President eyes 7-8% growth with push into IT, electronics exports

President Anura Kumara Dissanayake

• Seeks proposals from industry to accelerate expansion of high-value sectors, remove regulatory bottlenecks
• Plans Rs. 2 t in capital spending next year, with exports expected to generate forex needed to support investment
• IT sector seen capable of generating $ 5 b annually, while electronics exports targeted to quadruple to $ 2 b

President Anura Kumara Dissanayake yesterday set out an ambitious strategy to lift Sri Lanka’s economic growth to 7-8% over the coming years, identifying the information technology (IT) and electrical and electronics industries as key drivers of export-led expansion and higher foreign exchange earnings.

Addressing leading investors and industrialists from the IT and electrical and electronics sectors at the Presidential Secretariat, the President said the Government’s objective is to raise annual economic growth from around 5% by strengthening high-value domestic industries capable of competing in global markets.

He invited industry leaders to work closely with the Government to unlock the country’s economic potential and requested that they submit proposals outlining sector-specific development strategies together with the principal constraints affecting their industries.

The President said the Government intends to allocate Rs. 2 trillion for capital expenditure next year to accelerate economic activity, adding that export growth will be essential to generate the foreign exchange required to sustain that investment program.

Discussions focused on expanding Sri Lanka’s export base through higher-value technology industries.

Participants noted that the IT industry, currently the country’s third-largest export sector, has the potential to generate $ 5 billion in annual export earnings. The electrical and electronics industry, which currently exports around $ 500 million annually, was identified as having the potential to increase export revenue to $ 2 billion.

The meeting also examined Sri Lanka’s prospects of positioning itself as a recognised global brand in both sectors by leveraging its skilled workforce while expanding supporting infrastructure and industrial capacity.

Industry representatives highlighted several policy and operational constraints affecting investment and export competitiveness, including complex procedures for importing electronic components, banking difficulties faced by companies operating within Colombo Port City, and challenges in promoting locally manufactured products in the domestic market.

The discussions also covered legislative and regulatory reforms aimed at removing these obstacles, with attention given to establishing a dedicated mechanism to receive industry proposals directly and expedite solutions.

Deputy Digital Economy Minister Eng. Eranga Weeraratne outlined several initiatives under consideration to strengthen the sector’s competitiveness, including the establishment of a Virtual Special Economic Zone and a national data centre.

He also said the Government plans to introduce a Green Channel to expedite Customs clearance for electronic equipment imported for research and development, while addressing banking and credit card restrictions affecting overseas payments for cloud computing and Software as a Service (SaaS) platforms.

In addition, the Deputy Minister said the Government is examining alternative incentive schemes aimed at retaining skilled professionals and slowing the outflow of technology talent overseas.

Among those attending the meeting were Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suriyapperuma, President’s Chief Adviser on Digital Economy Dr. Hans Wijayasuriya, Export Development Board Chairman Mangala Wijesinghe, representatives of the Sri Lanka Association for Software and Services Companies (SLASSCOM), the Sri Lanka Electronic Manufacturers and Exporters Association (SLEMEA), and leading companies operating in the IT and electrical and electronics sectors.