Prof. Samarajiva calls for fiscally responsible policies

By Charumini de Silva

The Government should focus on creating fiscally responsible policy certainty, rather than providing telecommunication services wholesale or retail by itself, an expert opined recently.

Founding Chair of LIRNEasia and former telecoms regulator Professor Rohan Samarajiva pointed out that the Government needs to prioritise its investments in the areas of healthcare, children and education rather than putting money into areas where there is available private investment.

 “We can look at the Government’s track record in providing telecommunication services — 10 years in waiting lists, corruption and mistreatment of customers. I think what the Government should do is to regulate, to create fiscally responsible policy certainty and allow the private sector to do its job,” he said, speaking at the ‘Asia Pacific Network Information Centre (APNIC) 42’ forum held in Colombo recently.

He emphasised that Sri Lanka is in a situation where the Government is actively creating policy uncertainty.

 “I now need a roadmap to figure out what the tax rates are— they change every few days. This is not an environment to invest in and that is why the private sector is reluctant,” he added. Prof. Samarajiva further said that although Sri Lanka has multiple international connectivity, getting a connection from the cable station to where people are is going to be even more expensive, as it is controlled by a ‘Government monopoly.’

As a solution, the professor suggested breaking the monopoly and creating alternatives within the domestic wholesale and retail market to provide telecommunication services. However, Prof. Samarajiva highlighted that the retail cost would not automatically decline, unless there is adequate competition where the customer can choose between companies A, B and C.