2012-10-27 18:22:15 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
BMI View: BMI expects Sri Lankan IT market growth to moderate in 2012, as the Sri Lankan Central Bank is poised to hit the brakes on an overheating economy, which through the rising cost of credit could have an impact on IT investment. Sri Lankan IT market growth is now forecast at 10% in 2012, but a projected 2012-2016 CAGR of 15% makes Sri Lanka one of the fastest growing markets in the region, albeit from a low base. The IT market has considerable latent potential and the restoration of peace and improvements in security have helped to release enterprise demand for IT solutions as companies look to boost efficiency.
Headline Expenditure Projections
Computer hardware sales: US$268mn in 2011 to US$292mn
in 2012, +9% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors butas basic infrastructure improves in areas outside Colombo, there is potential for strong growth in the north and east.
Full Report Details at
- www.fastmr.com/prod/464521_sri_lanka_information_technology_repo ..
Software sales: US$48mn in 2011 to US$53mn in 2012, +10% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors, one restraint being the high level of software piracy, with nine out of 10 packages in use believed to be unlicensed.
IT services sales: US$74mn in 2011 to US$83mn in 2012, +12% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors and analyst adjustment, with the government, finance and telecoms sectors accounting for at least half of the total services spend. Risk/Reward Ratings: Sri Lanka's score was 27.7 out of 100.0. The country ranked last place in our Asia region RRR table and had the lowest or joint lowest score in each ratings category, including IT market and country risk. Despite this, the country's status as a frontier market with high growth potential should see it rise up the rankings over time.
Key Trends & Developments.
* The government is supportive of initiatives to increase PC penetration in rural areas. As basic infrastructure improves in areas outside Colombo, there is the potential for strong growth in the north and east. The development of better credit availability from banks and other financial institutions, as well as from vendors and retailers, will play a part in market growth. In 2012, the education ministry announced a pilot programme to issue laptops to every student in 13 primary schools selected to represent the whole country.
* 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 islandwide availability of broadband. Computerisation has only just started in many areas of government and the Inland Revenue Department, for example, is required to be fully automated by 2013.
Growth in IT spending will be stimulated by the ongoing modernisation of Sri Lanka's banking sector, which should provide opportunities for IT vendors. The tourism industry is also projected to grow rapidly and technology is a key part of plans to assist the sector to improve efficiency and cope with increasing demand. Liberalisation and more competition in the telecoms sector should have a multiplier effect with regard to demand for IT.
Report Table of Contents:
- Sri Lanka IT Sector SWOT
- Sri Lanka Political SWOT
- Sri Lanka Economic SWOT
- Sri Lanka Business Environment SWOT
Asia Pacific IT Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings Q412
Asia Pacific IT Markets Overview
- IT Penetration
- IT Growth and Drivers
- Sectors And Verticals
Sri Lanka Market Overview
- Government Authority
- End-User Analysis
- Industry Developments
- Table: Sri Lanka IT Sector - Historical Data & Forecasts (US$mn Unless Otherwise Stated), 2008-2016
Industry Forecast Internet
- Table: Sri Lanka Telecoms Sector - Internet - Historical Data And Forecasts, 2009-2016
- IT Services
- Table: Sri Lanka - Economic Activity, 2011-2016
Country Snapshot: Sri Lanka Demographic Outlook
- Table: Sri Lanka's Population By Age Group, 1990-2020 ('000)
- Table: Sri Lanka's Population By Age Group, 1990-2020 (% of total)
- Table: Sri Lanka's Key Population Ratios, 1990-2020
- Table: Sri Lanka's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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