SOE Archives — LIRNEasia


Hope for Sri Lanka Post?

Posted on June 20, 2016  /  0 Comments

In contrast to the usual tales of woe, increasing losses and strikes, an online publication had this optimistic story: Sri Lanka Post has done its homework. According to Shervyn Senadheera, Additional Secretary to the Ministry of Posts, Postal Services & Muslim Religious Affairs, a survey conducted between 2013 and 2014 with a sample size of 1,122 participants found that only 15 – 18% of the population has the capability of getting their services online, through the internet, mobile phones and apps. The rest of the population faces immense hurdles in terms of language, computer literacy, access to hardware, and confidence with technology. Senadheera is of the opinion that whatever the technology introduced, basic problems like those mentioned above need to be addressed first. And there is truth to the statement: even a giant technological development drive will need to tackle computer literacy before the people can enjoy its benefits.
I discussed what is required for Sri Lankan firms to effectively participate in global value chains and reforms of State-Owned Enterprises at the Management Club of Colombo. The slides are here.
Reliance on public-sector entities alone was identified as a critical weakness in India’s NOFN plans during the Expert Forum we organized in New Delhi in March 2014. The event had significant participation from senior Indian government officials. Did it, and other writings, make any contribution to the change in course described below? In a shift from its previous stance, the Department of Telecommunications (DoT) has now decided to rope in private sector for the ambitious National Optic Fibre Network (NOFN) project. The moves comes since it sees roping in the private sector as the only way out to meet the new deadline of March 2016 set by the government, as against December 2016 earlier, to complete the R21,000-crore project.
In the design of India’s broadband initiative, it was said that one thing was non-negotiable: the work had to be done by state-owned enterprises. Knowledgeable people advised the government that this would slow down implementation. And so it happened. Now the new Minister is hiring 10 CIOs to push implementation (including much of the eco system), setting realistic time targets and upping the spend from USD 7 billion to USD 17 billion. And taking all the credit, as is customary.
Today, the Public Utilities Commission of Sri Lanka, held the oral-presentation component of the 2013 tariff hearing. In their effort to accommodate 70 or so persons/organizations among the 200+ that had made written submissions, they limited speaking time to 5-10 mts depending on how many issues had been covered and did not ask any questions of those making presentations. This was a pity, since the whole point of face-to-face interaction is interactivity. That said, I still found the exercise educative. For example, the spokesperson for one organization asked why the PUCSL had allowed a component of costs for ROE, return on equity.