BMI View: Sri Lanka is one of a group of low-income frontier markets in APAC where per capita ITspending is low and the penetration of devices and solutions is far behind even middle-income markets. Thisposition, when combined with a strong economic outlook, does however provide a supportive framework forrobust growth in IT spending over the medium term in all three market segments as incomes rise andenterprises increase informatisation as they modernise. There is also a positive trend in the local ITindustry through the developing outsourcing industry, but growth could be constrained by a skillsbottleneck if the government does not take sufficient action.
IT Hardware Sales: LKR43.2bn in 2017 to LKR57.1bn in 2021, a compound annual growth rate(CAGR) of 7.2% in local currency terms. The extent of PC ownership is being reduced by smartphones,but with low penetration for households and enterprises, and rising incomes there will be segment growthover the medium term.