Development of Sri Lanka's telecommunications sector has been based on private sector investments. Significant aspects of this sector are:

• Operations by multiple public and private telephone service providers, including three basic, four cellular and six payphone services, making the industry one of the most competitive in Asia.
• The number of fixed telephone lines installed increased by 84% between 1997 and 1999 as a result of the entry of two wireless loop operators led by Telia AB of Sweden, Trans Asia Telecom Ltd., of Singapore, Trans Atlantic Telecommunications UK and the privatization of Sri Lanka Telecom Ltd.
• Global telecom giants such as NTT, Ericsson, Telstra, Hutchison Wampoa and Malaysia Telecom are other major operators in the Sri Lankan telecommunications industry.
• Deregulation has resulted in the country's largest ever privatization initiative, with NTT of Japan purchasing 35% of Sri Lanka Telecom for US$ 225 million.
• The availability of satellite bandwidth through several private operators such as Electroks and Ceycom Global Communications.