Business
Making mobile more affordable with abolition of interconnect fees
Key reforms that Sri Lanka’s Telco sector needs are lagging behind
by Sanath Nanayakkare
As the nation’s economy continues to experience a state of unprecedented turmoil, most Sri Lankans are tightening their wallets wherever they can. While it may be possible to cut down on extravagances, when it comes to the essentials Sri Lankans are faced with a stark lack of choice. Meanwhile, in an increasingly digital world, the definition of ‘essential’ has also expanded to include telecommunications.
While the island-wide expansion of telecom coverage has resulted in explosive growth in the consumption of mobile data, Sri Lanka’s lowest income segments still tend to rely less on mobile data and more on direct voice calls in order to stay connected.
However, speaking to The Island yesterday, a knowledgeable source in the Telco sector noted that structural issues in the sector – from the lagging implementation of Mobile Number Portability (MNP) to regressive fee structures such as the currently prevailing Interconnection Usage Charges (IUC) – place a disproportionate burden on Sri Lanka’s low income population.
IUC is the price charged by a particular network owner when they receive a call from outside of their network for the purpose of interconnecting a voice call to their network. Typically, telcos with the largest user bases earn the most from these IUCs. But it is always the user who gets charged with this fee. The source noted that these fees effectively function as a ‘proxy tax’ on the very segments that rely on it the most, while the benefits of this ‘tax’ are almost exclusively enjoyed by industry incumbents with the largest user bases.
Abolishment of such fees would bring Sri Lanka’s mobile industry into closer alignment with established global best practices by lowering standard call rates for all Sri Lankans for voice calls. After significant delays, IUCs were abolished in India in January 2021, in a move which has been widely credited with considerably easing the financial burden on consumers. Similar measures are also currently rolled out in Bangladesh, Nepal, and Israel.
Following the introduction and popularity of unlimited monthly plans for voice and social media for pre and postpaid customers by Airtel Lanka over the last quarter, the Sri Lankan market has shifted into mirroring their products with unlimited deals now appearing across all networks. However, even with such unlimited offers now available, abolishment of IUC will make unlimited call packages more affordable.
“Data has become the core business of all telco service providers. At the same time, voice calls are no longer the privilege they once were in previous decades. Given these historic trends, and especially in light of the current economic pain felt by all Sri Lankans, it is high time that IUCs were abolished, and initiatives like MNP be implemented in order to pass the maximum benefit possible to low-income groups who are the heaviest consumers for voice calls.” he said.
Such measures will even the telco playing field, resulting in increased competition between operators, and most importantly, lower prices for consumers. However, it appears that without pressure from both consumers and regulators, these reforms are unlikely to move forward, and therefore, will remain stagnant.
Business
Mattala Wildlife Unit to boost revenue, tourism and investor confidence
The launch of a dedicated wildlife unit at Mattala Rajapaksa International Airport is expected to deliver significant economic benefits by improving aviation safety, strengthening eco-tourism and enhancing Sri Lanka’s investment appeal, Wildlife Conservation Department Director General Ranjan Marasinghe said.
Speaking at the signing of a Memorandum of Understanding between the Department of Wildlife Conservation and Airport and Aviation Services (Sri Lanka) Limited, Marasinghe said the initiative links conservation directly with national development and revenue generation.
“This is more than an administrative step—it is a forward-looking initiative that aligns conservation, aviation safety and national development in a single strategic effort,” he said.
He noted that wildlife management at airports is globally recognised as essential for reducing bird strikes and wildlife-related disruptions, which can lead to costly repairs, delays and operational losses.
By proactively managing such risks, the Mattala Wildlife Unit is expected to lower potential costs for airlines and airport operators while improving efficiency and confidence among carriers considering future operations.
Marasinghe said the airport’s proximity to premier tourism destinations such as Yala National Park and Udawalawe National Park, together with marine tourism opportunities including Blue Whale watching, gives Mattala a strong commercial advantage.
“This convergence of aviation and wildlife tourism creates an extraordinary opportunity,” he said, adding that the airport has the potential to become a major gateway for high-value eco-tourism.
Industry observers note that wildlife tourists generally spend more on guided safaris, hotels, transport and local experiences, generating stronger foreign exchange earnings and employment opportunities for surrounding communities.
Marasinghe said integrating environmental standards into airport operations would also improve Sri Lanka’s global image at a time when investors and international travellers increasingly value sustainability.
“By integrating environmental considerations into airport operations, we position Sri Lanka more favourably on the global stage, demonstrating that we are a nation committed to sustainability, responsibility and innovation,” he said.
He expressed hope that the Mattala model would be replicated at other international airports, creating long-term savings, stronger environmental governance and wider economic returns.
The Director General said the Department of Wildlife Conservation remains committed to supporting the national economy through new and meaningful avenues while protecting Sri Lanka’s natural assets.
“Conservation must also contribute to development,” he said, stressing that protecting biodiversity and generating growth can go hand in hand.
By Ifham Nizam
Business
Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry
Aitken Spence Elevators, in collaboration with CINEC Campus, recently held the Certificate Awarding Ceremony for the latest batch of trainees of the Elevator Serviceman Course at the Elevator Training Centre (ETC). The graduates were awarded their NVQ Level 3 certifications, marking a significant milestone in their professional journey within Sri Lanka’s vertical transportation industry.
The certification programme was developed in partnership with the National Apprentice and Industrial Training Authority (NAITA) and the Ministry of Vocational Training & Skills Development, ensuring trainees received industry-recognised qualifications, alongside strong practical competencies. The ceremony was attended by directors of both Aitken Spence and CINEC Campus, as well as staff members, lecturers, and invited guests of the graduating students
Anuka Prashan Pieris was recognised as the Most Outstanding Student of the batch in appreciation of his exceptional performance and commitment throughout the programme. The Elevator Training Centre plays a vital role in addressing the growing demand for skilled elevator service technicians through structured training and hands-on learning. The facility features Sri Lanka’s first Elevator Training Tower, offering trainees practical exposure aligned with both local and international standards.
All graduates of the current batch have already commenced their careers as technicians and supervisors at Aitken Spence Elevators. Their seamless transition into the workforce reflects the programme’s strong emphasis on developing job-ready professionals capable of contributing effectively from day one.
Business
Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026
COLOMBO, SRI LANKA– Sterling Steels (Pvt) Ltd, a premier manufacturer of high-quality globally renowned steel roofing & cladding, announced it has been honored with a prestigious Merit Award at the Sri Lanka Institute of Architects (SLIA) Annual Product Awards 2026. The national recognition was awarded in the highly competitive Zinc-Aluminium Coated Profile Steel Sheet category, underscoring the company’s dedication to excellence, innovation, and superior quality in the Sri Lankan construction industry.
The award was presented during a grand ceremony held at the esteemed Nelum Pokuna Theatre, a key event in the nation’s architectural and construction calendar. The SLIA Annual Product Awards are widely regarded as a benchmark for quality and design excellence, with products rigorously evaluated by a panel of distinguished architects and industry experts. Receiving this Merit Award positions Sterling Steels among the top-tier suppliers of building materials in the country.
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