Sri Lankaís work force is a major advantage for its industrial sector, according to the Walden Country Report. Educational standards are exceptionally high for a country in Sri Lankaís state of development and wage costs for skilled labor are low by international standards--about 1/8th of those in western Europe.

Adult literacy in 1993 was estimated to be more than 90%. School attendance is close to 100% at primary level; over 60% study at secondary level and about 4% at tertiary level. Education is compulsory up to the age of 14 and is free up to and including university level. The importance government allocated to education is evident in the high literacy rate, easily the highest in South Asia. Unemployment is still relatively high, despite a decline from almost 25% to around 14% in the last five years. Sri Lankan workers are known for their low absenteeism and low staff turnover rates.

Skilled labor required for software/hardware development is still poor. There are many computer schools budding up around the tiny island, and this issue will be resolved soon. However, there is a large brain drain of the brighter technology students as in most developing nations. Students who come abroad to study rarely go back The high pay rates in western nations and better living conditions make it more attractive for students to stay on. The University of Moratuwa is one of the nations renowned institutions for technology training along with The Arthur C. Clarke Center.

Industry veterans who acknowledge that there is a huge potential for growth in the IT sector in Sri Lanka, say one big concern is the lack of initiative to change and undue fears. One big fear is that job-losses would be caused by introduction of modern technology. The industry also needs a large number of young professionals with experience. There are a lot of qualified university graduates in the computer field, but they are not being trained in a specific part of the industry that will make them professionals in that sector. Most of them have plenty of theoretical knowledge, but lack practical knowledge. In the major cities computer literacy is high, and many young people are well aware of latest upgrades of soft ware programs. When Microsoft Windows '95 was released it was embraced with open arms.

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

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