Sri Lanka’s digital industry poised for growth
View(s):The digital services sector in Sri Lanka has witnessed new tax measures introduced in the latest national budget, which mark a significant shift in the industry’s financial landscape. While these measures present challenges, the industry remains steadfast in its commitment to growth, innovation, and resilience. The Ministry of Digital Economy, in collaboration with key industry stakeholders, is actively engaging to ensure that Sri Lanka remains a competitive and attractive hub for digital services, both regionally and globally, the ministry said in a media release.
A key aspect of the Government’s fiscal strategy has been to ensure a level playing field by requiring all companies—both local and international—to contribute to the nation’s economy through taxation. Historically, non-domiciled digital service providers had an advantage over local companies, as they were not required to pay taxes for services offered within Sri Lanka. This policy shift is expected to generate additional revenue for the government while ensuring fairness in the market. However, concerns have been raised regarding the potential implications of increased taxation on digital exports and freelancers, as this may encourage relocation of businesses and banking operations to more tax-friendly jurisdictions.
Despite these challenges, the ministry, in collaboration with key industry organisations, is focused on implementing measures to sustain and enhance the growth of Sri Lanka’s digital economy. Several strategies are being explored to provide relief and long-term benefits to industry players. These include concessionary loan schemes, investment in skill development, improved digital infrastructure, and the creation of IT parks and co-working spaces to foster innovation and entrepreneurship. Furthermore, the government is in the process of creating a US$50 million Fund-of-Funds to attract global investors, with the aim of supporting startups, promoting intellectual property creation, and advancing the Sri Lanka HQ strategy.
Eng. Eranga Weeraratne, Deputy Minister of Digital Economy, said: “Sri Lanka’s digital industry has always been a beacon of resilience, even in the face of adversity. The introduction of these tax policies requires us to reassess our strategies, but it also presents an opportunity to strengthen our fiscal position.”
Indika De Zoysa, Chairman of the Federation of IT Industry Sri Lanka (FITIS), noted: “The IT industry has always been at the forefront of driving Sri Lanka’s digital transformation, and while taxation introduces new challenges, it also signals the growing importance of the sector. What is crucial now is a collaborative approach where policy frameworks align with industry needs to ensure sustained growth.”
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!