The Changing Face of Communications
Possibly the most significant era of change in the field of telecommunications in Sri Lanka began to unfold from the mid-'90s. It is pertinent to dwell briefly on the "times that were", in order that our current performance may be put in perspective.

The SLT of the past could never match the demand for telephones. The waiting list for new connections in 1997, just prior to privatisation, exceeded the number of customers.

In 1995, SLT projected an installation of 56,000 new lines; only 24,556 were installed. In 1996, the projection was for 87,000 new lines; only 50,171 were installed. By June 1997, out of a projected number of 74,000, only 24,556 new lines had been installed. As at 31 March 1997, the SLT had 270,500 lines in service. The waiting list for telephones stood at 287,200 as at the same date, and was estimated to swell to 700,000 by the year 2000.

The telephone penetration rate which was 0.74 per 100 persons in 1991, grew to 1.4 per 100 persons by March 1997. It was estimated at that time, that to reach a rate of 5 per 100 persons by the year 2000, an investment of US $ 450 - 500 million would be required, in addition to the investment made by private operators, who had begun business by then.

Thus the bottom line was that the state operated system could neither meet the demand for services, nor generate the required investment for expansion.