📈 IT and Electronics Key to 7-8% Economic Growth Target

President Anura Kumara Dissanayake outlined plans to boost Sri Lanka's economic growth from ~5% to 7-8% in the coming years, positioning tech and electronics as pivotal drivers. • Growth & Investment Targets: The government intends to allocate Rs. 2 Trillion for capital expenditure next year to accelerate economic growth and expand foreign exchange inflows. • Sector Breakdowns & Export Potential: • ICT/BPM: Currently Sri Lanka's 3rd largest export earner, projected to have the potential to reach US$ 5 Bn in annual export earnings. • Electrical & Electronics: Currently generates ~US$ 500 Mn, with a target potential to scale up to US$ 2 Bn annually. • Key Policy & Infrastructure Plans: • Plans to establish a Virtual Special Economic Zone and a dedicated data centre. • Introduction of a "Green Channel" mechanism to streamline Customs for R&D electronic equipment imports. • Regulatory fixes for banking, Colombo Port City transaction bottlenecks, and SaaS/cloud computing payment limits. • Implementation of incentive schemes aimed at retaining highly skilled professionals and curbing talent migration. • Industrial Feedback: A special unit will be formed to directly address industrial challenges, including local market promotion hurdles and component import complexities.