About Sri Lanka
Sri Lanka is known as the pearl of the Indian Ocean located in the South Asia which is an island situated in southern tip of India and is separated from India by the Polk Straits. The Islands strategic location in the Indian Ocean on the major air and sea routes between Europe and Far East is an advantage to positioning Sri Lanka as a global logistic hub.
Despite the Global Economic Crisis, Sri Lanka is one of the few countries with a positive GDP growth through the recent times. Sri Lanka, is a middle income country with much of its Gross Domestic Product increasingly trending towards the service sector. Sri Lanka has shown an increasing growth rate and a few indicators are mentioned below.
Stable economic growth exceeding 6% for the past 10 years
- GDP per capita – USD 2,923
- Private investment – 23.7% of GDP
- FDI – 0.5% of GDP
- Domestic savings rate – 17%
- Human Development Index ( “ HDI” ) – 0.715 ( 92 out of 186 countries)
Sri Lanka’s infrastructure is developing rapidly after the conflict was resolved and country’s infrastructure is far greater that found in other low cost countries.
3G, 4G, LTE, Broadband, Fibre Optics and satellite connectivity widely available in Sri Lanka with over 4 mobile services providers with Three international submarine cables providing redundancy.
Office space is also of higher quality than other popular outsourcing destinations and are much competitively priced.
Education & Literacy
Sri Lanka’s education levels are at top levels. According to the Central Bank annual report, Sri Lanka’s literacy rate has increased from 85% for more than 30 years and is currently at 91%.
Sri Lanka still has the highest secondary school enrolment rate among developing countries and it ranks number one in South Asia on the United Nations Human Development Index.
Government has put more focus on to developing IT literacy of the next generation which can be seen by newly launched programs to increase IT usage and literacy in schools.
Sri Lanka has a highly structured regulatory and bureaucratic environment, therefore this can be beneficial in upholding investors’ rights and driving improved enforcement of intellectual property.
The Laws in Sri Lanka are based on the British Law principles and implement strong IP laws as Sri Lanka Signatory to international treaties on intellectual property (IP) right. The country allows 100% foreign ownership in almost all sectors and places no restrictions on repatriation of earnings, fees or capital.
Sri Lanka has also enacted electronics transactions act and computer crimes act and are a signatory to the latest united nation’s e-contracting convention.
The country estimates that IT/BPO Industry to become a 1 Billion USD in Export Revenue and create 80,000 Jobs by 2016. A recent report by AT Kearney revealed that Sri Lanka is a “Hidden Gem” for outsourced Accounting.
Sri Lanka is a knowledge hub exporting its human capital and skills to the world. Government has put more focus on to developing IT literacy of the next generation which can be seen by newly launched programs to increase IT usage and literacy in schools. The country offers a unique mix extremely low cost- among the lowest anywhere, combined with a highly educated, English speaking population with sophisticated technical skills and a business environment and infrastructure that is superior to most low cost countries. After the UK the highest numbers of CIMA graduates are found in Sri Lanka and the number of ACCA graduates too, is increasing rapidly.
Hence Sri Lanka is one of the most attractive destinations for outsourcing your business functions.