We hold a positive outlook for the Sri Lankan IT industry as we forecast IT spending in the country to be driven by strong economic growth and government support for digitalisation. We forecast a CAGR of 14.2% for the IT market spending in 2014-2019. We believe that 2016 will witness stable growth in all sectors of the IT market, with the market growing by 14.7% in 2016. Strong income growth and low penetration of PCs, enterprise software and services will combine to boost IT spending growth in Sri Lanka over the medium term. The local IT industry is also developing, with vibrant local software and BPO industries and the development of local facilities for PC manufacture and assembly to service the local market and wider region.
Latest Updates & Industry Developments - Computer Hardware Sales: LKR59.7bn in 2014 to LKR109.0bn in 2019, compound annual growth rate (CAGR) of 12.8% in local currency terms. There is strong growth potential for hardware sales in Sri Lanka due to low PC penetration rates, declining device prices, rising incomes and the development of a local manufacturing base.
Table Of Contents
Sri Lanka Information Technology Report Q1 2016 BMI Industry View 7 SWOT 9 IT SWOT .. 9 Industry Forecast .. 11 Structural Trends .. 11 Table: IT Industry - Historical Data and Forecasts 17 Industry Risk Reward Index 18 Table: Asia Pacific IT Risk/Reward Index - Q1 2016 . . 20 Market Overview 21 Hardware 21 Software .. 28 Cloud Computing .. 36 Table: Sri Lanka Cloud Vendor Developments 40 Services 40 Regulatory Development .. 46 Table: Regulatory Overview . 46 Competitive Landscape . 48 International Companies . 48 Table: Dell . 48 Table: Hewlett-Packard . . 48 Local Companies .. 49 Table: EWIS 49 Table: John Keells Holding . . 50 Table: Virtusa . 51 Regional Overview 52 Asia - Local Vendors Leverage Emerging Lower-End Device Market . 52 Demographic Forecast .. 55 Table: Population Headline Indicators (Sri Lanka 1990-2025) . 56 Table: Key Population Ratios (Sri Lanka 1990-2025) . 56 Table: Urban/Rural Population and Life Expectancy (Sri Lanka 1990-2025) 57 Table: Population By Age Group (Sri Lanka 1990-2025) . 57 Table: Population By Age Group % (Sri Lanka 1990-2025) . 58 Methodology . 60 Industry Forecast Methodology . 60 Sources 62 Risk/Reward Index Methodology 62 Table: IT Risk/Reward Index Indicators . 63 Table: Weighting Of Components . 64