Sri Lanka targets 7-8% economic growth with support from IT and electronics sectors
Sri Lanka President Anura Kumara Dissanayake says the Government aims to increase the country’s economic growth from around 5% to 7-8% in the coming years with strong support from the IT, electrical and electronics sectors.
The President made these remarks during a discussion with leading investors and industrialists from the information technology, electrical and electronics sectors, held this morning (July 1) at the Presidential Secretariat in Colombo.
President Dissanayake said Sri Lanka’s future can be secured only by strengthening local industries. He invited entrepreneurs to work together with the Government to unlock the country’s real economic potential.
The President also requested industry representatives to submit proposals as soon as possible on how to develop their sectors. He also asked them to provide a report on the main challenges currently faced by their industries.
The President further said the Government plans to allocate Rs. 2 trillion for capital expenditure next year to speed up economic growth. He noted that the export sector is expected to make the highest possible contribution to meet the country’s increasing foreign exchange needs.
The discussion focused on the role that the IT, electrical and electronics sectors can play in increasing Sri Lanka’s export earnings and foreign currency inflows.
It was stated that the information technology sector, which is currently Sri Lanka’s third-largest export revenue earner, has the potential to generate US$5 billion in annual export earnings.
The electrical and electronics sector, which currently earns around US$500 million in export revenue, also has the potential to increase its annual export earnings to US$2 billion.
The participants also discussed Sri Lanka’s ability to become a global brand in the IT, electrical and electronics sectors. They noted that the country has a highly skilled workforce in both industries, but said more facilities and better infrastructure are needed to support further growth.
Business representatives briefed the President on several issues affecting the sectors. These included difficulties in importing electronic components, banking-related obstacles faced by companies operating in the Colombo Port City, and problems in promoting locally manufactured products in the local market.
The discussion also focused on removing these barriers and introducing the required legal and regulatory reforms.
Attention was also given to setting up a special unit with the participation of relevant parties to directly receive the problems and suggestions of industrialists and provide quick solutions.
Business representatives were also informed about several Government initiatives already planned to expand support and infrastructure for these sectors.
Deputy Minister of Digital Economy Eranga Weeraratne outlined plans to establish a Virtual Special Economic Zone and a data centre.
He also said steps are being considered to introduce a Green Channel mechanism to remove Customs-related obstacles when importing electronic equipment needed for research and development.
The Deputy Minister further said the Government is looking at ways to address banking and credit card limits affecting overseas payments for essential services such as cloud computing and Software as a Service.
He added that alternative incentive schemes are also being considered to retain skilled professionals and reduce the migration of talent overseas.
Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando, Secretary to the Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma, Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya, Senior Additional Secretary to the President Roshan Gamage, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and Chairman of the Export Development Board Mangala Wijesinghe were present at the discussion.
Shehani Seneviratne and other representatives of the Sri Lanka Association for Software and Services Companies, Chairman of the Sri Lanka Electronic Manufacturers and Exporters Association Gamini Ranasinghe, former Chairman Dr. Ajith Pasqual, Managing Director of VARIOSYSTEMS (Pvt) Ltd Thevan Satheeswaran, Managing Director of GPV Lanka Chandana Dissanayake, and several leading entrepreneurs and representatives from the IT, electrical and electronics industries also attended the meeting.
