Lanka’s ICT exports to cross $1b this year’: Rishad

• Impressed by Lankan ICT sector: JISA’s Yamamoto
• Coming up, 2 Lankan ICT visits to Tokyo: JETRO’s Obama
• 2014 Lanka’s ICT exports at $815 m

The visiting Japanese IT experts delegation with Industry and Commerce Minister Rishad Bathiudeen, EDB Chairman and CEO Bandula Egodage and JETRO Colombo Resident Representative Kazuhiko Obama

Sri Lanka’s high-tech exports are projected to cross $1 b mark this year, a year before the previously forecast timeframe, and the Japanese ICT sector is ‘highly impressed’ by the Lankan industry, as revealed yesterday. “We believe that this year Lanka ICT exports will hit the $1 billion mark, a year before as forecasted previously. The ICT export sector of Sri Lanka has a target of increasing the exports up to $ 5 billion by 2022 and collaboration with Japan would cater to these efforts positively,” said Minister of Industry and Commerce Rishad Bathiudeen. Bathiudeen was addressing the visiting Japanese IT experts Hidemi Yamamoto and TsuyomuTsuchiyama as well as JETRO ColomboResident RepresentativeKazuhiko Obama, who were meeting Bathiudeen at the EDB. The Minister also hailed services of Japanese Ambassador Nobuhito Hobo in terms of trade and exports promotion and on behalf of the Government of Sri Lanka. “Japan is the ninth largest export destination for Sri Lanka’s exports with a share of 2%. As for imports, Japan ranks at 6th, supplying 4% of Sri Lanka’s total imports,” Bathiudeen added. ICT exports have emerged as a significant source of export earnings, being the fifth largest revenue earner of the country and largest value-added service earner. The exports revenues of ICT reached $ 720 million in 2013 and estimated to be $ 815 million in 2014. “It’s good to understand that Japan has identified Sri Lanka’s Information Communication Technology (ICT) sector as the most important sector for Japan to work with,” the Minister said. He said the Government has identified IT literacy which is 35% currently, as a key development goal and set a target of 75% IT literacy by 2016 through a national plan of public private investment in access to ICT education and training. “We are looking to create business tie-ups between Lankan and Japanese ICT firms and today’s seminar is the first step, bringing awareness to Lankan ICT firms,” said JETRO ColomboResident RepresentativeKazuhiko Obama, responding to Bathiudeen. He added: “We are planning to conduct the follow-up, the Business Matching event in October this year in Tokyo. Before that Sri Lanka EDB will bring a Lankan ICT company delegation to Tokyo for Japan IT Week this May.” Japan Information Technology Service Industry Association (JISA) Global Affairs Senior ExecutiveHidemi Yamamotosaid: “We have 600 Japanese IT firms under JISA. We have leading Japanese software developers, information processing and database service suppliers among us. We have alliances with foreign industry associations and I am highly impressed by the Lankan IT industry! I am looking to outline Japanese IT service industry aspects to Lankan exporters in my presentation.” “We are a leading systems integrator in Japan and I have almost 40 years of experience in this,” said Nippon RAD IncStrategic Planning DivisionCorporate OfficerTsuyomuTsuchiyama. “I look forward to give to Lankan ICT exporters; 99% of my firm Nippon Rad’s business is domestic and in Sri Lanka we are looking for mutual market opportunities and tie-ups. It is possible for both business and systems integration in form of JV or BPO/Outsourcing.” Japan is Asia’s high-tech powerhouse. The 2014 estimate for global production by Japanese electronics and IT companies stands at $362 b. Of this, only 14% ($50 b) is “IT/software solutions” while the rest (86%) consists of hardware manufacturing such as computers, semiconductors, communication equipment, and display terminals. The $50 b “IT/software solutions” share signifies that there is promising scope for new players in the sector to increase this rate.