Sri Lanka is in the process of developing its fledgling electronics industry to help propel the island into the 21st century as a Newly Industrialized Country (NIC) according to government ministers and industry experts. The government is studying the potential for information technology and electronics industries and how they could be given greater emphasis in its industrial stage.
Electronics is one of a cluster of high-priority industries identified by the islandís Board of Investment (BOI) that could help the government achieve its ambitious aim to make Sri Lanka a NIC by the next century. More than 160 electronics, computers and communications vendors took part in Infotel ë92, a computer and electronics fair held in Sri Lanka. Among the policies needed to encourage long term growth in this area include: an education system geared to the needs of the industry, tariffs on imported parts need to adjusted so that finished products are competitive, and better research and development facilities need to be set up. The government should also encourage multinationals to set up plants on the island to make Sri Lankan products internationally accepted.
Rohan Wijeratne, chairman of the Computer and Information Technology Council in Sri Lanka believes that the indigenous electronics industry, though small, has the potential to carve out niche export markets. According to Dr. Maya Sittampalam Rainford, a computer expert at Colomboís Open University in 1993 between 5,000 to 8,000 people were employed by electronics, computers and communications companies.
Seven of Sri Lankaís 30 software companies are exporters. Export Development Board officials report that Sri Lanka now earns about Rs.100 million ($2 million) annually from computer software exports. Government incentives for investors setting up electronics export industries include up to 10 yearsí tax holiday, duty free imports and venture capital financing.
