BMI View: Our positive medium-term outlook for the Sri Lankan IT market is maintained in the Q216update, though there was a small downgrade to the 2016 outlook. Regional economic uncertainty and ourexpectation for more extensive rupee depreciation against the US dollar are behind the downward revision,but this will not obscure the medium-term growth story based on economic development, rising incomes,private and public sector modernisation initiatives as well as low device and solution penetration rates.Another positive is the development of the local IT industry, including the software development and BPOindustries, and the development of local facilities for PC and component manufacture. We forecast a CAGRof 12.1% for the IT market spending in 2016-2020 to a total of LKR181.9bn in 2020.
Latest Updates & Industry Developments
-IT Hardware Sales: LKR71.7bn in 2016 to LKR109.3bn in 2020, a compound annual growth rate(CAGR) of 10.8% in local currency terms. Rising incomes and increased local supply, in an environmentof rising incomes, will support an expansion of the IT hardware market, though price sensitivity willremain a central characteristic of demand.
Table Of Contents
Sri Lanka Information Technology Report Q2 2016 BMI Industry View 7 Latest Updates and Industry Developments 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: IT Industry - Historical Data and Forecasts 17 Industry Risk/Reward Index 18 Table: IT RRI Score Breakdown By Region 19 Table: Asia Pacific IT Risk/Reward Index - Q2 2016 21 Market Overview 22 Recent Developments 22 Hardware 22 Software 29 Cloud Computing 34 Table: Sri Lanka Cloud Vendor Developments, 2015 38 IT Services 38 Industry Trends And Developments 42 Regulatory Development 46 Table: Regulatory Overview 46 Competitive Landscape 48 International Companies 48 Table: Dell 48 Table: Hewlett-Packard 49 Local Companies 50 Table: EWIS 50 Table: John Keells Holding 51 Table: Virtusa 52 Regional Overview 53 Demographic Forecast 57 Demographic Outlook 57 Table: Population Headline Indicators (Sri Lanka 1990-2025) 58 Table: Key Population Ratios (Sri Lanka 1990-2025) 58 Table: Urban/Rural Population and Life Expectancy (Sri Lanka 1990-2025) 59 Table: Population By Age Group (Sri Lanka 1990-2025) 59 Table: Population By Age Group % (Sri Lanka 1990-2025) 60 Methodology 62 Industry Forecast Methodology 62 Sources 64 Risk/Reward Index Methodology 64 Table: IT Risk/Reward Index Indicators 65 Table: Weighting Of Components 66