A growing GDP, significant tax benefits and a burgeoning trade relationship with the UK are just some of the reasons why Sri Lanka has overcome the shackles of civil war to be listed by The Economist Intelligent Unit as one of the top ten fastest growing economies worldwide, the Sri Lankan Association for Software and Services Companies (SLASSCOM) has revealed.
It’s been eighteen months since the Sri Lankan government defeated the Liberation Tigers of Tamil Elam, putting an end to 30 years of conflict in the northern and eastern parts of the country. In that time, and despite the conflict, the Sri Lankan ITO/BPO industry managed to grow by 23%, with a range of government incentives introduced to foreign investors in a bid to highlight the real advantages of Sri Lanka as a global sourcing destination.
Sri Lanka has also seen a 2% increase in its GDP (from 4% to 6%) since the end of the conflict, as a result of a number of high profile businesses such as HSBC, London Stock Exchange, Aviva, Microsoft, Motorola, Amba Research and Virtusa all taking the decision to outsource services to the region, and with the current influx of investments and existing growth, Sri Lankan industry is estimated to grow 26% during the year 2010.
“There are a number of reasons why the Sri Lankan economy has experienced growth in the months since the civil war,” said Dinesh Saparamadu, Chairman of SLASSCOM. “Not only does Sri Lanka have the highest literacy rate in South East Asia, but it is also endowed with a high quality talent base and offers a very attractive cost base for business.
“Sri Lanka has come a long way in the past 18 months and we are excited to see how business, investment and infrastructure develops here over the next couple of years.”
Sri Lanka was ranked 16th in the 2009 AT Kearney Global Services Location Index which ranks the Global Top 50 for global sourcing destinations. The ranking jumped 13 positions from 2007 and is expected to further improve even further over the coming months and years.