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Tuesday, February 02, 2010 - 05.15 GMT |
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Sri Lanka,
fastest growing IT market in the region
- Business Monitor International |
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Sri
Lanka's
Information
Technology
Market
will be
among
the best
potential
growth
prospects
in South
Asia,
states
the
Business
Monitor
International
(BMI) of
UK.
Total IT
spending
is seen
as
nearly
doubling
to
US$494mn
by 2013,
with
considerable
upside.
This
projected
CAGR of
15%
would
make Sri
Lanka
one of
the
fastest-growing
markets
in the
region,
states
BMI in
its IT
market
report.
The BMI
further
states
that the
progress
is a
consequence
of the
end to
Sri
Lanka's
long-
running
war in
mid-
2009.
Earlier
the
total
size of
the
legal IT
market
was
estimated
at
US$254mn
in 2008,
just 2%
the size
of
India’s
with the
effects
over the
years of
the
country’s
political
and
economic
instability,
disruption
of
distribution
channels,
the
negative
impact
on
incomes
growth,
and
underdevelopment
of the
country’s
telecoms
infrastructure,
BMI
points
out.
By the
same
token,
however,
the
market
has
considerable
growth
potential,
BMI
states.
"Indeed
the
computer
market
has
comfortably
been
growing
at a
double-digit
CAGR for
the past
several
years,
yet
penetration
remains
below
5%.
Computerisation
has only
just got
started
in the
government
service
and
major
public
and
private
sector
organisations
remain
largely
un-penetrated
in terms
of ERP
systems
and
other
enterprise
software",
the BMI
further
illustrated.
Despite
the
government’s
financial
weakness,
a focus
on
restructuring
government
through
the
application
of ICT
has
achieved
some
results,
BMI
points
out and
explains
the
nature
of Sri
Lanka's
ICT
growth
and
government
strategies
to
promote
ICT.
The BMI
report
further
explains,
Sri
Lanka’s
computer
hardware
sales
were
estimated
at
US$196mn
in 2008,
and are
projected
to reach
around
US$368mn
in 2013.
An
estimated
350,000
computers
were
sold in
Sri
Lanka in
2008,
despite
a
slowdown
in the
second
half of
the
year.
This
annual
total
could
increase
over
650,000
by the
end of
BMI’s
forecast
period.
The
domestic
software
market
is
expected
to grow
at a
CAGR of
around
17% over
the
forecast
period
until
2013.
Progress
is
expected
over
BMI’s
five-year
forecast
period,
with
internet
penetration
reaching
20%, and
broadband
penetration
14.5%,
the BMI
report
states
further.
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