Lanka Bell, one of Sri Lanka's leading private fixed telecom operators said Saturday that it has signed a 4 billion rupee (US$40 million) equipment supply contract with China's Huawei Technologies Co. Ltd.

According to the contract signed on Friday, Huawei will supply equipment to Lanka Bell for a CDMA wireless local loop telephone network system and fixed wireless terminals to take telecommunications to rural Sri Lanka.

The deal has been described as a significant one in Sino-Lankan bilateral trade relations and is addition to Lanka Bell's investment of 150 million dollars to expand telecommunications through Sri Lanka.

Lanka Bell said it will use cutting edge CDMA technology to make available telecommunications, e-mail and internet facilities to rural Sri Lanka.

"This is a significant step in Lanka Bell's expansion drive and the first stage of the establishment of a powerful and effective island wide network," said Lanka Bell's Deputy Managing Director Suren Goonawardene.

"We see this as the beginning of a long and fruitful relationship with Lanka Bell and have assured it of our fullest cooperation and support to make this project a success," said Huawei' s Country Representative Allen Peng Peng.

Established in 1988, Huawei Technologies is the world's 7th largest equipment supplier and is based in Shenzhen, China.

The company is a high-tech enterprise which specializes in research and development, production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks.

(Xinhua News Agency April 10, 2005)