Sri Lanka compared with other offshore development destinations
Sri Lanka is one of the lower cost offshore destinations, with rates of about USD 25 to 40 an hour, and a small but deep engineering base that runs core R&D for IFS, Sysco and Synopsys. It ranks below Eastern Europe and Southeast Asia on general English and innovation indices, and above them on cost. The pages below compare it with each alternative, including where the alternative is the better choice.
| Destination | Time zone | English, EF 2025 | Typical rates | Innovation index |
|---|---|---|---|---|
| Sri Lanka | UTC+5:30, no daylight saving | 73rd of 123, score 486 (low band) | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | 93rd of 139 |
| Vietnam | UTC+7, no daylight saving | 64th of 123, score 500 (moderate band) | Senior USD 22 to 50 an hour (Uvik index 2026, vendor data) | 44th of 139 |
| The Philippines | UTC+8, no daylight saving | 28th of 123, score 569 (high band) | Senior USD 25 to 45 an hour (Uvik index 2026, vendor data) | 50th of 139 |
| Poland | UTC+1, UTC+2 in summer | 15th of 123, score 600 (very high band) | Senior USD 45 to 60 an hour (Uvik index 2026, vendor data). Europe senior average USD 64 to 76 (Accelerance 2026) | 39th of 139 |
| Ukraine | UTC+2, UTC+3 in summer | 45th of 123, score 526 (moderate band) | Senior USD 35 to 55 an hour (Uvik index 2026, vendor data) | 66th of 139 |
| Romania | UTC+2, UTC+3 in summer | 11th of 123, score 605 (very high band) | Senior USD 40 to 55 an hour (Uvik index 2026, vendor data) | 49th of 139 |
| Latin America | Mexico UTC-6, Colombia UTC-5 | Mexico 103rd, Colombia 76th of 123 (very low and low bands) | Senior USD 40 to 55 an hour (Uvik index 2026, vendor data). Region senior average USD 60 to 75 (Accelerance 2026) | Mexico 58th, Colombia 71st of 139 |
Sources: EF English Proficiency Index 2025, Uvik rate index 2026 and Accelerance 2026 (both vendor data), Export Development Board of Sri Lanka, WIPO Global Innovation Index 2025.
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Common questions
Which country is best for outsourcing software development?
It depends on what you need. Poland and Romania suit buyers who need EU jurisdiction and a European working day. Mexico and Colombia suit US companies that need full day overlap. Vietnam and the Philippines offer scale. Sri Lanka suits long running product engineering, enterprise software and finance work at Asian rates, with an export sector that works in English.
Which offshore destinations are cheapest?
Accelerance's 2026 guide puts senior rates in Asia at USD 31 to 41 an hour, against USD 64 to 76 in Europe and USD 60 to 75 in Latin America. Sri Lanka's Export Development Board cites about USD 25 to 40 an hour.
Is Sri Lanka a recognised outsourcing destination?
Yes. Kearney ranked it 23rd of 60 countries in its 2021 Global Services Location Index, and the UK's National Outsourcing Association named it Outsourcing Destination of the Year in 2013.