Outsourcing

What differentiates Sri Lanka for Business Process Outsourcing

Sri Lanka is steadily making its mark as a global hub for business process outsourcing (BPO), IT, and knowledge services. While many industries have faced volatility in recent years, Sri Lanka’s IT-BPM and BPO sector has demonstrated remarkable resilience and growth. Supported by a highly skilled workforce, reliable infrastructure, and government-backed initiatives, the country is now emerging as one of the region’s most promising outsourcing destinations.

The nation’s economic performance reinforces this position. According to the Department of Census and Statistics, Sri Lanka’s economy grew by 5.0% in 2024, while the first half of 2025 saw GDP growth of 4.8% year-on-year. The IMF has commended Sri Lanka’s economic reform program, describing its progress as “impressive”. Sri Lanka’s stock market also has shown impressive performance, with the All Share Price Index (ASPI) reaching record levels, reflecting investor confidence and economic resilience (Colombo Stock Exchange Hits All-Time High as ASPI Surges Past 17,350 – Adaderana Biz English | Sri Lanka Business News).

Beyond economic growth, Sri Lanka has been earning international recognition for its business capabilities and global appeal. The country has consistently been featured among the Top 25 Global Services Destinations by Kearney (2023) and included in Gartner’s Top 30 Offshore Service Destinations for IT and BPO. It has also been acknowledged in the Tholons Global Innovation Index for digital talent and innovation capacity, and the Global Sourcing Association has recognized Sri Lanka as an emerging offshore destination multiple times (Kearney Global Services Index, 2023).

The nation’s outsourcing advantage is rooted in its workforce. With literacy rates exceeding 92% (UNDP Human Development Report, 2025), and a strong emphasis on higher education, Sri Lanka produces thousands of IT, finance, and business graduates each year. Many hold internationally recognised qualifications such as ACCA, CIMA, and CPA, ensuring that both technical and professional standards align with global expectations (SLASSCOM Annual Report, 2024).

The country’s BPO and IT-BPM sector now includes over 600 companies employing more than 140,000 professionals This growth reflects both domestic capacity and global demand, establishing Sri Lanka as a reliable outsourcing hub for international clients.

Sri Lanka’s BPO sector is particularly strong in Finance and Accounting outsourcing, where the country ranks fifth globally according to Tholons (Tholons Global Innovation Index, 2023). A deep pool of professionals familiar with international accounting standards from the UK, Australia, and other markets ensures high quality service delivery. Beyond finance, the country has also developed expertise in legal services, human resources, customer experience management, data analytics, and technology solutions. This diversification allows Sri Lanka to serve clients ranging from large multinational corporations to SMEs seeking specialized, cost-effective outsourcing solutions.

Global companies increasingly recognise the value of Sri Lanka as a reliable business partner. Organizations such as HSBC, Intrepid Travel, Flintec, WNS, IFS, the London Stock Exchange, and Motorola have established operations there, benefiting from a workforce that is highly skilled, culturally adaptable, and proficient in English (SLASSCOM Industry Report, 2024). The combination of technical competence, business continuity, and cost efficiency makes Sri Lanka an attractive choice for companies seeking offshore services that meet global standards. IBM has recently highlighted Sri Lanka as presenting tremendous opportunities for digital transformation, noting the country’s growing digital infrastructure and skilled workforce as key enablers for technology-led growth.( Sri Lanka presents tremendous opportunities for digital transformation-Patel – DailyNews).

Sri Lanka’s reputation extends beyond outsourcing. In tourism, the country was named “Most Desirable Island in the World” at the Wanderlust Travel Awards 2024 (Walker’s Tours, 2024) and received “Best International Tourism Board” at the Global Tourism Awards 2024 (Newswire.lk, 2024). On the global development front, Sri Lanka ranks 89th in the UNDP Human Development Index (2025) and has improved its position to 97th in the Brand Finance Global Soft Power Index (2025), reflecting the country’s growing influence and resilience (UNDP, 2025, Brand Finance, 2025).

In a significant development, John Keells Group unveiled the $1.2 billion Cinnamon Life at City of Dreams in Colombo. This ambitious project aims to redefine Sri Lanka’s tourism landscape, catering to a diverse clientele and creating South Asia’s most dynamic destination for business, leisure, and entertainment. (John Keells Group unveils $ 1.2 b Cinnamon Life at City of Dreams Sri Lanka today | Daily FT)

The national IT and BPM association, SLASSCOM, plays a pivotal role in driving the BPO industry’s growth. It fosters innovation, promotes international partnerships, and facilitates talent development, ensuring that the sector remains competitive on a global scale. The IT/BPM sector has become the second-largest contributor in Sri Lanka, providing 8% of the country’s total exports. (SLASSCOM, 2024).

With strong GDP growth, a robust services sector, and a highly capable workforce, Sri Lanka is well-positioned to become South Asia’s leading outsourcing and business hub. The country combines talent, trust, and infrastructure with government-backed initiatives and global recognition, making it a destination not just for outsourcing, but for strategic partnership and business growth.

Sri Lanka offers more than cost savings; it provides reliability, high-quality service, and the potential for sustainable, long-term growth.

Watch our video, Offshore Outsourcing in Sri Lanka: