In the recent past several policy reforms were introduced in the telecommunications sector. Among these reforms the conversion of the Department of Telecommunications into a public corporation could be considered important. With the introduction of the Telecommunication Act No. 25 of 1991, Sri Lanka Telecom Corporation (SLT) took over the operations of both inland and overseas telecommunications services from the Sri Lanka Telecommunications Department. Another significant reform has been the establishment of the office of Director General, Telecommunications as an independent authority who issues licenses and generally oversees the interests of all participants.
The present SLFP government is taking a strong interest in developing the telecommunication infrastructure of Sri Lanka. In January 1996, the Sri Lankan government created a new Telecommunications for The Year 2000 plan to rehash the current infrastructure to keep pace with the rest of the emerging markets at least. It has appointed a five member consortium led by German investment bank Deutsche Morgan Grenfell to advise on the restructuring and privatization of Sri Lanka Telecom (SLT). The consortia has agreed to submit a report by July 1996 on how to re- structure Sri Lanka Telecom and make it more efficient as well as building a competitive framework. the governments present policy is to encourage private sector participation to aid in the expansion and rehabilitation of the existing telecom network.
According to a recent government report, its main objectives in the telecommunications sector are: The provision of telecommunications facilities on demand, at cost-based tariffs.
The achievement of universal service covering the whole country including all villages. The attainment of an acceptable quality of service for voice and data communications for both national and international communications, the elimination of waiting lists for telecom facilities.
The elimination of waiting lists for telecom facilities.
The provision of prompt and effective attention to consumer complaints and improved public relations. The progressive increase of local value-addition in telecommunications projects, through local manufacture and construction at competitive prices.
Further, if Sri Lanka is to have any growth in the information technology industry, the government needs to examine core policies according to local industry specialists. Among the policies needed to encourage long term growth in this area include: an education system geared to the needs of the industry, tariffs on imported parts need to adjusted so that finished products are competitive, and better research and development facilities need to be set up. The government should also encourage multinationals to set up plants on the island to make Sri Lankan products internationally accepted. Currently, government incentives for investors setting up electronics export industries include up to 10 yearsํ tax holiday, duty free imports and venture capital financing.
The government recently passed a new Telecommunications Development Policy as well.
