Have not had the time to do the usual analysis, so was happy to see this report in the Financial Times. The recently released 2015 edition of the Global Information Technology Report of the World Economic Forum has placed Sri Lanka at 65th position in networked readiness among 143 economies surveyed. Singapore is ranked as the topmost country in networked readiness and replaces Finland, which had been number one since 2013. Japan, which climbs an impressive six places on a year-on-year basis to 10th position, also joins the top 10. Sri Lanka is the highest-ranked South Asian nation this year and eighth among the Asian nations, beaten only by Singapore (1st), Japan (10th), Korea (12th), Hong Kong (14th), Taiwan (18th), Malaysia (32nd) and China (62nd).
The Public Utility Commission of Sri Lanka was established to serve as regulator for any of the hard infrastructure industries that needed regulation as a result of reform. All this time, all it was given was electricity. Now, there is a possibility that downstream petroleum will also be brought under its authority. So they had a workshop where I was asked to speak on regulatory and consumer protection issues. Here are the slides.
On April 10th, I delivered the sixth Distinguished Lecture of the Open University of Sri Lanka on the subject of making the university relevant. In an increasingly complex world where difficult decisions have to be made by those in government, there is demand for evidence to support political and policy choices. The university is the default source where one looks for evidence or for those who can generate evidence. But on most occasions, scholars and policy makers do not connect. Demands for teaching and for increased publications results in even less incentives for the conduct of policy-relevant research and engagement with policy makers.
I’ve been putting a significant amount of my time in the past three months into Constitutional reforms because an unusual “policy window” or Constitutional Moment opened up as a result of the outcome of the Sri Lankan Presidential election of January 8th. The Common Candidate of the opposition included in his manifesto a series of good governance measures that had been promoted by civil society activists for a long time but with little take up. When he won, these proposals, including rebalancing the relationship between the President and Parliament, electoral reform and the Right to Information, were suddenly the highest priority items of the new government’s agenda. The catch was that everything had to be done within 100 days, because the newly elected President did not have ironclad support from the largest party in Parliament and his manifesto also included a commitment to call a General Election after 100 days, which is around now. Considering it a citizenship duty, several of us got involved in what we considered the hardest problem, changing the electoral system.
A few days back, I included the following in a guest column for the Financial Times: Most of the 192 words specifying the Right to Information (RTI) as a fundamental right are superfluous. There is an entire bill in third draft that probably includes the very same language (if it does not, the Constitutional language will override it). All that is needed in the Constitution is one sentence “Subject to law, every person shall have a right of access to official information which is in the possession, custody or control of a public authority.” This was in the context of larger lament on the state of legislative drafting in Sri Lanka. What belongs in subsidiary legislation gets dumped into legislation.
In our work on agricultural supply chains, we looked at how small holders could participate in export value chains because these were the most difficult cases and also where the money was. At least at the beginning of the adoption process, the greatest demand for ICT based innovation is likely to come from these supply chains. Air freight services are a necessary condition for most high-value agricultural exports. In this article on what the full liberalization of Sri Lanka’s Mattala Airport, I discuss the complementarity. For the most part, air freight services are produced jointly along with air passenger services.
Last week I did a colloquium at LIRNEasia based on the second revision of the RTI Bill. Before I got around to doing a post, the third revision made its way out of the bowels of government. Significant improvements have been made, for which the Secretary of the Ministry of Media and Information should be congratulated. If only the rest of government followed his consultative approach, we’d be in much better shape with regard to the Constitutional and other reforms being rushed through by the interim government. The bill as its stands, including some comments and criticism, are analyzed here.
Sri Lanka has pretty good indicators, compared to many countries we work in. So if the UN is thinking of conventional indicators there’s not much to do. But if the intention is to bring in big data . . .
The Open University of Sri Lanka invited me to deliver the sixth in a series of distinguished lectures on the 10th of April 2015. Looking through the titles of the previous lectures, I saw that the common theme is the university and higher learning. Therefore, I proposed “Making the university relevant” as the topic and described the content as follows: In an increasingly complex world where difficult decisions have to be made by those in government, there is demand for evidence to support political and policy choices. The university is the default source where one looks for evidence or for those who can generate evidence. But on most occasions, scholars and policy makers do not connect.
Not bad for a young industry. But I do hope the results of the survey will be disclosed quickly and with breakdowns of export and domestic earnings and employment. Last time it had to be extracted in dribs and drabs. “Sri Lanka has launched an ICT value survey to find the national hi-tech exports it achieved in 2013/14.” the minister said in a statement.
India used to be the center of gravity of everything we did at LIRNEasia. In terms of expenditure and effort, perhaps the center is shifting. But intellectually, the challenge of managing the asymmetrical relationship between Sri Lanka and India continues to engage. I was asked to write something for the visit of Prime Minister Modi. Unbeknownst, the piece had also been published in the government-owned newspaper: One subject that is likely to come up in the Modi-Sirisena discussion is the long delayed coal power station.
A Ratings Agency has put specific numbers behind the entity-based and mobiles-sector specific taxes in 2015 interim budget. Should the proposals go ahead, 2015 FFO-adjusted net leverage for Sri Lanka Telecom (SLT, BB-/Stable) and Dialog Axiata (Dialog, AAA(lka)/Stable) is likely to deteriorate to 1.8x and 2.5x, respectively (2014: 1.2x and 1.
Haven’t had time to analyze this election promise, so was very happy to see a CPRsouth alumnus take an excellent run at it. Usually, these free Wi-Fi services have lower speeds compared to the average home connection, and often come with a data or a time cap. Perth, for example, offers free public Wi-Fi in a certain area, with a limit of 50MB per connection. Do your stuff, and then get out of the way; let the next user in. Effective, intelligent limiting is one solution.
Yesterday, I was the only non-politician on a political debate show on TV known as “Satana” (battle). The topic was the new President’s/government’s 100 Day Program (of which more than one-third has passed). I was not expecting to talk about the taxes imposed on the mobile industry, but right in the middle, one of the “referees” asked me about one of the three (or two, depending on the company size) taxes imposed on the mobile operators. I briefly answered saying it was not a good idea since its retroactive and mobile-specific nature was likely to have the effect of depressing investment that was needed if Sri Lanka is to move to the next stage of connectivity beyond voice. I had taken this position without any serious pushback in other media since shortly after the interim budget was announced.
A 24/7 news channel interviewed me about the mobile-only taxes proposed by the new government. It is not online (yet) so I cannot give a link. The last question I was asked by the interviewer was about my recommendations to the government. Here is what I said: 1. The proposal that the mobile operators should pay the 25 percent tax on voice calls currently paid by mobile users should be withdrawn.
This is a problem that comes up in countries that LIRNEasia works in. In Bangladesh and India, where the government-owned telcos were not privatized, they are on life support. Based possibly on comments made by entities such as LIRNEasia, the government of Myanmar has chosen to effectively hand over the management of its government-owned telco to KDDI. Here is a discussion of the problem in general terms, discussed in the Sri Lankan media in the context of the good governance debate that is running through the country in the aftermath of the recent Presidential election: Is the Government willing to list a majority of the commercial organisations it owns in the stock market? Is it willing to allow the Sovereign Wealth Fund (SWF) to divest or acquire shares in the market as needed?