SLT privatization & National Security : Statement from PMD

COLOMBO (News 1st); The report by the Sectoral Oversight Committee, which highlights concerns about national security regarding the privatization of Sri Lanka Telecom, did not involve any inquiry with the relevant agencies or departments responsible for national security.

This was confirmed by the President's Media Division on Tuesday (13), noting that the revelation was made during the Security Council Meeting.

On the 9th of May 2023, 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.

"Further privatization would expose the countries critical communication infrastructure / sensitive information to private entities whose profit oriented interests can compromise national security. Hence, privatization of Telecom is not recommended, " said MP Sarath Weerasekera, the Chairman of the Sectoral Oversight Committee on National Security while presenting a report to the Parliament.

He said that anyone/organization who had been blacklisted/ helped terrorists / extremists in any form should not be allowed to buy any share and have any control over our national assets.

The report further notes that the state can buy back the other large shareholder of Telecom as provided for in the agreement, divide the segments into sensitive & vulnerable, excess lands & buildings, critical infrastructure and the business.

"Whilst retaining the first segments effecting National Security, the state can divest the others, holding a major share through Private Public Partnership ensuring critical infrastructure is protected, and all government regulations are adhered to. This way the government can exit from doing business whilst making profit and ensuring National Security," the report further recommended. 

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.

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) and it contained 20 key points. 

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.