Sri Lanka is increasingly demonstrating its potential to become a base for globally competitive technology companies, with local businesses developing advanced intellectual property and serving international markets from the island.

This potential is highlighted by the journey of SimCentric, a Sri Lankan-founded defence technology company that has grown over the past 17 years into a global provider of advanced military simulation technologies. The company serves organisations including the US Marine Corps, the US Military Academy, the UK Ministry of Defence and armed forces across NATO and Commonwealth countries, while maintaining its engineering operations in Sri Lanka.

According to Haridhu Abeygoonaratne, Managing Director/COO of SimCentric and Vice Chair of SLASSCOM, the company’s experience demonstrates that Sri Lanka has the ability to move beyond being a source of skilled talent and instead create globally competitive intellectual property, develop advanced technologies and build businesses capable of expanding internationally.

A key factor behind SimCentric’s growth has been its decision to develop its operations in Sri Lanka. The company’s core products are engineered in Port City Colombo by professionals educated at Sri Lankan universities and schools. Its success illustrates how local talent can contribute to sophisticated technology products serving some of the world’s most demanding international customers.

Sri Lanka’s growing digital economy provides an important foundation for this transformation. The Export Development Board identifies ICT services as the country’s third-largest export sector, comprising more than 400 companies and employing over 140,000 professionals. SLASSCOM estimates the sector’s export value at approximately US$2 billion, with continued growth expected.

As Sri Lanka’s technology sector develops, the focus is increasingly shifting from providing technical services to international clients towards creating and commercialising high-value products and intellectual property. This requires an environment that enables businesses to innovate rapidly, attract specialised talent, secure international investment and expand into global markets without having to relocate.

In this context, Port City Colombo is positioned as an important component of Sri Lanka’s future business ecosystem. Rather than viewing the development solely as a physical or investment project, it can serve as a platform for technology companies, research and development centres and globally oriented businesses.

For knowledge-intensive industries, factors such as access to international currencies, the ability to attract specialised global talent, internationally familiar regulatory frameworks and greater access to long-term investment can play an important role in determining competitiveness. Together, these elements can help create an environment aligned with the requirements of modern international businesses.

Investor confidence, however, extends beyond financial incentives. Predictable regulations, transparency, operational efficiency and long-term policy stability are equally important when international investors evaluate a potential business destination. Creating these conditions can help Sri Lanka strengthen its position within the increasingly competitive global digital economy.

Port City Colombo therefore represents an opportunity to establish an emerging international business ecosystem from the ground up. Rather than competing solely with established financial centres, Sri Lanka can offer businesses and investors the opportunity to participate in the development of a new regional hub and contribute to shaping its future.

The long-term success of this vision will ultimately depend on the businesses, products and innovations that emerge from Sri Lanka. By creating an environment that enables entrepreneurs to build, innovate and scale globally, Sri Lanka has the potential to position itself as a destination where the next generation of international businesses can establish their foundations and grow.