The i-Sri Lanka project launched at the end of 2010 will enhance and upgrade our

existing fixed network lines that connect our customers; it will expand the fibre network
closer to our customers through fibre to the node, thereby reducing the length of the
copper connections with a resultant significant increase in reliability, quality and
broadband data speeds. Reducing the copper cable lengths not only improves reliability,
but will reduce maintenance and replacement costs. Through this program we plan to
enhance the network bringing high speed broadband connectivity at greater
than 20Mbps speed for almost all our fixed customers over a 3 year period. This program
is fully integrated with our NGN modernization and broadband access targets for 2011
and forms a significant part of our increased capital expenditure in 2011 and following
years. In addition, this expansion will bring our PeoTV IP based multi channel TV network
to all our fixed customers for the first time.

In this i-Sri Lanka project, which forms a significant part of our future investment
program and which we have titled 90-20-13, we aim to allow more than 90% of our fixed
line customers to access at least 20Mbps data speed by the end of 2013.

In addition, we continue to selectively expand the reach of our fixed line network,
particularly to new areas in the North and East and around the edges of the existing
network, bringing even more customers inside the reach of SLT high speed broadband
and PeoTV service.

We successfully completed a number of significant upgrades to our ISP and Internet

platforms this year including an increase of 8.3 Gbps capacity of the international
backbone that connects Sri Lankan customers with the Internet.

We are now poised on the threshold of a broadband telecommunication revolution, and

through our capital investment program in 2011 will build upon the expansive existing
network presence to construct the foundation that will serve telecommunications in Sri
Lanka for the next decade. The integration of our NGN, fibre backbone and access
network, optimization of our extensive copper network and the aggressive plan for super
fast broadband speeds under our i-Sri Lanka project, combine seamlessly to deliver a
world class and Future Ready capability.