[Purpose/significance] Software organizations depend on knowledgeable software developers. Software developers have to gather new technologies, domain knowledge, organizational policies, practices, and culture acknowledge to be actively involving in software developing activities. The unique and inherent characteristics of software development activity signify the importance of effective knowledge management activities employed inside the organization to manage the software knowledge. Increasing knowledge creation and sharing among software engineers are uphill tasks in software development environments. [Method/process] Our research analyzed the perceptions of software engineers working in software organizations about knowledge management practices adopted by Sri Lankan software practitioners by using both quantitative and qualitative methods. Semi-structured interviews and questionnaire surveys were carried out for three software industries in Sri Lanka. The results show that these software practitioners believe the importance of the knowledge sharing, and the need of organizational learning as a strategic tool for gaining competitive advantage and stabilizing organizational success. [Result/conclusion] Results of the research confirm the influence of information communication technologies on knowledge management practices and their subsequent expected implications for innovation in the organization. In addition, this study analyzes various KM tools and techniques used in these software organizations and finds out barriers to implement knowledge management practices. This study also presents a new perspective to organizational managers to enhance their organizations’ efficiency through knowledge management activities.