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With the ever-growing demand for software personnel in the country, Sri Lanka has a recorded annual growth of 25% to 30% in the software industry alone. There are several programs launched by both the state and the private sector to draw the large number of school leavers into this booming technological industry as a means of easing unemployment in the country. There is tremendous scope abroad for our software experts due to a shortage of IT personnel in Europe, Japan and Korea. Some of the available statistics maintained by the Sri Lanka Association for the Software Industry, (SLASI), have shown that over 300 computer graduates had migrated to foreign countries in the year 1999 alone on contracts. The local software market is booming at the moment with several Sri Lankan companies sub-contracting work or forming joint ventures to develop software. The government has already offered several tax incentives to foreign investors to set up software ventures in Sri Lanka. A five year tax holiday for non-export oriented software developers, the setting up of IT parks and the exemption of IT-related services from both the defense levy and GST are among the several steps taken by the Government towards developing the IT sector of Sri Lanka.
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