If the private sector was awaiting a fillip to invest deeper into technology-related businesses, then there were a number of positive signals during the past couple of weeks. First, the Budget 2021 promised a whole heap of incentives and perks for the technology sector. Then, Gotabaya Rajapaksa took direct charge of matters relating to technology, claiming the newly gazetted “Technology” portfolio for himself. Shortly thereafter, eminent industry figure and current Information and Communication Technology Agency (ICTA) Chairman Jayantha Silva was appointed Secretary to the new ministry.
The keen focus on technology was reiterated during the just-concluded Sri Lanka Economic Summit, where IT was among the industries slated for tax concessions on strategic investments of over $ 10 million.
There really is no better time to invest in technology-related business and grow our small but competitive IT industry. It has been one of the sectors most resilient in the face of Covid-19, largely shielded from the geopolitical risk and market fragility that many major industries experienced. It has also truly reaped the benefits of the new ways of work and reflected how they may be sustained in a post-pandemic world. Industry players seamlessly switched to working from home, while continuing to innovate and support their customers with business continuity.
Sri Lanka doesn’t need to look far to grasp the vast economic potential of a thriving IT industry – India’s IT/BPO sector driven by over four million IT workers contributes over $ 150 billion in exports, two-thirds of it to the US alone. The sector is slated to hit $ 350 billion in five years and account for nearly one-tenth of GDP.
The Government’s role as an enabler encompasses several aspects; it is the Government’s foremost duty to ensure the right structural and regulatory frameworks are in place to allow the country to gain from technology. But in pursuit of building digital capabilities and digital talent, it is incumbent upon policymakers to avoid the trap of widening already existing gaps among citizens, to create equitable opportunities that remedy both the skills gaps of the industry and mobility issues faced by potential employees.
If digital governance is a priority, then so must be a comprehensive framework of data protection and privacy; better protections are mandatory for businesses and investors, as well as in defence of individual liberties. The new Ministry of Technology has under its purview institutions such as the Telecommunications Regulatory Commission (TRC), ICTA, Computer Emergency Readiness Team (CERT), Sri Lanka Telecom (SLT), and Sri Lanka Institute of Nanotechnology (SLINTEC), as well as all techno parks and the Department for Registration of Persons. Given its breadth of impact, the Ministry would do well to expedite passing the long-overdue Data Protection Bill into legislature.
With the right policy framework in place, the primary challenge lies in creating a solid base of IT knowledge workers. While incorporating STEM (science, technology, engineering, and math) curricula to our education system has been deemed essential, whatever changes and investments made in secondary education right now will only reap benefits in 10 years or more. That is a decade-long skills gap we cannot afford, and it is incumbent upon the private sector to play its part in training and skilling a workforce to cater to the industry’s staffing needs.
The private sector, on its part, must also look at the competitive advantages of innovation and of the technologies that will transform almost every sector over the next decade. It must be the engine that drives an aggressive technology industry by encouraging and supporting collaborations among disciplines, and by expanding R&D (research and development) capability and collective experimentation.
The promised technocracy has been patchy in delivery over the past 12 months. That’s why the private sector must step in to leverage on the technological change and disruption that the world will experience during this Fourth Industrial Revolution, with the advent of artificial intelligence, robotics, biotech, and Internet of Things (IoT). There truly has been no better time.
The Headlight is the editorial of The Sunday Morning Business.
The keen focus on technology was reiterated during the just-concluded Sri Lanka Economic Summit, where IT was among the industries slated for tax concessions on strategic investments of over $ 10 million.
There really is no better time to invest in technology-related business and grow our small but competitive IT industry. It has been one of the sectors most resilient in the face of Covid-19, largely shielded from the geopolitical risk and market fragility that many major industries experienced. It has also truly reaped the benefits of the new ways of work and reflected how they may be sustained in a post-pandemic world. Industry players seamlessly switched to working from home, while continuing to innovate and support their customers with business continuity.
Sri Lanka doesn’t need to look far to grasp the vast economic potential of a thriving IT industry – India’s IT/BPO sector driven by over four million IT workers contributes over $ 150 billion in exports, two-thirds of it to the US alone. The sector is slated to hit $ 350 billion in five years and account for nearly one-tenth of GDP.
The Government’s role as an enabler encompasses several aspects; it is the Government’s foremost duty to ensure the right structural and regulatory frameworks are in place to allow the country to gain from technology. But in pursuit of building digital capabilities and digital talent, it is incumbent upon policymakers to avoid the trap of widening already existing gaps among citizens, to create equitable opportunities that remedy both the skills gaps of the industry and mobility issues faced by potential employees.
If digital governance is a priority, then so must be a comprehensive framework of data protection and privacy; better protections are mandatory for businesses and investors, as well as in defence of individual liberties. The new Ministry of Technology has under its purview institutions such as the Telecommunications Regulatory Commission (TRC), ICTA, Computer Emergency Readiness Team (CERT), Sri Lanka Telecom (SLT), and Sri Lanka Institute of Nanotechnology (SLINTEC), as well as all techno parks and the Department for Registration of Persons. Given its breadth of impact, the Ministry would do well to expedite passing the long-overdue Data Protection Bill into legislature.
With the right policy framework in place, the primary challenge lies in creating a solid base of IT knowledge workers. While incorporating STEM (science, technology, engineering, and math) curricula to our education system has been deemed essential, whatever changes and investments made in secondary education right now will only reap benefits in 10 years or more. That is a decade-long skills gap we cannot afford, and it is incumbent upon the private sector to play its part in training and skilling a workforce to cater to the industry’s staffing needs.
The private sector, on its part, must also look at the competitive advantages of innovation and of the technologies that will transform almost every sector over the next decade. It must be the engine that drives an aggressive technology industry by encouraging and supporting collaborations among disciplines, and by expanding R&D (research and development) capability and collective experimentation.
The promised technocracy has been patchy in delivery over the past 12 months. That’s why the private sector must step in to leverage on the technological change and disruption that the world will experience during this Fourth Industrial Revolution, with the advent of artificial intelligence, robotics, biotech, and Internet of Things (IoT). There truly has been no better time.
The Headlight is the editorial of The Sunday Morning Business.