President Anura Kumara Dissanayake says Sri Lanka aims to raise its annual economic growth from around 5% to between 7% and 8% in the coming years, with the information technology, electrical and electronics sectors expected to play a leading role.

Speaking at a meeting with leading investors and industrialists from the three sectors at the Presidential Secretariat today (1), the President said strengthening domestic industries would be critical to securing the country’s future and invited the private sector to work with the Government to unlock Sri Lanka’s economic potential.

He also requested industry representatives to submit proposals and reports outlining the challenges facing their respective sectors.

The President said the Government plans to allocate Rs. 2 trillion for capital expenditure next year to accelerate economic growth, adding that exports would be expected to play a major role in generating the foreign exchange needed to support this investment.

During the discussion, officials noted that Sri Lanka’s IT sector, currently the country’s third-largest export earner, has the potential to generate US$5 billion annually, while the electrical and electronics sector could increase export earnings from around US$500 million to US$2 billion a year.

Business representatives raised concerns over difficulties in importing electronic components, banking-related issues affecting companies operating in the Colombo Port City and challenges in promoting locally manufactured products. The discussion also focused on removing these obstacles through legislative and regulatory reforms.

Deputy Minister of Digital Economy Eranga Weeraratne said the Government plans to establish a Virtual Special Economic Zone and a data centre, introduce a Green Channel to ease Customs procedures for research and development equipment and address banking restrictions affecting overseas payments for cloud computing and Software as a Service (SaaS). He also said alternative incentive schemes are being considered to retain skilled professionals and reduce the migration of talent overseas.