Officials should do the opposite - AITP Submission to the Presidential Committee on Singapore FTA

2018.09.25

The Chairman
Presidential Committee of Experts to Evaluate SSLFTA

Dear Sir,
Submission to Presidential Committee of Experts to Evaluate
Singapore-Sri Lanka Free Trade Agreement 

Some of the government ministers are trying to create a wrong picture about the gap between the demand and supply in the ICT workforce. Those statements are not facts based.

The latest data available is from the National ICT Workforce survey – 2013. Though it is not the latest information, it is useful to identify the trends and the actual situation.

ICT workforce has been continuously increasing in Sri Lanka Figure 1: Growth of ICT Workforce, Source: National ICT Survey, ICTA 

Demand in the ICT sector has been estimated on 2013 by the National ICT survey conducted by ICTA. 

Figure 2: Demand for graduate in ICT on 2013, Source: National ICT Workforce Servey-2013

Supply of ICT Graduates has been increasing yearly in Sri Lanka






· Gap between supply to the local employment market and demand for ICT graduates on 2014 was only 458. As the National ICT Workforce survey – 2013 has suggested the capacity increment of the training institutions would be the best solution. The recent increments of ICT graduates supply by both government and private universities has been able to fill the gap between the demand and supply by now.



Figure 3: Gap between Demand and Supply of ICT Graduates, Source: National ICT Servey-2013

The export of ICT has been growing.


Source: Export Development Board


With these figures it is important to make the following observations:
  1. ICT sector is growing in Sri Lanka. 
  2. ICT work force is growing in Sri Lanka. Supply of ICT graduates are increasing. 
  3. It is important to note that the demand for ICT education is also increasing. 
What MODSIT should have done to Sri Lankan ICT industry through SSLFTA?
  • Since the demand for ICT education is increasing, and the supply of ICT education can be easily encouraged (The government and the private sectors are engaged in providing ICT education) , then the government should increase and encourage the supply of ICT education by various measures. 
  • Association of Information Technology Professionals emphasis that if Sri Lanka is to go for FTAs liberalizing the service sector, ICT sector is one of the Sri Lanka’s main areas that the country should utilize to earn foreign remittance. India and China are producing more ICT professionals than the domestic demand and earn foreign remittance by services provided for overseas companies by the excess of ICT professionals. Sri Lanka should do exactly the same. 
  • In order to mitigate the widening trade deficit, depreciating currency, reduce the requirement of sending Sri Lankan women to Middle East as housemaids the potential of Sri Lankan ICT sector to earn foreign remittance should be utilized and encouraged. 
  • Unfortunately, Sri Lankan policy makers are short-sighted and are only considering how to bring ICT professionals from other countries to Sri Lanka. 
  • However, Indian ICT sector was offered market access opportunities by Singapore through the bilateral agreement between the two countries (CECA). MODSIT should have negotiated to get an equal opportunity as India for Sri Lanka as well. However, MODSIT were totally ignorant. 
  • MODSIT and ICTA has not understood the gravity of the need for earning foreign remittance to Sri Lanka given the prevailing economic context of the country and it is unfortunate to see officials are promoting the opposite of that to encouraging providing employment opportunities in Sri Lanka to foreigners which will increase the out flow of foreign remittance from Sri Lanka. 
  • The Sri Lankan officials’ approach and the attitude towards employment issues clearly demonstrate their poor economic acumen which will eventually put the entire country in endanger. 
  • Therefore, it is utmost important to establish a proper National Trade Policy by a public commission. The country should have sector specific policies and protocols should be established to make officials accountable for their policy decisions. 


Thank you!

Kapila Perera
President



Lasantha Wickramasinghe
Secretary





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