A Vision for Digital Transformation to achieve USD 15 billion contribution to GDP from the digital economy by 2030.

The Federation of Information Technology (Guarantee) Limited (FITIS) extends its warm congratulations and conveys its best wishes to the newly elected President of Democratic Socialist Republic of Sri Lanka, Hon. Anura Kumara Dissanayake. As the apex body of the country’s ICT sector, FITIS believes that the leadership demonstrated by the President will create pivotal opportunities for Sri Lanka to accelerate its digital transformation. By prioritizing a strong digital strategy, the new leadership can drive the digital transformation of the country by fostering innovation, inclusivity and economic growth, positioning Sri Lanka as a regional leader in digital technology development and adoption.

Sri Lanka is at a critical juncture, where embracing digital technologies is essential and a primary driver for economic development. President Dissanayake has received a mandate to implement a forward-thinking and futuristic digital agenda. FITIS encourages him to focus on a few key areas that can redefine the nation’s digital transformation, such as e-governance, digital infrastructure, connectivity & security, digital literacy, digital financial services, SME digitization, along with a robust strategy, aimed at achieving the ambitious goal of achieving a $15 billion contribution to GDP from the digital economy by 2030.

E-governance is a fundamental pillar of a modern, efficient government. By transitioning to digital public services, the government can improve transparency, efficiency, and accessibility for all citizens. Countries that have invested in e-governance have seen significant improvements in public service delivery. In Sri Lanka, where bureaucratic processes often delay progress, digitalizing government services can enhance user experience for 22 million citizens, reduce inefficiencies, and rebuild public trust. In addition, moving to using digital documents, especially adopting digital signatures, would ensure transparency and good governance while minimizing corruption.

For Sri Lanka to truly benefit from the digital revolution, robust infrastructure is the key. Currently, 47% of the population has internet access, but rural areas continue to face connectivity challenges due to coverage and quality of service. Bridging this digital divide is essential for ensuring equal opportunities for all citizens, regardless of location.

FITIS views the nurturing of startups as a cornerstone of Sri Lanka’s future economy. Currently, 80% of startups are concentrated in urban areas, with limited access to resources in rural regions. By encouraging tech innovation across the entire country, the government can stimulate job creation and entrepreneurship.

The NPP’s vision of a startup-friendly ecosystem should be fully realized through incentives, tax breaks and equitable taxation, and infrastructure support for entrepreneurs. Expanding innovation hubs outside of Colombo and creating partnerships between established businesses and startups will foster collaboration and knowledge sharing. Additionally, attracting foreign investment in technology will be crucial for scaling innovation and making Sri Lanka a hub for regional tech talent.

A digitally literate workforce is essential for Sri Lanka to thrive in the global economy. Currently, over 50% of the workforce lacks basic digital skills, limiting the country's ability to compete on the international stage. FITIS advocates for integrating ICT education into the national curriculum, expanding technical and vocational training, and creating opportunities for lifelong learning.

Developing digital skills will prepare future generations for a tech driven economy while also reskilling the current workforce to adapt to new technological demands. FITIS envisions a partnership with the government to implement nationwide digital literacy programs that cater to both students and professionals, ensuring the workforce is equipped for the jobs of tomorrow. National ICT Exhibition, INFOTEL is an annual event conducted by FITIS to introduce new digital technologies and their applications to both corporate and consumer sectors attracting professionals, entrepreneurs, academia and students.

Digitalized financial services is a cornerstone of any digitally enabled economy. By encouraging adoption and ensuring that all government services accept digital financial transactions would bring in efficiency while providing convenience to the citizens. As digital transactions create a payment trail, which is traceable, it would be a significant hindrance to carry out any corrupt activity. Encouraging citizens and businesses to move away from cash and embracing digital transactions could save the country a colossal amount of money spent to maintain cash in circulation.

Small and medium enterprises (SMEs) are the backbone of Sri Lanka's economy, comprising nearly 75% of all businesses and employing a significant portion of the workforce. However, many SMEs lack the resources or knowledge to fully embrace digital tools, which limits their growth potential in an increasingly digital global economy.

FITIS strongly supports the digitalization of SMEs and believes that President Dissanayake’s administration will help these businesses adopt digital technologies by prioritizing policies. Through initiatives like FITIS’ "DigiGo" program, which aims to accelerate digital adoption among SMEs, FITIS has already laid the groundwork for supporting this transition. DigiGo offers tailored solutions for businesses to implement e-commerce platforms, digital marketing strategies, and digital tools to increase efficiency and expand market reach. By working closely with SMEs, the government can boost their competitiveness and drive economic growth from the grassroots level. In addition, moving the SME sector to embrace digital financial transactions would ensure that they become credit worthy and provide them access to much needed credit via the formal financial sector to address a long-standing social problem.

As envisioned in the National People’s Power (NPP), Digital Policy for Sri Lanka, an ambitious goal is to achieve a USD 15 billion contribution to GDP from the digital economy by 2030. FITIS firmly supports this vision and believes that with the right policies, infrastructure, and collaboration, Sri Lanka can transform into a leading digital economy in the region. This target is crucial for job creation, innovation, and the overall transformation of Sri Lanka into a globally competitive digital economy.

Key strategies to reach this goal include expanding Sri Lanka’s talent pool, attracting global tech companies to establish operations, and fostering an environment where innovation can thrive. The development of local ICT talent, especially in fields such as software development, AI, and data analytics, is crucial. By creating more educational opportunities and investing in skill development, Sri Lanka can build a workforce capable of meeting global demands.

Furthermore, investments in the digital economy will spur growth across all sectors, from banking and finance to education and healthcare. The USD 15 billion target reflects Sri Lanka’s potential to become a digital leader in South Asia and beyond.

To ensure the successful execution of the digital strategy by the new leadership, NPP has proposed the formation of a Digital Advisory Council. This council will play a pivotal role in steering Sri Lanka toward its digital future.

As specified in NPP’s Digital Policy, inclusion of a diverse group of tech entrepreneurs, investors, software engineering experts, and academic leaders, the council will create a rich collaborative environment that taps into a wide range of expertise to drive innovation and digital transformation across various sectors. Representation from industry bodies SLASSCOM, FITIS, CSSL, and other interest groups is expected to ensure cohesive policy formulation and execution.

FITIS Chairman Indika De Zoysa expressed optimism for the future under President Dissanayake’s leadership; “We are confident that President Anura Kumara Dissanayake’s administration will prioritize digital transformation as a key driver of Sri Lanka’s economic growth. A robust digital strategy will position Sri Lanka as a competitive player on the global stage, fostering innovation, job creation, and inclusive growth. FITIS is committed to working closely with the government to ensure that technology benefits every citizen and business while strengthening the nation's economic resilience."

FITIS fully supports President Anura Kumara Dissanayake’s vision of a digitally empowered Sri Lanka. The new administration has a unique opportunity to harness technology to drive economic growth, improve governance, and enhance the quality of life for all Sri Lankans. By prioritizing a comprehensive digital strategy, the government can pave the way for a more connected, innovative, and inclusive nation.