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Country watch: Sri Lanka

 
 

Date: 10.02.2004

 
  Categories: country information, competition, Sri Lanka  
 

Table of contents :: General Information :: ICT Sector :: Important Links ::

 
 

Detailed table of contents

 
   
 

General Information

 
 

The map of Sri Lanka

Sri Lanka, (Ceylon) rightly called "The Pearl of the Indian Ocean" is a moderately sized island near the Southern tip of India, known for many specialties from historical times. These included gems of unparallel beauty, spices, aromatic tea and it's warmed friendly people.

 

Placed in it's strategic position, on the trade routes from Europe to Asia, it attracted travelers from all over the world from the pre-Christian era. These travelers were spellbound at the spectacular scenic beauty of the country and their testimony to the world on what they saw, still remains as the milestones of historical evidence in the unbroken recorded history of the island. Among these early visitors were Marco Polo, Ibanbatuta and more recently Robert Knox .

 

Being a trading center along the ancient silk route it had thrived on trade in a variety of products such as gems, pearls and ivory. However, among these products it was the colorful and valuable "Gem" which made Sri Lanka the cynosure of all it's early visitors. Even today, after the lapse of thousand of years, it is the only country whose precious gem pits produce a variety of valuable gems such as Blue Sapphires, Rubies, Cat's Eyes, Alexandrites, Aquamarines,Tourmalines, Spinels,Garnets, and Amrthysts. Even the Great King Soloman was said to have procured a unmatched Ruby for the famous Queen Sheba from Ceylon. Among the other famous Sri Lankan gems acclaimed for their beauty and value, in recent times, were the 400 carat Blue Sapphire called "Blue Belle" which adorns the British Crown, and the beautiful star sapphire misnamed the "Star of India" on permanent display in the Museum of Natural History in New York.

 

After the attraction for gems, it was the "Spicy Breezes of Ceylon's Cinnamon" that drew a host of foreign nations one after the other to the Island, from the 12th century- first the Arabs, then the Portuguese, the Dutch and finally the British who made it a profitable colony in their far flung empire.

 

However, in recent times Sri Lanka's fame has become more conspicuous for it's exquisite and highest quality "Ceylon Tea" which is enjoyed by millions of connoisseurs all the world over.

 

Five Centuries before the birth of Christ this Resplendent island had a well ordered civilization in a land throbbing with vitality. The Vestiges of ancient civilization including it's cities, temples, reservoirs and parks, monasteries, and monuments are the living testimony of the character, imagination, culture, philosophy and faith of the people of Sri Lanka.

 

The remains of the ancient sluice gates and the huge tanks depict some of Sri Lanka's unique ancient engineering feats at which even the modern engineers, marvel. The splendid remains of colossal shrines built from the 3rd Century BC to the 6th Century AD could only be compared with the pyramids of the ancient world.

 

The ancient rock fortress of Sigiriya which was a royal citadel for more than 18 years, is one of the loveliest ancient planned cities ever built in Asia. It is no exaggeration to say that the beauty and attractiveness of Sigiriya frescoes cannot be compared with other similar paintings found anywhere else in the ancient world.

 

Being a modern trading nation, Sri Lanka, now exports more than 2000 products to almost every country in the world. Quality conscious consumers and price conscious marketers the world over are increasingly turning towards Sri Lanka for an array of products and services which utilize the unique advantages of the Island. 

 

Today, Sri Lanka is a highly progressive multiracial, multilingual nation of around 18 million people which has taken great strides to transform it's land as an unparalleled trade hub of the Asia. It is now a sovereign republic with an Executive President, a democratically elected Parliament and a Cabinet of Ministers. The government is free, sovereign, democratic, republic.

 

Owing to the pursuit of economic liberalization policy by successive governments and the availability of comparatively cheap and innovative labour force it remains one of the most attractive investment destinations in the Asia-Pacific region.

 

Centrally located on the West East sea and air routes, the country is comfortably accessible to the business traveler from any point in the globe. Sri Lanka is indeed anybody's ideal choice, not only as a source of imports but also as a profitable location for investment on export oriented joint ventures.

 

Key Indicators

 

Area: 65,610 Square Km

Location: 880 Kilometers north of the equator, off the southern tip of India.

Capital: Sri Jayawardenepura Kotte.

Commercial Capital: Colombo

Population (1999): 19.1 Million

Life expectancy at Birth: 69.89 Male , 75.59 Female

Languages: Sinhala, Tamil and English. English is widely spoken throughout Sri Lanka.

Literacy Rate: 88.5 per cent

Ethnic Groups: Sinhalese 74 per cent, Tamil 18.1 per cent, Muslims 7.1 per cent, Burghers (descendant from Dutch and Portuguese colonists) and other 0.8 per cent.

Religions: Buddhism 78 per cent, Hinduism 7.5 per cent, Christianity 7.5 per cent, Islam 6.7 per cent.

Major Exports: Textiles & Garments, Tea, Rubber, Coconut & Coconut product, Spices, Gem stones and Diamonds, Manufactured Products, Petroleum Products.

Major Imports: Machinery and Equipment, Textiles, Petroleum, Building Materials & Sugar.

Labour Force: 46 per cent services, 37 per cent agriculture, 17 per cent industry.

Climate: Lowlands: tropical, average 27o C, central hills, cooler, with temperatures dropping to 16o C. The southwest monsoon brings rain to western, southern and central regions from May to July, while northeastern monsoon occurs in the north and east in December and January.

Currency: Sri Lanka Rupee, Currency notes; Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 200, Rs. 500, Rs. 1000, Coins : Rs. 1, Rs. 2, Rs. 5, Rs. 10, 1 Cent, 2 Cent, 5 Cent, 10 Cent, 25 Cent and 50 Cent.

 

Government

Sri Lanka has a Democratic Government, with an Executive President and a Parliament elected by the people.

 

Economy

The Sri Lanka economy frequently cited as one of the most liberal in the Asian region, has been able to maintain healthy rates of growth in recent years except in 2001.

In 2002, the Sri Lankan economy recovered from the setback it experienced in 2001, benefiting from improved domestic conditions, mainly resulting from the peace process and a more favorable international environment. Sri Lanka's Gross Domestic Product (GDP) exceeded US$ 16.57 billion in 2002, a figure which represented an economic growth rate of 4% over the previous year.

The most important factor responsible for this recovery was the improvement in the security situation in the country with progress in the peace process. The resultant peaceful environment raised consumer and investor confidence and encouraged the expansion of economic activities. Moreover, with a per capita GDP of US$ 872, the country has now been classified as a "lower middle income country" by the World Bank. The largest contributor to Sri Lanka's GDP has continually been the service sector, which in 2002 accounted for 53.6% of the national output. The next biggest shares were held by the industrial sector (26.3%) and the agriculture, forestry and fishing sector (20.1%).

 
 

ICT Sector

 
 

Industry Overview

Sri Lanka has the highest literacy rate in the South Asian region and even in global standards (92 percent).  As far as ICT personnel are concerned, it has increasing resource pool of skilled, adaptable and cost effective IT labour force.  Annual out put of potential ICT personnel are concerned, approx. 1375 personnel are passing out from public universities and training institutions.  Approx. 4000 personnel are from the private sector ICT related institutions.

English is the business language, which is widely used in Sri Lanka.

Sri Lanka has the most liberalised telecom industry in South Asia comprising with 3 fixed and wireless local loop operators, 4 mobile operators and 5 public phone operators with up to 150 Mbps through satellite or fiber optic cable.  Sri Lanka also has advanced infrastructure facilities in Ports, Airports and other logistical aspects.

Presently there are about 75 software development companies are in operation in Sri Lanka where estimated exports of software and related services of Sri Lanka in year 2003 was US $ 70 million.  Currently Sri Lanka act. as an off-shore development center for USA, Ireland, UK, Australia, etc and joint venture development center for Sweden, Norway, USA, Japan etc.

Consolidating the government backing to the ICT sector, Sri Lankan government has recently launched an initiative to use ICT to develop Sri Lanka’s economy, alleviate poverty, improve the quality of life and the opportunities for all Sri Lankan people, which is widely known as e-Sri Lanka.

Several transnational ICT companies have invested in Sri Lanka. Some of them run their R & D departments in Sri Lanka. Sri Lankan software runs in some of the stock markets, such as Boston-USA, Croatia etc. Air lines such as Emirates, UAE, Burton-Scandinavia  also used Sri Lankan software.

Sri Lankan software also has name in HRM, Telecom billing, etc. Sri Lankan software companies are presently doing outsource contacts for USA. Europe, & Japanese markets.

Communications Infrastructure

Sri Lanka has multiple providers telephone services, including three Basic, four Cellular and six pay telephone services, making the industry one of the most competitive in Asia. The number of fixed telephone lines installed increased by 84% between 1997 to 1999 due to the entry of two wire less local loop operators led by Telia AB of Sweden and GTE Nortel of the USA. Global telecom giants such as NTT, Ericsson, Telstra, Hutchison Wampoa and Malasiya Telecom are other major operators in the Sri Lankan telecommunications industry. Deregulation has also resulted in the country's largest ever privatization initiative, with NTT of Japan purchasing 35% of Sri Lanka Telecom for US$ 225 Million.

Labour Force

Of a population of 19.2 million, the total workforce is approximately 6,7000,000. The population growth rate averages 1.2% per annum, ensuring a steady pool of man-power resources for both existing and new industries.

The government provides free education from kindergarten to University. Sri Lank is also ranked amongst the East Asia tiger economies, and first in south Asia, on the Human Development Index.

The competitive advantage of Sri Lanka's labour force:

A solid mathematical background that translates into a solutions driven approach to software development.  Competitive wages, creativity, hand-to-eye coordination, prove precision and manual dexterity.

Indicative Labour Costs

 

Systems Manager:

US$ 300 - 850 p.m.

 

Systems Analyst/Engineer:

US$ 250 - 650 p.m.

 

Systems Operator/Hardware Engineer:

US$ 200 - 600 p.m.

 

Programmers:

US$ 150 - 300 p.m.

 

Computer Operators:

US$ 100 - 250 p.m.

 

Data Entry Operators:

US$ 70 - 200 p.m.

 

Trainee:

US$ 60 - 150 p.m.

Key Associations/Organisations

Sri Lanka Export Development Board

The Sri Lanka Export Development Board (SLEDB commonly known as the EDB) is the premier state organisation dealing with the promotion and development of exports. It was established in 1979 under the Sri Lanka Export Development Act No. 40 of 1979, and now functions under the Ministry of Internal and International Commerce and Food.

The Chairman is the Chief Executive who is assisted by the Director General and the Additional Director General. Its day-to-day functions are carried out by several divisions each of which is headed by a Director.

Web site: www.srilankabusiness.com

Board of Investment of Sri Lanka

The Board of Investment shall facilitate the creation in Sri Lanka of a platform for competitive value addition in the South Asian Region.

Web site: www.boi.lk

Information & Communication Technology Agency (ICTA) of Sri Lanka

The Information Communication Technology Agency of  Sri Lanka (ICTA) function of the single apex body involved in ICT policy and direction for the nation.  Wholly owned by the Government of Sri Lanka, ICTA is the implementing organization of the e-Sri Lanka Initiative.  ICT is an increasingly powerful tool for participating in global markets, promoting political accountability, improving the delivery of basic citizen services and enhancing local development opportunities.

Address : 160/24, Kirimandala Mawatha,  Colombo 05, Sri Lanka.

Tel : 94-11-236 9099

Fax: 94-11-236 9091

E-mail:  info@icta.lk

Web Site: www.icta.lk

Sri Lanka Association for the Software Industry (SLASI)

The Sri Lanka Association for the Software Industry (SLASI) is the national representative for the country's software industry. The association was established in 1992 with the support of the Sri Lanka Export Development Board (EDB) and the Council for Information technology (CINTEC).

In January 1996, SLASI joined hands with the Sri Lanka Computer Vendors Association (SLCVA) and the Association of Computer Training Organizations (ACTOS) to form the Federation of Information Technology Institutions.

Address : 51,Marcus Fernando Mawatha, Colombo 7, Sri Lanka

e-mail: infotel@sri.lanka.net

Tel: 94-11-2665261

Fax: 94-11-4713821

Web site: http://www.slasi.com/

Contact Person: Mr David Dominie / Executive Director

Contact: slasi@infotel.com.lk

Software Exporters Association (SEA)

In 1999, the Software exporters Association (SEA) was formed under the patronage of the Sri Lanka Export Development Board and the BOI with the principal objectives of increasing export earnings, driving growth through cooperative effort in marketing software and services, and attracting new investments to the IT industry.

Address: C/O Ceylon Chamber of Commerce, No 40, Navam Mawatha,

              Colombo 2, Sri Lanka

E-mail:  thusani@chambe

Tel :  94-11-242 1745 to 6

Web site: http://www.islandsoftware.com/

 The Association of Computer Training Organizations (ACTOS)

The Association of Computer Training Organisations was formed in January 1991 with fourteen founder members under the auspices of the Council for information Technology of Sri Lanka (CINTEC). There are presently sixteen members in the association.

Education standard, training and facilities offered by member organizations are continuously assessed by the technical Standards Committee of the Association in order to provide high quality education and training.

Website: http://www.slasi.com/

Contact: slasi@infotel.com.lk

The Computer Society of Sri Lanka (CSSL)

CSSL is the society of the IT professionals of Sri Lanka. It has been playing a major role in promoting IT and professionalism in those engaged in the field of IT in the country. This society was inaugurated in 1976.

Address: Professional Centre, No 275/75, Bauddhaloka Mawatha, Colombo 7

Tel: (94) 1 - 2592762

Fax: (94) 1 - 2508009

Web Site: www.cssl.lk 

British Computer Society of Sri Lanka

Sri Lankan section of the British Computer Society.

Address :      51,Marcus Fernando Mawatha, Colombo 7, Sri Lanka

Web Site: www.bhccolombo.com

Universities

School of Computing ( UCSC) - University of Colombo

The oldest campus in Sri Lanka, the University of Colombo is a sprawling complex occupying over fifty acres of prime land in the heart of the city.

The Medical and Science Faculties of the University are not only the oldest in the university system of Sri Lanka but are also arguably the best in terms of Faculty and resources.

Student life is enhanced by a plethora of extra-curricular activities offered on campus. The beautiful playground and the modern gymnasium offer sportsmen and women the opportunity to exploit and develop their abilities to the fullest.

The location of the University affords the student population all the advantages of a "metropolitan university" in easy access to international information/resource centres, libraries, theatres, sports complexes etc.

Today, the University of Colombo with a proud history of over 115 years continues in its endeavor to meet the challenge of maintaining its position as the "metropolitan university, modern and international in outlook and character".

Web Site: www.ucsc.cmb.ac.lk

University of Moratuwa

The University of Moratuwa, is one of best technical universities in Sri Lanka, comprising of an Engineering faculty ,an Architecture faculty and an Information Technology Faculty.

It presents a rich variety of social and cultural activities, student services, clubs, organizations and sports. This vital community of around 3000 students from all around the country, with every imaginable interest, emphasizes respect for the rights and individuality of each student.

Web Site : http://www.mrt.ac.lk/

University of Peradeniya

The University of Peradeniya is the heir to the oldest university tradition in Sri Lanka as the successor to the University of Ceylon, the first institution of its kind in the country.

The university consists of seven academic faculties. About 1800 undergraduates enter the university annually, to make up an undergraduate student population of 6600, and the total number of postgraduate students registered is over 1200. Out of the total undergraduate student population, about 5100 are provided accommodation on and around campus.

Web Site: http://www.pdn.ac.lk/

SLIIT (Sri Lanka Institute of Information Technology)

The Sri Lanka Institute of Information Technology (SLIIT) is the leading Degree Awarding Institute in the field of Information Technology recognized by the University Grants Commission under the Universities Act. It was established in the year 1999 to educate and train Information Technology (IT) Professionals required by the fast growing IT Industry in Sri Lanka. The establishment of the SLIIT was spearheaded by the then Ministries of Education and Higher Education, Finance and Planning and the Ministry of Internal and International Commerce and Food.

Website: http://www.sliit.lk/

Contact: info@sliit.lk

 
 

Important links

 
 

Sri Lanka Government: www.gov.lk

Board of Investment of  Sri Lanka: www.boi.lk

Sri Lanka Export Development Board: www.srilankabusiness.com

Sri Lanka Tourist Board: www.srilankatourism.org

ICT Agency of Sri Lanka: www.icta.lk

e-Sri Lanka: www.esrilanka.lk

Sri Lankan Airlines: www.srilankan.aero

Telecommunication Regulatory  Commission of Sri Lanka: www.trc.gov.lk

 
 
     
     
     
   

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