Axiata Group Bhd unit, Dialog Axiata Plc, which is Sri Lanka's largest telecommunications service provider, has bright prospects to increase its investment by another US$300 million in the country as its licence issue is being resolved.

Prime Minister Najib Abdul Razak said the additional investment, which was held back due to the delay in the renewal of its licence by the Sri Lankan government, could go ahead as the problem was being resolved through negotiations between both governments.

Najib said the licensing problem faced by Dialog Axiata was raised during his meeting with Sri Lanka’s President Maithripala Sirisena this morning, and the head of state called for a special committee, with representatives from both countries, to be formed as a mechanism to solve the problem soonest.

"I see this as a positive development, there’s a light at the end of the tunnel.

"When I go back, I'll decide on the right candidate to be appointed (in the committee) after consulting the Ministry of International Trade and Industry, and hopefully, we can resolve this issue soon.

“This is because Axiata has the ability to increase its investments, they have US$200-300 million additional investments," he told Malaysian media in Colombo today.

Najib said he was briefed on the issue by Axiata Group Bhd president and chief executive officer Jamaludin Ibrahim.

Axiata Dialogue is the largest foreign investor in Sri Lanka with a total investment of over USD2.2 billion.

The company is now experiencing technical difficulties after the Sri Lankan government put on hold its licence renewal since May 2.

Najib, who is on a three-day official visit to Sri Lanka, called on Sirisena at the Presidential Palace this morning before both of them held a roundtable discussion involving government officials and business leaders and witnessed the signing of several Memoranda of Understanding.

- Bernama