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Formation
Sri
Lanka Telecom (SLT) was established by an
Incorporation Order made under Section 2,
State Industrial Corporations Act, No. 49
of 1957 and published in Gazette Extraordinary
No. 596/11 of 6 February 1990. Under an Order
made by the Minister of Posts & Telecommunications
on 24 July 1991 under Section 23, Sri Lanka
Telecommunications Act, No. 25 of 1991 and
published in Gazette No. 675 of 9 August 1991,
all the property, rights and liabilities (other
than those excluded by the agreement entered
into between the Minister and SLT as per Sub-section
2 of Section 23 of the Sri Lanka Telecommunication
Act) to which the Department of Telecommunications
(DOT) was entitled or subject to immediately
before the transfer date (1 September 1991)
were vested in SLT.
As
part of the privatisation process SLT was
converted to a public limited company, Sri
Lanka Telecom Limited (SLTL), on 25 September
1996 under the Conversion of Public Corporations
or Government Owned Business Undertakings
into Public Limited Companies Act, No. 23
of 1987, vide Gazette Extraordinary No. 942/7
of 25 September 1996. Following the incorporation
of SLTL, all of the business and related assets
and liabilities of SLT were transferred to
SLTL.
Subsequently,
on 5 August 1997, the Government as the sole
shareholder of SLTL, divested 35% of its holding
in the issued share capital of SLTL by the
sale of 631,701,000 ordinary shares of Rs.
10 each to Nippon Telegraph and Telephone
Corporation (NTT).
On
2 July 1998, the Government of Sri Lanka divested
a further 3.5% of the issued share capital
of SLTL by the sale of 63,170,010 ordinary
shares to the employees of SLTL.
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