Sri Lanka is fast emerging as a top off shoring Over the past three to four years, Sri Lanka has destination for IT and BPO services globally. The been prominently recognized as an emerging continuous improvement of macroeconomic outsourcing destination for key functions and conditions has enabled the country to be specialized services. Despite the limited size of increasingly recognized as one of the leading the workforce in relation to other large outsourcing hubs in the region. This has been outsourcing players such as India, Sri Lanka substantiated by a Global consulting giant, A.T. possesses highly skilled professionals for niche Kearneys 2011 Global Services Location Index, services in IT testing, finance and accounting, where the country is ranked at 21 among the top with the highest number of Chartered Institute 50 outsourcing destinations and Colombo was of Manage-ment Accountants (CIMA) graduates ranked among the top 10 emerging outsourcing in the world outside of the UK, and legal services. cities by Global Service Magazine. The country Further, the location of Sri Lanka in terms of timest has also placed at the 71 position out of 142 differences allows it to cater to the European, economies in the network readiness index in Australian and the American markets. SEA-ME- 2010-11. WE 4 project; Sri Lanka's alliance with 15 other international partners has enable the country to IT/ITES Export Earnings have better competitiveness through higher connec-tivity, better reliability, improved security USD Mn and enhanced speed with various services being 400 355 at the same level as those in developed countries. 350 300 250 200 150 100 50 0 173 213 230 245 265 2006 2007 2008 2009 2010 2011 Source: Export Development Board, Central Bank Annual Report IT/ IT Enabled Services (ITES) sector is forecasted to be amongst the most massive gain sector of the country's economy with 20 percent annual growth rate, in terms of revenue. The performances of the sector are encouraging with 34% increase to USD 355 Mn in Gross inflows on account of exports of software, BPO and other ITES in 2011. The industry is considered as the fifth largest foreign exchange earner at present and it is expected to exceed USD 1 billion by 2016. The IT workforce in Sri Lanka estimated as at end of 2010, stood at 63,000, a significant growth of over 85% per cent from 2006. The number of direct Information Communication Technology (ICT) job opportunities created in the coming years is also estimated to be close to 10,000 per year and Sri Lankan IT/ITES Industry will grow to a 100,000 IT jobs by 2016. The government has taken a number of initiatives to fast track the development and expansion of the sector by providing fiscal and other incentives. Leading global IT/ITES companies have trusted Sri Lanka for its enabling business environment, qualified talent pool and economic, social and political stability. Some of the reputed IT/ITES firms operating in the industry include; HSBC, WNS Global Services, Industrial & Financial Systems (IFS), Amba Research, RR Donnelley, Virtusa, ecollege, Eurocenter, Valista, Millennium Information Technology, Innodata Isogen etc. All these factors place Sri Lanka in a prime position to establish itself as one of the top outsourcing destinations.
Knowledge Process Outsourcing:
Development Permit (Building approvals) (if applicable) Work Permit & Residence Visa (Ministry of Defense and Dept. of Immigration & Emigration) SIA: Securities Investment Account FCBU: Foreign Currency Banking Unit for details please refer infrastructure brochure Residence visa can be obtained at any stage of the process
Department of Inland Revenue
Customs Duty, VAT and PAL Exemptions on imports of capital goods (for large scale undertakings) For the importation of project related plant, machinery or equipment, the applicable Customs Duty, VAT and PAL will be deferred/ exempted during the project implementation period, and the said deferment will be treated as an exemption on the fulfillment of the conditions specified by the Board of Investment of Sri Lanka.
Registration Criteria : if turnover of a quarter is Rs. 50 Mn. or more subject to a ceiling of Rs. 30 Mn. Per quarter (can be set off against income tax) Computers : Exempted Other -Export Oriented : Differ -Local Market: 12% (for large scale projects VAT will be differed during the project implementation period) 5% For large scale projects, PAL will be differed for plant, machinery or equipment during the project implementation period