By Chamara Peiris
Many potential foreign investors asked me why they should invest in Leeg as we are piloting in Sri Lanka. So I thought I should write about it.
Key Highlights:
- 2 Million Monthly Active Adult Mobile Gamers and Growing
- 18 Million Mobile Phone Connection
- 2% Broadband Connections as a percentage of all Mobile Connections
- 66% of the Digital Population is a Gamer of some sort
- No gaming platform in the market apart from the traditional operator VAS platforms
Sri Lanka, with its strategic location in the Indian Ocean, burgeoning digital infrastructure, and a vibrant, tech-savvy population, is fast emerging as an attractive destination for game startups and investors. Here’s why the Pearl of the Indian Ocean should be on your investment radar:
1. Mobile-first Gaming Ecosystem
The Sri Lankan gaming market is predominantly mobile-first, thanks to widespread smartphone adoption and affordable internet services. Mobile gaming can tap into the vast user base.
2. Digital Payments just started to growing
With the rise of digital payment platforms and the recent government’s push towards digital transactions will create more opportunities in the coming years. This will lead to more innovations.
3. Esports has been gazetted as an Official Sport in the Country
The Ministry of Youth and Sports in Sri Lanka recognised Esports as an official sport in 2019.
The enthusiasm for e-sports and competitive gaming is on the rise in Sri Lanka, with communities and tournaments gaining momentum. Investing in gaming platforms and startups can tap into this growing trend and build a loyal user base.
4. Opportunities for Innovative Monetization Strategies
Since the market is still open, exploring innovative monetization models beyond traditional methods, such as freemium models, subscription services, and in-game purchases tailored to the Sri Lankan market, can be beneficial.
5. Partnerships and Collaborations
Collaborating with local developers, publishers, and other stakeholders can provide valuable insights into the market, help in localizing content, and facilitate easier market entry.
6. Education and Skill Development
Sri Lanka has a robust education system and a high literacy rate, producing a talented pool of young professionals with skills relevant to the gaming industry. Investing in local talent can drive innovation and creativity.
7. Infrastructure and Technology
Sri Lanka has made significant strides in improving its digital infrastructure, offering high internet penetration rates and widespread mobile connectivity. This digital expansion creates a fertile ground for mobile-first gaming experiences, catering to a tech-savvy youth population.
Investments in cloud gaming, game development tools and technologies, and platforms like Leeg could benefit a market that’s increasingly open to new gaming experiences and innovations.
8. A Young and Engaged Audience
With a considerable portion of the population being young and digitally literate, Sri Lanka boasts a growing audience for gaming. This demographic is keen on exploring new and engaging digital experiences, presenting a ripe market for innovative gaming startups.
9. Untapped Market with High Growth Potential
Compared to its regional counterparts, Sri Lanka’s gaming market is relatively untapped, offering high growth potential for early investors. The opportunity to establish a strong brand presence and capture market share is significant.
10. Strategic Geographic Location
Sri Lanka’s strategic location at the crossroads of major shipping routes not only enhances its logistics and connectivity but also positions it as a gateway to the South Asian market, offering access to a broader regional audience.
Conclusion
Sri Lanka, with its combination of a young, enthusiastic audience, supportive government policies, and a commitment to digital growth, presents a compelling case for investment in the gaming sector. The island’s untapped market potential, coupled with its cultural richness and strategic location, offers a unique blend of opportunities for game startups looking to make a mark in the global gaming landscape.
About the writer: Chamara Peiris
Founder of the early-stage mobile digital games startup Leeg (www.leeg.live) and in its seed funding stage.
Chamara has 18+ years of experience, either founding or working in technology businesses (eg: Creately, Calcey, Lanka On-Line, Proporta, and Yoho Bed).
Chamara is also mentoring at Founder Institute Sri Lanka and South Asia, and in 2022 was honored with the “Best Supportive Mentor in South and Southeast Asia” award at the 2022 Global Startup Mentor Awards.
