In the coming year, LIRNEasia intends to launch a number of activities intended to support the work of young scholars working on telecom reform issues of relevance to emerging Asia. As part of this effort we intend to provide self-archiving facilities for conference papers and journal articles, and provide a degree of exposure and commentary for a subset. This is the first effort in this regard.
Regulation and FDI: Sri Lankan Telecommunications Industry
Ms Asoka Fernando, PhD Candidate, Dept. of Management, Monash University
This paper examines the role of the telecommunications regulator in Sri Lanka and assesses the effectiveness of its interventions in attracting foreign direct investment (FDI) into the telecommunications sector from a management point of view. The study finds that despite Sri Lanka has responded to globalization by liberalizing the telecommunications sector and timely establishing a regulator to monitor the industry, the interventions of the Telecommunications Regulatory Commission (TRC) have been only partially successful particularly in terms of meeting its full potential of FDI into the sector. Interventions of TRC have been reviewed in terms of creating environment for market entry and competition, management of scarce resources, tariff regulation and independence of the regulator, and revealed its inability to create sustainable investment climate for private investors. In conclusion, we argue that it is time to investigate whether the current regulatory model is the most appropriate arrangement for the prevailing economic, social and cultural circumstances in Sri Lanka.
Key Words: Privatization, Telecommunications, Regulation, Foreign Direct Investment
The full paper is here. Comments are welcome