0%personal income tax · corporate tax holidays up to 15 years · Port City ColomboSee the numbers →

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Why Sri Lanka for tech

An engineering bench on India's own clock.

Sri Lanka runs on IST, educates its engineers in English, and has quietly built product teams for global software houses for two decades. For Indian tech firms, it is the delivery centre an hour away that does not compete with Bengaluru for the same people.

$1.64BICT and BPM service exports in 2025, up 8.8%
ISTColombo runs on UTC+5:30. No time zone gymnastics
0%Personal income tax for staff of approved Port City firms

Source: Export Development Board 2025 full year figures, reported by Daily FT.

Three reasons

Why technology works here.

Talent

Product grade engineers

Global enterprise software houses, including IFS and WSO2, run major engineering in Colombo. The talent pool is used to building products, not just tickets.

Continuity

An India plus one that is close

Port City pitches itself to Indian GCCs as a business continuity and disaster recovery site. Same clock, short flight, separate grid and jurisdiction.

Retention

A smaller pond

A tight knit market where reputations travel fast. Strong employers find teams tend to stay together longer than in India's hottest hubs.

The India angle

What this means for Indian businesses.

Indian IT services and product companies use Colombo for 20 to 200 person centres: QA, support, product engineering and Tamil or English customer facing roles. Inside Port City, staff of approved businesses have paid zero personal income tax, which changes what a senior engineer actually takes home.

On film

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Questions

Asked by Indian founders and buyers.

Is Sri Lanka good for software development outsourcing?

Yes for many teams. Sri Lanka exported $1.64 billion of ICT and BPM services in 2025, its engineers work in English, and Colombo shares India's time zone. Global software firms such as IFS and WSO2 run large engineering teams there.

Can an Indian IT company set up inside Port City Colombo?

Yes. Port City allows full foreign ownership, and approved Businesses of Strategic Importance can receive corporate tax holidays of 8 to 15 years under Regulation 01 of 2025. Approval comes from the Colombo Port City Economic Commission.

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