RESTRICTEDWORLD TRADE
ORGANIZATIONTN/S/O/LKA
8 September 2003
(03-4676)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM SRI LANKA
Initial Conditional Offer on Services
The following initial conditional offer has been received from the delegation of Sri Lanka on
22 August 2003 with the request that it be circulated to the Members of the Council for Trade in
Services.
_______________
This initial offer is not a legal text and is submitted solely for the purpose of negotiation in the
context of the Doha Ministerial Declaration, particularly in the light of the need to achieving an
overall balance in the outcome of the Doha Round of negotiations.  This offer is, therefore,
conditional and the Government of the Democratic Socialist Republic of Sri Lanka reserve the right to
supplement, modify, withdraw it in  the whole or in part at any time during the services negotiations.
The Government of the Democratic Socialist Republic of Sri Lanka further reserve the right to maketechnical amendments to this offer and make corrections to rectify errors, omissions, or inaccuracies
in this offers as well as to clarify and interpret the terms and conditions of these offers.
The editorial conventions used in this initial offer follow the guidelines established by the
WTO Secretariat in JOB(02)/88.TN/S/O/LKA
Page 3SRI LANKA – SCHEDULE OF  SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS
INCLUDED IN THIS
SCHEDULE
3)    Foreign Investment :  Certain limitations,
conditions and qualifications pertain
specifically to some forms of commercial
presence by foreign enterprises, as indicated
below:
3) Foreign investmen t: commercial presence
by foreign investors is permitted subject tocertain exclusions, limitations andconditions:
(a) Foreign investors may invest in any sector of
the economy other than the followingactivities, which are reserved for citizens ofSri Lanka:
(i) Money- lending;
(ii) Pawn brokering;
(iii) Retail trade with a capital of less than
US$1 million;
 (iv)
Businesses providing personal services
other than for export of tourism ;  and
(v) (iv) Coastal fishing.TN/S/O/LKA
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(b) Investments in shares in companies
incorporated in Sri Lanka other than in theareas reserved for citizens of Sri Lanka arepermitted in terms of a general permissiongranted under Exchange Control Law.
(bb) Foreign investment up to 40 per cent
of equity in a company carrying onor proposing to carry on in any ofthe following business activities interms of the general permission
granted under the Exchange Control
Law:
(i) Production of goods where Sri
Lanka’s exports are subject tointernationally determined
quota restrictions;
(ii) Growing and primary
processing of tea, rubber,coconut, cocoa, rice, sugar andspices;
(iii) Mining and primary
processing of non renewablenational resources;
(iv) Timber based industries using
local timber;
(v) Fishing (deep sea fishing);
(vi) Mass Communications;
(vii) Education;(viii) Freight forwarding;(ix) Travel agencies;(x) Shipping agencies.TN/S/O/LKA
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(bc) The share investments in the
following areas of business activitiesare subject to  approval of theregulatory authority for suchinvestment:
(i) Air transportation;
(ii) Coastal shipping;(iii) Industrial undertaking in the
Second Schedule of theIndustrial Promotion Act
No.46 of 1990, namely–any
industry manufacturing arms,ammunitions, explosives,military vehicles andequipment aircraft and othermilitary hardware; any
industry manufacturing
poisons, narcotics, alcohol,dangerous drugs and toxic,hazardous or carcinogenicmaterials; any industry
producing currency, coins or
security documents;
(iv) Large scale mechanised
mining of gems;
(v) Lotteries.TN/S/O/LKA
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(c) However, foreign investment in excess of
40 per cent (and up to 100 per cent) inthese companies could be approved by theBoard of Investment of Sri Lanka (BOISL)on a case-by-case basis in consultation withthe relevant State Agencies as mentioned
below.
The laws applicable to foreign investors are
the Exchange Control Law No. 24 of 1953as amended to date and regulations madethere under from time to time and the
BOISL Law No. 4 of 1978 (formerly known
as the Greater Colombo EconomicCommission (GCEC)) as amended to date(referred to as "the law") and the BOISLRegulation No. 1 of 1978 made under thelaw as amended to date.
The BOISL grants approval for foreign
investments up to 100 percent of equity in acompany proposing to carry on  any
business activity which is permitted under
the general permission granted in terms ofthe Exchange Control Law, withexemptions from certain laws of thecountry under its Law, subject however, to
the compliance of  crit eria  applicable for
such activity in the BOISL Regulations for
the time being in force.National Security
considerations precluderemoval of restrictions onair transportation andcoastal shipping.TN/S/O/LKA
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(d) Industries, 100 percent foreign owned or
otherwise, approved by  BOISL withexemptions from certain laws of thecountry are eligible to locate in any ExportProcessing Zone owned by BOISL or maylocate outside EPZ's on  either purchased
or lease land.  In relevant sectors when a
joint venture partner is a public sectorenterprise or a government undertaking,while granting access, preference will begiven to foreign service suppliers/entities,which offer the best terms for transfer of
technology.
(b)   The foreign investment law applicable to
foreign investors is the Greater Colombo
Economic Commission ( GCEC) Law No. 4 of
1978, as amended to date, presently known as
the Board of Investment of Sri Lanka
(BOISL) Act by G.C.E.C. (Amendment) Act
No. 49 of 1992 (referred to as "the Law"),
supplemented by:  i) BOISL Regulation No. 1
of 1978, as amended to date;  and ii) BOISL
Regulation No. 1 of 1991.
(c)   The BOISL is responsible for the approval
and facilitation of foreign investment
throughout the country, other than for
investments made by purchasing shares in the
Colombo Stock Exchange, or for investments
in a number of activities, which are regulated
by other Statutory Agencies, including the
following:TN/S/O/LKA
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(i)    Banking;
(ii)  Financial institutions;
(iii) Insurance;
(iv)  Trading services on the Colombo Stock
Exchange;
(v)   Air transportation;
(vi)  Coastal shipping;
(vii) Branch or Liaison Offic e of companies
 incorporated outside Sri Lanka;
(viii)Lotteries.
(d)     Foreign investment of up to 40 per cent of
equity in a company proposing to carry on a
business activity listed below other than those
listed above will be automatically approved
by the BOISL.  Foreign investment in excess
of 40 per cent (and up to 100 per cent) in a
company proposing to carry on a business
activity listed below other than those listed
above will be approved by the BOISL on a
case-by-case basis in consultation with the
relevant State Agencies.  This situation will
be reviewed every two years with the aim of
further simplification.  The relevant sectors
are the following:
(i)     Construction and residential buildings;
(ii)    Mass transportation;
(iii)  Telecommunic ations;
(iv)   Mass communications;
(v)    Education;
(vi)   Professional services;
(vii)  Freight-forwarding;
(viii) Travel agencies;
(ix)    Shipping agencies.TN/S/O/LKA
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(e)   If a foreign investor wishes to locate his/her
enterprise outside any Export Processing
Zone, he/she can either purchase or lease land
suitable for his/her enterprise.  If a foreign
individual land suitable for his/her enterprise.
If a foreign individual buys land, he/she will
be liable to pay a tax at 100 per cent of the
purchase price.  However, if a foreign
investor incorporates a company in Sri Lanka
under the Companies Act and buys the land in
the name of the company, there will be no
liability or such tax even though the
shareholders of the company are foreign
nationals, because a company incorporated in
Sri Lanka under the Companies Act is
deemed to be equivalent to a citizen of Sri
Lanka for the purpose of this tax.
- Joint venture .
In relevant sectors when a joint venture
partner is a public sector enterprise or a
government undertaking, while granting
access, preference will be given to
foreign service suppliers/entities, which
offer the best terms for transfer of
technology.
4) Movement of natural persons is subject to Sri
Lankan laws on immigration, consumer laws,
and other relevant laws and regulations.
Aliens, who intend to work or to conductbusiness in Sri Lanka, shall have to obtain therelevant work permits in addition tocomplying with the immigrationrequirements.TN/S/O/LKA
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
II. SECTOR SPECIFIC COMMITMENTS
2. COMMUNICATION
SERVICES
C. Telecommunication
Services1
International basic voicetelecommunication services1) Monopoly guaranteed for Sri Lanka Telecom
Ltd ( SLT) until 31 December 1999.
Government of Sri Lanka ( GOSL) proposes
thereafter to issue an additional licence,
depending mainly on satisfactory progress
having been made with respect to tariff
rebalancing.   Unbound1) None   Unbound Sri Lanka subscribes to the
attached commitments onregulatory disciplines.
2) None 2) None
3) Monopoly guaranteed for SLT until
31 December 1999. Government of Sri Lanka
(GOSL) proposes thereafter to issue an
additional licence, depending mainly on
satisfactory progress having been made with
respect to tariff rebalancing.   None
Foreign equity participation of up to 35 per
cent involving a strategic partner permitted in
SLT. Foreign equity participation in telecom
providers is determined under BOISL related
provisions described in the horizontal section
of GOSL's schedule o f specific commitments3) None
4) Unbound except as indicated in the horizontal
section4) Unbound except as indicated in the horizontal
section
                                                          
1 Excluding broadcasting service and measures affecting such services. Broadcasting is defined as a form of uni-directional telec ommunications intended for a large number
of users having appropriate reception facilities. This may include sound and television transmission.TN/S/O/LKA
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Domestic local and long-
distance basic telephoneservices covered:
Mobile cellular services 1) None
2) None
3) Four operators' 
licenses  issued .  This number
will be reviewed by the GOSL in the year
2000. Foreign equity participation in these
enterprises determined per the horizontal
section
4) Unbound except as indicated in the horizontal
section1) None
2) None
3) None
4) Unbound except as indicated in the horizontal
section
Wireless Local Loop
(WLL) to provide basictelephony, datatransmission, payphone,voicemail and facsimile1) None
2) None3) Two operators'
 Three licenses issued .
Duopoly will be guaranteed for five years. In
addition SLT will be permitted to provide
WLL services in 800 MHz Band. Foreign
equity participation in these enterprises
determined per the horizontal section.
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
Public payphone services 1) None
2) None3) Five service providers
 licenses issued .  This
number will be reviewed on economic needs
criteria.  Foreign equity participation in these
enterprises determined per the horizontal
section.
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
sectionTN/S/O/LKA
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Radio paging services 1) None
2) None3) Five operators'
 licenses issued .  Changes
based on economic needs criteria.  Foreign
equity participation in these enterprises
determined per the horizontal section
4) Unbound except as indicated in the horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
section
Data communicationservices1) None
2) None3) Six operators
' licenses issued .  No new
licenses for facilities-based operators until
1998.  Foreign equity participation as per
horizontal section.
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in the horizontal
sectionNo numerical limitations
on non- facilities basedISP services.TN/S/O/LKA
Page 13Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Other:
Satellite-based services
GMPCS services suppliedthrough own gateways1) None
2) None3) Issuing of licenses is under consideration.
Foreign equity participation in these
enterprises determined per the horizontal
section.   None
4) Unbound except as indicated in horizontal
section1) None
2) None3) None
4) Unbound except as indicated in horizontal
sectionIf gateway is located in
Sri Lanka, a systemoperator license is
required.  For GMPCS
services provided with agateway located in SriLanka only frequencylicenses are required.There is no numerical
limit on the number of
GMPCS servicesuppliers.
Specializedinfrastructure providers 
21) None2) None
3) One license issued
4) Unbound except as indicated in the
horizontal section1) None
2) None
3) None
4) Unbound except as indicated in the
horizontal section
Trunk radio mobile
services1) None
2) None
3) One license issued4) Unbound except as indicated in the
horizontal section1) None
2) None
3) One license issued4) Unbound except as indicated in the
horizontal section
                                                          
2 This license permits the operation of backbone services for the transmission of the traffic of telecommunication service provid ers and broadcasters, excluding the provision
of telecommunication services directly to end-user.TN/S/O/LKA
Page 14Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Value-added services, such as:
- Electronic mail- Voice mail
- Online information
and data baseretrieval
- Enhanced/value-
added facsimile
services
- Code and protocol
conversions
- Online information
and/or data
processing1) None
2) None3) None4) Unbound except as indicated in the
horizontal section1) None
2) None3) None4) Unbound except as indicated in the
horizontal section
EDI 1) None
2) None3) Unbound
4) Unbound except as indicated in the
horizontal section1) None
2) None3) Unbound
4) Unbound except as indicated in the
horizontal sectionTN/S/O/LKA
Page 15Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
7. FINANCIAL SERVICES
I. Direct Insurance
A.  Life 1) Unbound
2) Unbound
3) New establishments are subject to licenses
approved by the Government of Sri Lanka
(GOSL).  Foreign equity participation, in this
sector is determined per the horizontal
section.   None
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the horizontal
sectionApplicant should be
incorporated as a public
company under the
Companies Act No. 17of 1982 and registeredas an insurer under theRegulation of InsuranceIndustry Act No. 43 of
2000.
B.  Non-life 1) Unbound except in the case of insurance of
freight and cargo insurance , where
insurance is taken by the buyer or seller
importer or the exporter  in accordance with
contract
2) Unbound except in respect of travel and
health insurance, where insurance could
be taken from an insurer licensed orregistered overseas i rrespective of being
registered with the Insurance Board of Sri
Lanka
3) New establishment is subject to license
approved by the Government of Sri Lanka
(GOSL).  Foreign equity participation in this
sector determined per the horizontal section.
None
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound
3) None
4) Unbound except as indicated in the horizontal
sectionApplicant should be
incorporated  as apublic company underthe Companies Act
No. 17 of 1982 and
registered as an insurerunder the Regulation ofInsurance Industry ActNo. 43 of 2000.TN/S/O/LKA
Page 16Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
II. Re-insurance and
retrocession1) Reinsurance can be taken with foreign
reinsurers to the extent of the residual
uncovered risk after obligatory or statutory
placement with National Insurance
Corporation.   None
2) Reinsurance can be taken with foreign
reinsurance to the extent mentioned above.
None
3) Unbound
4) Unbound except as indicated in the horizontal
section1) Unbound
2) Unbound   None
3) Unbound
4) Unbound except as indicated in the horizontal
section
B. Banking and Other Financial Services (excluding insurance)3
General Conditions
1. The terms of the offer in the banking and other financial services (excluding insurance) sub-sector are in accordance with GA TS, the Annex on Financial Services
and the Understanding on Commitments in Financial Services.  All the commitments are subject to entry requirements, domestic la ws, rules and regulations and
the terms and conditions of the Central Bank of Sri Lanka, the Board of Investment, the Securities and Exchange Commission and any other competent authority in
Sri Lanka, as the case may be, which are consistent with Article VI of the GATS and paragraph 2 of the Annex on Financial Servi ces.
2. Financial Services in the form of operations identified at sub-paragraphs (a) to 1) in the Schedule can be carried out in Sri  Lanka through a locally incorporated
company or a branch of a commercial bank incorporated outside Sri Lanka.
2.1 (a) Only a licensed commercial bank, a licensed specialized bank or a registered finance company may accept deposits.
(b) Only a licensed commercial bank may accept deposits which are repayable upon demand.
2.2 Approval, registration and licensing relating to banks and other financial institutions will be subject to an economic needs  test.
2.3 The total foreign shareholding in any institution providing financial services is permitted up to limited to 49 100 per cent of the issued share capital,
subject to normal regulatory  requirements.
2.4 Release of customer-related information is subject to the approval by the regulatory authority.
                                                          
3 This part of the schedule deals only with Section B.  Section A which covers insurance and insurance related services is conta ined in a separate part of the schedule.TN/S/O/LKA
Page 17Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(a) Acceptance of deposits and
other repayable funds fromthe public
(b) Lending of all types,
including, inter alia ,
consumer credit, mortgage
credit, factoring andfinancing of commercialtransactions
(c) Financial leasingThe commitments listed below apply to all services
listed under B (a) to (j)
1) Unbound
2) Unbound3) As specified in the
 None, except as provided
in the  General Conditions
4) Unbound except as specified in the horizontal
commitmentsThe commitments listed below apply to all services
listed under B (a) to (j)
1) Unbound
2) Unbound3) As specified in the
 None, except as provided
in the  General Conditions
4) Unbound except as specified in the horizontal
commitments
(d) All payment and money
transmission
(e) Guarantees and
commitments
(f) Trading for own account or
for account of customers,whether on an exchange, inan over-the-counter marketor otherwise, the following:
-m o n e y - m a r k e t
instruments (cheques,bills, certificates ofdeposits, etc.)TN/S/O/LKA
Page 18Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- foreign exchange
- derivative products
including but notlimited to futures andoptions
- exchange rate and
interest rate instrument,including productssuch as swaps, forwardrate agreements, etc.
- transferable securities
- other negotiable
instruments andfinancial assets,
including bullionTN/S/O/LKA
Page 19Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(g) Participation in issues
of all kinds ofsecurities, includingunderwriting andplacement as agent(whether publicly or
privately) and
provision of servicesrelated to such issues
(h) Money brokering
(i) Asset management,
such as cash orportfolio management,all forms of collectiveinvestmentmanagement, pension
fund management,
custodial depositoryand trust servicesTN/S/O/LKA
Page 20Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(j) Settlement and clearing
services for financialservices, includingsecurities, derivativeproducts, and othernegotiable instruments
(k) Provision and transfer
of financialinformation, andfinancial dataprocessing and related
software by providers
of other financialservices
(l) Advisory services on
all the activities listed
in subparagraphs (a) to
(k)The commitments listed below apply to all services
listed under B (k) to (l)
1) None, except as provided in the General
Conditions
2) None, except as provided in the General
Conditions
3) As specified in the General Conditions4) Unbound except as specified in the horizontal
commitmentsThe commitments listed below apply to all services
listed under B (k) to (l)
1) None, except as provided in the General
Conditions
2) None, except as provided in the General
Conditions
3) As specified in the General Conditions4) Unbound except as specified in the horizontal
commitments
9. TOURISM AND
TRAVEL-RELATEDSERVICES
A. Hotel and Lodging Services
1) Unbound*
2) Unbound
3) None except horizontal measures specified
above
4) Provisions of labour, immigration and
customs laws Unbound except as indicated
in the horizontal section1) Unbound*
2) Unbound
3) None
4) None
                                                          
* Unbound due to lack of technical feasibility .TN/S/O/LKA
Page 21Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
B. Travel Agency and Tour
Operations Services1) None
2) Unbound3) None except horizontal measures specified
above
4) Provisions of labour, immigration and
customs laws Unbound except as indicated
in the horizontal section1) None
2) Unbound*
3) None
4) None
*  Unbound due to lack of technical feasibility
__________TN/S/O/LKA
Page 22
REFERENCE PAPER
Scope
The following are definitions and principles on the regulatory framework for the basic telecommunications
services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public tel ecommunications transport network or service that:
(a) are exclusively or predominantly provided by  a single or limited number of suppliers;  and
(b) cannot feasibly be economically or technically substituted in order to provide a service.
A major supplier is a supplier which has the ability to materially affect the terms of participation (having
regard to price and supply) in the relevant market for basic telecommunications services as a result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone or
together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:(a) engaging in anti-competitive cross-subsidization;(b) using information obtained from compe titors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical  information
about essential facilities and commercially relevant information which are necessary for
them to provide services.
2. Interconnection
2.1 This section applies to linking with supplie rs providing public telecommunications transport
networks or services in order to allow the us ers of one supplier to communicate with users of
another supplier and  to access services provided by another supplier, where specific commitmentsare undertaken.TN/S/O/LKA
Page 23
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its own
like services or for like services of non-affiliated service suppliers or for its subsidiaries or
other affiliates;
(b) in a timely fashion, on terms, conditions (inc luding technical standa rds and specifications)
and cost-oriented rates that are transparent, reasonable, having regard to economicfeasibility, and sufficiently unbundled so th at the supplier need not pay for network
components or facilities that it does not require for the service to be provided;  and
(c) upon request, at points in addition to the ne twork termination points offered to the majority
of users, subject to charges that reflect th e cost of construction of necessary additional
facilities.
2.3 Public availability of the proced ures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection agreements
or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:(a) at any time or
(b) after a reasonable period of time which has been made publicly known to an independent
domestic body, which may be a regulatory body as referred to in paragraph 5 below, to
resolve disputes regarding appropriate terms,  conditions and rates for interconnection within
a reasonable period of time, to the extent that  these have not been established previously.
3. Universal service
Any Member has the right to define the kind of uni versal service obligation it wishes to maintain.
Such obligations will not be regarded as anti-competitive per se , provided they are administered in a
transparent, non-discriminatory and competitivel y neutral manner and are not more burdensome
than necessary for the kind of universal service defined by the Member.
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence  and
(b) the terms and conditions of  individual licences.TN/S/O/LKA
Page 24
The reasons for the denial of a licence will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of a nd the procedures used by regulators shall be
impartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies, numbers and
rights of way, will be carried out in an objectiv e, timely, transparent and non-discriminatory manner.
The current state of allocated frequency bands will be made publicly available, but detailed
identification of frequencies allocated for specific government uses is not required.
____________TN/S/O/LKA
Page 25SRI LANKA – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or Sub-sectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
2C. Telecommunication
Services -
International servicesMeasures including the
application of different
accounting rates for different
operators/countries covered by
International
Telecommunication Services
Agreements between Sri Lanka
Telecom Limited and various
foreign operators.Countries covered by
International
Telecommunication Services
Agreements between Sri Lanka
Telecom Limited and foreign
operators.Indefinite On account of bilateral agreements
between Sri Lanka Telecom Limited
and various foreign operators dealing
with various aspects of cooperation.
2C. Telecommunication
Services -International servicesMeasures including the
application of differentaccounting rates for differentneighbouring countries coveredby Telecommunication
Agreements entered into by the
Government of Sri Lanka withgovernments of neighbouringcountries.Neighbouring countries of the
South Asian Association forRegional Cooperation(SAARC), viz. Bangladesh,Bhutan, India, Maldives, Nepal
and Pakistan.Indefinite On account of bilateral agreements
with governments of neighbouringcountries.
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