In late 1994, Sri Lanka participated in a German computer fair to explore new markets for its manufactured computer software. Currently Sri Lanka has about 10 companies that manufacture software for a total $2 million export market in 1993. With many American and European companies outsourcing software development in developing countries, software exports are bound to rise.

Among operating systems, Microsoft WINDOWS is slowly gaining popularity in Sri Lanka. Network platform usage tends to be restricted to large firms in Sri Lanka. Novell Netware is the most popular network operating system used in Sri Lanka.

Currently several foreign technology firms have moved operations into Sri Lanka, training Sri Lankan workforce to manufacture various hardware/software products and to provide information technology services.

	Golden Systems, Inc. signed an agreement with the Board of Investments of Sri Lanka to establish a power supplies and power supply component manufacturing facility in 1994. Golden Systems designs, manufactures and markets switching power supplies for incorporation by original equipment manufacturers of personal computers, and other electronic equipment into their products. Compaq Computer Corporation is currently one of Golden Systemís major customers.
	Also in 1994, Innodata Corporation, a leading US provider of data entry, data conversion, scanning, indexing, and abstract services signed a lease for a production facility in Colombo. They currently manage a local work force of over 500 people.
	NEC Corporation opened office in Sri Lanka recently as part of its effort to expand its telecommunications business in India, Sri Lanka and other parts of South Asia. Francesís Alcatel, the USís AT&T , and companies from other Western countries are already participating in the Sri Lankan market, but NEC was the first company to establish a stated office. NEC currently has a 30% share of the Sri Lankan circuit-switching market and a 60% share of the digital microprocessor market. It also provides nearly 100% of the core telecom equipment to the Maldives
	Australian owned Pacific Dunlop recently acquired a major stake in Kelani Cables of Sri Lanka (75%) in a joint venture with Lanka Olex, Ltd. Spending over $23 million over the past three years PacDun hopes to become the first local manufacturer of modern metallic telecommunication cables. Operations started in the early part of this year.

IBM and NEC continue to be major players in the PC market in Sri Lanka. And Industry sources say that the UNIX operating system is gradually making inroads into the market.

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Last updated on March 6, 1996 by Ms. Nishanthi Mendis

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