SLT to use Rs 875 million for refunds

By Natasha Gunaratne

Despite Sri Lanka Telecom (SLT) recording a post tax profit of Rs.2.5 billion in the first half of 2007, the company has set aside Rs.875 million in the eventuality that it will have to reimburse consumers for excess tariff charges from January 2007.

The Consumers' Association of Lanka (CAL) had initiated legal action in the Court of Appeal seeking a writ of Certiorati to quash the approval granted by the Minister of Telecommunications and the Telecommunications Regulatory Commission (TRC) of Sri Lanka for the tariff revision implemented by SLT in September 2003 in which the TRC, the Minister, the Secretary to the Treasury and SLT were cited as respondents to the case.

The last hearing in the case was held on 9 July 2007 and as part of a negotiated settlement, the time based tariff reduction effective from 1 January 2007 is being discussed. With the intervention of the Court, the parties have agreed to a reduction in domestic tariffs. Pending a final decision by the Court, provisions have been made in the second quarter statements for Rs.875 million against the possible credit to be given to customers up to June 2007.