New Wavelength

March 29, 2008 (LBO) – Sri Lanka needs transparent telecom regulation and lower costs to encourage the information technology business and become a 'knowledge economy', says a new World Bank study. Transparent and consistent regulation was important to encourage private investment in the IT sector which was important for the development of the industry, knowledge transfer and future economic growth, it says.

"The (Telecommunications Regulatory Commission) should be given greater independence and authority for its regulation, as well as complete transparency and public participation in its procedures," says the study on building Sri Lanka's knowledge economy.

It said the telecommunications market structure and regulator should be transformed into a more liberalized, technology-neutral model with few restrictions on cross ownership of multiple networks and services.

There should be no predetermined limitation on the number of licenses or the type of services to be offered in the international services market.

A liberal licensing regime to permit maximum entry will be instrumental to the growth and development of Sri Lanka’s information infrastructure, said the study whose finding