The effectiveness of the telecommunications regulatory regime: the case of Sri Lanka Telecom

This article examines the telecommunications industry in Sri Lanka and assesses the effectiveness of regulatory arrangements associated with the liberalisation of the telecommunications industry, from a management point of view. The review focuses on the scope of services, price and the quality of services available to customers after the liberalisation. This study finds that, despite the early establishment of the Telecommunications Regulatory Commission (TRC) to monitor the telecommunications industry, its interventions have been only partially successful in making it conducive to service providers and customers. While liberalisation of the telecommunications industry has been favoured, the role of the regulator has been controversial with regard to its independence, impartiality, capability, transparency and accountability. We argue that the current model has failed to create favourable market conditions under the circumstances prevailing in the country, and hence a more appropriate model is yet to be developed. Copyright (c) 2006 John Wiley Sons, Ltd.