Sri Lanka developing as destination for tech products and services
Daily News: Sri Lanka has immense potential to build itself as a destination for tech products and services, with the ICT/BPM industry being its fifth-highest foreign revenue generator.
In 2016, the industry aimed to generate US$ 5 billion per year by 2022. But by 2019, the country realised it wasn’t on track to achieving this target, and revised this goal in 2020 to US$ 3 billion by 2025, which is equally ambitious.
“In this context, there was a need to identify factors affecting growth and develop a researched model to help steer industry development, towards which a study was conducted,” said Dr Yasas Vishuddhi Abeywickrama, a member of the Computer Society of Sri Lanka after a study on the industry.
He said that most IT companies were impacted by recent turbulence in Sri Lanka, such as the Easter attacks, causing foreign investors and clients to lose confidence, and lowering sales. Hence, maintaining stability in Sri Lanka is vital to growing the ICT/BPM industry. The study further identified that Sri Lanka’s brand as an IT destination has great potential and should be strengthened; however, qualitative findings show that the “Island of Ingenuity” branding effort has been a failure.
It also pointed out that companies need to invest in their global sales and marketing, while industry bodies must facilitate entry into new markets. Although Government assistance is required, it’s important to note that such efforts require funding at both the macro and micro levels.
“But obtaining new clients is only one part of the equation. Ensuring impressive service levels and branding appropriately, while revamping the education system to encourage more people to join the industry, are also vital components.”
For the local IT industry to grow, the ease of doing business must improve, which can be achieved in many ways. At the same time, the Government, alongside industry bodies, must promote initiatives to develop the startup ecosystem to accelerate innovation and growth.
The research highlights that the Sri Lankan IT industry could achieve its potential through brand strengthening and ensuring stability. Still, this is only the first step, as the industry must also collectively invest in developing global sales capabilities while working with academia to produce competent local graduates. Finally, regulators must improve the ease of doing business to ensure sustainable growth.
A high-level task force is thus needed to spearhead the implementation of the Government’s US$ 3 billion annual revenue target and assure accountability.
Ultimately, the industry’s growth requires progressive policy and a transparent legal framework. While the research indicates much needs to be done, tech parks are a positive move announced by the current administration. “These parks will provide much-needed office space and create the ecosystem necessary for the human capital-centric IT industry.”
OSL take:
Given Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country, Sri Lanka poses the ideal business hub for several key economic sectors. Among these economic sectors are tech products and services. With Sri Lanka engaged in an aggressive development programme covering all key economic sectors, there’s a clear increase in the business/investment opportunities in Sri Lanka. The skilled labour available in the country has also made Sri Lanka an attractive business destination in the region. All these are indicators of the attractiveness of Sri Lanka as a growing business/investment opportunities.
| Article Code : | VBS/AT/28092021/Z_4 |