Sri Lanka Archives — Page 19 of 59 — LIRNEasia


The past decade has seen unprecedented, rapid growth in electronic connectivity in the form of voice in the developing world. Access to the Internet and to more-than-voice services is quite uneven with those at the BOP being excluded from the benefits of the rich potential of applications and services associated with the Internet. The report is a part of LIRNEasia’s research into the exploration of how to bring about an increase the inclusivity of the currently marginalized BOP by providing more useful services and applications on mobile platforms. In terms of providing useful services, the research will focus on three sectors; telecom, electricity and government services. How can these services be more useful to particularly to the micro-entrepreneurs at the Bottom of the Pyramid?
Contrary to the news report that I based my earlier post on, the Internet use data comes from a preliminary report of the 2011-12 Census. It is based on five percent of the responses from each district. Unfortunately, the data are presented in a somewhat confused way. The first column is simple enough: ability to access Internet from the house. The second column is the problem.
The full report of the 2012-13 Household Income and Expenditure Survey is not yet public, but LBO had got hold of the Internet data: About 11.4 percent of households in Sri Lanka have internet access at home, with 9.2 percent accessing through other means with communications centres were playing a key role, official data shows. The highest internet access was in the Colombo district at 26.9 percent of households with 15.

If Airtel is quitting Sri Lanka, why?

Posted on December 19, 2013  /  0 Comments

So I was asked why Airtel was quitting Sri Lanka, the first foreign market they entered. Here is the summary of what I said. Perhaps because it was its first foreign excursion, Airtel was very slow to roll out. In May 2007 they signed an investment agreement. I commented then that the amount committed was too small for a rapid rollout.
I keep telling people that I (and the people associated with reforms in South Asia in the late 1990s) had no expectation that we would achieve the levels of voice and data connectivity that we have now achieved. But here is the proof, from a piece I gave to UNESCO while still Director General of Telecommunications back in 1999. In most countries of the South, basic telecommunication connectivity is still a distant goal, leave alone the advanced Internet infrastructure that provides the basis for electronic commerce. Electronic transactions between companies and organizations, particularly those involved in worldwide commercial relationships, do take place within the context of Electronic Data Interchange (EDI). However, these closed user systems do not fall within the commonly understood meaning of electronic commerce that involves transactions with consumers in an open system such as the Internet.
These comparisons are, of course, problematic. But still engaging especially in the context of the launch of the Alliance for an Affordable Internet. Thailand yields no data. And I assume they work off advertised speeds rather than real . The Economist provides a nice interactive map.
Earlier this year (April 2013) we pushed for Demand Side Management (DSM) in Sri Lanka to managing the burgeoning electricity demand in the country. Hence we were quite happy when the Public Utilities Commission of Sri Lankan (PUCSL) recently released draft regulations for the institutional framework conducting DSM activities in the electricity sector. Today, at a consultative workshop on the draft regulations, we recommended the following: Coordinate the market research design that each of the 5 distribution licensees have to conduct prior to initiating DSM activities. Make use of behavioral economics and Randomized Control Trials (RCTs) for high impact since it is the most effective way to understand consumer behavior and “nudge” them to more energy-efficient and energy-conserving behavior. The impact could be even higher if Sri Lanka were to quickly scale up the use of smart meters.
The Team Leader of LIRNEasia’s Human Capital Research Unit has published an analysis of a policy draft presented by the Ministry of Education. The proposed policy may be downloaded from here.
Ranjula Senaratna Perera CRPsouth2013 Mysore, India
The survey was conducted among the low-income, urban micro-entrepreneurs (MEs) in three countries, Bangladesh, India and Sri Lanka. The study defined micro-entrepreneurs as those who employed less than ten hired workers, i.e 0-9. The hired workers are paid employees or full-time equivalent, excluding the owner. This is an adaptation of international definition followed by World Bank and European Commission1.
There was a lot of discussion here when Airtel entered the market. So much so that we used to receive phone calls asking for employment! Part of what we said then was they hurt themselves by being slow to enter after the announcement. It appears the damage could not be undone. India’s Economic Times said citing two unnamed sources said Standard Chartered was advising Airtel on the sale and the firm was valued at between 110 to 130 million US dollars.
The widespread casualties caused this year by fast moving weather systems in Uttarakhand and in Pakistan have caused experts to call for real-time data sharing among the region’s meteorological departments. This seems to call for increased reliance on ICTs. The monsoon has been erratic in recent years. Last year, the monsoon failed in Sri Lanka, and parts of the country’s northern, eastern and southern regions went through a drought that affected at least 1.2 million people.

Nationality of capital

Posted on August 14, 2013  /  1 Comments

Two days back a Facebook debate ensued over the newly inaugurated deep-draft Colombo South Port being described as China’s port by a friend of mine who is in politics. He had said this in an interview to a Sinhala newspaper where the embers of xenophobia are periodically fanned by various parties, but only rarely by liberal-thinking PhD economists. I was motivated to write up my side of the argument in my column in LBO.LK. Though the immediate subject was a container terminal, the issue was foreign investment.
The Lankadeepa of 22 July 2013 carried report about the Leader of the Opposition arguing that electricity tariffs be adjusted to account for the larger contribution from low-cost hydroelectric generators to the overall supply mix of the Ceylon Electricity Board. This reflects a recommendation made by LIRNEasia in its submission made at the Public Hearing on the electricity tariff: The cost models that underlie the tariff proposal are based on assumptions of levels of use that may change because of the radical redesign of the tariff structure. If demand is lower than projected, especially at the peak, it is possible that the proposed tariff will yield excessive earnings. Therefore, the approved tariff should include provisions for monitoring revenue levels and for periodic adjustments and/or the return of excess earnings to consumers. These kinds of adjustment mechanisms are not difficult to embed within tariff decisions.
In 2011 I analyzed some earnings and employment data and initiated a debate on the health of the Sri Lanka IT and ITES sector. Links to the first and second columns. It appears that new data has come to light (though a source is not given and no reference is made to the sector study by the Export Development Board that I referred to in 2011). “As an industry, we made significant progress over the last five years. Our export revenue grew from $213m in 2007 to an estimated $600m in 2013 (182%).
These are impressive numbers, but they should be made available on TRC or ICTA website as a regular monthly/quarterly report. TRC reports much lower numbers. Information and Communication Technology Agency (ICTA) CEO Reshan Dewapura noted that today, there are close to four million Sri Lankan citizens on the internet, which is a 20% penetration of the population. Over half of them access the internet through either mobile phones or wireless broadband dongles, which has grown eight times more than what it was in 2010. He also estimated that the total data consumption in Sri Lanka via mobile sims both on wireless broadband dongles or mobile phones is currently estimated at 2,000 terabytes per month.