Sri Lanka emphasizes AI for digital economy growth

Sri Lanka is aiming for a fivefold growth in its digital economy over the next five years, with a strong emphasis on artificial intelligence (AI) as an essential element of its growth strategy.

The Chief Advisor to the President on Digital Economy, Dr. Hans Wijayasuriya, articulated plans to raise the digital economy’s contribution to GDP from an estimated 3-5 percent to 15 percent through an “AI-first” approach.

He told Biometric Update that the national AI policy draft is in the works, and an advisory committee on AI was appointed recently. This committee is focusing both on future direction and strategy, and infrastructure regulation, policy, guardrails and protection, along with the rights of citizens in an AI era, he added. “They are also looking at quick wins and Priority projects which need to be carried out to get AI into the hands of everyone very quickly, and AI into a transformative stage when it comes to government,” he added.

During the launch of the United Nations Human Development Index (HDI) Report 2025 in Colombo, which focuses on the theme ‘A Matter of Choice: People and Possibilities in the Age of AI,’ Dr. Wijayasuriya accentuated the comprehensive strategy being developed for Sri Lanka’s digital economy. This strategy targets not only to stimulate economic growth but also to expand various indices, including the HDI, inclusion indices, capability indices, and national competitiveness.

Noting the importance of AI’s transformative role in society, Dr. Wijayasuriya detailed, “When harnessed alongside guardrails which give primacy for inclusion and responsible application, AI has the potential to deliver profound and transformational outcomes for Digital Economy acceleration and Public Service delivery.”

The initiative involves leveraging data and advanced technologies such as AI, the Internet of Things, and cloud computing to drive economic development.

Dr. Wijayasuriya stressed that growing the digital economy‘s share of GDP is critical for boosting the country’s growth momentum, suggesting that as this ratio improves from low single digits to mid double digits, the latent for economic advancement in the short to medium term will also rise.

“We are already a high HDI nation, and therefore, the guardrails that we need to put in place are from a position of strength, as opposed to some position of weakness. And also, the fact that our Gini coefficient or the inequality coefficient on a regional basis, is one of the best.”

Dr. Wijayasuriya underscored that inclusion is the leading priority and a foundational principle in conducting the design and development of Sri Lanka’s digital economy. He stressed that this goes beyond mere digital access to warranting meaningful participation and equitable benefits in the economy.

On the technology front, he reiterated that AI is a core principle sustaining the country’s digital strategy. The blueprint integrates AI across all layers of its infrastructure, both horizontal systems like digital public services and soft infrastructures that encompass government and private sector operations. Mentioning the current initiatives, such as the unique digital identity platform, national data exchange and data registries, as key components of this framework, he said that AI-focused tools and models are being custom-made for specific sectors, including healthcare, education and agriculture, to drive targeted innovation.

“AI is omnipresent throughout. But equally important is the fact that this blueprint is wrapped by a framework of governance and trust. Legislation, institutional frameworks, safe AI, responsible application of AI and other digital technologies brought together with an overall trust environment, which engenders the use of AI by the population at large,” said Dr. Wijayasuriya.

Article Topics

AI  |  digital economy  |  digital identity  |  digital inclusion  |  government services  |  Sri Lanka