Sri Lanka: A Strategic Hub for Legal Process Outsourcing


Rushika Paulas

The legal industry faces ever-growing demands for efficiency, accuracy, and cost-effectiveness. To meet these challenges head-on, legal process outsourcing (LPO) has emerged as a pivotal solution for law firms and corporations across the globe.

Sri Lanka, known as the pearl of the Indian Ocean has its unique advantages and strategic location. Sri Lanka is rising as a beacon for LPO services, catering to international clients in Australia, the UK, and beyond.

Strategic Location and Global Connectivity

Situated at the crossroads of major maritime routes connecting the Middle East, Europe, and East Asia, Sri Lanka enjoys a strategic location that is second to none. This geographical advantage has transformed the island nation into a crucial point for international trade and commerce.

For LPO services, this location translates into efficient collaboration with Western regions, thanks to Sri Lanka’s GMT+5:30 time zone, which offers favorable working hour overlaps. Real-time communication is not just a possibility but a reality, ensuring that your legal outsourcing needs are met promptly and professionally.

A Skilled Workforce with Competitive Rates

Sri Lanka boasts an abundant supply of unskilled and semi-skilled laborers across various industries. During second quarter of 2022, the total number of employed persons in Sri Lanka is estimated as 8.2 million. More importantly, the country offers a pool of trained manpower that meets international standards at competitive rates, making it an ideal destination for establishing back-offices for high-cost geographies. The computer literacy rate among individuals completing secondary education in Sri Lanka is an impressive 71%, showcasing a tech-savvy and adaptable workforce ready to handle complex legal processes.

Stability and Low Attrition Rates

One of the standout features of Sri Lanka’s labor force is its low attrition rate, standing at just 10-15%, compared to the 30-35% average in other regional offshore locations. This stability provides continuity and consistency in your legal outsourcing partnerships, ensuring that your projects progress smoothly and efficiently.

Attractive Investment Opportunities

For international investors, Sri Lanka provides a welcoming business environment and a plethora of advantages. These include lower corporate income tax rates for SMEs, exporting, tourism, educational services, and construction, as well as zero income tax rates for agriculture, technology, livestock, IT, and enabling services. The Board of Investments (BOI) oversees 15 free trade zones in the nation that allow project-related supplies and inputs to be imported duty-free, thus increasing the affordability of outsourcing services.

Effortless Profit Repatriation

Apart from any restrictions set by the Central Bank, all income and investment earnings from Sri Lanka can be repatriated through an Inward Investment Account thanks to the country’s investor-friendly policies. Foreign businesses are encouraged to invest confidently in the nation because of the ease of remittances.

Fast Economic Recovery and Competitive Business Environment

Sri Lanka has made remarkable strides in economic recovery and is poised for growth. The potential for fast recovery periods is particularly evident in export and dollar revenue businesses, including the hospitality industry. With its rank at 99th among 199 economies in the latest Ease of Doing Business Index, Sri Lanka offers a competitive business environment that facilitates seamless operations.

A Legal Hub with Global Reach

In conclusion, Sri Lanka is a perfect location for legal process outsourcing due to its strategic advantages, highly skilled workforce, attractive investment opportunities, and robust economy. Due to Sri Lanka’s special place in the world economy, its LPO services are provided to clients worldwide with accuracy and professionalism, whether they are located in Australia, the UK, or any other country.

Sri Lanka is expected to become an increasingly important location for legal process outsourcing (LPO) as the legal sector develops further, offering practical and affordable answers to the world’s legal problems both now and in the future.