By: Staff Writer
January 12, Colombo (LNW): Sri Lanka’s Business landscape is currently undergoing a major transformation, driven by a series of strategic initiatives that are positioning the country for sustained growth.
After successfully restructuring its national debt and implementing an IMF-backed economic program, the country is actively attracting foreign direct investment (FDI) to strengthen its position as a regional business hub.
The Information and Communication Technology Agency (ICTA) of Sri Lanka has projected that the ICT sector will reach USD 3 -4 billion in revenues on 2025, signaling significant growth.
The ICT sector, which has become an essential part of the country’s digital transformation, is also poised to become one of the primary contributors to Sri Lanka’s export economy.
With over 500 companies operating in industries like banking, healthcare, retail, and manufacturing, the sector is the country’s second-largest export earner.
The government’s ambitious goal is to elevate the sector to $15 billion by 2030, reflecting the critical role digital innovation plays in the country’s economic future.
Meanwhile, the apparel industry is set to experience steady growth, with projections indicating a 2.0% compound annual growth rate (CAGR) through 2028.
This growth comes at a time when the country’s real estate sector, especially in Port City Colombo, is seeing significant expansion. The Port City development has positioned itself as a prime location for investment, with real estate growth expected to see a CAGR of 7.5% between 2023 and 2028.
Sri Lanka’s commitment to sustainable development adds another dimension to the economic opportunities available. The government has set a bold target for 2030, aiming to produce 70% of the country’s electricity from renewable sources.
This initiative is not only in line with global sustainability goals but also presents substantial business opportunities in the renewable energy and eco-friendly sectors.
Tourism remains one of Sri Lanka’s largest foreign exchange earners and a key driver of the economy. With over 4% of the country’s GDP generated from the tourism sector, Sri Lanka’s natural beauty and rich cultural heritage continue to attract tourists from around the world.
The recent resurgence of tourism has been encouraging, reflecting the country’s recovery from past economic challenges.
Port City Colombo plays a pivotal role in Sri Lanka’s economic ambitions, acting as a catalyst for business growth.
The development leverages Sri Lanka’s key advantages, including its strategic geographic position as a logistics hub, a rapidly growing modern economy, and a highly skilled workforce. Businesses looking to expand their operations in the region are increasingly drawn to the opportunities presented by Port City.
As digital transformation continues to shape industries globally, Sri Lanka is focused on equipping its workforce with the necessary skills to succeed. In this regard, the government’s efforts to support the establishment of 750 tech companies and 1,500 IT startups by 2024 will ensure the ICT sector’s continued growth. Approximately 600,000 Sri Lankans are already employed in the sector, which remains one of the most promising for the nation’s future economic development.
The business community’s optimism about the country’s economic future has also been reflected in rising business confidence. The latest edition of the LMD magazine notes a surge in Sri Lanka’s Business Confidence Index, which rose 20 points in December, reaching its highest level since January 2020.
This increase in confidence is seen as a direct result of the new government’s commitment to driving economic stability and growth. Analysts also noted that sentiment regarding sales volumes, both short and long-term, has improved since the election, adding to the positive outlook for Sri Lanka’s economy.
This post was originally published on here
