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Sri Lanka eyes boost for digital economy

By XU WEIWEI in Hong Kong | China Daily | Updated: 2025-03-13 09:17

This handout photograph taken and released by Sri Lanka's President's Media Division on February 17, 2025, shows Sri Lanka's President Anura Kumara Dissanayake (L) presenting the 2025 budget to parliament as Prime Minister Harini Amarasuriya (R) looks on in Colombo. [Photo/Agencies]

Sri Lanka is pushing for a digital transformation to shore up its competitiveness and revitalize its economy after severe troubles in the recent past, analysts say.

To achieve its goals, the island nation must focus on a critical component of digital development — establishing a forward-looking legal and regulatory framework, they added.

Prasad Wijesuriya, general secretary of the Sri Lanka-China Friendship Association, said the transformation aims to strengthen the economy, create high-paying jobs and deliver inclusive public services.

Sri Lanka "seeks to build a robust digital economy that fosters innovation, inclusivity and sustainability," Wijesuriya said.

He underscored the need for a framework that includes secure digital identity systems, comprehensive data governance and active stakeholder engagement.

As part of its efforts, the Sri Lankan government has launched the "GovPay" initiative to digitalize all payments to government institutions.

"By reducing reliance on cash, GovPay aims to decrease fraud, corruption and inefficiencies, ultimately improving service delivery standards," Wijesuriya said.

Last month, President Anura Kumara Dissanayake said technological advancements can play a pivotal role in improving people's lives by delivering efficient, high-quality and cost-effective services.

Sirimal Abeyratne, a professor of economics at the University of Colombo, said Sri Lanka's digital economy has mixed development.

"We may find digitalization quite important whereas governance issues are concerned. In important areas such as those related to personal information, international trade ... and social security, digitalization has not been fully implemented," he said.

"That's perhaps why the current government is very much interested in expediting the digitalization process."

Although still a long way from more advanced digital economies, Sri Lanka has made strides in the recent past, said Abbas Kamrudeen, director and chairman of the strategy committee of the Federation of Chambers of Commerce and Industry of Sri Lanka.

The positive aspect is that there is a clear urgency for digital transformation, with push from the Sri Lankan president, he said.

"We already see the results, with the national digital economy target set at $15 billion and a comprehensive strategy document by the government to (achieve it)," said Kamrudeen, who once served as chairman of Sri Lanka's Federation of Information Technology Industry.

The government will need international support, especially from neighboring countries and China, which have close ties with Sri Lanka and have been giving aid to boost its economy, he said.

Looking ahead, Sri Lanka plans to continue its digital transformation by investing in infrastructure, enhancing digital literacy and promoting innovation across all sectors.

"The president of Sri Lanka has strong intention to leverage digital strategies to support government, public and private sectors," said Indrananda Abeysekera, president of the Association for Sri Lanka-China Social and Cultural Cooperation.

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