Sri Lanka vs Latin America for software development and outsourcing
For US companies, Mexico and Colombia offer something Sri Lanka cannot: the same working day. They cost more, with senior rates of USD 40 to 55 an hour and regional averages up to USD 75, against about USD 25 to 40 for Sri Lanka. National English scores are lower in Mexico and similar in Colombia. Choose Latin America when real time collaboration all day is essential. Choose Sri Lanka when a shifted schedule or overnight progress works and cost matters.
Last reviewed 10 October 2026. We publish from Sri Lanka, so we have tried to be hard on our own side. Every figure names its source.
| Sri Lanka | Latin America | |
|---|---|---|
| Time zone | UTC+5:30, no daylight saving | Mexico UTC-6, Colombia UTC-5 |
| English, EF index 2025 | 73rd of 123, score 486 (low band) | Mexico 103rd, Colombia 76th of 123 (very low and low bands) |
| Workforce | About 175,000 IT and BPM professionals (SLASSCOM, 2026) | Colombia: 406,000 in software and IT (Fedesoft, 2026). Mexico: no reliable developer count |
| Typical rates | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | Senior USD 40 to 55 an hour (Uvik index 2026, vendor data). Region senior average USD 60 to 75 (Accelerance 2026) |
| Global Innovation Index 2025 | 93rd of 139 | Mexico 58th, Colombia 71st of 139 |
| Kearney services location index | 23rd of 60 (2021 edition) | Mexico 11th, Colombia 13th of 60 (2021 edition) |
Sources: EF English Proficiency Index 2025, Uvik rate index 2026, Accelerance 2026 rates guide, WIPO Global Innovation Index 2025, Kearney Global Services Location Index. Workforce figures count different things in each country and are not directly comparable.
Where Latin America is stronger
- Full overlap with US working hours and short flights.
- Higher placings in Kearney's index and the Global Innovation Index.
- Large domestic technology markets.
Where Sri Lanka is stronger
- Cost: roughly half the hourly rate on published figures.
- English: Sri Lanka scores above Mexico and level with Colombia on the EF index, and its export sector works in English.
- US companies already run core engineering here, including Sysco, Synopsys and Zebra.
- Work handed over at the end of the US day is ready the next morning.
What to watch in each
- Latin America: Colombia's software federation reports a gap of 83,000 professionals. A ManpowerGroup projection put Mexico's IT talent deficit at 77%. Source
- Sri Lanka: Nine and a half to ten and a half hours ahead of US Eastern time, so overlap needs a later shift in Colombo. About 17 hours flying time from New York. Source
Considering Sri Lanka alongside Latin America?
Many companies run two locations. Tell us what you need and we will give you a straight view of whether Sri Lanka fits, and introduce people if it does.
Common questions
Is Sri Lanka or Latin America better for software outsourcing?
For US companies, Mexico and Colombia offer something Sri Lanka cannot: the same working day. They cost more, with senior rates of USD 40 to 55 an hour and regional averages up to USD 75, against about USD 25 to 40 for Sri Lanka. National English scores are lower in Mexico and similar in Colombia. Choose Latin America when real time collaboration all day is essential. Choose Sri Lanka when a shifted schedule or overnight progress works and cost matters.
Is Sri Lanka cheaper than Latin America for software development?
Published rates for Sri Lanka are about USD 25 to 40 an hour according to the Export Development Board. For Latin America: Senior USD 40 to 55 an hour (Uvik index 2026, vendor data). Region senior average USD 60 to 75 (Accelerance 2026). The sources use different methods, so treat the comparison as indicative and ask for quotes.
How does English in Sri Lanka compare with Latin America?
On the EF English Proficiency Index 2025 Sri Lanka ranks 73rd of 123 countries. Latin America: Mexico 103rd, Colombia 76th of 123 (very low and low bands). The index tests the general adult population. Sri Lanka's export technology sector works in English.