November 6, 2006 (LBO) – Sri Lanka Telecom, the island’s biggest fixed line operator, said Tuesday that they are doing a due diligence study on cable television operator Grant Communications (Pvt) Ltd. The company, which controls 85 percent of Sri Lanka’s fixed-line telecommunications market, has applied for a ˜non-voice’ license from the telecom regulator and the media ministry, which gives them permission to use cable and satellite technology for their expansion plans.

If approved, SLT Chief Executive Shuhei Anan says, the license gives allows SLT to keep pace with global dynamics of convergence where communication and media technologies merge with telecommunication services.

The digital convergence, also known as quadruple play or four-play, gives SLT the chance of offering cable television, broadband, fixed-line and mobile telephone services.

Anan says SLT may look at the possibility of acquiring a stake in Grant Communications once the due diligence is complete.

Meanwhile, SLT has secured Central Bank’s exchange control department approval to start work on its fully owned Honk Kong subsidiary.

SLT Hong Kong Ltd, will initial cost around 35 million rupees or 2.5 mil