Tata sells 10% of Sri Lankan unit

2 Jan 2008

Indian telco Videsh Sanchar Nigam Ltd (VSNL, currently rebranding under the name of owner Tata) has announced that it has sold 10% of shares in its wholly-owned Sri Lankan subsidiary VSNL Lanka to Sunshine Holdings, a Sri Lankan conglomerate. Sunshine Holdings has the option to acquire an additional 5% of VSNL Lanka’s share capital in the next twelve months. A statement from Sunshine read: ‘We have been working closely with VSNL…and this investment reiterates our commitment to this partnership. We firmly believe that VSNL Lanka will be able to achieve a strong position in the Sri Lanka telecom market.’ VSNL Lanka has been offering international voice and data services in Sri Lanka through an External Gateway Operator’s licence since February 2004.

Sri Lanka, Tata Communications