Sri Lanka to amend telecom law for third-party tower construction
The amendment will be tabled in parliament, with a debate anticipated within the next two months, marking a strategic step towards improving Sri Lanka’s telecommunications infrastructure.
Sri Lanka is set to amend its Telecommunications Regulatory Commission Act for the first time in 28 years, allowing third-party companies to construct telecom towers. That significant change aims to enhance competition and foster development in the telecommunications sector while promoting sustainable growth and ensuring market fairness.
The need for this amendment has arisen from financial constraints resulting from an unprecedented economic crisis, forcing telecom companies to reduce their budgets for building new towers, thereby slowing infrastructure development. By enabling independent companies to take on tower construction, the government seeks to address these challenges.
Specifically, it plans to build 276 new towers to boost connectivity and expand the digital economy from $2.3 billion in 2023 to a projected $15 billion by 2030. Furthermore, while independent firms will be responsible for tower construction, telecom companies will continue to provide other necessary equipment, ensuring a collaborative approach to improving network coverage.
Moreover, the amendment to the TRC Act will be tabled in parliament, with a debate expected to occur within the next two months. This legislative change represents a proactive step toward enhancing telecommunications infrastructure in Sri Lanka, thereby positioning the country for greater digital advancement in the coming years.