Sri Lanka’s telecommunications sector is experiencing a remarkable transformation, with average monthly data usage per person climbing to 17.7 GB in the third quarter of 2025. This marks an 11.8% year-on-year increase, reflecting a broader shift toward a digitally driven economy fueled by high smartphone adoption and expanding infrastructure. The latest quarterly statistics reveal total data consumption reaching 1.155 million terabytes, underscoring the nation’s growing reliance on connectivity for daily life, business, and entertainment.
Despite ongoing challenges in market penetration and affordability, this data boom signals positive momentum for economic recovery and digital inclusion. As mobile and fixed networks evolve, the sector is poised to support key industries like e-commerce, education, and remote work.
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The Surge in Data Consumption Patterns
The telecommunications landscape in Sri Lanka has seen consistent growth in data usage, driven by affordable packages and widespread access to high-speed internet. In Q3 2025, the average individual consumed 17.7 GB monthly, up from 15.8 GB in the same period of 2024. This 11.8% rise highlights changing consumer behaviors, with streaming services, social media, and online collaboration tools becoming staples.
Total quarterly data usage hit 1.155 million terabytes, a 13.5% jump from 1.023 million terabytes in Q3 2024. Mobile data accounted for the lion’s share at 797,397 terabytes, while fixed connections contributed 358,109 terabytes. This distribution emphasizes mobile’s dominance in a country where portability is key, but fixed broadband is gaining ground for high-bandwidth needs like video conferencing and cloud storage.
Such patterns indicate a maturing market where data is no longer a luxury but a necessity, supporting everything from personal communication to enterprise operations.
Key Insights from the Quarter
Several standout metrics from the period illustrate the sector’s vitality. Smartphone penetration has approached 70%, enabling more users to leverage data-intensive applications. This rate, combined with nearly 131.5 mobile connections per 100 inhabitants, reflects broad accessibility, though it also points to multiple SIM usage common in emerging markets.
Mobile subscriptions totaled 29.27 million, with 21.71 million focused on voice and data, 5.73 million on voice only, and 1.82 million on data only. Fixed access lines stood at 3.50 million, including 2.17 million voice subscriptions. Broadband figures were equally impressive: 2.60 million fixed broadband connections and 21.49 million mobile broadband (3G/4G) users.
Voice traffic remains relevant, with mobile local outgoing calls at approximately 17.53 billion minutes for the quarter, but the shift toward integrated packages is evident. Data-centric plans now outpace traditional voice-only options, as consumers opt for bundled services that offer value amid rising digital demands.
Infrastructure Evolution and Connectivity Mix
Infrastructure upgrades have been pivotal in sustaining this growth. 4G LTE technology powers 63% of fixed connections, providing reliable speeds for urban and suburban areas. Fiber-to-the-Home (FTTH) adoption has surpassed the half-million milestone, reaching over 500,000 connections and enhancing high-speed access for homes and businesses.
The fixed broadband mix shows a balanced evolution, with FTTH leading the charge in delivering ultra-fast internet. This expansion addresses previous bottlenecks, such as limited coverage in rural zones, and supports the government’s digital economy agenda. Mobile networks, dominated by 3G and 4G, handle the bulk of data traffic, but preparations for 5G trials suggest future enhancements in capacity and latency.
These developments ensure that connectivity keeps pace with demand, reducing digital divides and enabling seamless integration of emerging technologies like IoT and AI.
The Connected Population and Market Dynamics
With over 29 million mobile subscriptions, Sri Lanka’s connected population is expanding rapidly. The shift from voice-only to voice-and-data plans indicates a maturing user base prioritizing online activities. This is particularly notable in a mid-year population of about 21.92 million, where mobile density exceeds 131 per 100 people, signaling high engagement.
Major operators continue to drive competition and innovation. Leading providers have invested in network expansions to meet surging demand, offering tailored packages that blend affordability with performance. This competitive environment benefits consumers through lower costs per gigabyte and improved service quality, fostering greater adoption across demographics.
However, challenges like uneven rural coverage and affordability for low-income groups persist, requiring targeted interventions to achieve universal access.
Broader Implications for Businesses and Consumers
For businesses, this data surge opens avenues in digital services, from e-commerce platforms to cloud-based solutions. Increased connectivity supports remote work models, boosting productivity in sectors like IT-BPM and tourism. Companies can leverage analytics from usage patterns to refine offerings, such as customized data plans or content delivery networks.
Consumers gain from enhanced access to education, healthcare, and entertainment via mobile apps. The rise in data usage facilitates financial inclusion through digital banking and payments, aligning with national goals for cashless transactions.
Economically, the sector’s growth contributes to GDP through infrastructure investments and job creation in tech support and network maintenance. It also attracts foreign investment in telecom upgrades, strengthening Sri Lanka’s position in regional digital hubs.
Future Vision: Toward a Digital-First Economy
Looking ahead, the trajectory points to sustained expansion. With smartphone penetration nearing 70%, the foundation is set for advanced applications like smart cities and e-governance. Continued FTTH rollout and potential 5G deployment could further accelerate data speeds and volumes.
Policy focus on spectrum allocation and regulatory incentives will be crucial to sustain momentum. Collaborative efforts between operators and authorities can address gaps, ensuring equitable growth. Projections suggest data usage could exceed 20 GB per person by 2027, driven by video content and emerging tech.
This evolution positions Sri Lanka as a digitally resilient nation, ready to harness connectivity for innovation and inclusion.
Why This Matters for Sri Lanka’s Economy
The Q3 2025 statistics mark a milestone in Sri Lanka’s digital journey, reflecting resilience post-challenges. High data consumption drives efficiency across sectors, from agriculture using IoT for precision farming to education via online platforms. It underscores the telecom industry’s role as an economic enabler, generating revenue and fostering skills in a knowledge-based economy.
As the nation builds on this progress, prioritizing sustainable infrastructure and digital literacy will maximize benefits. This shift not only enhances daily life but also bolsters global competitiveness, paving the way for a prosperous, connected future.
Find the full report below:
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