Little Irritation

Sri Lanka Telecom's group net profits fell 27 percent for the nine months ended Sept.
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30, weighed down by a new levy on international calls. Sri Lanka Telecom's group net profits fell 27 percent for the nine months ended Sept. 30, weighed down by a new levy on international calls. The cash rich operator posted net profits of Rs.
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1,302 mn, while revenues surged 15 percent to Rs. 22.05 bn, for the nine months ended Sept 30, 2004.
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SLT had to fork out Rs. 2,067 mn by way of a new tax – International telecommunication operators' levy – which kicked with retrospective from March 3, 2003.

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SLT is required to share US$ 0.
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038 per international incoming traffic minute with the government, for rural connectivity.

However, the bill provides for a 2/3 refund of the levy, whenever an operator links up with rural areas.

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"The refund in respect of rolling out the network in rural areas has been estimated at Rs.
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1,378 mn but has not been recognised in the financial statements, as the regulations for such refund have not been finalised," SLT told shareholders on Wed.

The dominant operator introduced a high-tech billing system and underwent a

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