Promising local AI startups stifled by ‘prototype-level’ ecosystem, warn industry experts

Sri Lanka has world-class tech talent capable of building Al-driven startups that can compete globally, but the country's startup ecosystem remains “stuck at a prototype level; hindered by limited venture capital, outdated investment mechanisms, and weak government support, industry leaders warned.

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During a panel discussion titled ‘Scaling Al in Startups and SMEs; at the at the recent National Al Expo 2025, experts said promising startups often struggle to secure funding and are forced to relocate abroad to scale their innovations.

The panel included Heminda Jayaweera, CEO of TRACE Expert City; Indika De Zoysa, strategic advisor and national ICT policy expert; Thurupathan Vijayakumar, Al industry professional; Ravin Tharinda Piyasiri, Sri Lanka Telecom Deputy General Manager; and Ishari Siriwardane, SLT Mobitel General Manager of Digital Transformation Projects.