The Sri Lankan government was advised by the Sectoral Oversight Committee to not pursue privatisation of state-owned telco operator Sri Lanka Telecom (SLT-Mobitel), stating national security concerns.
CommsUpdate reported, the committee said in its report: “The effects of the privatisation of Sri Lanka Telecom on National Security … [given 44.98% of SLT is already in private hands] … would expose the country’s critical communication infrastructure/sensitive information to private entities whose profit-oriented interests can compromise national security.”
The committee added that companies or individuals that have been blacklisted or aided terrorism should not be allowed to buy shares or have control of national assets, urging the government to consider “‘buy[ing] back the other large shareholder of SLT as provided for in the agreement, and then divide the segments into sensitive and vulnerable, excess lands and buildings, critical infrastructure and the business.”
The committee went on to recommend: “‘Whilst retaining the first segments effecting National Security, the state can divest the others holding a major share through Private Public Partnership ensuring critical infrastructure is protected and all government regulations are adhered to. This way the government can exit from doing business whilst making profit and ensuring National Security.”
It was reported in April the government enacted a cost-cutting restructure to make the operator more economically viable.
