Sri Lanka is one of the fastest growing IT markets in the region, states the Business Monitor International (BMI) of UK.
The addressable IT market in Sri Lanka is forecast at US$444mn in 2012. It is expected to grow to US$811mn over BMI's five-year forecast period to 2016, states BMI in its IT Market Report.
The BMI further states that the computer market has comfortably been growing at a double-digit compound annual growth rate (CAGR) for several years.
BMI expects Sri Lankan IT market growth to moderate in 2012, after benefitting from a local and regional economic recovery in 2011.
“We forecast continued double-digit growth in all segments of the IT market. Sri Lankan IT spending should continue to benefit from the government's cut in taxes and duties on electrical products, which resulted in a double-digit surge in demand for computers in H111,” the BMI further illustrated.
The restoration of peace and improvements in security has helped to release enterprise demand for IT solutions as companies look to boost efficiency, says the BMI.
The government's 2012 Budget, delivered in November 2011, envisaged a key role for ICT in development of all sectors, a continuation of the seven-year e-Sri Lanka programme, and island-wide availability of broadband. The government aims to grow ICT sector revenue to US$1bn by 2016, building on current export revenue levels of around US$350mn, the report said.
Sri Lanka's computer hardware market is forecast at US$302mn in 2012 and is projected to reach US$528mn in 2016. As basic infrastructure improves in areas outside Colombo, there is potential for strong growth in the North and East, the report further added.
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