BMI View: Sri Lanka is one of the lowest income and least developed economies in Asia Pacific and this isreflected in a small IT market and industry. However, with a positive economic outlook this means there islow-hanging fruit for vendors as household incomes rise and the public and private sector modernise, thatwe expect to result in fast medium-term spending growth. Our forecast envisages a CAGR of 12.5% for theIT market spending over 2016-2020 to a total of LKR181.9bn in 2020. Meanwhile, we believe the localindustry is positioned for further expansion, primarily in software and services, but there is also a nascentIT hardware industry.
Latest Updates And Industry Developments
- IT Hardware Sales: LKR71.7bn in 2016 to LKR109.3bn in 2020, a compound annual growth rate(CAGR) of 11.1% in local currency terms. Income growth will be the key driver, which should deepenthe market substantially, but price sensitivity will continue to be a key consideration for vendors.
- Software Sales: LKR18.8bn in 2016 to LKR32.1bn in 2020, CAGR of 14.4%. As supportinginfrastructure investments allows for increased supply, we expect software-as-a-service will deepen theenterprise software market and drive growth.
- IT Services Sales: LKR23.1bn in 2016 to LKR40.5bn in 2020, CAGR of 15.1%. IT services spendingwill benefit from the computerisation of the public and private sectors, as well as the expansion ofnetwork infrastructure.
Table Of Contents
Sri Lanka Information Technology Report Q3 2016 BMI Industry View 7 Latest Updates And Industry Developments 7 SWOT 9 Industry Forecast 11 Latest Updates 11 Structural Trends 11 Table: Enterprise Trends - GVA By Vertical (Sri Lanka 2015-2020) 15 Table: IT Industry - Historical Data and Forecasts 17 Industry Risk/Reward Index 18 Table: Asia Pacific IT Risk/Reward Index, Q3 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 41 IT Hardware Trade 41 Table: Emerging APAC IT Hardware Trade, 2009-2014 41 Table: Sri Lanka IT Hardware Trade, 2010-2015 42 IT Industry Analysis 43 Regulatory Development 47 Table: Regulatory Overview 47 Competitive Landscape 50 International Companies 50 Table: Dell 50 Table: Hewlett-Packard 51 Local Companies 52 Table: EWIS 52 Table: John Keells Holding 53 Table: Virtusa 54 Regional Overview 55 Demographic Forecast 59 Demographic Outlook 59 Table: Population Headline Indicators (Sri Lanka 1990-2025) 60 Table: Key Population Ratios (Sri Lanka 1990-2025) 60 Table: Urban/Rural Population and Life Expectancy (Sri Lanka 1990-2025) 61 Table: Population By Age Group (Sri Lanka 1990-2025) 61 Table: Population By Age Group % (Sri Lanka 1990-2025) 62 Methodology 64 Industry Forecast Methodology 64 Sources 66 Risk/Reward Index Methodology 66 Table: IT Risk/Reward Index Indicators 67 Table: Weighting Of Components 68