Sri Lanka’s digital pivot: Unlocking growth, Innovation and global competitiveness

Sri Lanka’s Digital Pivot: Unlocking Growth, Innovation & Global Competitiveness

- By Dr. W.G. SOMARATHNE, AGRICULTURE ECONOMIST

Sri Lanka is at a critical juncture. The global economy is undergoing a digital transformation, reshaping how nations produce, govern, and compete. For Sri Lanka, digitalization presents an unparalleled opportunity to revive economic growth, reduce inefficiencies, bridge regional inequalities, and improve citizen well-being. However, the transition requires vision, investment, digital infrastructure, and decisive leadership.

Why a Digital Economy is Crucial

1. Boosting Economic Growth & Employment

Digital tools can raise productivity in agriculture, manufacturing, and services through automation, e-commerce, and smart supply chains. Emerging sectors—like fintech, digital marketing, and IT services—can create thousands of high-quality jobs, particularly for youth and women. SMEs, the backbone of Sri Lanka’s economy, stand to gain through market access via digital platforms.

2. Fostering Innovation & Entrepreneurship

Lower barriers to entry in digital sectors empower aspiring entrepreneurs to build tech-enabled startups. Sectors like agri-tech, health-tech, and edu-tech can offer custom solutions to local problems—improving rural incomes, access to healthcare, and education delivery.

3. Attracting Foreign Direct Investment (FDI)