ICT sector performance review for Sri Lanka

Date

2011-04

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Publisher

LIRNEasia, Colombo, LK

Abstract

The telecom sector in Sri Lanka is one of the country's most dynamic sectors, contributing significantly both directly and indirectly to investment, employment, productivity, innovation, and overall economic growth. The expansion of information and communications technology (ICT) is a major objective under Sri Lanka’s development vision of becoming the ‘Emerging Wonder of Asia’ as outlined in the Mahinda Chintana – Vision for the Future:the development plan set forth by the government in 2010. As set out in the international literature and evidenced in the reform process in countries around the world, regulatory governance plays a significant role in policy outcomes and sector performance. The objective of this report is to evaluate regulatory efficacy as it pertains to Sri Lanka’s telecom sector; to understand the dynamics between regulatory governance and sector performance; and, to reach informed and relevant conclusions targeting policy makers, operators, and the regulator. The 2010/11 Telecom Regulatory Environment survey (TRE) is a perception assessment where informed stakeholders assess telecom regulatory efficacy, with respect to seven dimensions in the fixed, mobile and broadband sectors: market entry, access to scarce resources, interconnection, tariff regulation, anti‐competitive practices, Universal Service Obligations (USOs) and Quality of Service (QoS). Key regulatory and policy events from the latter part of 2009 to the beginning of 2011 provide the contextual background for the survey questionnaire. This report also compares the TRE scores for 2010/11 with that of 2006 and 2008, capturing perception trends over three periods and providing a more comprehensive analysis of regulatory governance and sector performance over time. The results of the 2010/11 TRE survey indicate a below average score across all seven dimensions, with two of the seven dimensions demonstrating significantly lower scores: allocation of scarce resources and regulation of anticompetitive practices. When comparing the survey results with that of 2006 and 2008, allocation of scarce resources and market entry in the mobile sector show a declining trend.

Description

Keywords

SRI LANKA, TELECOM REGULATORY ENVIRONMENT, ECONOMIC GROWTH, ICT, TELECOMMUNICATIONS, MONOPOLIES, INFORMATION TECHNOLOGY, POVERTY ALLEVIATION

Citation

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