The Hidden Reality
A concerning trend is sweeping Sri Lanka's tech market: companies are downloading free educational code projects, making minimal changes, and selling them as "premium custom software" for tens of thousands of rupees.
A "premium" restaurant POS system being sold for Rs. 25,000+ was exposed as freely available source code from CodeAstro. The sellers had only changed the logo and sample data.
Over 200+ businesses in Colombo alone may have purchased rebranded free software, paying combined totals exceeding Rs. 10 million for code worth Rs. 0.
"When business owners discover they paid Rs. 50,000 for something their nephew could have downloaded for free, it damages trust in the entire IT industry."
Common Types of Resold Applications
POS Systems
Restaurant and retail POS systems from educational repositories
Selling Price: Rs. 25,000 - Rs. 250,000
Common Sources: CodeAstro, GitHub
E-commerce Platforms
Online shopping platforms with basic cart functionality
Selling Price: Rs. 50,000 - Rs. 500,000
Common Sources: OpenCart themes, WooCommerce
Management Systems
School, clinic, and inventory management systems
Selling Price: Rs. 75,000 - Rs. 400,000
Common Sources: Educational PHP projects
CMS & Blogs
Content management systems and blog platforms
Selling Price: Rs. 40,000 - Rs. 200,000
Common Sources: WordPress themes, custom CMS demos
Social Networks
Social networking clones and community platforms
Selling Price: Rs. 100,000 - Rs. 800,000
Common Sources: GitHub social media clones
Portfolio Sites
Photography and business showcase websites
Selling Price: Rs. 30,000 - Rs. 150,000
Common Sources: HTML/CSS templates
Educational Sites: CodeAstro, SourceCodester, Codester, FreeCodeCamp projects
Repository Sites: GitHub, GitLab (projects marked "educational," "demo," or "learning")
Template Sites: Free sections of ThemeForest, Creative Tim, Bootstrap templates
The Licensing Clarity Problem
One of the most deceptive aspects of free code reselling is the deliberate obscuring of licensing information. Most free projects operate under MIT, GPL, or Apache licenses, but resellers rarely disclose this to their clients.
MIT License
What it means: Anyone can use, modify, and sell the code
The deception: Clients could legally download and use it themselves for free
GPL License
What it means: Any modifications must also be open source
The violation: Resellers often don't provide source code to buyers
Apache License
What it means: Commercial use allowed with attribution
The issue: Resellers remove original author credits
- • For Buyers: You may unknowingly violate license terms
- • For Resellers: License violations can result in legal action
- • For Original Authors: Their work is being misrepresented
- • For the Industry: Creates confusion about software ownership
Critical Security and Technical Issues
Security Vulnerabilities
Free demo projects are designed for learning purposes, not production environments. They often lack essential security measures that real businesses require.
A restaurant in Kandy using a resold "premium" POS system had their customer data exposed online for 6 months because the system had no proper authentication. The owner only discovered this when competitors started calling their customers directly.
The Update Problem
Educational projects are rarely maintained long-term. When security vulnerabilities are discovered or new features are needed, clients are left stranded.
"We paid Rs. 75,000 for a 'modern' inventory system in 2022. By 2024, it couldn't integrate with new payment methods, and the seller said 'we don't do updates.' We had to rebuild everything."- Small Business Owner, Galle
Hidden Costs That Add Up
The initial "bargain" price is just the beginning. Since resellers didn't build the system from scratch, they charge extra for every small change.
6 months of modifications: Rs. 45,000
Integration with payment gateway: Rs. 30,000
Data recovery after crash: Rs. 15,000
Total spent: Rs. 115,000 for a system that should have cost Rs. 0 (or a proper one for Rs. 60,000)
The Bigger Impact on Sri Lanka's Tech Industry
Eroding Industry Trust
When businesses discover they've been sold free code as premium software, their trust in the entire IT industry suffers. This creates a ripple effect that hurts legitimate developers.
"After being burned twice by 'software companies' selling us the same system we found online for free, we now assume all local developers are scammers. It's unfair to the good ones, but how can we tell the difference?"- Manufacturing Business Owner, Kurunegala
Stifling Local Innovation
When quick reselling becomes more profitable than genuine development, it discourages innovation and skills development in the local tech ecosystem.
Impact on Small Businesses
Small businesses, who need technology the most to compete, are disproportionately affected by this practice. They have limited budgets and technical knowledge to identify these scams.
A small restaurant chain in Kandy paid Rs. 200,000 for a "premium multi-location POS system." During their busiest festival season, the system crashed and couldn't handle more than 10 simultaneous orders. They lost an estimated Rs. 500,000 in revenue and had to process orders manually for 3 days.
Investigation revealed the system was a free CodeAstro project with known scalability issues, documented in its GitHub repository. The seller had never tested it beyond 5 users.
How to Spot a Genuine Software Solution
Professional software developers provide comprehensive solutions, not just code. Here's what to look for when evaluating potential vendors.
Comprehensive Documentation
Professional Support Structure
Support Channels
Response Times (SLA)
Support Quality
True Customization Capabilities
Genuine software developers can modify and extend their systems because they built them from the ground up. Resellers are limited to cosmetic changes.
What Real Developers Can Do:
What Resellers Are Limited To:
Meaningful Demonstrations
Professional developers demonstrate their systems with realistic data and scenarios that match your business needs, not generic sample data.
Professional Demo Includes:
Red Flags in Demos:
Development Roadmap & Future Plans
Legitimate software companies have clear plans for future development, regular updates, and technology evolution. They can articulate their product vision beyond the current version.
Advice for Developers & Freelancers
As a developer, your reputation is your most valuable asset. Here's how to build sustainable, ethical practices that serve both you and your clients well.
Avoid the Shortcut Trap
While reselling free code might seem like easy money, it's a short-term gain that damages your long-term prospects and the industry as a whole.
Why Shortcuts Fail:
Long-term Benefits of Ethical Practices:
The Right Way to Use Open Source
Using open-source code as a foundation is perfectly acceptable—but transparency and added value are essential.
Acceptable Practices:
Value-Added Services:
"This solution uses Laravel (open-source framework) as its foundation, which we've extensively customized with your specific business requirements, security enhancements, and performance optimizations. You receive full source code, comprehensive documentation, and ongoing support as part of our service."
Build Trust Through Transparency
Honest communication about your development process, tools, and methodologies builds lasting client relationships and sets realistic expectations.
What to Share with Clients:
Benefits of Transparency:
Educate Your Clients
Educated clients make better decisions, have realistic expectations, and are more likely to invest in quality solutions. Position yourself as an advisor, not just a service provider.
How Businesses Can Make the Right Choice
Protecting your investment in technology requires asking the right questions and understanding what you're really purchasing.
Demand Source Code Ownership
If you're paying for software development, you should receive complete ownership of the source code and intellectual property rights.
What to Request:
Red Flags:
With source code ownership, you can hire any developer to maintain or enhance your system. Without it, you're locked into the original vendor's pricing and availability forever.
Understand Licensing Types
Knowledge about software licenses protects you from unknowingly purchasing free software at premium prices.
Questions to Ask:
"What license does this software use?"
"Are there any open-source components?"
"Can I see the license documentation?"
"What are my rights as a licensee?"
Good Answers:
"We use Laravel (MIT) as a framework"
"Custom code is proprietary to you"
"Here's our licensing documentation"
"You own all custom development"
Warning Signs:
"Don't worry about licenses"
"Everything is custom-built"
"License information is confidential"
Inability to explain licensing terms
A simple Google search of key features or interface screenshots can often reveal if the software is based on free, open-source projects. Legitimate developers won't mind you doing this research.
Verify Client References
Speaking directly with previous clients provides insight into the developer's capabilities, support quality, and long-term reliability.
Questions for References:
Red Flags in References:
Ask to visit a reference client's location to see the system in actual use. Legitimate developers are proud to showcase their working solutions.
Evaluate Support Agreements
Professional software vendors provide comprehensive support agreements with clear terms, response times, and coverage details.
Technical Support
Maintenance & Updates
Training & Documentation
Inadequate Support Warning Signs:
EliteJay's Ethical Development Standards
At EliteJay, we've built our reputation on transparency, quality, and genuine value creation. Here's our commitment to ethical software development practices.
Our Transparency Promise
What We Always Disclose:
Our Development Process:
"Your e-commerce platform will be built using React.js (MIT license) and Node.js (MIT license) for the modern user interface and backend API. We'll integrate with Stripe's payment system (their API) and add custom features including your specific product catalog management, Sri Lankan shipping calculations, and custom reporting dashboard. You'll receive all source code, full documentation, and ongoing support."
Comprehensive Quality Assurance
Professional Support Structure
Support Levels:
Support Channels:
Long-term Partnership Approach
We don't just deliver software and disappear. Our goal is to be your technology partner for years to come.
Making Informed Technology Decisions
The free code reselling trend in Sri Lanka's tech market represents a significant challenge for both businesses and the industry. While open-source software has democratized development tools, the deceptive practice of selling educational projects as premium solutions undermines trust and innovation.
For Business Owners:
- • Ask detailed questions about licensing and development process
- • Demand source code ownership and comprehensive documentation
- • Verify client references and see systems in actual use
- • Focus on total cost of ownership, not just initial price
- • Choose developers who offer genuine support and partnership
For Developers:
- • Build reputation through transparency and quality work
- • Use open-source responsibly with proper attribution
- • Add genuine value through customization and support
- • Educate clients about technology choices and trade-offs
- • Invest in long-term relationships over short-term profits
The technology sector in Sri Lanka has immense potential to drive innovation and economic growth. However, this potential can only be realized when businesses can trust developers to provide honest, valuable solutions that truly address their needs.
"The future of Sri Lankas tech industry depends on building trust through transparency, delivering value through innovation, and creating solutions that genuinely help businesses thrive in the digital economy."
Ready to Experience Ethical Software Development?
If you're tired of dealing with unreliable software vendors and want a partner who values transparency and quality, we're here to help. Let's discuss your project requirements and show you what professional software development looks like.
