SLPP not happy with privatizing SLT; But open to investments - Namal

COLOMBO (News 1st); The Sri Lanka Podujana Peramuna has expressed its dismay over the proposal that was put forward for the divestment of major shareholding in Sri Lanka Telecom PLC.

The SLPP hold majority power in Government, and during a weekend representative conference, SLPP Legislator Namal Rajapaksa said the attempts being made to privatize profit-making State -Owned Enterprises is a cause for concern. 

"We elected Ranil Wickremesinghe as the President by following a constitutional process in Parliament, to bring about economic and political stability in the country after Gotabaya Rajapaksa stepped down. He is making certain attempts, and he is able to do that because of the support of the SLPP parliamentary group. There are certain policy based differences, however, those are being discussed," he elaborated.

However, he said that SLPP has concerns in certain areas when it comes to privatization. 

"Sri Lanka Telecom is one such example. There is an issue with respect to National Security. I see it from a different perspective. If a State-Owned entity is a burden to the government, there is no issue in inviting investors. However, we are concerned over the attempt to start it with a profit-making entity. Sri Lanka Telecom is not a burden to the government. However, we have the opportunity to develop the national assets with global investors. I believe that we need to focus on that perspective," further explained the MP.

However, the United National Party maintains a different position with regard to privatizing Sri Lanka Telecom.

UNP Chairman Vajira Abeywardena announced the party's position over the weekend noting that Sri Lanka must open for business, and then the country will develop.

"We need to offer profit-making entities, and revamp loss-making institutions. If we do not do this, your children will have no future," he added.

The divestment of major shareholding in Sri Lanka Telecom PLC came to light after the Sectoral Oversight Committee on National Security said it will NOT recommend privatizing Sri Lanka Telecom, as matters sensitive to national security could be exposed.

The Sectoral Oversight Committee on National Security is chaired by SLPP Parliamentarian Retired Rear Admiral Sarath Weerasekera and the committee report highlighted twenty key areas.

The report prepared by the Sectoral Oversight Committee on National Security on the impact the privatization of the state owned 49.5% stake of Sri Lanka Telecom would have on National Security was presented to the parliament on Friday (9). 

There will be high risk of information of important subscribers of Diplomatic Missions, High level public sector, private sector cooperates businesses, defense services, etc. getting leaked out or snooped out.

If privatized, government will lose control for call mongering and snooping data as tools used for such monitoring are hidden from usual operation and maintenance.

The call detail records of VVIPs and security agencies, as well as browsing data can be easily extracted from and passed to wrong hands. 

Fraudulent acts in Telecom industry such as misusing routers, call by pass /call high jacking etc. could lead to a loss of a considerable amount of revenue to the state.

The above are some of the key points in the document.

In addition, the report notes that if privatized and if the purchaser controlling the shares in SLT does not agree to comply with Computer Crime Act, Electronic Transaction Act, Right to information Act, Banking Act, Telecommunication Act, and Intellectual Property Act, national security will be affected.

The Sectoral Oversight Committee on National Security comprises 12 members, and seven of them represent the SLPP which hold a majority in the government.

In addition to Retired Rear Admiral Sarath Weerasekera, the SLPP MPs in the committee are  Chamal Rajapaksa, Johnston Fernando, Sampath Athukorala, Major Pradeep Udugoda, Sumith Udukumbura, and Major Sudardhana Denipitiya.

When the report by the Sectoral Oversight Committee on National Security on Sri Lanka Telecom was presented to the Parliament on the 9th of June, that same day SJB member of the committee Field Marshal Sarath Fonseka stepped down, and was replaced by MP Rauff Hakeem.

"I am a Field Marshal. The post of Chairman is held by a person holding the rank similar to a Two-Star General. The others are Majors' in the Government. The Sectoral Oversight Committee follows the majority view. Although there is opposition representation, there is nothing much we can do. They often disregard are opinions," said Sarath Fonseka following his resignation from the Sectoral Oversight Committee on National Security.

"The incumbent President and the government speaks of right-sizing the military. That is an attempt to take away the power of the military and weaken them. Therefore, if we cannot act and make a change while serving in such committees, the war heroes will think ill of us. They would assume that we did not make an attempt to stop these efforts. We would be helpless at that point. Thus, I decided to step down from the committee." he further explained his reasons to step down.

Later the same day (9th May 2023), The President's Media Division issued a statement noting that the Government has focussed its attention to the Sectoral Oversight Committee report, emphasizing the concerns surrounding the potential risk to national security resulting from the privatization of Sri Lanka Telecom.

The statement noted that the Government believes that it lacks a logical or scientific data analysis pertaining to the subject. 

"To address this deficiency, it is necessary to examine the operation and regulation of information and communication technology service providers in Sri Lanka, analyze financial data related to the sector, understand Sri Lanka’s national ambitions in this field, assess the available capital capacity, and conduct a comprehensive study of global trends," said the PMD.

Furthermore, the Government has reassured that the policy decision taken will not compromise national security, contrary to what is indicated in the report, it added.

Hence, the Government will take a final decision during an upcoming cabinet meeting, considering this report along with recommendations from the information and communication sector, it highlighted.

However, according to the statement by the PMD the President had emphasized that the current government’s policy is focused on providing opportunities to the private sector, distancing it from direct government involvement.