Digital Revenue Economy

Sri Lanka is on the cusp of a remarkable digital revolution, with ambitions to unlock USD 15 billion in digital economic value by 2030. This transformation is driven by a potent mix of forward-thinking policy reforms, robust public-private partnerships, and significant backing from global institutions like the World Bank, the Asian Development Bank (ADB), and various United Nations agencies. By harnessing its skilled workforce, upgrading infrastructure, and embracing cutting-edge digital tools, Sri Lanka is positioning itself as a dynamic player in the global digital economy. This effort explores the strategic focus areas, key objectives, societal impacts, and the broader vision propelling this digital leap forward.

Overview: A Nation Embracing Digital Potential

Sri Lanka’s digital transformation is more than a technological upgrade—it’s a socioeconomic renaissance. With a population of over 22 million and a growing reputation as a hub for innovation in South Asia, the country is leveraging digitalization to reshape its economy. According to a World Bank report, digital economies in developing nations can boost GDP growth by up to 1.5% annually when supported by strong infrastructure and policy frameworks—Sri Lanka is seizing this opportunity. The government, in collaboration with private enterprises and international donors, is channeling investments into digital infrastructure, skills development, and inclusive growth initiatives. The goal? To create a resilient, future-ready economy that benefits all citizens, from urban entrepreneurs to rural farmers.

This USD 15 billion target by 2030 reflects a holistic vision: blending economic growth with social equity. By fostering innovation, enhancing connectivity, and promoting digital adoption, Sri Lanka aims to not only compete on the global stage but also uplift its most marginalized communities.

Strategic Focus Areas: Building the Pillars of a Digital Future

Sri Lanka’s digital strategy rests on five interconnected pillars, each designed to address specific challenges and unlock new opportunities. These focus areas are informed by global best practices and tailored to the country’s unique needs.

1. Digital Payments & Financial Inclusion

The push toward a cash-lite economy is a cornerstone of Sri Lanka’s digital vision. Initiatives like QR code payments, mobile wallets, and fintech platforms are expanding access to financial services, particularly for the unbanked. According to the Central Bank of Sri Lanka, digital transactions surged by 45% in 2023 alone, reflecting growing consumer trust in these tools. Private firms in Sri Lanka are driving this shift, offering seamless payment solutions for businesses and individuals alike. The goal is to create a financially inclusive ecosystem where even rural vendors can thrive in a cashless marketplace.

2. E-Governance

E-governance platforms like GovPay are revolutionizing how citizens interact with public services. From paying utility bills to accessing government records, these tools are enhancing transparency and efficiency. The Asian Development Bank notes that digitized public services can reduce administrative costs by up to 20% while improving accountability—a win-win for both citizens and the state. Sri Lanka’s e-governance efforts also align with the UN’s Sustainable Development Goals (SDGs), particularly SDG 16 (Peace, Justice, and Strong Institutions).

3. SME & Startup Enablement

Small and medium enterprises (SMEs) and startups are the backbone of Sri Lanka’s economy, accounting for over 50% of GDP. The government is empowering these businesses through digital adoption programs, innovation hubs, and regulatory sandboxes—flexible testing grounds for new technologies. Information and Communication Technology Agency (ICTA) is spearheading initiatives such as the “Spiralation” program, which provides mentorship and funding to tech startups. This support is helping entrepreneurs scale their operations and tap into global markets.

4. Sectoral Digitization

Key industries—agriculture, tourism, logistics, and manufacturing—are undergoing a digital overhaul to boost productivity and competitiveness. In agriculture, for instance, precision farming tools and mobile apps are helping farmers optimize yields and connect with buyers. Tourism, a vital revenue driver, is benefiting from digital marketing and booking platforms, while logistics firms are adopting IoT and blockchain for smarter supply chains. The World Bank estimates that sectoral digitization could add USD 5 billion to Sri Lanka’s economy by 2030.

5. Public Awareness & Literacy

Bridging the digital divide requires more than infrastructure—it demands education. NGOs, alongside development partners like UNICEF and UNDP, are rolling out nationwide campaigns to boost digital financial literacy. These efforts target rural and marginalized communities, teaching them how to use digital tools safely and effectively. A 2024 UNDP survey found that 60% of rural Sri Lankans lacked basic digital skills—a gap these programs aim to close.

Key Objectives: A Roadmap to 2030

Sri Lanka’s digital strategy is guided by clear, actionable objectives that align with its USD 15 billion vision:

• Expand Digital Payments: Promote QR codes, mobile wallets, and fintech adoption to transition toward a cash-lite society, ensuring financial inclusion for all.
• Streamline Public Services: Leverage platforms like GovPay to deliver efficient, transparent, and citizen-centric governance.
• Empower SMEs and Startups: Equip entrepreneurs with digital tools, innovation ecosystems, and regulatory support to compete globally.
• Digitize Key Sectors: Enhance productivity in agriculture, tourism, logistics, and manufacturing through targeted technology adoption.
• Raise Digital Literacy: Launch awareness campaigns to ensure every citizen, especially in underserved areas, can participate in the digital economy confidently.

Impact on Society: Transforming Lives Digitally

The ripple effects of Sri Lanka’s digital transformation are profound, touching every corner of society:

• Financial Inclusion: Digital payments are making transactions safer and more convenient, especially for the 20% of Sri Lankans previously excluded from formal banking
• Better Public Services: E-governance platforms like GovPay are cutting red tape, saving time, and rebuilding trust in government institutions.
• Job Creation: The digital enablement of SMEs and startups is fostering entrepreneurship
• Sectoral Growth: Digitized industries are becoming more competitive, with tourism revenue projected to hit USD 8 billion by 2028, thanks to online platforms
• Bridging the Divide: Rural communities are gaining access to digital tools and knowledge, narrowing the urban-rural gap.
• Digital Confidence: Literacy campaigns are reducing fraud vulnerability and empowering citizens to embrace technology.

Unlocking Digital Payments: A Dedicated Effort

A specialized working group under the Digital Revenue Economy Pillar is accelerating Sri Lanka’s shift to a cashless future. Comprising policymakers, fintech leaders, and international experts, this group is crafting action plans and policy recommendations to promote digital payment adoption. Their work builds on global trends—McKinsey predicts that cashless economies can boost GDP by up to 6%—and adapts them to Sri Lanka’s context. From expanding QR code infrastructure to incentivizing e-wallet use, this initiative is laying the groundwork for a seamless, inclusive financial ecosystem.

The Road Ahead: A Vision for Inclusive Growth

Sri Lanka’s digital revenue economy is more than a numbers game—it’s about building a future where technology serves everyone. With USD 15 billion on the horizon, the country is blending innovation with inclusion, ensuring that rural farmers, urban startups, and everyday citizens all have a stake in this transformation. Backed by global partners and driven by local ingenuity, Sri Lanka is not just adapting to the digital age—it’s redefining it.

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For more information, contact: digitaleconomy@icta.lk