Offshoring in Sri Lanka – Everything you need to know

Sri Lanka is a popular destination for offshoring, thanks to a number of factors, including its skilled workforce, low labor costs, and strategic location. The country’s workforce is highly educated and English-speaking, with a strong focus on technical skills. Labor costs in Sri Lanka are significantly lower than in developed countries, which can lead to significant cost savings for businesses that outsource to the country. Sri Lanka is also located in a strategically advantageous position, with easy access to major markets in Asia, Europe, and the Middle East.

In this blog post, we will discuss the benefits of offshoring to Sri Lanka in more detail. We will also provide examples of companies that have successfully outsourced to the country.

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Some of the Benefits of Offshoring to Sri Lanka

  • Cost savings: As mentioned above, labor costs in Sri Lanka are significantly lower than in developed countries. This can lead to significant cost savings for businesses that outsource to the country.
  • Access to a skilled workforce: Sri Lanka has a highly educated and English-speaking workforce, with a strong focus on technical skills. This means that businesses can outsource a wide range of tasks to Sri Lanka, including IT, software development, customer service, and data entry.
  • Strategic location: Sri Lanka is located in a strategically advantageous position, with easy access to major markets in Asia, Europe, and the Middle East. This makes it an ideal location for businesses that want to expand their reach into these markets.

Global Companies That Set Up In Sri Lanka

  1. Accenture is a global professional services company that provides consulting, technology, and outsourcing services. Accenture offshored its contact center operations to Sri Lanka in 2006. The company has since expanded its operations in Sri Lanka to include a range of other services, such as software development, business process outsourcing, and IT infrastructure management.

  2. Cisco Systems is a global technology company that provides networking, security, and collaboration solutions. Cisco offshored its customer support operations to Sri Lanka in 2007. The company has since expanded its operations in Sri Lanka to include a range of other services, such as software development, systems engineering, and technical support.

  3. Genpact is a global business process outsourcing company that provides a range of services to clients in the financial services, healthcare, manufacturing, and retail sectors. Genpact offshored its operations to Sri Lanka in 2004. The company has since expanded its operations in Sri Lanka to include a range of other services, such as IT infrastructure management, data analytics, and research and development.

  4. Infosys is a global information technology company that provides a range of services to clients in the business, financial services, healthcare, and manufacturing sectors. Infosys offshored its operations to Sri Lanka in 2002. The company has since expanded its operations in Sri Lanka to include a range of other services, such as software development, business process outsourcing, and IT infrastructure management.

  5. Wipro is a global information technology, consulting, and business process services company. Wipro offshored its operations to Sri Lanka in 1999. The company has since expanded its operations in Sri Lanka to include a range of other services, such as software development, business process outsourcing, and IT infrastructure management.

Some Additional Tips before you Invest here

Sri Lanka has a long history of trade and commerce, and it has been a popular destination for foreign investment in recent years. However, Sri Lanka is currently facing an economic crisis, which has led to a shortage of essential goods, rising inflation, and power outages. The government has imposed a number of measures to try to stabilize the economy, including a default on its foreign debt and a currency devaluation.

Despite the current challenges, there are still some investment opportunities in Sri Lanka. The country has a number of strengths, including a young population, a growing middle class, and a strategic location in South Asia. The tourism industry is also recovering after the COVID-19 pandemic.

Here are some of the investment opportunities available in Sri Lanka:

  • Manufacturing: Sri Lanka has a strong manufacturing sector, which is supported by a skilled workforce and low labor costs. The country is a major exporter of apparel, textiles, and rubber products.
  • IT and BPO: Sri Lanka is a growing hub for IT and BPO services. The country has a good telecommunications infrastructure and a large pool of English-speaking workers.
  • Tourism: Sri Lanka is a popular tourist destination, with a rich history and culture. The tourism industry is expected to grow in the coming years.
  • Agriculture and food processing: Sri Lanka is a major exporter of agricultural products, such as tea, rubber, and coconuts. The country also has a growing food processing industry.
  • Construction and infrastructure: Sri Lanka is investing heavily in infrastructure, such as roads, railways, and airports. This is creating opportunities for investors in the construction and infrastructure sectors.

The Process

If you are considering setting up an offshore company in Sri Lanka, here are the steps involved:

  • Choose a company name. Your company name must be unique and cannot be similar to the name of any other company registered in Sri Lanka.

  • Appoint a registered agent. A registered agent is a local company that will act as your representative in Sri Lanka. They will handle all of the legal and administrative tasks associated with your company, such as filing annual reports and paying taxes.

  • Open a bank account. You will need to open a bank account in Sri Lanka for your company. This will allow you to deposit and withdraw funds, and to make payments to suppliers and employees.

  • Register your company with the Registrar of Companies. You will need to file a registration form with the Registrar of Companies, along with a certified copy of your company’s memorandum and articles of association.

  • Obtain a business license. You will need to obtain a business license from the local government authority in the area where your company will be located. 

If you are considering investing in Sri Lanka, it is important to do your research and understand the risks involved. However, there are also some potential rewards for investors who are willing to take on the risks. That’s where we come in. Our expertise can set you on the right path to success. 

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