Technological Advancements

SLASSCOM Compensation & Benefits Report Signals Powerful Shift

SLASSCOM Compensation & Benefits Report 2025 highlights a decisive shift in how Sri Lankan technology employers structure pay, benefits, and workforce strategies as competition for skilled talent intensifies across IT, BPM, and tech-enabled sectors.


SLASSCOM Compensation & Benefits Report reveals evolving pay and talent trends


Sri Lanka’s technology industry is undergoing a significant recalibration of pay and workforce strategies, according to the newly released SLASSCOM Compensation & Benefits Report 2025, a comprehensive benchmark study conducted independently by Deloitte.

The annual survey provides an in-depth view of salaries, benefits, and emerging workforce trends across Sri Lanka’s IT, business process management, and technology-enabled services sectors. Drawing participation from IT-only firms, BPM organisations, dual-sector operators, and non-IT companies with internal technology functions, the report reflects a broad cross-section of the industry. Notably, 72 percent of participating organisations also took part in the 2024 edition, underscoring sustained confidence in the survey as a reliable industry reference point.

This year’s findings indicate that companies are moving beyond traditional, uniform compensation models toward more nuanced total rewards strategies. Employers are increasingly prioritising personalised benefits, role-specific incentives, and flexible work arrangements designed to align with changing employee expectations. The shift reflects growing recognition that attracting and retaining high-quality talent requires a more holistic approach encompassing career growth, skills development, and overall employee experience.

One of the most significant developments highlighted in the SLASSCOM Compensation & Benefits Report is the stabilisation of salary increments across the sector. Following the extraordinary pay adjustments implemented during Sri Lanka’s recent economic crisis, organisations appear to be returning to more sustainable compensation cycles. Incremental budgets are now normalising, allowing companies to plan more predictably while maintaining competitiveness.

Looking ahead to 2026, IT firms are increasingly planning differentiated salary increases that reward top performers more distinctly than average performers, reinforcing a stronger link between pay and productivity. BPM companies, meanwhile, are projecting comparatively higher salary adjustments, reflecting continued demand for operational and client-facing talent. Across both segments, performance-linked rewards are gaining prominence as organisations seek to align compensation more closely with measurable outcomes.

The report also points to a gradual shift toward skill-based organisational structures. Rather than relying solely on job titles or hierarchical progression, companies are placing greater emphasis on specialised skills and competencies. This approach is intended to improve workforce agility while enabling businesses to respond more effectively to rapid technological change.

Workplace expectations are also evolving amid the realities of a multi-generational workforce. Employers are introducing modern, personalised benefits as part of broader total rewards frameworks, including flexible work options and non-traditional perks. However, the survey confirms that total cash compensation remains the dominant priority for employees, even as organisations experiment with non-monetary incentives.

Employee migration trends present a mixed picture. While outward migration has dropped from the top concern in 2024 to second place in 2025, it remains a visible challenge, particularly among highly skilled professionals seeking overseas education opportunities. This dynamic continues to influence workforce planning, especially in specialised and high-demand roles.

Demand for certain technology roles remains robust, reflecting global digital transformation trends. The report notes sustained demand for advanced IT skill sets, while traditional design and publishing roles are either declining or undergoing significant transformation as digital capabilities become essential. Reskilling and upskilling have therefore become central to long-term talent strategies within the sector.

From a global competitiveness standpoint, the survey provides insights into emerging destinations for global business services and global capability centre expansion. In 2025, two new countries have gained traction as attractive alternatives for outsourcing and GCC operations. This development highlights the growing competition Sri Lanka faces and underscores the urgency of enhancing both talent quality and cost competitiveness to retain its position as a preferred regional hub.

Encouragingly, the report also highlights the expanding footprint of Global Capability Centres within Sri Lanka. More than half of survey participants, 52 percent, operate as GCCs, reinforcing the sector’s importance as a major contributor to export services and foreign exchange earnings. Growth in GCC activity has been particularly notable in specialised and high-value roles, signalling confidence in Sri Lanka’s technical talent pool.

Commenting on the findings, SLASSCOM Chairperson Shehani Seneviratne said the 2025 report offers critical insights into the country’s evolving tech talent landscape. She noted that as global competition for skilled professionals intensifies, organisations must adapt their total rewards strategies to attract, retain, and develop talent effectively. The report, she said, equips industry leaders with the data needed to make informed, forward-looking decisions that can strengthen Sri Lanka’s standing as an innovative and competitive technology hub.

The participant profile further reinforces the maturity of the industry. Most organisations surveyed are established players, reflecting stability and depth within Sri Lanka’s tech-enabled ecosystem. At the same time, new entrants and emerging categories have added fresh perspectives, making the 2025 edition one of the most dynamic and representative surveys to date.