Tata sells 10% of Sri Lankan unit

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.