Three Aussie IT/BPM firms sign up to enter SL

Australian Deputy High Commissioner Tim Huggins (right), Head of delegation and Chairman of Jacoby Group/Techniche Karl Jacoby (second from right) with the delegation members

SLACC President Kalum De Silva speaking at the inaugural IT/BPM mission held in Colombo, while EDB Chairperson and Chief Executive Indira Malwatte looks on

By Charumini de Silva

The prevalent optimism of the Sri Lankan economy has been further reiterated with three Australian companies signing up to commence business following the inaugural IT/BPM business mission to Colombo recently.

Business leaders representing 10 Australian and 25 Sri Lankan companies attended the inaugural IT/BPM business mission in Colombo jointly organised by the Sri Lanka and Australia Chamber of Commerce (SLACC), Sri Lanka Export Development Board (EDB), Sri Lanka Association for Software and Services Companies (SLASSCOM) and the Information and Communication Technology Agency of Sri Lanka (ICTA). 

Speaking to Daily FT SLACC President Kalum De Silva confirmed that out of the ten IT/BPM companies,  three have already signed up to set up business in Sri Lanka in the areas of accounting, financial planning and IT product development.

He said that following recent policy decisions, further liberalising trade activities as well as Sri Lanka’s pro-business and pro-investment policies were found to be most progressive in South Asia, making it an extremely conducive place to commerce with ease of doing business a primary consideration.

“Enforceability of the policy framework, ease of doing business, infrastructure facilities are key factors in attracting foreign investments. The enthusiasm shown by the first IT/BPM delegation was very encouraging,” said De Silva.

Noting that the initial investments of those three investments were not substantial (ASD 150,000 per annum), he pointed out that, depending on its success, the investment would increase five-fold over the next two years.

He further said that SLACC is looking at specific sectors that are mutually beneficial to Sri Lanka as well as to Australia and invited interested parties to make use of the platform provided by the Chamber to create productive business partnerships and to advance and promote technology investments and trade partnerships between the two countries. 

“We are currently looking at a few industries and have collaborated with a few local universities to conduct a feasibility study on the viability. We are also exploring opportunities in the mining industry in Sri Lanka in terms of knowledge and technology-sharing as the country boasts of the cleanest graphite,” said De Silva.

Pointing out that Sri Lanka’s competitive advantage in IT/BPM is built around agility, cost, a niche talent base, ethics, cultural adoptability and superior quality of life, Head of the delegation and Chairman of Jacoby Group/Techniche Karl Jacoby said that the country has well graduated as a destination for doing business. 

Admiring the Sri Lankan IT aptitude, he stated: “The talent in this country is a great advantage. Their constructive analytical skills are very different compared to the countries that have a much larger capacity. It is important for Sri Lanka to leverage on their human capital and look at ways of bringing that knowledge back to the country.”

He said total foreign ownership being permitted across most areas of the economy with no restrictions on repatriation of earnings, fees, tax incentives were plus factors to any foreign investor looking for investment opportunities in Sri Lanka. 

Jacoby commended the efforts taken and policies articulated by the Government towards converting Sri Lanka’s strategic location advantage to position itself as an economic hub for the region.

EDB Chairperson and Chief Executive Indira Malwatte said the ICT/BPO has been identified as a priority sector for future economic growth in Sri Lanka. 

Considering the remarkable export contribution made over the past few years, Malwatte referred to the ICT/BPO sector as the ‘silent revolution.’ “It took 150 years for the tea industry to come to its current level, but due to high level entrepreneurship within a short span of 15 years, the ICT sector has emerged as a significant contributor to economic growth of the country with minimal Government assistance,” she said.

Malwatte was confident that Sri Lanka would reach its ambitious target of $5 billion exports by 2022, as industry stakeholders, government and academia having finally come together to reaffirm the ICT/BPO sector’s commitment to inspire the next wave of economic growth.  

Noting that a lot of young talent has been moving out of the country as they have not had equal opportunity or new opportunities in Sri Lanka, Malwatte said that ICT/BPO was one productive sector which could retain the talent moving out from the country. 

While acknowledging efforts taken by the SLACC, Malwatte said that Australia could become a good fit for Sri Lanka as SME companies in both countries could create good partnerships with mutual benefits. 

She also revealed that an ICT team representing 12 companies from Sri Lanka will visit Australia in October with the aim of finding an opening to create close cooperation within the sector.  

A key theme of the business mission was to explore new opportunities brought about by the rapid escalation of Sri Lanka’s ICT/BPM industry, and Sri Lanka’s role as a bridge connecting Australia to the South Asian sub-continent, especially in light of the many trade partnerships and agreements in place. Sri Lanka, being a key destination that is ideally located in the region can play a crucial role in linking markets together. 

State Minister of International Trade Sujeewa Senasinghe, and Deputy High Commissioner of Australia Tim Huggins were guests of honour at the Welcome Reception hosted by ICTA on 10 August at the Kingsbury Hotel.

The main sponsor for the mission was Orion City; Loops Solutions, EFutures, Teknowledge Shared Services and S. A. Knowledge Services contributed as corporate sponsors.

The ‘Destination Sri Lanka’ seminar offered the Australian delegation valuable insights into Sri Lanka’s industry capabilities and potential investment and trade opportunities. In addition an entire afternoon dedicated to one-on-one meetings with visiting delegates and local companies were successfully executed with great interest by both parties registered. The mission concluded with a field visit, where the delegates spent a full day visiting prominent IT/BPM organisations of Sri Lanka.

Sri Lankan-Australian bilateral trade is currently closing upon US$1 billion with technology collaboration regarded as an area of great potential for future investment and business partnership opportunities between the two countries.

SLACC is the only integrated bilateral, member-based Chamber umbrella constituted under the Australian Chamber of Commerce and Industry to foster commercial trade and dialogue between Sri Lankan and Australian businesses, and is dedicated to providing practical and on-the ground support for business people who are entering or exploring the two markets.

Pix by Shehan Gunasekara