IT sector to become billion dollar industry with Indian investments

Sri Lanka’s IT industry will soon become a one billion dollar industry with more Indian investments pouring into the country. “The bilateral trade between Sri Lanka and India is to increase further from a current level of US dollars 2462.28million, with more Indian investment ventures in the pipeline,”said Dr Amunugama, Minister of Investment Promotion addressing the first anniversary celebrations of Aeturnum Lanka (PVT) Ltd recently.

Bilateral trade between India and Sri Lanka has increased from US $ 1497 million in 2004-05 to US $ 2590 million in 2005-06 and is valued at US $ 2462.28 million in 2006-07.

With almost 15-20% of total Sri Lankan imports accounted for by India, Dr. Amunugama said the country was now the major trading partner.

Importantly India accounts for major portion of Foreign Direct Investment (FDI) in Sri Lanka, with an investment of US $ 400-500 million. India is also the fourth largest investor in Sri Lanka.

He added that young Indian entrepreneurs engaged in the IT industry have found it more profitable and productive to invest in Sri Lankan IT BPO ventures rather than invest in the same business in Bangalore or any other IT savvy Indian state.

The minister also disclosed that the Mahindra and Mahindra Group is to invest around US dollars 250 million in a massive infrastructure development project in the new Export Processing Zone in Trincomalee and in an IT park in Katunayake as a joint venture with the Board Of Investment (BOI), creating a new industrial culture by promoting public and private partnerships.

US based Chief Executive Officer Rajat Bhakhri of Aeturnum Lanka (PVT) Ltd. said, the local company functions as a subsidiary of Aeturnum Inc., and is engaged in providing a variety of software services. Aeturnum provides a full spectrum of software services that includes Technology Consulting, Product Platform Services, Enterprise Software Solutions, Maintenance, Performance and Porting and Quality Assurance Services.

Aeturnum is also embarking on several initiatives to make them the preferred choice for current and prospective employees. Some of the initiatives include higher-education support, performance-based bonus packages, employee profit-sharing, career path development and participation in new R and D projects.