This is a study done to assess the level of Informatization, simple definition of utilization of Information and Communication Technologies (ICTs), in the rural areas of Sri Lanka. The level of Informatization is measured as an index value. In the Asia Pacific region different types of Informatization Indices are calculated in different countries. In this study authors have defined a mechanism to calculate the Informatization Index for Sri Lanka, by considering the number of indices related to Informatization. This Informatization Index is calculated using 48 measures categorized under 11 sub components of ICT. Also a hypotheses testing based on an identified analysis framework is conducted in this study. According to the results obtained from this study, it was observed that in rural areas high utilization is there for utilization of Radio, Television, and Telephone. Mobile phone and Computer utilization is at a medium level. Level of utilization of ICT also varies with the demographic factors also.

The introduction and application of IT(Information Technology) to a company has become to be viewed as a key factor for the business competitiveness and improved productivity. This study presents an approach to evaluation of a company's informatization le