“ICT sector dominates highest digital maturity level”
A study by USAID and Ceylon Chamber of Commerce on SMEs’ technology adoption capacity found that the ICT sector was having the highest digital maturity at 79%, followed by tea at 64% and rubber and rubber-based products at 61%.
Study findings reveal a wide variance in the digital maturity of Sri Lankan SME exporters. The study calculated a maturity score for each SME based on the survey responses and on to what extent technology and digital processes were integrated into the business’s day-to-day operations. SMEs’ scores ranged from 8.8% to 98.8%, with 42 from the SME cohort below 25% in the scale, 96 SMEs in the range of 25%-50%, and 106 SMEs averaging from 50% to 75%.
The service sector has a large digital maturity score of 78%, followed by the manufacturing (63%) and agriculture (58%) sectors. Women-owned/-led enterprises fall below men-owned/led enterprises with a digital maturity score of 62%.
It was also revealed that 58% of SMEs allow employees to work virtually and 71%of SMEs provide resources to facilitate collaboration with other partners virtually
The study assessed 329 SME exporters that represented all nine provinces, key export sectors and sub-sectors, and included women-owned/-led businesses.
The study identified SMEs’ technology adoption capacity: strengths, weaknesses, and readiness to use digital technologies in international trade, and provided recommendations to improve SMEs’ digital readiness.
“There is an opportunity to increase the competitiveness of Sri Lanka SMEs by focusing on improving their digital maturity,” the report said. SME activity accounts for over 52% of Sri Lankan GDP and over 45% of employment generation.
The Ceylon Chamber of Commerce (CCC) with support from the U.S. Government’s development arm, the U. S. Agency for International Development (USAID), launched this study to assess the current digital maturity level of Sri Lankan small- and medium-sized enterprise (SMEs) exporters.
SMEs’ digital maturity is also affected by external factors outside of the businesses’ control such as IT infrastructure, which is better in certain provinces than others. The assessment also found that SMEs have stable operations and processes to manage their businesses, and there is substantial room for improvement in incorporating digital initiatives into business processes.
The study utilized a mixed-method approach, including interviews, desk research, and field surveys.
The digital maturity of SMEs was surveyed across five core dimensions (enabling environment, strategy, technology, operations, human capital, and culture).
On January 26, CCC shared insights and recommendations to strengthen the digital ecosystem and support SMEs with Government of Sri Lanka officials.