Industry news

Sunny skies, pristine beaches and fantastic wildlife are all part of the Sri Lankan holiday experience, no wonder the tourism industry is booming on the island as holiday makers arrive for two weeks of great weather and care free cocktails. However, there is a lot more to the island that is attracting business from across the globe, it has a vast array of untapped talent, encouraging innovation and disruption across the economy and nurturing the growth of a tech eco-system.

Sri Lanka has watched its neighbour India become the home of global business process outsourcing thanks to its vast pool of human capital and cheap operating centres. However, in the digital age, Sri Lanka has spied an opportunity to gain a march on its rival. As the digital economy grows, the focus of business is focused on creating technology hubs, inspiring innovative firms by supporting new business and encouraging growth. Sri Lanka has a fantastic start in creating a digital based economy thanks to government support of skills programmes, bringing computing skills into the classroom and building an economic base on IT skills. The Sri Lanka Institute of Information Technology is one of the great technology based centers for learning in the emerging world, inspiring graduates in computer based subjects.

The results of government support and skilled individuals are starting to emerge. Huawei, a leading global information and communications technology company unveiled their brand-new office in Colombo in June. The establishment of CSIC is one of Huawei further contributions to support Sri Lanka’s digital economy. “The Huawei Customer Solutions Innovation and Integration Experience Center (CSIC) in Colombo is a great platform where we can develop innovative ICT solutions. I wish more youth and students can visit the center and witness how a global ICT company innovates” said Minister of Telecommunication and Digital Infrastructure, Harin Fernando.

The Global Innovation Index report of 2017 places Sri Lanka ahead of its peers in the South Asian region apart from India. The report in particular highlights the infrastructure in the country which has helped the country rise up the rankings from 2016. The output pillars from the report are really promising for Sri Lanka, acting as a good indication that the nation is building an efficient ICT sector with good growth potential.

A lot of the success in Sri Lanka comes from good foundations for a modern economy, such as good health care, strong enrolment rates in education for children and longer life expectancy than many other emerging economies. Building an advanced, technology based economy is a long journey, but it is easier if you have a stable environment to build upon. The Sri Lankan innovation economy will continue to improve with government support and investment from global business. Expect the island to focus upon tackling the digital economy head on and compete as the Asian nation of the digital age.

Read more about Sri Lanka here.

Sri Lanka and Bangladesh have agreed to finalise a Free Trade Agreement between them by the end of this year. The matter came up for discussion during bilateral discussions when President Maithripala Sirisena visited Dhaka last week. As the first step, a Memorandum of Understanding on Economic Partnership was signed between the two countries. The MoU “should pave way for the conclusion of the Free Trade Agreement (FTA) by end-2017,” said the joint statement following the conclusion of President Sirisena’s visit. The two countries also signed 14 bilateral agreements during the visit covering areas such as trade and investment, agriculture, information and communication technology, higher education, finance and overall people-to-people connectivity. Bilateral trade between Bangladesh and Sri Lanka is $ 142 million and during an investment forum attended by President Sirisena in Dhaka, attention was drawn to make it a threefold rise within the next few years. In order to reap the benefits of wider economic partnership, the two leaders directed the authorities concerned toward the early finalisation of the agreements on customs cooperation, the avoidance of double taxation and the promotion and protection of investment between both nations.

More news from Sri Lanka: Sri Lanka – The Next Asian Economic Miracle

The European Chamber of Commerce of Sri Lanka (ECCSL), in partnership with the Delegation of the European Union to Sri Lanka and Maldives, will conduct a one-day seminar titled ‘Sri Lanka – The Next Asian Economic Miracle? - Resetting Economic Development Priorities’ on Wednesday, 19 July at JAIC Hilton from 9.00 a.m. to 5.00 p.m. Prime Minister Ranil Wickremesinghe will be the event’s Chief Guest. The EU Ambassador to Sri Lanka and the Maldives Tung-Lai Margue will also address the gathering. The conference will examine the public and private sector initiatives that could determine Sri Lanka’s trajectory in becoming an Asian economic miracle. Participants will benefit from fresh insights into the future direction of the economy through policy statements of key Government ministers and the presentations of reputed academics and speakers from the private sector. The panellists will debate what Sri Lanka must do to overcome current challenges.

Related news: Sri Lanka Focus is Upon New Trade and Investment

The Taylor Review into employment has arrived and brings with it a myriad of suggestions for the future regulation and classification of work. The review calls for an end to the cash in hand economy which could be costing the government £100's of millions by introducing a payments system through platforms such as credit cards, contactless payments and PayPal. The review has been said not to go far enough by opposition MP's and unions who call for greater worker protection. The recommendations and agenda of the review appear to be an attempt to mould the gig economy into the old structures of employment that have existed for decades, creating unrealistic expectations for change. If you demand more security, pay and/or employment will fall, it's the flexibility of the gig economy that has made it popular. The government needs to rebuild its ancient architecture of defining and regulating work, not try to change the world to fit it to what the pre-existing structures.

Full story here.

More news: UK Economy Slows Further in Worrying Spiral

A government review into the rapidly changing world of work is to demand a radical overhaul of employment law and new guarantees on the minimum wage. A report by former adviser to Tony Blair, Matthew Taylor, will recommend gig economy workers should receive benefits such as sick pay and holiday leave and be covered by some of the minimum wage requirements. The changes will be aimed at companies such as Uber and Deliveroo, who hire workers in what is being known as a new "dependent contractor" payment. It's not going to be that difficult to guess what the outcome will be of these suggestions, if they manage to be squeezed through Mrs May's government then it will be consumers who pay the difference, so prices will rise for those metropolitan types who like a taxi and a takeaway, just as inflationary pressure is starting to bite from the ill judged Brexit experiment. These suggestions are unrealistic and focus on a time when a job was a nine to five affair.

Read more here.

Recent news: Blockchain Technology Could Help Transform Criminal Justice System

France is set to ban the sale of any car that uses petrol or diesel fuel by 2040, in what the ecology minister called a "revolution". It's a political move, which many may call a master stroke, Nicolas Hulot (the ecology minister) called for something to happen in over 20 years time when you have left office. Last week, car manufacturer Volvo said all of its new car models would be at least partly electric from 2019, a risky move considering the rather low penetration of hybrid cars in the mass market. It is not clear what will happen to fossil fuel cars when the ban comes into place.

Read the full story.

Recent news: Blockchain Technology Could Help Transform Criminal Justice System

In a worrying sign for the UK economy, major firms have curtailed investment plans and consumers are spending less on their credit cards according to Deloitte. Once again, the Brexit experiment is to blame followed by one of the most inconclusive elections in British history, which has rather unsurprisingly left everyone rather confused. There has been a steady stream of poor economic figures for the country to digest just as Europe appears to be emerging from a decade of discontent. How a government with little authority or understanding of public opinion will grapple with a slowing economy is difficult to tell, but like businesses, I can't say I'm optimistic.

Read the full story.

Recent news: Gig Economy Set for Regulation Overhaul in UK

Police Foundation and CGI discuss need for digitisation to shake up a justice system beset by changing crimes, archaic practices, spending cuts and inefficient paper-based systems. A joint report by the Police Foundation together with CGI has discussed how digitisation can transform the UK’s criminal justice system and put service users at its heart, delivering better experiences for everyone. “Reforming justice for the digital age,” outlines the costs and inefficiencies caused by a paper-based system and argues that digitisation, collaborative working practices, and technologies such as intelligent automation and blockchain can help resolve many of the Criminal Justice System’s (CJS) historic challenges."

You can read the full story here.

UK service providers indicated another slowdown in business activity growth during June, which largely reflected the weakest upturn in new work since September 2016. Survey respondents commented on subdued business and consumer confidence, alongside some instances of delayed decision making around the election. "A slowing in services sector growth completes a triple-whammy of disappointing PMI survey readings. Although the three PMI surveys are running at levels that are historically consistent with GDP growing by around 0.4% in the second quarter, it's clear that the economy heads into the third quarter losing momentum. With business optimism having been hit by the intensification of political uncertainty following the general election and commencement of Brexit negotiations, at the same time that households are battling against rising inflation, the indications are that the economy's resilience is being tested" said Chris Williamson, Chief Business Economist at IHS Markit.

Justin Zatouroff, head of business services at KPMG UK comments "fierce competition for new work is putting pressure on pricing, which is leading to an ongoing squeeze on margins. The combination of input cost inflation, Brexit and pricing pressures suggests that businesses in the services sector need to keep an eye on the horizon".

Related news: Sourcing Market Could Win in Brexit

Teleperformance, the global leader in outsourced ominchannel customer experience management, announced today its public sector services programme in the UK has achieved accreditation to the Global Sourcing Standard for Service Providers. Teleperformance is the first supplier globally to achieve the accreditation and follows the BBC as only the second organization to achieve accreditation with merit. Matt Sims, chief executive of Teleperformance UK and South Africa, said: “Accreditation to the Global Sourcing Standard is a wonderful achievement. I am especially proud of our public sector team, and this well-deserved accolade recognises the rigour and governance that has underpinned our work supporting UK public sector services for almost twenty years.” Kerry Hallard, Chief Executive of the GSA added, “I am delighted to confirm the accreditation of Teleperformance to the GSA Standard for its public sector services. I am particularly pleased to announce Teleperformance UK as the first ever supplier to have achieved accreditation and warmly congratulate them on their accomplishment.”

To read the full press release, click here.