The impressive growth in the telecommunications sector witnessed in recent years continued during the first half of 2000. In terms of new fixed and cellular telephone connections provided, the telecommunications sector grew by 11 per cent during this period. The subscriber network of Sri Lanka Telecom Ltd. (SLT) increased by 7 per cent to 621,394 as it provided 44,228 new telephone connections. Consequently, the telephone density (telephones per 100 persons) of SLT telephones improved to 3.23 from 3.05 as at end December 1999. The total number of international circuits increased by 21 per cent to 2,813 by end June 2000.

SLT had installed 2,766 public pay phone boxes by end June 2000 reflecting a 19 per cent increase when compared to end December 1999. Further, SLT provided services to 7,961 e-mail and 7,171 Internet subscribers by end June 2000. Meanwhile, with a view to rationalisation of the   tariff structure, domestic telephone charges were raised by about 20 per cent, while international direct dialling (IDD) call charges were reduced by 8 per cent with effect from 1 July 2000. SLT commenced a tariff rebalancing process in 1998, in order to reduce its high reliance on international call charges. As the demand for telephones is growing faster than the supply, especially outside the Colombo Metropolitan area, the waiting list for SLT telephones rose by 4 per cent to 246,560 during the period under consideration. In order to meet the growing demand, SLT is implementing a number of major telecom projects with assistance from donors such as the Japan Bank for International Corporation (JBIC),  Swedish International Development Agency (SIDA) and Economic Development Co-operation Fund (EDCF) to augment its capacity and to improve telecom infrastructure. During the first half of 2000, the integrated services digital network (ISDN) facilities have been expanded, covering the Maharagama and Homagama areas in addition to 16 stations in Colombo. Sri Lanka Telecom Services Ltd. (SLTS), a subsidiary of SLT, completed most of the telecommunications projects under its command during the period under consideration. These projects have so far added 218,000 exchange lines to the network. Meanwhile, SLT completed laying an optical fibre inter-province transmission ring covering major cities in the Western, Central, North-Western and Sabaragamuwa provinces under the Regional Telecommunication Development Project. The optical fibre network enhances the quality of telecommunications while increasing the capacity.

Telecommunication services provided by the private sector further expanded during the first half of 2000. The cellular subscriber network was increased by 20 per cent to 307,027. Although the overall cellular penetration in the country is still relatively low, the ratio between fixed line telephones to cellular phones is high at about 2. The total number of public pay phone booths maintained by 6 companies, including SLT, increased by 29 per cent to 7,461. However, the number of subscribers for radio paging services declined by 27 per cent mainly due to shifting of subscribers from paging services to cellular phones as cellular phones have now become more affordable. The subscriber network of data communication services grew sharply by 21 per cent to 32,633 mainly due to rapid increase in the e-mail and Internet subscribers. Meanwhile, the subscriber network of wireless local loop telephones increased by 10 per cent to 101,093.The telephone density, inclusive of wireless telephones, but exclusive of mobile telephones, has been estimated as 3.7 telephones per 100 persons. 

Postal Service :
In the postal sector, the government made continued efforts to establish a quality and reliable postal service, which will cater to the changing needs of society in a globalised world. In this respect, the draft bill to reform the Department of Posts was placed before a special committee with representatives from the government, trade unions and the general public for further comments and necessary amendments. Steps also have been taken to upgrade and modernise several main post offices with World Bank assistance. The  Postal Shop concept to sell postal products as well as other consumer products, which started as a pilot project in 1999, further expanded during the first half of 2000. The Department of Posts also focused on the use of computers for financial, marketing and administrative activities of the department and use of Internet  and e-mail facilities for widening of postal services. E-mail facilities are already available at all modernised post offices.

The post office network expanded by 21 offices to 4,458, mainly due to the expansion of Agency Post Offices, Rural Agency Post Offices and the establishment of new Estate Agency Post Offices. The Estate Agency Post Offices have been recently created to develop postal services in the estate sector. Handling of inland mail articles by the public sector post offices decreased by 4 per cent to 206 million articles, while handling of foreign mail articles increased by 9 per cent to 35 million articles during the first six months of 2000. The Post Fax and Fax Money Order Services have been further extended and there were 192 post offices with this facility by end June 2000. The International Express Mail Service and Local Speed Post Service also continued to expand during the first half of 2000.

Total revenue of the Department of Posts grew by 12 per cent to Rs. 1,026 million. As the operating expenditure amounted to Rs.1,279 million, the operating loss of the Department of Posts was Rs.253 million during the first six months of the year.

Telephone Main line Use : 494,509 (1998)

Telephone Mobile Use : 228,604 (1999)

Radio Broadcast Stations : AM 26, FM 45, shortwave 1 (1998)

Radios : 3.85 million (1997)

Television broadcast stations : 21 (1997)

Televisions : 1.53 million (1997)

Internet Country Code : .lk

Internet Service Providers (ISPs) : 5 (2000)

Internet Users : 121,500 (2001)