Sri Lanka is set to dissolve the Information and Communication Technology Agency (ICTA) and replace it with two new institutions under the Ministry of Digital Economy, in a major shake-up of the country’s digital governance framework.
The move, announced by Minister of Public Administration and Digital Technology Nalinda Jayatissa and Deputy Minister of Digital Economy Eranga Weeraratne, aims to accelerate and streamline the implementation of digital transformation projects across the public sector.
Minister Jayatissa revealed that a new state-owned company named GovTech (Pvt) Limited will be established as part of this restructuring. This entity is expected to serve as an independent institution with the authority and capacity to ensure the effective continuation and expansion of digital initiatives already underway, as well as those planned for the future.
“A study has been conducted to review existing digital strategies in Sri Lanka and other countries. The findings highlighted the necessity for a regulatory authority with strong implementation powers. GovTech will fill this role,” said Jayatissa at a press briefing.
Deputy Minister Weeraratne provided further details, confirming that the government intends to implement a decision originally taken by the previous administration to wind up the ICTA. He explained that two new entities would be formed under the Digital Economy Ministry to handle its core functions more efficiently.
“The former Government made a Cabinet decision to shut down the ICTA. We are proceeding with that plan and will replace it with two new bodies,” Weeraratne revealed.
According to him, the first of these new entities, the Digital Economic Authority, will be responsible for digital policy formulation, oversight, and governance. The second, yet unnamed, will focus on executing digital projects, as well as offering technical support and system maintenance services.
Both entities are expected to be operational within the year. A liquidator will be appointed to oversee the dissolution process of ICTA, during which decisions will be made regarding the future of current ICTA employees. “Whether staff are absorbed into the new institutions will be decided during the liquidation process,” Weeraratne added.
The ICTA, a fully government-owned institution, was originally formed to implement the e-Sri Lanka Development Project, a World Bank-funded initiative launched in 2004 aimed at enhancing digital infrastructure, reducing poverty, and improving service delivery. Although the agency was initially expected to conclude its role after the project, a 2008 amendment to the ICT Act made it a permanent entity.
The previous government proposed dissolving ICTA during the 2023 Budget speech, suggesting it had completed its mandate. They had intended to replace it with a Digital Transformation Agency under a proposed Technology Promotion Act.
With the establishment of GovTech and the Digital Economic Authority, the current government is now laying the groundwork for a more robust and future-oriented digital governance model that aligns with evolving global trends and domestic needs.
