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Information and Communication Technology (ICT) is a powerful tool for gaining competitive advantage in any industry.The Small and Medium Enterprise(SME)sector is the driver of the economy. However,many SME proprietors and employees lack English language skills,which may hinder them in using ICT effectively.Local language applications would provide an avenue for non-English speakers to effectively use ICT and improve their competitiveness.Studies were conducted to assess(1)what Sinhala and Tamil applications are currently available in Sri Lanka and (2)the awareness and usage of such applications by SMEs in various parts of the country. The study also identified the factors restricting the use of local language computing.Based on the SWOT analysis of the factors identified by the study we propose a number of ways to increase the use of ICTs by SMEs.Two of these strategies are(1)to conduct a campaign to increase awareness of local-language applications in the country and(2)to set upa scheme to promote the development of local-language software.