President directs treasury to seek discount on Govt. phone calls

As a good governance measure to reduce State expenditure President Mahinda Rajapakse has directed Treasury to negotiate with telecommunication companies to give Government the benefit of bulk user discount in the same manner offered to private sector subscribers.

The President has been informed that collectively the Government is the biggest user of telecommunications when al1 the fixed and mobile telephone lines used by Ministries, all institutions coming under them and other State agencies as well as official phones used by Government servants.

However despite this telecom companies haven't extended the same privilege offered to private sector institutions.

Depending on the usage telecom operators' offer between 15% to 30% discount for private sector heavy users. For example Sri Lanka Telecom (SLT) offers 15% discount for bills over Rs. 800,000 while some operators offer varying higher rates based on value of calls made.

Official sources estimate that collectively all State sector users (including semi government agencies) spend over Rs. 2.5 billion per year on telecommunication and if the Government as a collective customer is offered a discount between 15% to 30% the saving for the Treasury is around realising the substantial benefits and the possibility of such savings being channelled to development work.

President Rajapakse has directed Secretary to the Treasury Dr. P. B. Jayasundera to immediately work on this issue and commence negotiations with telecommunication companies.