Sri Lanka moves into a new phase of digital transformation as the government replaces ICTA with GOVTECH, a powerful state led platform designed to drive digital infrastructure, artificial intelligence innovation and national cyber security.
In a significant step toward accelerating Sri Lanka’s digital transformation strategy, the Ministry of Digital Economy has initiated plans to wind down the existing Sri Lanka Information and Communication Technology Agency and replace it with a newly established institution known as GOVTECH. The move signals a structural shift in the country’s digital governance framework as authorities attempt to modernize the way national digital services and technological infrastructure are developed.
According to officials involved in the initiative, the operations of the new GOVTECH institution are expected to begin within the next three to six months. The government has already allocated Rs. 2 billion in the national budget for 2026 to support the initial establishment and operational rollout of the organization as part of the broader Sri Lanka digital economy strategy.
Beyond domestic funding, the initiative is also expected to benefit from substantial international financial support. Over the next four years, the program will receive assistance totaling US$ 50 million from the World Bank along with an additional US$ 75 million from the Asian Development Bank. These funds are expected to play an important role in building the digital infrastructure needed to support government technology modernization programs.
A recent media briefing announcing the transition was held at the current ICTA premises in Colombo. The event was attended by Deputy Minister of Digital Economy Eng. Eranga Weeraratne and the President’s Chief Digital Economy Advisor Dr. Hans Wijesuriya. During the briefing, the Deputy Minister explained that the primary purpose of establishing the GOVTECH institution is to implement policy directions introduced by the Digital Economy Authority, which is expected to operate under the government’s new national digital economy policy framework.
Authorities say the core responsibility of the GOVTECH institution will be to help build the digital infrastructure required for Sri Lanka’s long term technology driven governance strategy. Rather than directly developing software applications or digital platforms, the institution will focus on providing consulting expertise, offering shared digital platforms and strengthening institutional capacity across government agencies engaged in digital transformation programs.
As part of the recruitment process, applications have already been invited for approximately 150 highly skilled technical professionals who will be hired at competitive salary levels aligned with the information technology sector. In addition, around fifty staff members currently employed by the ICTA are expected to be recruited into the new institution depending on their qualifications and technical capabilities.
During the early operational phase, the activities of the new GOVTECH institution will temporarily continue within the existing ICTA building in Colombo. However, officials indicated that the institution may later be relocated to a more suitable location depending on future decisions taken by the Ministry of Digital Economy.
Dr. Hans Wijesuriya also emphasized that GOVTECH will operate as a fully state owned enterprise but without the goal of generating commercial profit. Instead the institution is expected to function under a model where operational costs are supported through revenue generated from its services and digital infrastructure support activities.
The institution will be responsible for preparing the digital foundations required for several major government technology initiatives. These include the development of the Government Digital Identity Card Project, the creation of a national Super App platform for integrated public services and the expansion of artificial intelligence driven digital services within the public sector.
Another key responsibility of GOVTECH will be to upgrade the Local Government Cloud 2 plus system currently used by local authorities. The plan is to transform the platform into an advanced Local Government Cloud 3 system while expanding the integration of artificial intelligence technologies to improve efficiency, data analysis and service delivery across government agencies.
Officials also confirmed that protecting national digital infrastructure and ensuring cyber security will remain a major priority under the new digital governance framework. A Data Protection Authority has already been established to strengthen the regulatory oversight of digital information management and privacy protection in Sri Lanka.
In addition, authorities have initiated steps to establish a dedicated cyber security regulatory body while also strengthening the capabilities of the Sri Lanka Computer Emergency Readiness Team. Under the future framework GOVTECH and SLCERT are expected to work closely together to improve cyber security preparedness and safeguard the country’s digital ecosystem against emerging cyber threats.
