SLT said NTT Communications Corporation was in talks with Global Telecommunications Holdings N.V., which was a subsidiary of Malaysian conglomerate Usaha Tegas Sdn. Bhd, 'on a possible sell down of part of their holdings in SLT'.
SLT said Global Telecommunications had asked permission to conduct a due diligence exercise and the SLT board had approved it.
Usaha Tegas also controls the Malaysian mobile operator Maxis.
Usaha Tegas is ultimately controlled by a discretionary trust, the beneficiaries of which are family members of Malaysian businessman Ananda Krishnan Tatparanandam.
Sri Lanka Telecom shares shot up to 44 rupees last month on speculation that a Malaysian party was planning to purchase NTT's stake for 45 rupees.
At the time however, SLT declined to comment on the deal.
There has been speculation that NTT may sell a stake