Challenges facing transition towards digital economy in Sri Lanka

PRESIDENT Anura Kumara Disanayake in his capacity as Minister of Finance placed a special emphasis on the digital economy during the 2025 Budget speech.

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The Government has projected that the growth of the digital economy by 2030 will reach a value of $ 15 billion or increase to 12% of the GDP. The Government set aside $ 10 million or 3 billion Sri Lankan Rupees for digital transformation strategies this year while proposing the establishment of a new apex Digital Economic Authority, which will oversee the country’s transition towards a cashless economy.

One of the major focus areas as part of the broader digital economy program is the drive towards expanding cashless transactions within economic activities. As per the Government, a cashless economy will not only curb tax evasion and illicit financial activities but also enhance fiscal efficiency, thereby contributing towards Sri Lanka's economic stability and growth. GovPay - an online payment platform designed to facilitate digital transactions - was launched last February as the initial step in the digitalisation of the country’s government services. With the launch of GovPay, digital payments for government services are expected to double as a minimum of 100 government agencies are hoping to join the online platform.