IT-BPO Exports Dip as Salary Growth Moderates

Sri Lanka’s technology services sector is entering a phase of wage stabilisation as firms move away from crisis-era salary hikes, according to the SLASSCOM Compensation and Benefits Survey Report 2025. Companies are increasingly linking pay increments to skills and performance rather than inflation-driven adjustments, reflecting tighter global cost conditions.

The shift comes amid slowing export momentum. Computer and IT/BPO service exports fell 3.8 percent year-on-year to US$671.6 million in the first ten months of 2025, Central Bank data shows. However, the sector recorded US$848 million in export earnings in 2024, marking a 6.7 percent increase from the previous year.

Global inflation particularly in the United States, where consumer prices rose about 27 percent since 2019 has added pressure on outsourcing budgets and corporate planning. Despite near-term challenges, industry analysts say Sri Lanka’s IT-BPO sector remains resilient, with firms focusing on productivity, specialised skills, and higher-value digital services to sustain long-term growth.

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