ECONOMYNEXT – Shares in Sri Lanka’s state run top landline phone company, Sri Lanka telecom fell 7.8 percent on Friday during the trade after a statement from the government legislator against its proposed privatization.
Profit – making Sri Lanka telecom is one of the key state owned enterprises listed to be privatized under the reforms in line with international Monetary Fund’s conditions.
Shares in Sri Lanka telecom were down 7.8 percent as at 13.23 hours, the date showed.
“The prices went down only after the statement reached the investors. Earlier Sri Lanka telecom was expected to be more profitable if privatized as planned.” A stock broker told EconomyNext asking not to be named.
overall market, index, however was up by 0.39 percent.
A parliamentary committee has recommended that Sri Lanka Telecom (SLT) not be privatised as doing so could pose a threat to national security, despite Sri Lanka’s mobile operators already being largely private.
Government MP Sarath Weerasekara who chairs the Sectoral Oversight Committee on National Security told parliament Friday June 09 morning that divestment of the 49.5 percent stake in SLT held by the government could “expose the country’s strategic communication infrastructure and sensitive information to private companies that are motivated by profit, which could pose a threat to national security”. (Colombo/ June 09/2023)