By: Staff Writer
February 06, Colombo (LNW): Sri Lanka’s digital economy stands at a crucial turning point, demonstrating strong growth potential while facing challenges in infrastructure, policy frameworks, and digital literacy. With increased internet accessibility, expanding e-commerce platforms, and advancements in fintech, the nation is steadily advancing towards a digital transformation.
Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy, stated that Sri Lanka could generate US$ 5 billion annually from digital exports by 2030. He made this statement during the launch of the Sri Lanka Digital Public Infrastructure Summit on February 5th.
To accelerate digital transformation, Sri Lanka must prioritize strengthening its ICT infrastructure, fostering innovation, and implementing progressive regulations.
Investment in emerging technologies such as artificial intelligence (AI), big data, and blockchain will be key to positioning the country as a leader in digital solutions.
Additionally, upskilling the workforce and promoting STEM education are essential for maintaining a sustainable talent pipeline.
A strategic approach involving collaboration between the government, private sector, and international partners can help build a robust digital economy.
By addressing infrastructure gaps and leveraging technological advancements, Sri Lanka can create a more inclusive, efficient, and globally competitive digital landscape, official sources revealed.
“In an economy valued at US$ 80-90 billion, achieving US$ 5 billion in digital exports represents a substantial growth opportunity,” Wijayasuriya said.
He further noted that embracing digitization fully could lead to a 1-2% annual increase in the compound annual growth rate (CAGR), boosting Sri Lanka’s baseline GDP growth of 2-3%. If digital exports reach the projected target, this additional GDP growth could potentially double.
Past government initiatives, including the Digital Economy Strategy and the expansion of the IT-BPM sector, aimed to position Sri Lanka as a regional technology hub. However, challenges such as insufficient broadband coverage, outdated cyber regulations, and workforce skill gaps continue to hinder rapid digital progress.
“As digital adoption deepens across industries, economic growth could see an uplift of one to two CAGR points,” Wijayasuriya added. “For an economy with a business-as-usual growth rate of 3-4%, or even starting from a lower base, digitization could contribute an additional two to three percentage points to GDP growth.”
Wijayasuriya also stressed the need to expand the digital workforce beyond the current target of 200,000 professionals.
“Growing the digital economy to around 12% of GDP is achievable, but we should aim even higher—closer to 20%,” he said, emphasizing that increasing the digital workforce to 20% could potentially generate US$ 15 billion in annual digital export revenue.
He further highlighted the importance of reducing the cost of conducting digital business. “We can’t depend on being an island nation; in the digital sphere, competition is global. Our national competitiveness will depend on the maturity of our digital systems and readiness,” he noted.
To achieve these goals, Sri Lanka aims to move up in global rankings for digital economy maturity. Wijayasuriya emphasized the focus on improving key dimensions such as connectivity, digital transformation, innovation, cybersecurity, and trust frameworks.
