ICT speed boat

I have noticed for sometime that ICT sector has huge potential in the current context of our economy. Development of the country ought to be backed by improved IT infrastructure. SL is still in a primary stage when IT literacy is concerned compared to the developed part of the world, hence this sector will have good prospects in the future. The entire world is digitizing and networking and there fore IT sector will have prospects in the country in medium and long term.

Most Sri Lankan IT companies are small in scale and are highly profit oriented. However our market liquidity is yet too low and we need some good companies to get listed as energy boosters. In which case certain IT companies are identified as 'Should get listed companies'.

Apperently PCH has already taken a lot of initiatives to address this need.
For instance,
- eBMD system (Electronic Birth, Marriage & Death Certificate) project
- A complete hospital management system (ERP) at the Sri Jayewardenepura Hospital
- 'Nanasala' island wide program to develop 6,000 school IT labs
- Expanding ICT in local national universities
- Plans to expand its 100 seat BPO facility in Colombo up to a 1000 seat-BPO facility before the end of 2012 with Rs 300 million investment.
____________________________________________________________________________________

Plus ICT based companies like ECL enhanced their technology going an extra mile to serve even the neighboring countries with the MOU with MIT.
http://www.cse.lk/cmt/uplo​ad_cse_announcements/11713​09770777_.pdf
____________________________________________________________________________________

Also Sri Lanka planning plug and play IT park
July 05, 2011 (LBO) - Sri Lanka is evaluating two sites to set up an information technology park for firms to quickly set up shop, where two foreign universities are also likely to be located, an official said.

Reshan Dewapura, head of the government's Information Communications Technology Agency said the government evaluating two sites outside Sri Lanka's capital Colombo to build the park.

Sri Lanka's IT and business process outsourcing industry now earns about 400 million dollars in export and the industry is targeting a billion dollars in foreign revenues by 2015.
http://www.lbo.lk/fullstor​y.php?nid=51045945
___________________________________________________________________________________

ESOFT mobile unit promotes ICT in rural schools
http://print.dailymirror.lk/business/127-local/49146.html
___________________________________________________________________________________

Network Communications a leading IT and mobile solution provider in Sri Lanka is on an expansion with around Rs 75 million investment.

Network Communications (Pvt ) Ltd, Chief Executive Officer Larry Adams said, having understood the potential in the IT and mobile industry in Sri Lanka, they will be expanding their footprint with the construction of fifty branches islandwide.
http://www.dailynews.lk/20​11/07/05/bus22.asp
___________________________________________________________________________________

Sri Lanka to be a part of the global ICT boom
Lanka can reach $1b IT,BPO industry goal by 2015 - ICTA CEO
http://www.dailynews.lk/2011/07/15/bus06.asp
___________________________________________________________________________________

SLASSCOM partnering Australian IT industry
http://www.dailynews.lk/2011/07/15/bus13.asp
___________________________________________________________________________________

‘Mini Infotel Kegalle’ on 30-31 July
http://www.ft.lk/2011/07/14/%E2%80%98mini-infotel-kegalle%E2%80%99-on-30-31-july/#more-39223

All this news give just one message. SL is going to have good ICT industry in the future. I'm bullish on the existing techno stocks and the future ones. Are you?

I work in the IT sector too. This is a sector where the labour turnover is very high. So it would be a very difficult task to keep well qualified persons in SL companies when there would be a high demand for IT resources from Asia Pacific as well as Middle East in the next few years once the world economy improves. Companies in Asia Pacific and Middle East would pay higher salaries to attract these resources. Brain drain is the biggest risk to this sector.

This is not a buy/hold/sell recommendation please do your analysis before you invest.

SL ranked 59 out of 60 in global talent survey
http://adaderana.lk/news.php?nid=14162

The index analysed and compared the countries according to seven indicators: demographics, the quality of compulsory education, the quality of university education, the quality of the labour force, the degree to which the work environment nurtures talent, the mobility and relative openness of the labour market and the countries’ proclivity to attract talent.