Sri Lanka sets budget for 2025 digital transformation strategy

The Sri Lankan government has set aside US$10 million (3 billion Sri Lankan rupees) for digital transformation strategies this year, aspiring to generate $15 billion in revenue through the digital economy in five years with a unique digital ID and new legislation for digital services after the launch of a governing digital body.

The Sri Lanka Unique Identity Project (SL-UDI) will be a key element of this transformation and by eliminating duplications in identity records across government departments, SL-UDI seeks to ensure data accuracy and efficiency in government operations.

In 2023, India granted Sri Lanka $5.4 million toward the SL-UDI project. As of January, India’s contribution has risen to SLRS 10.4 billion ($35 million) of an estimated SLRS 20 billion ($67.3 million) total.

Sri Lanka’s President Anura Kumara Dissanayake announced strategic initiatives to position the country as a leading digital economy in South Asia.

The government is committed to strengthening regulatory frameworks, fostering technological innovations, and boosting financial inclusion to drive economic growth, he said in his 2025 Budget Speech last Monday.

Dissanayake stated the formation of a Digital Economic Authority to run and regulate the expanding digital sector. New legal frameworks will be launched to facilitate digital payments, safeguarding security and efficiency in financial transactions.

The President highlighted the need to move away from a cash-based economy and the importance of attracting investments in emerging sectors such as artificial intelligence, robotics, and financial technologies.

To expand Sri Lanka’s digital economy to contribute more than 12 percent of the national GDP, the President proposed strengthening legislation and institutions related to cybersecurity, data privacy, and data protection.

The government will aid a conducive investment environment to draw private capital and partnerships across all segments of the digital economy. The Digital Economic Affairs Ministry’s road map includes expanding the digital workforce to 200,000 skilled professionals and digitizing all sectors.

Efforts will be made to promote commercialization and development in this area, the president said, noting there will be efforts to digitalize the tax system to improve, enhance transparency, reduce tax leakage, and minimize human interaction in tax administration.

A comprehensive Agriculture Information system will be developed with ADB and World Bank support. Dissanayake also spoke about introducing a digital ticketing system to address issues of overcrowding and improve the capacity of the tourism sector. A tech-based system is to link tourists. Tourism, police, state agencies, and civic organizations that provide security alerts, attraction details, and complaint monitoring will be linked to a digital system, he added.

Article Topics

biometrics  |  data protection  |  digital economy  |  digital ID  |  digital identity  |  SL-UDI (Sri Lanka Unique Digital Identity)  |  Sri Lanka