By:Staff Writer
August 19, Colombo (LNW): Sri Lanka’s Information Technology (IT) industry is emerging as a key driver of economic transformation, while policymakers call for bold strategies to secure long-term recovery after years of financial turmoil.
IT Sector Powers Ahead
The IT and Business Process Management (BPM) industry has grown into a pivotal sector, now contributing 4.37% to the country’s Gross Domestic Product (GDP), equivalent to around USD 3.47 billion. This expansion reflects the impact of government digital policies, improved connectivity, and strong private sector participation.
Sri Lanka’s digital economy strategy aims to push the sector’s value to USD 3 billion by 2024, focusing on boosting tech exports, e-commerce, and IT-BPM services. Workforce development has also been a priority, with the industry’s employee base expected to more than double from 125,000 in 2018 to 300,000 by 2024.
With more than 60% of the population owning mobile phones and widespread internet access, the foundation for digital service adoption and e-commerce growth remains strong. The government has backed this momentum by planning two new Techno Parks to attract foreign investment and generate high-skilled jobs, while the ICT Agency continues efforts to transform state services through e-government initiatives and cyber legislation.
To secure future growth, experts highlight the need for investments in digital literacy, cybersecurity frameworks, startup support, and advanced broadband infrastructure. If sustained, these reforms could help Sri Lanka achieve its target of a USD 15 billion digital economy by 2030.
Wickremesinghe Warns on Economic Discipline
Amid these digital gains, former President and Prime Minister Ranil Wickremesinghe has cautioned that Sri Lanka must pair technological advancement with sound economic governance. Speaking at the launch of Bandula Gunawardena’s new book Arthikaye Panchayudhaya in Rajagiriya this week, he argued that the nation requires both capital and technology inflows to recover fully from its recent financial crisis.
Drawing parallels with Asian economies such as China and Vietnam, Wickremesinghe stressed that Sri Lanka must integrate more closely with India’s economy and attract large-scale foreign direct investment (FDI) to raise per capita income and secure debt sustainability. He underscored India’s critical role, recalling its USD 4 billion emergency support that helped prevent economic collapse in 2022.
The former leader described five legislative measures as Sri Lanka’s new “divine weapons” against instability: the Central Bank Law, Public Debt Management Law, Public Finance Act, Economic Transformation Law, and the new Anti-Corruption Act. Together, he said, they provide the framework for fiscal discipline, debt restructuring, and greater transparency.
Investments and Risks
Wickremesinghe warned against policy reversals on foreign projects, particularly in the energy sector. He pointed to the stalled USD 700 million Adani wind power project and other investments in Trincomalee, which could have drawn nearly USD 1 billion, as missed opportunities. Renegotiating tariffs or contracts, he said, risks undermining investor confidence at a time when billions of dollars’ worth of renewable energy projects are being considered.
He further identified energy security, education reform, agricultural modernization, and poverty reduction as pillars of sustainable growth, stressing that Sri Lanka cannot afford to jeopardize foreign partnerships at this critical stage.
Balancing Growth and Recovery
While Sri Lanka’s IT industry sets a promising course for the future, Wickremesinghe’s call highlights the parallel need for disciplined economic management and credible investment policies. With digital transformation underway and structural reforms taking root, the country’s challenge will be to balance innovation with stability to secure a resilient economic path by 2030.
