29. DIRECTORS’ INTERESTS IN CONTRACTS

A Director is considered to have a direct interest in a contract with the Company, if the Director him/herself is involved in a contract with the Company. A Director has an indirect interest in a contract with the Company, if the Director, through his/her common Directorships or his/her dependent family members is involved in a contract with the Company. The Directors of Sri Lanka Telecom Limited held Directorship in the following organisations during the year: Director   Company   Position Mr. T. Sumathipala   Sumathi Trading Company Sumathi Book Printing (Private) Limited Mobitel (Private) Limited Telecom City (Private) Limited   Partner (50% holding) Director Chairman Director Mr. N. Pathmanathan   Telecom City (Private) Limited   Nominee Director Mr. Shuhei Anan   Mobitel (Private) Limite Sri Lanka Telecom Services (Private) Limited Telecom City (Private) Limited   Director Director Director Ms. M. A. R. C. Cooray   Sri Lanka Institute of Information Technology Development Finance Corporation of Ceylon Ceylon Electricity Board Thomas De La Rue and Company Limited   Director Director Director Director Mr. Kiyoshi Maeda   NTT Com Asia Limited HK Net Co.Limited Milletechno, Inc NTT Singapore Pte Limited NTT MSC Sdn : Bhd NTT Australia Pty. Limited   Director Director Director Director Director Director Mr. H. Yamada   AutoWeb Communications, Inc NTT Europe Limited   Director Director Mr. A. J. Obeyesekere (P.C.)   Mobitel (Private) Limited Sri Lanka Telecom Services Limited Telecom City (Private) Limited   Chairman Chairman Chairman Mr. Nigel Hatch (P.C.)   Mobitel (Private) Limited Securities and Exchange Commission   Director Director Mr. Lalith De Mel   Hemas Holdings Limited Serendib Hotels Limited Delmege Forsyth and Company Limited Brown and Company Limited Associated Hotels Company Limited Serendib Leisure Management Limited Demchi (Private) Limited Mobitel (Private) Limited CDC Capital Partners PLC.   Director Director Director Director Director Director Director Director Director Mr. Sadao Maki   NTT Europe Limited Philippine Long Distance Telephone Company NTT Investment Singapore Pte. Limite   Director Director Director Mr. Tadashi Imachi   NTT Korea Company Limited   Director Mr. Mitsuhiro Takase   NTT World Engineering Marine Corporation   Director SLTL had the following transactions with the above companies during the year under review: Mobitel (Private) Limited Payments amounting to Rs. 10 million (2003 - Rs. 7 million) have been made during the year on call charges relating to cellular phones purchased for SLTL employees. Further, cellular phones amounting to Rs. 1 million (2003 - Rs. 2 million) were purchased from Mobitel (Private) Limited during the year. Number of new GSM connections granted (special packages with no monthly rental) in 2004 amounted to Rs. 922 million (2003 - Rs. 2,747 million). Mobitel has obtained several E1 links from SLT for which Rs. 71 million was paid during the year. The Company has guaranteed the following on behalf of Mobitel (Private) Limited: (i) Loans amounting to Rs. 8,427 million and USD 11 million for GSM roll out and operational expenses.     (ii) To obtain an investment commitment guarantee amounting to Rs. 250 million issued by banks in favour of TRC for bidding for a slot in the 1800 MHz band for the GSM roll out. Outstanding balances arising from sale/purchase of services: (All amounts in Sri Lanka Rupees millions)   2004 2003 Receivable from related party         Mobitel (Private) Limited - Interconnection charges   83   37     Payable to related parties         Mobitel (Private) Limited   97   37 Sri Lanka Telecom (Services) Limited   11   15 NTT Communications Corporation As per the shareholders’ agreement with NTT, which owns 35% of the issued share capital of SLTL, the following charges have been borne by the Company: (All amounts in Sri Lanka Rupees millions)   2004 2003 Remuneration for experts seconded to SLT   39   60 Expenditure for experts seconded to SLT   8   12                   Page Top

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