Insight about Sri Lanka
The Sri Lankan BPO Industry
The Sri Lankan BPO Industry is gaining prominence as a preferred global hub for knowledge solutions. AT Kearney ranks Sri Lanka among the Top 15 Global Outsourcing destinations, while Global Services Magazine places it in the Top 20 Emerging Cities. Notably, Sri Lanka received the ‘Outsourcing Destination of the Year’ award from the National Outsourcing Association UK in both 2013 and 2014.
In 2018, Sri Lanka’s knowledge services industry, with over 80,000 employees, became the fifth largest export earner at USD 1.2 billion. Recognizing its potential, the government has designated the knowledge solutions industry as a priority in the National Export Strategy (NES), targeting USD 5 billion in exports, 200,000 new jobs, and 1,000 startups by 2022.
Colombo’s burgeoning knowledge solutions sector presents a distinct advantage for Small and Medium Enterprises (SMEs) seeking access to a high-quality talent pool, a challenge in more established destinations like India and China. Additionally, the conducive environment in Colombo is ideal for establishing niche competency centers for larger global services companies.
National-level competency development programs aim to position Sri Lanka as a Center of Excellence (COE) in various domains. The software services sector focuses on Telecommunication, Banking Financial Services and Insurance (BFSI), and Healthcare. Meanwhile, the BPM sector concentrates on Financial & Accounting services, Investment Research, Engineering Services, and UK-based Legal Services. With over 300 IT and BPM companies, including major players like HSBC, WNS Global Services, IFS, Moody’s Analytics, RR Donnelley, Virtusa, Pearson, London Stock Exchange Group, and Innodata, Sri Lanka’s IT-BPM industry continues to thrive.
Sri Lankan Workforce
Sri Lanka boasts a burgeoning workforce that is rapidly expanding, demonstrating high adaptability, proficiency in English, and a strong commitment to delivering quality work. Currently, Colombo alone employs over 80,000 individuals in the IT and BPM industry, experiencing a robust annual growth rate exceeding 20%. Notably, the workforce maintains stability, with impressively low attrition rates ranging from 5-15%. Colombo stands out as cost-competitive, experiencing less upward wage pressure compared to many established global sourcing destinations.
A noteworthy characteristic of Sri Lanka’s workforce is the norm of early entry into the professional arena following college. Many individuals pursue short diploma and certification programs, facilitating early entry into the workforce. The well-developed work-study approach allows individuals to concurrently work and study. Sri Lankans are recognized for their friendliness, high productivity, creativity, and rapid adaptation to diverse cultures and environments, contributing to seamless integration into the operational units of other countries. English serves as the primary business language in Colombo, spoken with a high level of fluency.
The country’s commitment to education is evident in its provision of free and widespread schooling up to the secondary level, contributing to an impressive 91% literacy rate. Graduate and postgraduate education is offered by 15 state universities and numerous private institutions, many of which confer degrees from international universities. Encouraged by government incentives, Sri Lanka is attracting prestigious foreign universities and significant private investments in education. This has positioned Sri Lanka as an educational hub, allowing students to pursue degrees from renowned global universities such as Monash, Curtin, Staffordshire, Manchester Metropolitan, and others from the UK, Australia, USA, and India while residing in Sri Lanka, thus becoming a focal point for education in the region.
Living & Working in Sri Lanka
Working in Sri Lanka is an unparalleled experience, where professional success seamlessly intertwines with an enviable lifestyle. Within a mere 2 to 3 hours of driving from the vibrant hub of Colombo, you’ll find yourself immersed in a world of leisure and exploration.
Picture this: pristine beaches, captivating wildlife sanctuaries, and cultural heritage sites steeped in history dating back to 500 B.C. The stunning vistas of the hill country, coupled with the thrill of surfing and engaging water sports, offer a lifestyle that blends excitement and relaxation. Whether it’s basking in the tropical sun on golden shores or embarking on a cultural journey through ancient sites, Sri Lanka presents a tapestry of experiences that redefine the meaning of paradise.
But the allure extends beyond the daylight hours. As the sun sets, Sri Lanka comes alive with an exciting nightlife that caters to diverse tastes. From trendy hotspots to hidden gems, the evenings in Sri Lanka are as vibrant as the days are serene.
For discerning expatriate professionals and frequent business travelers, Sri Lanka provides the perfect backdrop for achieving a harmonious work-life balance. Mixing business with pleasure becomes second nature in this tropical haven, where every moment offers the potential for discovery and delight. Sri Lanka isn’t just a workplace; it’s a lifestyle choice that elevates your professional journey to unprecedented heights.
Business & Investment
in Sri Lanka
Sri Lanka boasts an open market economy and holds the distinction of being the first country in South Asia to embrace economic liberalization. Numerous global giants have established a longstanding presence in the country. Chevron, General Electric, Citigroup, Hewlett-Packard, Microsoft, Pfizer, Intel, RedHat, Saatchi & Saatchi, IBM, 3M, Sara Lee Courtaulds, Unilever, British American Tobacco, Smith Kline Beecham, TCS, Indian Oil Corporation, NTT, Telecom Malaysia, WIPRO, to name a few.
Demonstrating resilience, the Sri Lankan economy has consistently performed well, with the Central Bank of Sri Lanka projecting an impressive growth rate of 7% in 2008, marking one of the highest rates in decades. Recognizing the strategic importance of the IT-BPM sector, the Sri Lankan government has designated it as a priority for economic development, offering a range of incentives to stimulate investments. In 2007, the country attracted a record-breaking Foreign Direct Investment (FDI) of US$700 million.
Tax incentives further contribute to Sri Lanka’s appeal, with tax holidays spanning 5-12 years. Moreover, an advantageous income tax rate of 15% is extended for up to 20 years beyond the initial tax holiday period. The government also facilitates real estate acquisition with special assistance tied to investment and employment generation potential.
In fostering the growth of the IT-BPM sector, the government provides substantial cash grants, supporting various aspects of business development, including training, consulting expertise, marketing, and quality enhancements (such as CMMi, COPC, ISO standards). Sri Lanka’s legal system, based on British Commercial Law principles, is backed by an independent judiciary. The country is committed to international treaties on intellectual property rights, such as the Berne Convention and WTO/TRIPS, and has enacted comprehensive legislation (Act No. 36 of 2003) to govern intellectual property. Additional legal frameworks, such as the Electronics Transactions Act and Computer Crimes Act, demonstrate Sri Lanka’s commitment to staying abreast of evolving digital landscapes. Furthermore, the country is a signatory to the latest UN e-contracting convention, and a Data Protection Code of Practice is currently in preparation.
Advantages of Investing in Sri Lanka
Embarking on an investment journey in Sri Lanka opens the door to a myriad of compelling benefits, positioning the country as a prime destination for strategic business ventures. Here are some key advantages:
Open Market Economy: Sri Lanka proudly upholds an open market economy, fostering a conducive environment for investors. This commitment to economic openness ensures a dynamic and competitive landscape for business operations.
Pioneering Economic Liberalization: As the first country in South Asia to embrace economic liberalization, Sri Lanka has set the stage for progressive and investor-friendly policies. This pioneering spirit creates an atmosphere conducive to innovation and growth.
Global Corporate Presence: Numerous global powerhouses, including Chevron, General Electric, Microsoft, and Unilever, have chosen Sri Lanka as a base for their operations. This underscores the country’s appeal as a favored destination for international businesses.
Resilient Economic Performance: Sri Lanka’s economy has demonstrated resilience, with consistent growth rates. The Central Bank of Sri Lanka projected a remarkable 7% growth rate in 2008, attesting to the nation’s robust economic foundation.
Government Prioritization: Recognizing the pivotal role of the Information Technology and Business Process Management (IT-BPM) sector, the Sri Lankan government has accorded it priority status for economic development. This commitment is reinforced by a range of incentives aimed at stimulating investments.
Foreign Direct Investment (FDI) Magnet: Sri Lanka has successfully attracted significant Foreign Direct Investment, reaching a record-breaking US$700 million in 2007. This underscores the global confidence in the country’s economic potential.
Tax Incentives: Investors in Sri Lanka benefit from attractive tax incentives, including tax holidays spanning 5-12 years. Additionally, a concessionary income tax rate of 15% is extended for up to 20 years, promoting sustained growth beyond the initial investment period.
Real Estate Support: The government provides special assistance for real estate acquisition based on investment and employment generation potential, facilitating a smooth establishment of business operations.
Financial Assistance and Grants: Sri Lanka encourages business development through substantial cash grants, covering various aspects such as training, consulting expertise, marketing, and quality enhancements. These grants contribute to the overall growth and success of enterprises in the IT-BPM sector.
Legal Framework and Intellectual Property Protection: Backed by an independent judiciary and following British Commercial Law principles, Sri Lanka ensures a secure legal environment for investors. The country is also committed to international treaties on intellectual property rights, providing a robust framework for safeguarding innovations and creations.
Investing in Sri Lanka not only taps into its rich cultural heritage and natural beauty but also unlocks a world of economic opportunities, making it a strategic choice for forward-thinking investors.
Benefits of Outsourcing to Sri Lanka
Why Sri Lanka
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