Business

The French ambassador to Sri Lanka and the Maldives, Mr. Eric Lavertu was ceremonially handed over the keys to the latest Peugeot 5008 SUV by Carmart (Pvt) Ltd recently.

Carmart (Pvt) Ltd is the sole manufacturer and authorized importer/distributor in Sri Lanka for the world-renowned European vehicle brand Peugeot.

Speaking at the event Mr. Lavertu said, "Peugeot is a very successful brand in France and across the globe. It is well known for its versatility, design and durability. It has also won many awards and car races in Europe and all around the continents."

The Peugeot 5008 is an award-winning vehicle globally and has enjoyed great success locally as well. Carmart has seen exponential growth in sales numbers of the top-selling European SUV in its range with the company recording close to 300 registrations in 2018 alone. This makes the Peugeot SUV range the most popular European brand-new SUV range in Sri Lanka.

Speaking at the ceremony, Director/CEO of Carmart Yasendra Amerasinghe said, “the 5008 continues to flourish in the SUV market globally, winning many awards for its engine, durability, practicality, and styling."

"Peugeot SUVs have created a great deal of interest in the market as these vehicles represent outstanding value for money," he added.

The Peugeot SUV range can be experienced at the Peugeot Blue Box showroom at 424 Union Place, Colombo 2, which is open seven days a week.

The Commercial Bank of Ceylon recently received the coveted Best Bank of the Year in Sri Lanka award for the ninth time at the prestigious FinanceAsia Country Awards gala. At the event held in St. Regis Hotel, Hong Kong, the Bank was represented by Mr Prins Perera, Deputy General Manager – Treasury, who accepted the award on behalf of the Bank.

The Finance Asia Country Awards are based on the respective banks’ performance, encompassing key events of the year, financial results including profits, NPL ratios, provisioning, return on equity, capital adequacy ratios, total assets, loans, deposits, branch network, vision and long-term strategy, market position versus the nearest competitor, principal sources of profit, and feedback of stock market analysts.

Cover image: Mr Prins Perera with FinanceAsia’s ‘Best Bank’ award for Sri Lanka.

Dentsu Grant Group has announced the launch of Amnet, the programmatic expert from Dentsu Aegis Network, in Sri Lanka. Amnet is a trusted source for programmatic buying and audience management solutions. Amnet comprises a team of programmatic experts from the Dentsu Aegis Network, who specialize in programmatic buying, programmatic media planning, data analytics and audience data. Amnet’s mission is to build and leverage data, in order to deliver more meaningfuland personalized messaging insights.

With the launch of Amnet, Denstu Grant Group is once again set to disrupt the status quo of digital advertising through expanding local media inventory and offering more sophisticated, customized campaigns to clients. Among othermarkets, Amnet has a presence in India, USA, UK, France, China and Hong Kong. For the record, Dentsu Grant Group is the oldest serving advertising group in Sri Lanka that was acquired by Dentsu Aegis Network, the global media and marketing communications conglomerate, in 2017.

Speaking on the launch, Shamsuddin Jasani, Group MD, Isobar South Asia and Executive Sponsor AMNET South Asia states, “Sri Lanka’s advertising trends have considerably shifted from traditional to digital advertising behaviour within a short span of time. As a leading global player in digital, we wanted our clients to get the best of global standards in this important area; hence, the decision to bring Amnet to Sri Lanka.”

"It's been an incredible year for Dentsu Aegis Network in Sri Lanka...constantly innovating and disrupting the local advertising industry. After successfully becoming the fastest growing digital agency in the country this year, we asked ourselves, what could we do next? Embracing data is in the DNA of our network and what we have been spearheading here in Sri Lanka as a business. So, we are thrilled to announce the launch of Amnet, one of the premier programmatic platforms available in the world to-date. This is the next wave in media planning and buying in this country and is yet another achievement we can add to our long history of establishing industry firsts," commented Neela Marikkar, Chairperson and Managing Director, Dentsu Grant Group.

"With client needs evolving for quicker turnarounds and data-driven marketing at scale, we needed to get the best of global standards in this important area; hence, the decision to bring Amnet to Sri Lanka. This is head-and-shoulders above anyone else in the market on Programmatic media buying," said Chamith Buthgumwa, Director Isobar, Sri Lanka & Response at Dentsu Aegis Network.

Nisal De Silva, Associate Director from Isobar Sri Lanka, will lead the digital programmatic operations for Amnet in Sri Lanka.

Fitch Ratings has revised the Outlook on Mercantile Investments and Finance PLC (MIF) to Negative from Stable and has affirmed the ratings.

At the same time, Fitch has affirmed the ratings of the following Sri Lankan finance companies:

- Central Finance Company PLC (CF)
- LB Finance PLC (LB)
- Senkadagala Finance PLC (Senka)
- People's Leasing & Finance PLC (PLC)

The rating actions follow Fitch's periodic review of Sri Lanka's large and mid-sized finance companies.

Mercantile Investments and Finance PLC:

National Long-Term Rating affirmed at 'BBB-(lka)'; Outlook revised to Negative from Stable

Central Finance Company PLC:

National Long-Term Rating affirmed at 'A+(lka)'; Outlook Stable
Senior secured National Long-Term Rating affirmed at 'A+(lka)'

LB Finance PLC:

National Long-Term Rating affirmed at 'A-(lka)'; Outlook Stable
Senior unsecured National Long-Term Rating affirmed at 'A-(lka)'
Subordinated debt National Long-Term Rating affirmed at 'BBB+(lka)'

Senkadagala Finance PLC:

National Long-Term Rating affirmed at 'BBB+(lka)'; Outlook Stable
Senior unsecured National Long-Term Rating affirmed at 'BBB+(lka)'
Proposed subordinated debt National Long-Term Expected Rating affirmed at 'BBB(EXP)(lka)'

People's Leasing & Finance PLC

Long-Term Foreign-Currency Issuer Default Rating affirmed at 'B-'; Outlook Stable
Long-Term Local-Currency Issuer Default Rating affirmed at 'B-'; Outlook Stable
National Long-Term Rating affirmed at 'AA-(lka)'; Outlook Stable
Senior unsecured National Long-Term Rating affirmed at 'AA-(lka)'

A full list of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS
NATIONAL RATINGS

Fitch expects Sri Lankan non-banking financial institutions to continue to face pressure on asset quality and profitability in the medium term. The sector's non-performing loan (NPL) ratio (overdue more than 180 days) spiked to 7.7% by March 2019, from 5.9% at March 2018, with the target customer base suffering from the economic slowdown, which we expect to continue throughout the financial year. Higher taxes on financial institutions lowered sector profitability by 28% during the financial year ending March 2019 (FY19), in addition to the impact of rising credit costs from weakening asset quality and the adoption of SLFRS 9.

The ratings of the finance companies in the peer group are driven by their high-risk appetite, as reflected in the companies' predominant exposures to more vulnerable customer segments. The ratings are highly sensitive to asset quality trends and our assessment of capital availability to absorb this stress.

Finance Companies with Ratings Driven By Intrinsic Strength

MIF
The Negative Outlook on MIF's National Long-Term Rating reflects our expectation that MIF's capital buffers could deteriorate further from pressure on its already-weak asset quality and below-average earning generation.

MIF's National Long-Term Rating reflects its high-risk appetite, which stems from its weak underwriting standards, evolving risk controls and high reliance on concentrated short-term funding that has led to considerable negative maturity mismatches. The rating also takes into consideration the company's long operating history.

MIF's asset quality, as measured by its reported six-month regulatory gross NPL ratio, further deteriorated to 9.6% (FY18: 7.6%) and stood above the sector's 7.7% at end-FY19. We expect MIF's NPL ratio to remain elevated in the medium-term due to operating environment challenges, despite potentially significant recoveries on its single largest NPL (backed by collateral), which accounts for around 4% of gross loans.

We believe MIF's concentrated deposit-base and reliance on short-term funding pose a risk to its funding profile, particularly in a challenging operating environment. Short-term funding comprised 75% of total funding at end-FY19 (FY18: 71%) and, in our view, its unutilised credit lines do not adequately cover the negative maturity mismatches. We expect deposits to remain a major funding source for MIF (FY19: 70% of funding).

CF
CF's rating reflects its high risk appetite stemming from its retail-centric loan book, which is concentrated in registered three-wheelers; and weakened asset quality. This is partly mitigated by CF's healthy capitalisation, supported by above-industry profitability. The rating also captures CF's established franchise, which is underpinned by solid market share and a long operational record of 61 years in the domestic market.

CF's reported six-month regulatory gross NPL ratio surged to 5.6% in FY19 (FY18: 3.7%), but remained lower than that of the sector. We expect further downside risk to asset quality given CF's aggressive loan growth of 19.1% in FY19 with a back drop of a weakened operating environment. Notwithstanding, CF's better-than-peer capitalisation should counterbalance any credit shocks. CF remains Sri Lanka's highest-capitalised licensed finance company, with regulatory Tier 1 and total capital ratios of 26.0% and 25.9%, respectively, at end-FY19.

LB
LB's rating reflects its established franchise, high profitability from high yielding products and satisfactory capital levels. This is counterbalanced by the company's high risk appetite due to a large exposure to gold-backed lending.

LB's balance-sheet leverage remains the highest among large peers, with debt/tangible equity of 6x. Some moderation is likely in the medium term, with the company's internal capital generation outpacing slower loan growth. LB's regulatory capital ratios remain in line with those of peers due to its exposure to capital-efficient products, such as gold-backed lending.

LB's gold-loan exposure increased by 28% in FY19, to account for 22% of gross loans (FY18: 19%), partly compensating for the slowdown in leasing. We believe the high exposure to gold-backed lending could pose a threat to asset quality due to potential volatility in gold-prices, but the exposure has so far been managed through active monitoring and risk-control measures.

Senka
Senka's rating reflects its high risk appetite stemming from its SME-centric loan book and lower financial flexibility compared with peers due to a heavy reliance on secured wholesale funding. This offsets any potential benefits stemming from Senka's established franchise in the domestic vehicle-financing sector and well-matched maturity gaps.

Senka's asset quality witnessed sharp deterioration in FY19, similar to peers, reflecting a high exposure to the SME segment, which is highly susceptible to the prevailing weak operating environment. Its reported six-month regulatory gross NPL ratio surged to 4.9% in FY19, from 2.3% in FY18, although it remains better than that of the sector. We expect asset-quality pressure to persist in FY20, as a meaningful economic recovery is not probable in the short term.

Senka's heavy reliance on secured funding is likely to further limit its financial flexibility, especially in distressed-market conditions. Its unsecured debt/total debt ratio was low at 44.7% in FY19 due to a low share of deposits (33.2% of total funding at FYE19) in the funding mix compared with peers.

Finance Companies with Institutional Support-Driven Ratings

PLC
PLC's Issuer Default Ratings (IDR) and National Long-Term Rating reflect Fitch's view that its parent, the state-owned and systemically important People's Bank (Sri Lanka) (AA+(lka)/Stable), would provide PLC with extraordinary support, if required. People's Bank's propensity to support PLC stems from PLC's group role and integration as a strategically important subsidiary of People's Bank; PLC accounted for 9.8% of People's Bank's assets at FYE19. PLC also has 92 window offices within People's Bank branches and has board representation from People's Bank.

There is high reputational risk to People's Bank should PLC default, as the bank holds 75% of PLC and shares a common brand. People's Bank's ability to provide support to PLC is limited and stems from Sri Lanka's rating of 'B'/Stable.

DEBT RATINGS
The ratings on the senior debentures of LB, Senka and PLC are in line with the companies' National Long-Term Ratings, as they rank equally with claims of the company's other senior unsecured creditors.

Fitch has not provided any rating uplift for the collateralisation of CF's senior secured notes, as we consider recovery prospects to be average and comparable with that of unsecured notes in a developing legal system.

The subordinated debentures of LB and proposed subordinated debentures of Senka are rated one notch below the companies' National Long-Term Ratings to reflect their subordination to senior unsecured creditors.

RATING SENSITIVITIES
NATIONAL RATINGS

Finance Companies with Ratings Driven By Intrinsic Strength

MIF
The Outlook on MIF's National Long-Term Rating may be revised to Stable if the company can sustain capital buffers to sufficiently cushion its weaker asset quality amid higher operating environment-related risks. MIF's ratings could be downgraded if it experiences higher capital impairment due to sustained deterioration in asset quality and profitability or if its large maturity mismatches were to widen.

CF
CF's ratings could be upgraded if its risk appetite moderates, which Fitch does not expect in the medium term. The rating could be downgraded if capital buffers are substantially eroded due to weakening asset quality and prolonged rapid growth in the more vulnerable customer segments.

LB
Downgrade triggers for LB include heightened risk appetite or capital pressure from weaker profitability. This could be indicated through aggressive loan growth or deterioration in asset quality. An upgrade is contingent on LB achieving stronger capitalisation, lower-risk asset exposure and a more comfortable liquidity position.

Senka
An upgrade of Senka's rating is contingent upon the company sustaining stronger capital levels and improved financial flexibility through a more robust deposit franchise. Senka's rating could be downgraded if asset quality weakens, leading to a significant decline in capitalisation or excessive asset encumbrance.

Finance Companies with Institutional Support-Driven Ratings

PLC
A downgrade of PLC's IDRs and National Rating would occur if People's Bank's ability to support PLC was to weaken, if People's Bank was to cede its majority ownership in PLC or if PLC's strategic importance to its parent was to diminish over time, reflecting a reduced propensity to support PLC. However, Fitch does not anticipate this in the long term. PLC's ratings are also sensitive to changes in the sovereign rating, as this would affect People's Bank's ability to provide support to PLC.

DEBT RATINGS
The ratings on the senior debt of CF, LB, Senka and PLC will move in tandem with the companies' National Long-Term Ratings.

The assigned subordinated debt ratings will move in tandem with the National Long-Term Ratings.

Sri Lanka’s banking sector maintains its vibrancy even amidst economic slowdown following Easter terror attacks.

The banking sector in Sri Lanka constitutes 33 banks and maintains assets totaling LKR 11.8 trillion as at end 2018.

The financial system is dominated by the banking sector accounting for nearly 60 per cent of the total assets of the financial system.

At present, the banking sector is mainly funded by deposits accounting for more than 70 per cent of the total assets, whilst shareholders contribute to approximately 8.7 per cent of total assets.

Disagreeing with negative reporting on the bank performances, Prime Minister Ranil Wickremesinghe argued that the Sri Lankan economy has expanded over the last four years, with growth of total public savings increasing by over 80% as reflected in bank holdings.

Speaking at the 80th anniversary of the Bank of Ceylon (BOC), he emphasised that the current economic situation, when compared to that of 2015, was vastly improved.

Presently, four banks of Sri Lanka are ranked among the top 1000 banks in the world, according to the Banker Magazine, UK. Considering the important role played by the banking sector in the financial system and the economy of the country.

The Central Bank continues to introduce prudential policy measures and regulations based on internationally adopted regulations and best practices, to further strengthen the stability and sustainability of the banking sector, as any stress in the banking sector can adversely impact the economy.

Container throughput at Sri Lanka’s Port of Colombo was up by over 9 % in April this year compared to the same month of 2018. Overall the first four months of this year saw growth in container volumes through the Jaya Container Terminal (JCT), South Asia Gateway Terminal (SAGT) and the Colombo International Container Terminal (CICT) combined rise by 5.9% compared to the January to April 2018 period.

Transhipment activity was particularly buoyant and rose by 8.6% in this four month period.

The Minister of Ports and Shipping, commenting on the increase in volume, welcomed the fact that the Sri Lanka Ports Authority (SLPA) has focused on fast-tracking strategic decisions regarding the expansion of the Colombo’s capacity.

Recent reports have suggested the first phase of the new East Container Terminal (ECT) could be operational by the second half of next year.

The facility will be operated by a new company that will be jointly formed by Sri Lanka Ports Authority (SLPA), and partners nominated by the governments of Japan and India. The first phase is expected to boost capacity at the port by around 0.8 million teu a year. Japan is likely to provide a US$500-800 million soft loan at low interest rates, to enable the project to be completed within the next year.

Partnering with two of Sri Lanka’s cricketing legends, Mahela Jayawardena and Kumar Sangakkara, VirTrans Capital today launched YOUCAB and SYTRANS, the latest player in the Island’s e-Transport hailing game.

The soft launch of the product was held at the beginning of this year amidst a gathering of media and well-wishers.

Superior Transport Services began at a ceremony with the participation of a large cross-section of Colombo’s elite, media personnel and the company’s top brass.

Since the soft launch, YOUCAB and SYTRANS has been in the process of identifying drivers who fit in with the ethos of the company, while also providing road network, driving methods and soft skills training to new recruits. The company has invested heavily on the training and development aspect of the business recognizing a need for superior customer service in the transport sector.

“Our aim is not to simply be a transport solution provider but also someone that people can trust and rely on. As a brand we want to be identified with the same values of humility, trust and reliability that is personified by our two strategic partners Kumar Sangakkara and Mahela Jayawardene," said Thushan Jayaratne, the Chief Operating Officer of YOUCAB.

YOUCAB is the latest addition to the Island’s e-Taxi hailing mobile application market. Customers will be able to book a taxi, ranging from three-wheelers to luxury sedans and Vans using the YOUCAB mobile app or by calling the 24/7 hotline. As an intermediary online platform, YOUCAB will connect passengers in search of affordable and reliable transportation, with service partners registered across multiple vehicle categories, providing travel solutions on a real time basis.

The Board of Investment of Sri Lanka (BOI) signed an Agreement with Putus Brother’s Sustainable Developments (Private) Limited to build, construct and operate a 15 cabana Hotel Project in Palatupana, Yala.

The Agreement was signed on behalf of the Board of Investment of Sri Lanka by Anil Amarasuriya, Board Member and Acting Chairman and Dr. Nihal Samarappuli, Board Member and for the Company Narcis Clavell and Jagath Wickramage, Directors.

The total value of the project is US$ 1.6 Million. The project will consist of 43 luxury cabanas in Yala. Clavell and his partner Jagath Wickramage stated “that initially 15 of these cabanas, which could be considered 4 star luxury, would be built. All cabanas would have an individual swimming pool and also a sea view.

The investor also stated that the project was built taking into consideration all Eco- friendly and sustainability norms.

Clavell who is from Barcelona, Spain, also expressed very strong support and confidence in Sri Lanka.

“I would like to encourage all investors and any other visitor to the Island and tell them that Sri Lanka is indeed a wonderful opportunity for investors worldwide. It is important that this positive message is sent out, so that the true potential of the country is well known to all. I am therefore very confident that Sri Lanka with its open business culture and investor friendly agencies such as BOI, will do well. The recent problems are in my view temporary and in the long term the country will emerge as an attractive hub for tourism and investment.”

Sri Lanka’s Premier blue chip company John Keells Holdings PLC (JKH) reported a major growth of 5%, with most sectors except leisure performing well, whilst the bottom-line declined sharply largely due to non-operational factors.

Consolidated revenue in the first quarter of FY19/20 grew by 5% to LKR 31.74 billion. The Group earnings before interest, tax, depreciation and amortisation (EBITDA) at LKR 4.04 billion was a decrease of 10% over the adjusted EBITDA of LKR 4.51 billion recorded in the previous financial year.

The Group profit before tax (PBT) at LKR 1.36 billion was down 53% and the profit attributable to equity holders was lower by 55% to LKR 994 million. JKH, in a statement, said profits for the quarter were mainly impacted by the non-cash expense arising from the adoption of SLFRS 16 and the decline in finance income at the Holding Company.

It said the Transportation, Consumer Foods and Retail industry groups continued their growth momentum from the previous quarter, despite the disruptions post-Easter Sunday terror attacks, which occurred early in the quarter. The latter significantly impacted the performance of JKH’s leisure sector.

The performance of the Group is after adjusting for the new Accounting standard SLFRS 16 which came to effect this year, for fuller disclosure. Accordingly, EBITDA in 2018/19 is comparatively adjusted for the impact of SLFRS 16, on a like-with-like basis against the EBITDA in 2019/20 (adjusted EBITDA).

A leading Japanese investor - President of Tosslec Co. Ltd, Kyoto, Japan Jitsuo Mikasa - reaffirmed that his company would continue to invest in Sri Lanka without any break or disruption of the company’s customer network.

Tosslec Co. Ltd’s subsidiary Tos Lanka Co. (Pvt) Ltd has been in operation in the Biyagama Export Processing Zone since 1995. Tos Lanka has created a niche market position as a supplier of ‘low volume high value’ electronic components to sophisticated markets of Japan, North America and Europe.

Mikasa who was in Colombo this week told BOI representative in an interview, as part of an expansion program, he hoped to play an important role by supplying the Set Top Box when Digital TV is introduced to Sri Lanka hopefully under the Japanese standard.

“We are also since 2016 working on an Electronics Solution for moth repellents to control the loss to Sri Lanka’s agriculture due to plethora of moths specially nocturnal moths. Our product is also targeted towards controlling the fall army moth which was a plague on Sri Lankan agriculture in the recent past. We are working closely with state institutions such as Horticultural Crop Research and Development Institute and privately owned organic farms. Already our innovative LED Lamp is being used successfully to repel moths on some organic farms concentrating on fruits and vegetables.”

He added, “we are also strengthening our efficiencies in our ongoing operations related to automotive safety harnessing and air bag assembly which we pioneered in Sri Lanka in 2002. We are also consolidating our operations in coil assemblies.”

Tos Lanka Factory Manager Noboyuki Tanaka, Jitsuo Mikasa and Tos Lanka CEO Merrick Gooneratne inspect manufacture of printed circuit boards at Biyagama plant

Under his leadership Tos Lanka is committed to taking Sri Lankan electronics into its villages and hinterland. “With this in view I set up an outsource centre in Mulativu with the assistance of a Swiss NGO. Unfortunately this could not be sustained due to the reluctance of the youth in that area to work in manufacturing environment and also the logistics issues involved. We were also involved in employing several displaced youth in the Eastern Province in the aftermath of the war. My CEO Merrick Gooneratne is dedicated towards National Reconciliation and has always endeavoured to employ a multi ethnic workforce.”

“The company’s outsourcing centres at Kegalle and Mawanella are working successfully. We are now in discussion with a few Entrepreneurs in setting up outsource centres in other parts of Sri Lanka’s hinterland.”

Mikasa first decided to invest in Sri Lanka based on a friendship with Merrick Gooneratne who has done his Post Graduate Studies in Kyoto University, who speaks fluent Japanese and who was awarded the Emperor’s Order of the Rising Sun in 2014. Gooneratne has been Mikasa’s business partner for the past 24 years as the CEO of Tos Lanka.

Next Hotel Colombo featuring Kafnu will be opening its doors to visitors both here and overseas in the fourth quarter this year marking the revival of tourism and business in Sri Lanka erasing the bitter memories of Easter terror.

The hotel is the perfect launch pad to explore the rich culture and natural beauty of Sri Lanka and it is also among the best venues in Colombo for corporate meetings, Next Story Group company officials said.

Next Story Group creates and transforms urban spaces into thriving communities by harnessing the power of human imagination and innovation.

The Group is currently expanding across Asia Pacific markets in 2019 with its successful hotel brand Next Hotels and genre-defining urban lifestyle concept, Kafnu.

Next Hotel Colombo will be located in the iconic Colombo City Centre, a premier lifestyle destination in Sri Lanka.

Colombo City Centre is a mixed-use development which consists of a Next Hotel, luxury apartments and the first international shopping mall in the country.

The hotel provides direct access to this upscale mall which has more than 50 international brands, 20 food and beverage outlets, a six screen cineplex and a virtual reality world.

Next Hotel Colombo will occupy the 8th to the 17th floor of the iconic 47-storey building within Colombo City Centre.

The hotel will showcase the hallmarks of the upper upscale Next Hotels brand, which offers modern, innovative hospitality and focuses on empathetic and efficient service to deliver a uniquely stimulating experience with every visit.

Public areas and the Kafnu space within the hotel will be designed to be engaging and will provide the right ambience to encourage guests to share experiences and ideas.

Next Hotel Colombo will have 164 guest rooms and suites over 8 floors from the 10th floor, with stunning views of the city skyline and the India Ocean.

The hotel is also the ideal venue for corporate meetings and social functions for up to 100 guests.

Colombo is known as the world’s No.1 “must photograph” destination. It has also been ranked top place to travel to in the world in 2019 by Lonely Planet.

Next Hotel Colombo will feature the first Kafnu within a Next Hotel. Conceptualized as an urban village for the new generation of creators, Kafnu is a physical, intellectual and social launch pad for today’s trailblazers.

It is designed for its members to co-create, co-explore and collaborate in an open and supportive environment that elevates their individual and collective potential.

Kafnu members enjoy access to strategic partnerships, premium services and private events.

A members-only club, Kafnu Colombo will join the Kafnu network which includes Hong Kong, Taipei, Bengaluru, Ho Chi Minh City and Sydney.

Mobitel (Pvt) Ltd, the National Mobile Service Provider in Sri Lanka successfully reached the highest mobile 5G speeds for the first time in South Asia exceeding speeds of 1.55Gbps using a commercial 5G mobile smartphone on 7th June 2019.

Following the demonstration of 5G Speed tests using a commercial 5G smartphone for the first time in South Asia on 4th June 2019, Mobitel went on to achieve a new speed record of 1.55Gbps for South Asia, making a momentous landmark on the 5G deployment across the globe.

As a result of these mobile 5G speed achievements, Ookla, the global leader for speed test benchmarking has recognized Mobitel as the First Mobile 5G Network in South Asia, which is a proud achievement to all Sri Lankans.

These Mobile 5G services were demonstrated using Huawei 5G network equipment in 3.6GHz trial spectrum allocation from the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), which always encourage and strengthen the evolving ICT transformation in Sri Lanka. Mobitel finds it encouraging to work with a progressive regulatory body in broadening the vistas of the Sri Lankan Mobile Broadband market.

The next generation of 5G services will not only provide Giga bit speeds, but also will revolutionize the industries across the globe with inherent ultra-reliable and low latency capabilities of 5G technology.

Mobitel (Pvt) Ltd, the National Mobile Service Provider, successfully showcased South Asia’s first 5G deployment over a Mobile Network on 5th April 2019 which was hot on the heels of the 5G deployments in the U.S.A (2nd April 2019) and South Korea (4th April 2019), connecting a commercial Mobile smartphone to its 5G network.