Business
Why digital economy is key to Sri Lanka’s economic growth
By Indika De Zoysa
The global digital economy is poised for significant growth and transformation in the coming years. With technology advancements and increasing connectivity, the digital economy has become a vital driver of global economic activity. Looking ahead, several key trends and outlooks shape the future of the digital economy.
Firstly, the adoption of emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) will continue to accelerate. These technologies will revolutionize various sectors, including finance, healthcare, transportation, and manufacturing, driving efficiency and innovation.
Secondly, expanding e-commerce and digital platforms will create new business opportunities and reshape traditional industries. Online retail will continue to grow, fueled by changing consumer preferences and increased digital literacy. Additionally, the gig economy and remote work will gain prominence, enabling individuals to work flexibly and access global job markets.
Thirdly, data will play a central role in the digital economy. The collection, analysis, and data monetization will drive personalized services, targeted marketing, and enhanced decision-making. However, data privacy and cybersecurity concerns will require robust regulations and safeguards.
Digital inclusion will also be a critical focus. Efforts will be made to bridge the digital divide, ensuring equitable access to technology, connectivity, and digital skills. This will contribute to economic empowerment and social development on a global scale.
Lastly, collaborations and partnerships between governments, businesses, and international organizations will be vital in shaping the digital economy. Collaboration will drive policy frameworks, foster innovation ecosystems, and address global challenges such as digital taxation, intellectual property rights, and cross-border data flows.
Impact on Sri Lanka
The digital economy’s impact on Asia is transforming various aspects of society, economy, and technology. The region has experienced significant growth in digital infrastructure, internet penetration, and smartphone adoption, leading to the rise of digital platforms, e-commerce, and digital services. This has fueled entrepreneurship, job creation, and economic growth. The digital economy in Sri Lanka has been steadily growing and significantly impacting various sectors of the country’s economy. The Sri Lanka Governmenthas recognized the potential of the digital economy and has been implementing policies and initiatives to promote its development.
One key area of focus has been the expansion of digital infrastructure and connectivity. Efforts have been made to improve internet access and broadband connectivity across the country, enabling more people to participate in the digital economy. This has resulted in increased internet penetration and smartphone adoption.
On the other hand, the e-commerce sector has experienced significant growth in Sri Lanka. Online shopping platforms have gained popularity, and more businesses are establishing digital presence. This has expanded market access for small and medium-sized enterprises (SMEs) and has facilitated cross-border trade.
Digital financial services have also witnessed significant progress. Mobile payment solutions and digital banking services have gained traction, making financial transactions more convenient and accessible for individuals and businesses. This has helped drive financial inclusion and expand access to formal financial services.
Furthermore, the government has been promoting digital skills development and entrepreneurship. Initiatives have been launched to enhance digital literacy and provide training incoding, data analytics, and digital marketing. This has equipped the workforce with the skills needed to participate in the digital economy and has supported the growth of digital startups and innovation.
Tackling the challenges
However, challenges remain in fully harnessing the potential of the digital economy in Sri Lanka. These include addressing regulatory frameworks, ensuring data privacy and cybersecurity, and bridging the digital divide, particularly in rural areas. Continued investment in digital infrastructure, education, and policy reforms will be crucial in furthering the growth and impact of the digital economy in Sri Lanka.
The future of the digital economy is expected to be dynamic and transformative, with several key trends shaping its trajectory.Most importantly, artificial intelligence will enable automation and personalized services, while blockchain will revolutionize supply chains, financial transactions, and digital identities. AR will enhance immersive experiences, and the IoT will connect billions of devices, creating a networked ecosystem.
Data will continue to be a valuable asset, driving innovation, and economic growth. Striking the right balance between data privacy and data utilization will be crucial, and regulations may evolve to protect individuals’ rights while fostering innovation. Traditional industries will undergo digital transformation driven by automation, connectivity, and analytics. Businesses will embrace digital technologies to enhance efficiency, productivity, and customer experience.
Efforts to bridge the digital divide and promote digital inclusion will gain importance. The Government needs to work to ensure equitable access to technology, connectivity, and digital skills. This includes initiatives to provide internet access to rural areas, promote digital literacy, and create opportunities for underrepresented groups in the digital economy.
As the digital economy expands, cybersecurity will be a critical concern. Protecting sensitive data, securing digital infrastructure, and combating cyber threats will be paramount. Strengthening cybersecurity measures and building trust in digital systems will be essential for the sustainable growth of the digital economy. Also, collaboration between the Government and different stakeholders will be vital to address challenges and seize opportunities in the digital economy.
In summary, the future of the digital economy holds tremendous potential for innovation, efficiency, and economic growth. Embracing these trends and navigating the associated challenges will be crucial for Sri Lanka to thrive in the digital age.
(The writer is the Chairman of Federation of Information Technology Industry Sri Lanka (FITIS))
Cargills Food and Beverage Ltd. through its brands KIST and Knuckles, has signed a Memorandum of Understanding (MoU) with Clean Ocean Force Lanka (COF) to adopt Crow Island Beach for one year, reinforcing its commitment to long-term coastal conservation in Sri Lanka.
This pioneering initiative is designed to protect and preserve the coastal environment through several key measures, including the removal of plastic and other pollutants from the beach and surrounding coastal area. As part of the adoption programme, the beach will be maintained daily with the support of dedicated beach caretakers, while also supporting their livelihoods by providing meaningful income opportunities.
Marking the partnership and in celebration of World Recycling Day, a coastal clean-up programme was conducted at Crow Island Beach to remove plastic and other manmade pollutants. Volunteers from Cargills, Clean Ocean Force Lanka, the Interact Club of Colombo, the Colombo Municipal Council and the Women’s Force of COF Negombo (Sri Vimukthi Association) participated in the clean-up with support from the Marine Environment Protection Authority (MEPA), the Sri Lanka Police Environmental Division and the Ministry of Local Government and Environment as well as the Crow Island Beach Park Society.
Jerome Fernando, Chairman & Co-founder of Clean Ocean Force Lanka said that, “Marine & Coast Conservation demands a unified front. Our unique Public-Private-People Partnership model is the cornerstone of our mission, and today, we are thrilled to welcome Cargills (Ceylon) PLC as a vital partner in this journey adopting the Crow Island Beach for the next one year. This collaboration will not only amplify our efforts to eliminate plastic and manmade pollutants from our beaches, but also reinforce our commitment to empowering marginalized communities through sustainable livelihood opportunities. Cargills’ deep-rooted dedication to environmental sustainability and community wellbeing perfectly aligns with our vision.”
Jagath Gunasekara, General Manager of MEPA added, “The Marine Environment Protection Authority consistently promotes active private sector engagement in marine and coastal conservation, as well as pollution control initiatives. This approach aligns closely with our Beach Caretaker Programme. We are pleased to collaborate with Cargills (Ceylon) PLC in the adoption of Crow Island Beach through our long-standing partnership with Clean Ocean Force Lanka.”
During the event, Knuckles also launched Sri Lanka’s first tethered bottle cap, introducing a packaging innovation aimed at improving plastic waste management and supporting recycling efforts. The tethered cap is designed to remain attached to the bottle after opening, reducing the likelihood of caps being discarded separately. Bottle caps are among the most commonly littered plastic items globally and frequently enter landfills and waterways due to their small size and low collection rates.
Speaking on the initiative, Arjuna Kumarasinghe, Managing Director of Cargills Food & Beverage Ltd., said, “Cargills has always believed in taking responsibility for the communities and environments around us. By adopting Crow Island Beach, we’re able to work closely with our partners and local volunteers to protect this part of our coastline. Launching the tethered bottle cap is another way we’re addressing plastic waste and making recycling easier for everyone.”
The Central Bank is keeping its overnight policy rates unchanged, adopting a cautious stance amid uncertainty over the inflationary impact of energy prices due to the Middle East crisis.
‘We maintained the overnight policy rate at 7.75 percent, considering low inflation and a restrained approach on the fallout of the US-Israeli war on Iran, Central Bank Governor Dr Nandalal Weerasinghe said.
The Governor made these remarks yesterday at a press briefing held at the Central Bank head office in Colombo to announce the monthly monetary policy stance.
Dr Weerasinghe added: ‘Inflation is now expected to reach the Central Bank’s target of 5 percent in the second quarter of 2026, after Sri Lanka raised fuel prices by about 35 percent this month.
‘However, spillovers from the ongoing conflict could weigh on domestic economic activity in the period ahead should the conflict be prolonged.
‘The rates were steady since last May as the nation recovers from a 2022 financial crisis driven by a severe dollar shortage.
‘Supported by a US$ 2.9 billion programme with the IMF, Sri Lanka posted a strong economic recovery last year, growing by 5 percent and now targeting growth between 4 percent and 5 per cent in 2026.
‘What stands out is that they see space for inflation to rise because of energy prices but still stay contained.
‘From now to June, underlying economic momentum has the space to keep pace despite the disruption because domestic liquidity and credit has been quite substantial as well.
‘An IMF team will arrive in Colombo on Friday for the combined fifth and sixth reviews of the bailout.
‘Furthermore, Gross Official Reserves increased to US$ 7.3 billion at end February 2026 and the Central Bank purchased a substantial amount of foreign exchange from the market in the first two months of the year.
‘However, the ongoing conflict in the Middle East poses risks to Sri Lanka’s external sector outlook, particularly through energy, tourism, trade and remittance flows, although the overall magnitude of the impact remains uncertain.
‘While the Sri Lanka rupee remained relatively stable in early 2026, some depreciation pressures were observed following the onset of the Middle East conflict, similar to the exchange rates of regional peers.
‘Meanwhile, the Monetary Policy Board remains prepared to implement appropriate policy measures to ensure that inflation stabilizes around the target, while supporting the economy to reach its potential.’
By Hiran H Senewiratne
Dialog Television, Sri Lanka’s #1 Pay-TV service provider, has announced the latest upgrade to its smart entertainment lineup with the Dialog Play Mini, featuring seamless access to global streaming platforms including Netflix, Apple TV and YouTube, alongside the Dialog Play entertainment ecosystem for a unified viewing experience. Previously known as the ViU Mini, the device has now been reintroduced as the Dialog Play Mini, reflecting the evolution of Dialog’s digital entertainment platform under the Dialog Play brand.
The Dialog Play Mini transforms any television into a smart 4K entertainment hub by enabling hybrid multi-platform streaming across leading global and local content platforms, delivering a smoother, more intuitive viewing experience. Whether enjoying Netflix originals, Apple TV exclusives, or local favorites, households can now experience world-class entertainment in one compact device.
The Dialog Play Mini brings a streamlined, user-friendly experience to any home setup. Its single numeric-keypad remote controls both the TV and the device, offering simplicity and convenience for everyday viewing. With multiple connectivity options including Wi-Fi, hotspot, LAN, or wingle, the device ensures uninterrupted entertainment even in areas without smart TVs or advanced broadband setups.
Bridging the gap between entry-level set-top boxes and premium Android TV devices, the Dialog Play Mini offers a plug-and-play smart experience. Supported by Dialog’s nationwide service network, local warranty, and after-sales care, it delivers a reliable, feature-rich entertainment experience for Sri Lankan homes.
“With Dialog Play Mini, entertainment becomes more directly accessible for every Sri Lankan home – with or without a Smart TV,” said Lim Li San, Group Chief Operating Officer of Dialog Axiata PLC. “By bringing Netflix, Apple TV, YouTube, and Dialog Play together in one compact 4K-ready device, we’re redefining home entertainment through simplicity, innovation, and the power of connectivity.”
The Dialog Play Mini is now available at Dialog Experience Centers and authorized retailers islandwide. To purchase online, please visit
https://dialog.lk/dialog-play-mini
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