Is SLT a state institution or a private company?
Is Sri Lanka Telecom (SLT), a state owned company or a private institution? A fresh dispute has arisen over the status of SLT after the Ministry of Information and Mass Media decreed that, the legal status of SLT is an institution which functions as an entirely private company.
This was informed to employees by SLT CEO Kiththi Perera recently following a decision taken at a meeting held at the Ministry under the direction of Presidential Secretary Dr. P.B. Jayasundera and attended by Minister Bandula Gunawardena and senior officials.
The decision was conveyed to SLT authorities by Ministry Secretary Chulananda Perera in a letter dated 25.06.2020.
This has raised many questions as the SLT is listed under Departments, Statutory Institutions and Public Corporations of the Ministry of Information and Mass Media in a gazette notification dated 10-12-2019.
The two main shareholders of SLT are the Government of Sri Lanka which hold 49.5 per cent stake in SLT through the Secretary to the Treasury and Malaysia’s Global Telecommunication Holdings (GTH N.V.) which owns a stake of 44.98 per cent. The balance shares are publicly traded on the Colombo Stock Exchange (CSE).
This national telecom provider has been managed as a state-owned listed company in the CSE since 1996 up until now with majority board members including the chairman being nominees of the Treasury on the directions of the government in power.
All the SLT management decisions and actions during previous governments were taken in accordance with ruling party policies by board members appointed by the state (Treasury) with the consent of members appointed by GTH N.V.
SLT trade unions allege that the proper management of the company has been affected by interference of politically-appointed chairmen and board members severely disrupting business management, administration and industrial peace.