Sri Lanka vs the Philippines for software development and outsourcing
The Philippines is far larger in business process outsourcing, with 1.9 million workers and the best English score in Asia on the EF index. Most of that workforce is contact centre and back office. Sri Lanka is a smaller market weighted toward software engineering, product R&D and qualified finance work. Choose the Philippines for customer support and voice at scale. Choose Sri Lanka for software engineering, ERP and accounting.
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 | The Philippines | |
|---|---|---|
| Time zone | UTC+5:30, no daylight saving | UTC+8, no daylight saving |
| English, EF index 2025 | 73rd of 123, score 486 (low band) | 28th of 123, score 569 (high band) |
| Workforce | About 175,000 IT and BPM professionals (SLASSCOM, 2026) | 1.9 million IT and BPM workers, mostly contact centre and back office (IBPAP, 2025) |
| Typical rates | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | Senior USD 25 to 45 an hour (Uvik index 2026, vendor data) |
| Global Innovation Index 2025 | 93rd of 139 | 50th of 139 |
| Kearney services location index | 23rd of 60 (2021 edition) | 12th of 78 (2023 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 the Philippines is stronger
- English: 28th in the world on the EF index, against 73rd for Sri Lanka.
- Scale in customer support, voice and back office, with USD 40 billion in sector revenue.
- Strong cultural familiarity with the US and a time zone that suits Australia.
- Higher placings in Kearney's index and the Global Innovation Index.
Where Sri Lanka is stronger
- A sector built around software: IFS, Sysco, Synopsys and Zebra run engineering and R&D in Colombo.
- Product companies founded locally and acquired by global buyers, such as WSO2 and Virtusa.
- One of the largest pools of CIMA and ACCA accountants outside the UK.
- Better overlap with Europe and the Gulf: three and a half hours closer than Manila.
What to watch in each
- The Philippines: The industry body itself lists availability of employable talent and competition from other locations as constraints. One sourcing adviser describes the country as mainly call centre territory. Source
- Sri Lanka: National English scores are lower. Engineers at export companies work in English daily, so interview for it instead of assuming either way. Source
Considering Sri Lanka alongside the Philippines?
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 the Philippines better for software outsourcing?
The Philippines is far larger in business process outsourcing, with 1.9 million workers and the best English score in Asia on the EF index. Most of that workforce is contact centre and back office. Sri Lanka is a smaller market weighted toward software engineering, product R&D and qualified finance work. Choose the Philippines for customer support and voice at scale. Choose Sri Lanka for software engineering, ERP and accounting.
Is Sri Lanka cheaper than the Philippines for software development?
Published rates for Sri Lanka are about USD 25 to 40 an hour according to the Export Development Board. For the Philippines: Senior USD 25 to 45 an hour (Uvik index 2026, vendor data). The sources use different methods, so treat the comparison as indicative and ask for quotes.
How does English in Sri Lanka compare with the Philippines?
On the EF English Proficiency Index 2025 Sri Lanka ranks 73rd of 123 countries. The Philippines: 28th of 123, score 569 (high band). The index tests the general adult population. Sri Lanka's export technology sector works in English.