US embassy cable - 04COLOMBO951

UNCLAS COLOMBO 000951 
 
SIPDIS 
 
DEPT FOR L/CID/JNICOL, EB/IFD/OIA/ATBRYAN,COMMERCE FOR 
ITA:ABENAISSA 
 
E.O. 12958: N/A 
TAGS: EINV, EFIN, PGOV, KIDE, CASC, CE, OPIC, ECONOMICS 
SUBJECT: SRI LANKA: REPORT ON INVESTMENT DISPUTES AND 
EXPROPRIATION CLAIMS 
 
REF: STATE 78697 
 
Format follows instructions in reftel: 
 
(A) Claimant A 
 
(B) 1999 
 
(C) Claimant A has an 18% stake in a private Sri Lankan 
telecommunications company. Most problems experienced by the 
company have been resolved: Court cases brought by and 
against the GSL have been dropped.  Equipment held in Customs 
has been cleared for release (though it is now so obsolete, 
the company will not pay the storage charges to free it). 
Payments made to block connections have stopped.  Post was 
not contacted for advocacy help during the previous year, and 
therefore had to request an update for this report. 
 
The problem that remains is the refusal of (49.5% 
government-owned) Sri Lanka Telecom (SLT) to provide 
international connections, though directed to by the Telecom 
Regulator.  Claimant A,s firm has a license to provide 
services with these connections, and cannot without them. 
The firm is therefore losing projected revenues.   SLT is 
treating the other Sri Lankan telecom firms in the same 
manner.  The firm's management says it hopes to work more 
closely with the newly elected government on projects, and 
expects to receive the required connections. 
 
Claimant A: International Internet Services, U.S. investors 
in Sri Lankan firm, Lanka Internet 
LUNSTEAD