A framework was brought for technological capability assessment, namely four technological capabilities related to prime value addition activities(creation capability, design and engineering capability, marketing capability and service capability) and four technological capabilities related to support value addition activities(acquisition capability, human resource development capability, strategic planning capability and information technology capability). The frame was applied to the examination of pre and post privatization in Sri Lanka Telecom (SLT) and comes out the conclusion that privatization can significantly improve the technological capabilities.