There are several telephone companies at the airport with booths that offer this kin of service.
Don't buy the Sim before passing passport control. It'll be much cheaper once you are out.
We bought a Telecom Mobitel card for 1000Rs including 1GB of Internet traffic and 500 credits which we could spend in calls or SMS. 1 call minute is 1 credit. 1 SMS is two.
The signal is strong in most of the island. An the 3G actually goes faster than the one I have at home.
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