Hans Wijesuriya, group chief executive of Dialog Axiata said the move will allow every citizen to afford a Smartphone.
He said the Dialog brand, customer service infrastructure and aggressive pricing will give its devices an edge in the market.
Dialog Smartphones use the Android 2.3 operating system and come with a one-year warranty.
The Dialog i35 (with a 3.5 inch TFT Screen and 2 Megapixel camera) is offered at Rs. 9,990 rupees and the Dialog i43 (with a 4.3 inch TFT Screen and 5 Megapixel camera) is offered at 16,990 rupees.
They have a 1 GigaHertz processor and 4GigaByte storage on board, with Wi-Fi, GPS, Bluetooth, FM radio and a microSD card slot as standard features.
"The Dialog branded Smartphones deliver a level of performance, functionality and quality that is traditionally the preserve of high-end Smartphones but at an exceptionally affordable price bringing it within the reach of all Sri Lankans," Amali Nanayakkara, group chief marketing officer at Dialog said.
"We believe the introduction of Dialog Smartphone series will revolutionise the market and empower the Smart Generation with an advanced and fully featured device which is affordable as well as trendy."
Dialog Axiata, a unit Malaysia's Axiata Group Berhad operates a network in Sri Lanka with 7.8 million subscribers.