Market‐based reforms and privatization in Sri Lanka

Abstract

PurposeThe purpose of this paper is to explore and analyse the extent to which socio‐political obstacles have influenced the successful establishment and performance of an institutional framework to implement the privatization programme in Sri Lanka.Design/methodology/approachSecondary data have been extensively used in this paper to interpret, analyse and strengthen the arguments. Further, the recent data collected through semi‐structured interviews with stakeholders in the telecommunications sector in Sri Lanka have been used. The analysis has been confined to the Sri Lankan context.FindingsThis paper finds that the institutional framework, one of the preconditions necessary for successful implementation of reforms, has not been successful in the implementation due to the unsound socio‐political milieu prevailing in the country.Research limitations/implicationsThis paper addresses only one aspect, i.e. the importance of a proper institutional framework. It emphasizes the need for further case studies to investigate the importance of other preconditions in developing countries.Practical implicationsThe paper shows that the current analysis could be of immense value to the policy makers of both Sri Lanka and countries in South Asia.Originality/valueThe findings in this paper suggest that careful consideration of the country‐specific socio‐political conditions in developing countries should be taken, and reform measures devised accordingly.