Digitalization - Summary

Budget Allocations & Key Policies

• 2015-2017: Focused on IT literacy, infrastructure development, tax incentives, and digital economy goals. Major initiatives included Nenasala centers, smart classrooms, and National Digital Identity (NDI).

• 2018-2020: Emphasis on startup funding (e.g., IT Initiative, Erambuma Credit Scheme), tax reductions, and digital payment systems (NPP). COVID-19 relief efforts in 2020 affected digital priorities.

• 2021-2023: Expansion of digital governance, e-commerce, cybersecurity, and public service digitization. Introduction of techno-parks, data protection laws, and electronic payment systems.

• 2024-2025: Establishment of a Digital Economy Authority, National AI Center, and Sri Lanka Unique Digital Identification (SL-UDI). Target set to grow the digital economy to USD 15 billion by 2025.

Impact on Startups, IT Industry & Infrastructure

• Startups: Financial support through venture capital, tax incentives, and credit schemes. Investment-friendly policies introduced, especially in FinTech.

• IT Industry: R&D support, tax exemptions, and digital payment platforms encouraged sector growth. ICT exports aimed to reach USD 5 billion annually by 2025.

• Infrastructure: Expansion of broadband, establishment of techno-parks, and digital public infrastructure investments.