IT and electronics sectors to drive economic growth, says President
The Morning: President Anura Kumara Dissanayake has stated that the Government aims to increase Sri Lanka’s economic growth from its current level of around 5% to 7-8% over the coming years, emphasising that the information technology, electrical and electronics sectors will play a pivotal role in achieving this target.
The President made these remarks while addressing a discussion with leading investors and industrialists from the information technology, electrical and electronics sectors, held recently at the Presidential Secretariat, according to a statement issued by the President’s Media Division (PMD).
Highlighting that Sri Lanka’s future can only be secured by strengthening domestic industries, the President invited entrepreneurs to work in partnership with the Government to unlock the country’s true economic potential.
The President also requested that they submit, at the earliest opportunity, proposals for developing their respective sectors together with a report outlining the key challenges currently facing the industries, the statement said.
He further stated that the Government intends to allocate Rs 2 trillion for capital expenditure next year to accelerate economic growth.
President Dissanayake noted that the Government expects the export sector to make the maximum possible contribution towards meeting the country’s growing demand for foreign exchange resulting from this investment, the PMD said.
The discussion focused extensively on the significant contribution that the information technology, electrical and electronics sectors could make towards increasing Sri Lanka’s export earnings and foreign currency inflows.
It was highlighted that the information technology sector, currently Sri Lanka’s third-largest export revenue earner, has the potential to generate $ 5 billion in annual export earnings. Likewise, the electrical and electronics sector, which currently generates approximately $ 500 million in export revenue, has the potential to increase this figure to $ 2 billion annually, the statement said.
Participants also discussed Sri Lanka’s potential to establish itself as a global brand in the information technology, electrical and electronics sectors. Attention was drawn to the country’s highly skilled workforce in both industries and the need to further improve facilities and infrastructure to support their continued growth.
OSL take:
Sri Lanka is positioning itself as a competitive destination for foreign investment in high-value technology industries, with the Sri Lankan Government identifying the information technology (IT), electrical and electronics sectors as key drivers of its ambition to increase economic growth to 7–8% in the coming years. This policy direction, coupled with ongoing economic reforms and a renewed focus on export-oriented industries, is creating expanding business/investment opportunities for international businesses/investors. The IT sector offers strong potential for investment in software development, IT-enabled services, artificial intelligence, fintech, cybersecurity and digital infrastructure, supported by a skilled, English-speaking workforce and competitive operating costs. At the same time, the electrical and electronics industry is being promoted as a strategic manufacturing and export sector, with business/investment opportunities in electronics assembly, component manufacturing, electrical equipment, semiconductor-related activities and value-added production for global supply chains. Foreign businesses/investors can also benefit from Sri Lanka’s strategic location along major Indian Ocean shipping routes, preferential access to regional and international markets through trade agreements, and government initiatives aimed at improving the ease of doing business, developing industrial zones and encouraging technology transfer. As Sri Lanka seeks to transform into a regional hub for knowledge-based and advanced manufacturing industries, the IT, electrical and electronics sectors are expected to offer significant long-term business/investment opportunities for international investors seeking growth in South Asia.
| Article Code : | VBS/AT/20260713Z_1 |