Sri Lanka is a small island nation that has been gaining recognition as an emerging hub for Information and Communication Technologies (ICT) and Business Process Management (BPM) in South Asia. According to the Sri Lanka Export Development Board, the IT and knowledge sector has become the fifth most significant contributor to the country’s export revenue, generating over $1.2 billion in 2020. However, despite the impressive growth and potential of the software industry in Sri Lanka, there are also many challenges and opportunities that software developers face in the current context. In this blog post, we will explore some of these issues and how they affect the software development landscape in Sri Lanka.
Challenges
One of the major challenges that Software Developers in Sri Lanka face is the dollar crisis that has been plaguing the country since 2019. The depreciation of the Sri Lankan rupee against the US dollar has resulted in high inflation, increased import costs, reduced foreign reserves, and lower purchasing power for consumers. This has also affected the software industry, as many software companies rely on foreign clients and markets for their revenue. The dollar crisis has made it difficult for software companies to pay their employees competitive salaries, retain talent, and invest in new technologies and infrastructure.
Another challenge that Software Developers in Sri Lanka face is the migration of skilled workers to other countries. According to a report by the World Bank, Sri Lanka has one of the highest rates of brain drain in the world, with more than 25% of its tertiary-educated population living abroad. This means that many talented and experienced software developers are leaving the country for better opportunities and living standards elsewhere. This creates a shortage of skilled labor and a gap in the talent pool for the software industry in Sri Lanka. Moreover, migration also affects the innovation and competitiveness of the software sector, as it reduces the diversity and creativity of the workforce.
Opportunities
Despite these challenges, there are also many opportunities that Software Developers in Sri Lanka can leverage to grow and thrive in the software industry. One of these opportunities is the growing demand for software solutions both locally and globally. As digital transformation becomes a necessity for businesses and organizations across various sectors and industries, there is an increasing need for software developers who can provide innovative and customized solutions that meet their specific needs and requirements. According to a report by ResearchAndMarkets.com, the global software market is expected to grow at a compound annual growth rate (CAGR) of 10.5% from 2020 to 2025, reaching $803.9 billion by 2025. This presents a huge opportunity for Software Developers in Sri Lanka to tap into new markets and expand their customer base.
Another opportunity that Software Developers in Sri Lanka can capitalize on is the supportive ecosystem that has been developing around the software industry in recent years. There are many initiatives and programs that aim to foster and promote the growth and development of the software sector in Sri Lanka, such as:
• The Island of Ingenuity campaign, which is a national branding initiative that showcases Sri Lanka’s capabilities and achievements in ICT and BPM to global audiences.
• The Sri Lanka Association of Software Services Companies (SLASSCOM), which is an industry body that represents and advocates for the interests of software companies in Sri Lanka.
• The ICT Agency of Sri Lanka (ICTA), which is a government agency that implements policies and projects related to ICT development and digital transformation in Sri Lanka.
These initiatives and programs provide various benefits and resources for Software Developers in Sri Lanka, such as training, mentoring, networking, funding, exposure, recognition, and guidance.
Conclusion
In conclusion, Software Developers in Sri Lanka face many challenges and opportunities in today’s context. The dollar crisis and migration are some of the major challenges that affect their income, retention, and innovation. However, the growing demand and supportive ecosystem are some of the major opportunities that enable their growth and development. Therefore, Software Developers in Sri Lanka need to be adaptable, resilient, and proactive in order to overcome the challenges and seize the opportunities that the software industry offers. By doing so, they can contribute to the advancement and success of the software sector and the economy of Sri Lanka.