Presently Sri Lanka’s knowledge services industry generates nearly US$ 400 million of foreign exchange earnings and employs about 65,000 and the Government aims to promote the industry to a billion dollar industry with 150,000 direct employments in the next 3 years.
The country has witnessed the emergence of a knowledge services industry in recent years. It engages numerous professionals. The industry which consists of IT, Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) has attracted internationally reputed service providers into the country. A large number of local companies have also consolidated in this sector. IT based research activities have also expanded.
The Government has already setup an IT Park in Hambantota. As IT and enabling services attract high salaries and professional carrier services, President Mahinda Rajapaksa in his budget speech for 2013 proposed to limit their maximum personnel income tax rate at 16 percent.
The President also proposed to reduce the telecommunication levy applicable to internet tariff from 20 percent to 10 percent to 49 reduce the cost of broadband facilities.
An allocation of Rs. 300 million will be provided to Information and Communication Technology Agency (ICTA) to promote training to improve and quality certification in the IT and BPO industry.
He also proposed to set up Nenasala centers in every Grama Niladari division as a special project to broaden the access to IT facilities.