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Solid Infrastructure

Private and public investment programmes have been implemented to improve the country's basic infrastructure facilities. Today, Sri Lanka's infrastructure ranks as the best available in South Asia. The government is actively encouraging private sector investment in infrastructure on the basis of BOO (Build, Operate and Own) and BOT (Build, Operate and Transfer). Currently there are private investment projects in power, ports, water sanitation, transportation (highways and rail) and IT.

Development of Sri Lanka's telecommunications sector is based on private sector investments. Significant aspects of this sector are:

  • Operations by multiple public and private telephone service providers, including three basic, four cellular and six payphone services, making the industry one of the most competitive in Asia.
  • The number of fixed telephone lines installed increased by 84% between 1997 and 1999 as a result of the entry of two wireless loop operators led by Telia AB of Sweden, Trans Asia Telecom Ltd. of Singapore, Trans Atlantic Telecommunications UK and the privatisation of Sri Lanka Telecom Ltd.
  • Global telecom giants such as NTT, Ericsson, Telstra, Hutchison Wampoa and Malaysia Telecom are other major operators in the Sri Lankan telecommunications industry.
  • Deregulation has resulted in the country's largest ever privatisation initiative, with NTT of Japan purchasing 35% of Sri Lanka Telecom for US$ 225 million.
  • The availability of satellite bandwidth through several private operators such as Electroks and Ceycom Global Communications.


  • The Ceylon Electricity Board (CEB) is the main supplier of electricity to the National Grid.
  • Independent Power Producers (IPP) share of total power generation was 8% in 1999.
  • The total installed capacity of electricity under both CEB and IPP stood at 1,691 MW in 1999.

The construction of 4 major expressways will improve the existing road network. These include the Colombo/Matara, Colombo/Katunayake, and the Colombo/Kandy highways as well as the Colombo outer circular road.