Sri Lanka vs Ukraine for software development and outsourcing
Ukraine has a deep engineering culture and exported USD 6.45 billion of IT services in 2024, about four times Sri Lanka's total. The war is the deciding factor: 75% of Ukrainian IT companies have mobilised employees and most new sites opened in 2025 were abroad. Many buyers now add a second location. Sri Lanka offers lower rates and no conflict risk, at the cost of a wider time difference from Europe.
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 | Ukraine | |
|---|---|---|
| Time zone | UTC+5:30, no daylight saving | UTC+2, UTC+3 in summer |
| English, EF index 2025 | 73rd of 123, score 486 (low band) | 45th of 123, score 526 (moderate band) |
| Workforce | About 175,000 IT and BPM professionals (SLASSCOM, 2026) | About 303,000 IT specialists, of whom about 245,000 are in Ukraine (Lviv IT Cluster, 2025) |
| Typical rates | About USD 25 to 40 an hour (Export Development Board). Asia senior average USD 31 to 41 (Accelerance 2026) | Senior USD 35 to 55 an hour (Uvik index 2026, vendor data) |
| Global Innovation Index 2025 | 93rd of 139 | 66th of 139 |
| Kearney services location index | 23rd of 60 (2021 edition) | 42nd 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 Ukraine is stronger
- A larger and very strong engineering workforce with a long record in product development.
- Same working day as Europe.
- Higher English and innovation rankings.
Where Sri Lanka is stronger
- No war risk to people, power or continuity.
- Lower rates: about USD 25 to 40 an hour against USD 35 to 55.
- Better overlap with the Gulf, Asia and Australia.
- A stable base that global companies have used for 20 years and more.
What to watch in each
- Ukraine: 75% of IT companies have mobilised staff and one in five specialists is considering emigrating, according to the 2025 Lviv IT Cluster study. Source
- Sri Lanka: An economy still in an IMF programme after the 2022 crisis. The IMF rates performance as generally strong but says debt risks remain high. Source
Considering Sri Lanka alongside Ukraine?
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 Ukraine better for software outsourcing?
Ukraine has a deep engineering culture and exported USD 6.45 billion of IT services in 2024, about four times Sri Lanka's total. The war is the deciding factor: 75% of Ukrainian IT companies have mobilised employees and most new sites opened in 2025 were abroad. Many buyers now add a second location. Sri Lanka offers lower rates and no conflict risk, at the cost of a wider time difference from Europe.
Is Sri Lanka cheaper than Ukraine for software development?
Published rates for Sri Lanka are about USD 25 to 40 an hour according to the Export Development Board. For Ukraine: Senior USD 35 to 55 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 Ukraine?
On the EF English Proficiency Index 2025 Sri Lanka ranks 73rd of 123 countries. Ukraine: 45th of 123, score 526 (moderate band). The index tests the general adult population. Sri Lanka's export technology sector works in English.