A blue chip company has provided a state run tertiary IT education institute with Rs. 10 million to start-up software companies.
Professor Lalith Gamage, CEO Sri Lanka Institute of Information Technology (SLIIT) which has its campus in Malabe told this reporter that in turn Hemas Holdings plc the donor will have stakes in such IT companies incubated at SLIIT.
Gamage said that world famous software creations like “YouTube” and “Facebook” which are valued in the billions of dollars were made by software technologists, just like those studying at SLIIT.
“We inter-act with the industry, we need venture capital and angel funds to spur IT-industry development,” Gamage, speaking at the Ceylon Chamber of Commerce organized two day Economic Summit which concluded on Tuesday said.
Budget 2011 in order to encourage research and development (R&D) has made provision for companies to claim 200% tax breaks on such investments.
In almost a similar case, Brandix, one of Sri Lanka’s top clothing manufacturers has provided Rs. five million to Moratuwa University (MU) to undertake a research project on their behalf. MU’s Vice Chancellor Professor Malik Ranasinghe addressing a Ceylon Chamber of Commerce seminar on Tuesday said that they expect the private sector to invest a minimum of Rs. five million on such projects.
MU is also a beneficiary of a Rs. nine million endowment from NDB Bank plc funding an entrepreneurship chair. The endowment spread over a three year period in equal instalments has already seen two of those instalments disbursed, said Ranasinghe.
He said that 2% of MU’s Rs. 100 million recurrent budget has been allocated to research.