We’ve basically followed the cookbook in terms of having regulation .. but we still have problems.
SL is a country where we’ve given licences, but there hasn’t been much transparency. The model we’ve set out it individual licenses where scarce resources are involved, but only authorizations otherwise. In other words, you don’t need to come with the Minister’s brother-in-law to operate.
Also, license without access to scarce resources is not meaningful. Abu Saeed Khan spoke of licenses being issued without frequencies, and I think that is a fraud. The legislation has been drafted. Once it goes through we can deregulate the pricing for mobile operators, etc. In a way Mr. Morogoda and myself worked very hard against the World Bank’s policy of not supporting infrastructure.
Unless the reforms are made, the money will be wasted. Our solution is least-cost subsidies to make networks, in two phases
Phase 1: (app 4 million people, including north and war-torn regions)
Phase 2: Rest of country
We think that these things that these things, infrastructure and e-Sri Lanka demand will stimulate the service sector, and then we will get the virtuous cycle.