Sri Lanka is racing to build a $15 billion digital economy, betting on a radical transformation strategy that promises a ‘super return on investment’ through efficiency, innovation and citizen-focused services.
Sri Lanka has unveiled one of its most ambitious economic strategies to date: building a $15 billion digital economy powered by foundational digital public infrastructure. According to Dr. Hans Wijesuriya, Chief Advisor to the President on Digital Economy and Chairman of the Information and Communication Technology Agency (ICTA), the new model prioritises efficiency, competitiveness and multiplier effects that can fast-track national growth.
Dr. Wijesuriya spoke at the launch of the Institute of Policy Studies’ ‘State of the Economy 2025’ report, outlining the government’s vision to leverage digital transformation as the single most crucial tool to revive growth within the constraints of a tight fiscal space. He said the focus is to unlock efficiency across sectors, cut out duplication, and enable innovation that directly drives value for citizens and businesses.
At the heart of this strategy is a bold departure from what he described as inefficient vertical systems. For decades, Sri Lanka has struggled with agencies developing isolated, silo-based digital solutions that rarely connect. The new approach will instead create horizontal foundational systems – digital public infrastructure (DPI) – encompassing national digital IDs, secure data exchanges, digital signatures and interoperable payment systems. These shared platforms will allow entrepreneurs, small and medium enterprises and tech startups to plug in through open APIs, generating what Dr. Wijesuriya called an “explosion and multiplier effect.”
Currently, the country has what he described as “islands of excellence” – high-performing systems in banking, telecom or government services – but none of them are linked. This fragmentation creates unnecessary friction for citizens trying to access services and limits innovation. The new plan seeks to break down those barriers by exposing core functions in open, standardised ways that drive interoperability and scalability.
Funding such an ambitious program might sound daunting, but Dr. Wijesuriya stressed that it will not require astronomical sums. By leveraging open-source software and cloud infrastructure, the core DPI layer can be built cost-effectively. The government will invest directly in these foundational platforms while leaving broader infrastructure such as telecom connectivity and cloud services to be funded through private sector and market-oriented mechanisms.
The timeline for this transformation is intentionally aggressive. Dr. Wijesuriya revealed that the target is to implement the entire DPI layer within just two to four years, not the decade-long cycles typical of large government projects. Beyond that, Sri Lanka has set its sights on achieving full broadband connectivity by 2030, which will serve as the backbone for a fully digital economy.
To deliver visible results quickly, the government will initially focus on key sectors where digital interventions can deliver fast wins. Tourism, logistics and trade have been identified as priority industries, where digital platforms can streamline operations, attract investment and create new opportunities almost immediately.
Yet, Dr. Wijesuriya was clear that technology on its own is not enough. “Analog complements” – including changes in laws, policies and business models – will be critical to ensure the reforms succeed. Among the most urgent priorities are procurement reforms to prevent chronic payment delays that cripple small and medium businesses, as well as regulatory changes that encourage rapid adoption of digital systems.
Bridging the digital divide will also be central to this effort. Dr. Wijesuriya emphasised the need for “purpose-driven technology” – tools and services that people adopt not because they are mandated to, but because they genuinely add value to their daily lives. Ensuring inclusivity in access to digital services will be as important as building the technology itself.
Finally, he underlined the importance of trust in building Sri Lanka’s future as a digital destination. Robust cybersecurity, data privacy, and intellectual property protection frameworks are being put in place. The recently established Data Protection Authority and a forthcoming cybersecurity law will anchor this framework, ensuring citizens and businesses alike feel confident in using digital services.
This comprehensive vision, if executed as planned, could not only transform Sri Lanka into a digitally empowered economy but also create sustainable growth pathways at a time when fiscal and structural constraints weigh heavily. For now, the country is setting its sights on delivering quick wins and laying the foundation for long-term resilience in a global economy increasingly shaped by digital connectivity.
