Knowledge & Innovation Industry Emerges as One of Sri Lanka’s Largest Export Sectors

Sri Lanka’s Knowledge & Innovation Industry continues to strengthen its position as one of the country’s most significant export sectors.

In 2025, Sri Lanka’s Knowledge & Innovation Industry generated an estimated US$2 billion in export value, including approximately US$500 million from freelancers, independent professionals, and digital entrepreneurs through global digital platforms and remote work opportunities.

Together, these contributions underscore the growing importance of knowledge-based exports to the national economy.

Building on this momentum, the industry earned over US$581 million in export revenue during the first four months of 2026, positioning it among Sri Lanka’s largest export sectors and a key driver of economic growth, employment, investment, and foreign exchange earnings.

The achievement reflects more than strong export performance.

It reflects the evolution of an industry that has expanded its capabilities, diversified its offerings, and strengthened its position in global markets.

What was once primarily recognized as an IT and BPM sector has grown into a broad-based Knowledge & Innovation Industry encompassing software engineering, global capability centres, digital consulting, product development, data and AI services, research, design, cybersecurity, and an increasingly vibrant startup ecosystem.

Commenting on the industry’s growth, SLASSCOM Chairperson Shehani Seneviratne said:

“The significance of this milestone goes beyond export revenue.

It reflects the growing maturity of Sri Lanka’s Knowledge & Innovation Industry and the role it can play in shaping the country’s economic future.

As an industry, we have moved beyond being recognized solely for delivery capability.

Increasingly, we are building products, creating intellectual property, developing specialized expertise, and solving complex problems for global customers.

The opportunity now is to scale that impact through talent, innovation, entrepreneurship, and stronger global market access.”

This growth has been driven by efforts in market expansion, entrepreneurship, talent development, policy advocacy, and ecosystem building.

Through its five strategic pillars, SLASSCOM continues to work with industry, government, academia, investors, and entrepreneurs to strengthen the foundations for long-term growth.

Through its Global Trade & Investment (GT&I) pillar, SLASSCOM continues to create opportunities for Sri Lankan companies to access new markets, customers, investors, and strategic partnerships.

Recent outward delegations to Australia, Germany, and Japan have enabled local companies to engage directly with prospective clients and ecosystem stakeholders, while inward delegations have brought international organizations and investors to Sri Lanka to experience the country’s capabilities firsthand.

Working closely with Sri Lanka’s overseas missions, trade representatives, and industry ambassadors in key markets, SLASSCOM continues to expand market access and create global growth opportunities for Sri Lankan companies.

Business matchmaking, ambassador programmes, and country-branding efforts are also strengthening Sri Lanka’s position as a hub for technology innovation and competitive talent.

These efforts are increasingly important as global organizations diversify and seek trusted partners beyond traditional sourcing destinations.

Sri Lanka is well positioned to benefit from these shifts through its talent, expertise, agility, and innovation.

Entrepreneurship remains another critical component of future growth.

Through the Entrepreneurship & Innovation (E&I) pillar, SLASSCOM supports startups and emerging businesses by connecting them with mentors, investors, customers, and industry expertise.

Several Sri Lankan startups have secured funding through ecosystem initiatives, reflecting growing investor confidence in local innovation.

The upcoming launch of the DISHA mentoring platform marks another important milestone.

Designed to support startups and SMEs, the platform will connect entrepreneurs with experienced business leaders and mentors who can provide guidance on growth, market access, business development, and scaling.

Talent development continues to underpin the industry’s competitiveness.

Through partnerships with universities, industry-academia collaboration, curriculum enhancement initiatives, future skills programmes, and efforts aimed at strengthening AI readiness and digital capabilities, SLASSCOM continues to support the development of talent required for an increasingly competitive global marketplace.

At the same time, the industry recognizes that future success will require more than technical expertise, with communication, critical thinking, creativity, business understanding, and complex problem-solving becoming equally important as organizations move up the value chain and generate greater value through innovation and intellectual capital.

Through its Policy pillar, SLASSCOM continues to engage with government and industry stakeholders on initiatives that support industry growth and competitiveness.

Areas of focus include strengthening venture capital and startup funding frameworks, supporting intellectual property creation and retention, reducing barriers to international expansion, improving ease of doing business, encouraging innovation-led business models, and fostering stronger collaboration between industry and academia.

These priorities align closely with the industry’s broader ambition of creating more value through products, platforms, and intellectual capital developed in Sri Lanka.

SLASSCOM’s Membership and Ecosystem Development initiatives further support this vision by fostering collaboration across the industry, strengthening engagement between stakeholders, and creating platforms for knowledge sharing, partnerships, and collective growth.

Looking ahead, the industry’s ambitions extend far beyond export rankings.

The focus is on creating globally recognized companies, attracting investment, generating intellectual property, strengthening the startup ecosystem, and creating higher-value opportunities for Sri Lankan professionals, aligning with the goal of positioning Sri Lanka as a global hub for knowledge, innovation, and intellectual capital.

Today, the Knowledge & Innovation Industry is one of Sri Lanka’s largest export sectors, with the ambition to become the country’s leading export industry driven by talent, innovation, entrepreneurship, and globally competitive businesses that create lasting value.