Sri Lanka Information Technology Report Q2 2016
BMI View: Our positive medium-term outlook for the Sri Lankan IT market is maintained in the Q216update, though there was a small downgrade to the 2016 outlook. Regional economic uncertainty and ourexpectation for more extensive rupee depreciation against the US dollar are behind the downward revision,but this will not obscure the medium-term growth story based on economic development, rising incomes,private and public sector modernisation initiatives as well as low device and solution penetration rates.Another positive is the development of the local IT industry, including the software development and BPOindustries, and the development of local facilities for PC and component manufacture. We forecast a CAGRof 12.1% for the IT market spending in 2016-2020 to a total of LKR181.9bn in 2020.
Latest Updates & Industry Developments
IT Hardware Sales: LKR71.7bn in 2016 to LKR109.3bn in 2020, a compound annual growth rate(CAGR) of 10.8% in local currency terms. Rising incomes and increased local supply, in an environmentof rising incomes, will support an expansion of the IT hardware market, though price sensitivity willremain a central characteristic of demand.
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