

SLT-Mobitel has expanded the footprint of its pre-commercial 5G network to the cities of Colombo, Kandy, Anuradhapura, Galle and Jaffna, offering end-users access to both mobile broadband and fixed wireless access (FWA) services.

In 2021 Sri Lanka Telecom (SLT) Group Chief Executive Officer Lalith Seneviratne confirmed that the operator was preparing to launch a ‘pre-commercial’ 5G service in mid-2021 – under the SLT-Mobitel brand – ahead of the planned allocation of mobile spectrum to support a full-blown commercial launch – which is still pending. Confirming that it is using spectrum in the 3.5GHz band, allocated by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), for the pre-commercial launch phase, Seneviratne confirmed at the time: ‘By the middle of this year, we will have pre-commercial application of 5G perhaps with few industrial vertical applications as well’. However, the official went on to stress that as the TRCSL has not yet published any details of the allocation process, the timetable is fluid. ‘The exact time of our 5G rollout will depend on the time when the telecom sector regulator issues the licence allocating spectrum. Once the licence is issued, we will invest. We will need around one year to develop the commercial application,’ he explained. SLT-Mobitel has earmarked USD100 million for its 5G rollout in the coming years, on top of a further USD15 million to acquire the spectrum.

Hutch by Hutchison Whampoa is the 4th provider in the country giving the lowest rates for data on a reasonable coverage in the populated areas mainly. In 2018 4G/LTE was launched in the Western Province to be spread nationwide.

Hutchison has bought Etisalat in 2018 and has merged the two networks. The new entity has a combined mobile subscriber market share of around 26% making it the third largest provider in Sri Lanka slightly behind SLT-Mobitel.

Hutch has held its first 5G trial event in March 2021 at HUTCH One Galle Face Premier Experience Center, achieving a data transmission speed of 1.8Gbps, which it claims is the ‘fastest’ in Sri Lanka to date, while also achieving an extremely low latency rate. Hutch, which secured a license from the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) in February 2020 for 5G trials, is working with Chinese equipment manufacturer ZTE on the next generation platform. The ‘ground-breaking’ trial reportedly included ‘several demonstrations and use cases of 5G’, such as gaming, remote meeting, and high definition video playback.

Airtel a.k.a. Airtel Lanka, by Indian Bharti Airtel is the smallest provider in Sri Lanka and started in 2009. It has a rather limited coverage in populated areas.

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) approved Bharti Airtel Lanka’s request to shut down its 3G mobile network from 26 June 2022. In a brief statement, the industry regulator said that any Airtel customers still using a 3G-enabled device would be automatically disconnected after that date. The mobile network operator (MNO) is reportedly shuttering the network to free up precious spectrum bandwidth to further develop its 4G LTE infrastructure on the island. TRCSL has given the MNO 15 months to implement the transition smoothly, noting that Airtel must ‘absorb at least 90% of its 3G subscriber base into their 4G network during the transition phase’ subject to it. They have been conducting public awareness campaigns to encourage Airtel subscribers to migrate to the 4G network ahead of 3G shutdown and taking every endeavor to provide 4G handsets for its 3G subscribers at subsidised rates payable by instalment.

Bharti Airtel Lanka has also held its latest trials of 5G technology over its commercial network, achieving download speeds of over 1.9Gbps – the highest recorded in the country to date. The MNO’s managing director and CEO Ashish Chandra noted that the operator is ramping up its 5G capabilities in Sri Lanka and added that its 4G infrastructure around the island is fully 5G ready, allowing for ‘a seamless transition to the next generation of networking’. Airtel Lanka is using trial frequency allocations in the 3500MHz band utilising 5G Non Standalone (NSA) network technology.

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Dialog Axiata: On its way to 5G after successful roll-out of commercial 4.5G

In our post back in May, we looked at the Sri Lankan mobile market. Dialog Axiata is the mobile operator with largest market share. In its 2017 annual report, it mentions that there are 3,000 2G/3G sites and over 1,500 4G sites. The 4G LTE coverage has a lot of scope for improvement.

It has also launched 4.5G, LTE-Advanced Pro features that allow download speeds in excess of 1 Gigabits per Second (Gbps).

In addition, as per the report, "Dialog Broadband Networks (DBN) serves over 700,000 individuals and corporates, providing multiple services including fixed telephony, hosted PABX offerings, broadband, internet leased lines, data communication, Internet Data Centre (IDC), converged ICT solutions, telecommunication infrastructure, transmission and backbone services. DBN commercially launched 4.5G technology in June 2017, establishing yet another milestone in the region’s broadband technology landscape featuring download speeds in excess of 100 Mbps. The fixed LTE demonstrated accelerated growth, where the customer base grew by 59% in 2017, surpassing 300,000 subscribers. DBN launched Prepaid LTE in July 2017, the only Prepaid option for Home Broadband (HBB) to cater to the mass market. Additionally, VoLTE services were launched on HBB routers by end of 2017, providing crystal clear voice solutions."

Next on stage @dialoglk Sri Lanka Indika Walpitage, Head of Networks sharing his perspective on Technical Requirements on path to 5G.#5GAsia pic.twitter.com/4CGoio5MAO

— Neil Shah (@neiltwitz) September 19, 2018

Indika Walpitage, Vice President, Network Operations & Service Assurance, Dialog Axiata shared his perspective on technical requirements on path to 5G at 5G Asia yesterday. The following are couple of pictures/slides shared by Neil Shah from Counterpoint Research on Twitter.

As mentioned above, they have already launched 4.5G which includes Massive MIMO as well.

On 5G, they are trialing with Ericsson and Huawei. In an interview with telecoms.com last month, Indika Walpitage mentioned the following:

Acquisition of larger spectrum blocks such as 100 MHz will be a challenge in Sri Lanka in the 3.5GHz band as there are occupants already using legacy wireless technologies like Wimax and other proprietary solutions. Regulations related to the use of E band and other high bands are not yet finalised in Sri Lanka. This will cause some delays in introducing commercial 5G networks locally.

Since 2G, 3G and 4G are still widely used, having to co-locate a fourth technology on existing base station infrastructure will be a challenge. There will be challenges in installing heavier antenna integrated radios into existing infrastructure.

Operators need to densify the network, especially when we deploy 5G at higher frequencies. This needs a sound business case to justify the investments and is going to be a logistically challenging task.

Deployment of fibre to all sites is essential to support the higher fronthaul and backhaul bandwidths which are needed in 5G systems. This also creates a significant challenge for operators like us.

We have been actively lobbying with the regulator to release the spectrum required to rollout 5G. In terms of infrastructure readiness we have been working proactively since the introduction of SDR based radio products by major network equipment suppliers. All new procurements are in line with 5G architecture to support upgrading to 5G. The core and transport network roadmap is being developed with 5G and its applications in mind and we are already progressing towards building cloud-based NFV and SDN infra.

We have already deployed a considerable number of massive MIMO radios in the access network. More importantly, building people skills on digitization and automation within the organization is key to success in our 5G journey. We have focused attention on this aspect.

We have realized the importance of introducing commercial 5G networks to our market as soon as the technology is ready. Currently the use case is enhanced broadband with low cost per bit, yet in the future we will see multiple use cases, mainly targeting industry automation. It’s important to work with business and technology partners to identify the needs and correct solutions while working with regulators to secure the spectrum assets. We also need to integrate with the complete 5G ecosystem to get maximum gains. Digitization and automation should be key ingredients in the 5G success formula.

Related Post:

• Sri Lanka: Competition and Controversy

Sri Lanka: Competition and Controversy

Sri Lanka is a small island nationcovering approximately 66,000 km2 in the Indian Ocean, offering access to Asia and the Middle East. The majority of its 21 million people live in the rural areas; urban residents account for just 15% of total population.

Sri Lanka’s telco industry is characterized by intense competition, with mobile operators fighting for a share of the relatively small addressable population of 21 million people.

Around 45-50% of peoplein Sri Lanka own a mobile phone now. Although this is high in comparison to most of the developing world, the figures are low in comparison to mature markets which typically see penetration rates between 60-80%. Higher rural mobile ownership and greater smartphone ownership would be key to raising the penetration rates. An important market trends is the rising use of mobile data, with most of the usage being prepaid. Operators are increasingly designing short-term, flexible tariffs in order to promote usage amongst low-mid income customer segments

However more recently mobile penetrationhad risen from 96% in 2012 to 126% in 2017. Slow to moderate growth is predicted over the next five years to 2022. The market will be constrained from higher growth due to very strong local competition and a saturated mobile market.

Sri Lanka has seen a very strong increase in mobile broadband penetration over the past five years with market penetration increasing from 8% in 2012 to 21% in 2017, driven by a rising level of mobile subscribers. However, the mobile broadband market is still at an early stage of development with penetration well below most other developed Asian countries.

The development of the internet remains of particular concern for Sri Lanka. Coverage and accessibility remains limited and the sophistication of the available services generally remained low.

However the last three years in particular have seen very strong growth led by the market leader Dialog Axiata.

At end-2017 the company reported a total of 12.797 million mobile subscribers. GSMA Intelligence placing its market shareat 45 per cent in Q1 2018.

The telco has pledged investment in high speed 4G and fixed LTE broadband infrastructure, as mobile LTE coverage reached 43% of the population at end-2017, while TD-LTE coverage was 53%. They also carried out a 5G' network capability trial with technology partners Ericsson and Huawei in Colombo.

Mobitel was the first service provider with a super 3.5G network in South Asia. Furthermore, Mobitel successfully demonstrated HSPA + MIMO technology with downlink speeds of up to 28.8 Mbps and carried out a successful trial of 4G/LTE technology with downlink speeds exceeding 96 Mbps, for the first time in the South Asian region. In addition, Mobitel recently launched Dual Carrier HSPA+ technology and it is now equipped with the country’s first mobile 4G/LTE equipment.

They currently have a 24 per cent market share according to GSMAIntelligence  and 6.8 million subscribers.

Ookla® has declared the National Mobile Service Provider, Mobitel, its Speedtest Award Winner for having the Fastest MobileNetwork in Sri Lanka.Mobitel dominates rival networks in the country in terms of network speed on broadband to emerge No. 1 in the industry. Mobitel 4G LTE technology offers users the superior experience of enjoying high definition streaming videos and Multimedia Online Gaming (MMOG).  Mobitel also recently enhanced its 4G LTE network coverage by innovatively deploying its existing 900MHz spectrum. This initiative is Sri Lanka’s first such deployment, thus significantly enhancing Sri Lanka’s 4G LTE coverage and LTE MIMO technology, making Mobitel the No.1 network in Sri Lanka.

A recent major development is the announcement that Hutch and Etisalat plan  to combine their Sri Lankan operations in a bid to better position them to serve customers in the country. The takeover would see the Sri Lankan market reduced to four from five mobile operators.

“This transaction is part of the stated strategy of portfolio optimisation of the Etisalat Group,” the pair said in a joint statement, adding CK Hutchison will have the majority and controlling stake in the new entity when the deal is complete.

The move will see the number three and four operators coming together.  GSMA Intelligence place the market share of the two companies as of Q1 2018:  Etisalat Lanka (13 per cent), Hutch Lanka (10 per cent).

The completion of the transaction is subject to conditions, including regulatory approvals.

Local reports state Etisalat’s ten year mobile operating licence in Sri Lanka expires in September.

Bharti Airtel Lanka a subsidiary of Bhari Airtel, they started operating in Sri Lanka in January 2009. According to their website they have invested of over $350 million in the Sri Lanka operations, and are the latest and fifth entrant to Sri Lanka’s telecom landscape. Their impact in the market includes the introduction of several innovative services, such as the lowest rates for voice services, per second billing, the lowest IDD rates, the lowest international voice and data roaming rates. With over 45,000 touched points established across the island, the company’s subscriber base has grown to 1.8million, located across all regions in the country.

For more on coverage available on these operator networks please see the Open Signal report.

Data provided by OpenSignal last month agrees with the analysis of Ookla that Mobitel is indeed the operator with fastest download speeds but latency of both 3G and 4G is much better in Dialog.

In March 2018 authorities completely shut down the internet in the district of Kandy , in response to acts of sectarian violence. The government blamed social media for spreading hate speech and calls to violence.

As far as researchers know, most of these shutdowns have occurred at the behest of government authorities, who order telecommunications companies to press the proverbial ‘kill switch.’

Telecommunications companies usually have little choice but to follow these orders. In some cases, they offer subscribers some explanation of the cut in service. But more often, they don't.

AFP news agency reported that Internet access has been stopped entirely to the Kandy district “after discovering rioters were using online messaging services like WhatsApp to coordinate attacks on Muslim properties”.

However blocking public communications networks is ill-advised at any time, and especially bad during a crisis, when people are frantically seeking situation updates or sharing information about the safety of loved ones.

Blocking selected websites or platforms is a self-defeating exercise in any case, since those who are more digitally savvy – many hate peddlers among them – will now use proxy servers to get around. It is the average web user who is deprived of news, views and updates. Such information vacuums can allow rumours to spread fast and wide.

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