SLASSCOM confident of Govt.’s capacity to realise IT-BPM sector vision

• Lists out policies, tax reforms and other measures needed 
• Wants Govt. support to convince MNCs to set up R&D centres in SL
• Investment in accelerators and centres of excellence needed 

SLASSCOM, the knowledge and innovation industry chamber, has congratulated the new Government and looks forward to continuing its partnership in growing Sri Lanka into a premier destination for IT and BPM businesses. 

The knowledge and innovation services industry has been identified as a thrust industry by the Government. The industry has a vision to achieve $ 5 billion in exports while creating 200,000 highly skilled workforce and facilitating 1,000 startups by 2025. 

“It is important that all stakeholders work together towards the common goal as set out in the National Exports Strategy (NES). There are several impactful programs initiated by the President to grow the economy, such as the ‘Re-imagining Education’ program of the Ministry of Education, which is aimed at building capacity and future ready talent in Sri Lanka.

“The mandate given to the Government at the recently concluded elections will ensure that these programs will continue and we look forward to engaging with the Government in putting in place the necessary policies and investment required to drive the economy towards achieving these targets,” said SLASSCOM Chairman Channa Manoharan. 

One of the key industry requirements is raising Sri Lanka’s IT-BPM sector visibility in priority markets and attracting Foreign Direct Investment into the sector. The industry seeks funding and Government support to accelerate growth prospects in key markets and convince large MNCs to set up their R&D and delivery centres in Sri Lanka.

Hitherto, in collaboration with EDB, SLASSCOM has initiated and promoted the Sri Lankan knowledge and innovation sector under the brand of Island of Ingenuity (www.islandofingenuity.com). To provide Sri Lankan companies access to markets SLASSCOM works together with BOI, EDB, ICTA, the Ministry of Foreign Affairs and Sri Lankan foreign missions to assist companies to promote themselves and Sri Lanka as a niche IT hub. 

“One of the key ingredients to success is having a highly-skilled workforce in technologies that are transforming industries and nations. This requires significant investment in upskilling existing workforce and reforming secondary and tertiary education streams. This will enable the industry to achieve the target of creating 200,000 highly-skilled workforce by 2025 required to position Sri Lanka as the destination of choice for knowledge and innovation.”

SLASSCOM at present works collaboratively with the Government, academia (State and non-State) and policymakers to influence reform in the general education, higher education and professional and vocational education sectors in order to build the required capacity and skills. Whilst progress has been made in some aspects, accelerated investment and execution of initiatives will facilitate achieving the ambitious growth targets of the industry.  

Developing capacity and skills in key emerging technologies such as AI, ML, Data Science, IoT, Drones Robotics and RPA is imperative for Sri Lanka to be a niche player. Support is required for local knowledge and innovation companies to offer high value products and IP generation. 

Investment in accelerators and centres of excellence is required to encourage and catalyse such initiatives and early innovators. Increasingly global organisations are also looking at countries that offer niche skills to locate their innovation labs. 

The industry urges the Government to create an enabling environment for venture capital investments and facilitate innovative financing from the banking system. Furthermore, policies enabling industry partnerships with universities in research and development and commercialisation is required.  

The world is changing at a faster pace than ever before. With the onset of the fourth industrial revolution and pace of change, the opportunities or gaps in the market are best addressed by new exciting business models, fuelled by innovation and entrepreneurship, the statement said.  

Sri Lanka as a nation can be a driver of this change in the Asian region. Sri Lanka can position itself on the global landscape with a differentiated position for startups with the right enabling fiscal and regulatory environment for innovation, investment and exits. 

The industry seeks the support of the Government to remove factors that inhibit the realisation of the vision of Sri Lanka to be a startup friendly nation. These include delays in Intellectual Property/patent registrations, government procedures, coordination and cohesion in programs, regulatory barriers, lack of LLP structures and a conducive tax regime.

“One of the unique selling points of Sri Lanka is that startups can use the island as a test bed for their ideas and innovations to enter into the other South Asian markets. International startups venturing into Sri Lanka are positive indicators of our ecosystem’s potential.”