Sri Lanka's budding offshore industry has inevitably been overshadowed by its larger Indian neighbor, which has been the world's leading sourcing hub for the last decade. However, the market situation is now more favorable, as vendors are increasingly looking to offer services from multiple locations, often using India as a central hub while also delivering services from satellite facilities in Eastern Europe, Latin America and Asia.
Sri Lanka shares many of the attributes that make India such an attractive location for outsourcing work. These include a low-cost of labor, a plentiful pool of educated and English-speaking workers, high literacy levels, and a legal system that is based on a Western model.
Source: CBR Online