Growth Prospects for the Software Industry in Sri Lanka and an Appropriate Policy Framework

Abstract

Software development and IT education & training are two segmente of information technology, which have a tremendous potential for Sri Lanka ubiquity and access speed of Internet has opened new dimensions for development of the software industry. At present the concept of providing software as a Service has created lot of interests among software companies. Due to the availability of trained manpower, India has been able to take the best advantage of the shift of the software industry from the USA towards Asia during the last decade. Web based interactive Solutions, which inelude many spheres like e-business,e-learning and e*governance and IT enabled Services are expected to be the major drivers during the coming decade. Though Sri Lanka has so far failed to develop the enabling factors of software industry to the optimum levels, it has the potential to do so. An appropriate policy frame work to develop the software industry has to cater to the key enabling factors such as; commitment of the government, trained manpower, info infrastructure, low cost funding, incentives and simplified investment approvals, promotion of investors and exports, local demand and legal protection for inteliectual property rights.