Market-based reforms and privatization in Sri Lanka

Purpose - The 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/approach - Secondary 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. Findings - This 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/implications - This 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 implications - The 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/value - The 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.