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Lanka emerging as Asia’s next startup and innovation hub
Sri Lanka’s rapidly growing startup ecosystem is drawing increasing regional and global attention, positioning the country as a rising innovation hub in Asia. With a strong ICT sector, high literacy rates, and a growing pool of skilled professionals, Sri Lanka is primed to become a hotbed for technology startups and product innovation.
Key highlight this year is the arrival of over 35 global investors attending the Venture Engine Finale, alongside the Disrupt Asia conference, creating an unprecedented opportunity for Sri Lankan startups to connect with leading venture capitalists and industry experts from APAC, MENA, Europe, and the United States.
Marquee investors and organizations participating include Turtle Ventures, The Brenta Group, Accelerating Asia Ventures, Antler Nordics, Startup Grind Qatar, Angels Nest Global, Quest Ventures, Citigroup, Triliv Holdings, Dallas Venture Capital (DVC), House of Sri Lanka, Beyond The Dutch, Plug and Play, Sophia Business Angels, Storyboard Multimedia, Striders Corporation, Japan, Sultan Ventures, TiE Dubai, Momo VC, BOV Capital, Aavishkaar Group, Turtle Ventures, Gojek, Rasmal Ventures, Intellecap, ISA, Millennium Asset Management Saint Clair Advisory & Capital and Sri Lankan Business Council – UAE,,
Entrepreneurship is seen as a catalyst for economic growth, job creation, and innovation. However, the biggest challenge facing Sri Lanka’s startup sector remains access to sufficient funding. Currently, the country attracts only about USD 2.5 million in venture capital annually significantly below regional hubs where investment reaches nearly 0.5% of GDP.
Industry experts suggest that Sri Lanka should aim to increase venture funding to at least 0.1% of GDP, approximately USD 80 million, to foster the growth of startups capable of producing globally competitive products and intellectual property. Efforts are underway to create a conducive policy environment, including the establishment of a government-backed Fund of Funds along with tax pass thogh structures to catalyze institutional investments into local venture funds and startups.
“These policy reforms, combined with private sector initiatives like Venture Engine, are driving momentum in Sri Lanka’s ecosystem,” said Prajeeth Balasubramanian, Co-Founder of BOV Capital and Founder of the Lankan Angel Network. “Venture Engine is pivotal in connecting startups with international investors, providing mentorship, and catalyzing capital flows.”
Successful alumni from Venture Engine include Roar, InsureMe, Stripes & Checks, Zig Zag and Mint Pay, demonstrating the program’s effectiveness in scaling startups and attracting investor interest.
With ongoing regulatory relaxation, improved tax frameworks, and increased investor participation, Sri Lanka is steadily unlocking the funding needed to transform its startup landscape. The presence of top-tier international investors at upcoming events underscores the global confidence in Sri Lanka’s potential as a startup destination.
As Sri Lanka charts its path to becoming Asia’s next innovation hub, sustained collaboration between government, investors, and ecosystem players will be vital to unlocking enduring economic and social benefits for the country.
News
Three arrested with narcotics valued at Rs123 million at BIA
Three Sri Lankan male passengers who arrived from Muscat by flight no. OV 437 on Saturday (24) have been arrested by officers attached to the NCU at BIA as they were found to be carrying 12,306 grams of Cannabis class narcotics (suspected as Hashish & Kush) valued at 123 million rupees.
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Navy intercepts 02 narcotics-laden trawlers with 11 suspects in southern seas
Building on its success in seizing major narcotic stocks in 2025, the Navy continued to support the “A Nation United” National Mission in 2026. In continuation of these efforts, during an
operation conducted on the high seas south of Sri Lanka, the Navy apprehended eleven (11) suspects aboard two local multi-day fishing trawlers suspected of drug smuggling.
Based on shared information, by the Sri Lanka Navy and Police, this special operation was conducted off the southern coast, deploying the Navy‟s Offshore Patrol Vessels. The operation
resulted in the interception of a multi-day fishing trawler suspected of smuggling narcotics, and the apprehension of five (05) suspects on board.
During further operations in the same area, naval units seized another multi-day fishing trawler (01), along with communication equipment and six (06) additional suspects, also believed to be involved in drug smuggling.
This morning (25 Jan 26), the two intercepted fishing trawlers, along with fourteen (14) sacks laden with suspected narcotics and the suspects, were brought to the Dikovita Fisheries Harbour.
An expert examination by the Police Narcotic Bureau confirmed that the fourteen (14) sacks contained more than 184 kilograms of heroin and over 112 kilograms of ‘Ice’ (crystal methamphetamine).
The Deputy Minister of Defence, Major General (Retd) Aruna Jayasekara, the Commander of the Navy, Vice Admiral Kanchana Banagoda, and the Inspector General of Police, Priyantha Weerasuriya, inspected the narcotics at the Dikovita harbour.
The Deputy Minister of Defence said that the current administration has initiated several projects for national development. As a flagship initiative, under the directives and guidance of the President, and under the supervision of the
Ministry of Defence, well-coordinated anti-narcotic raids have been launched.
This effort, part of “A Nation United” National Mission, involves the tri-forces, police, and all intelligence agencies working together under a coordinated plan to ensure that drug smugglers have no opportunity to bring narcotics into the country, he opined. He further stated that despite the national disaster situation, the state machinery, including the tri-forces, the police, and the public at large, remains united in rebuilding the nation, no room will be left for drug trafficking, which poses a severe threat to national security and public safety. Those
who engage in or support drug trafficking, under the cover of fishing activities, will find no escape, he added.
The Deputy Minister also reaffirmed that the tri-forces, police, and all law enforcement agencies are fully committed to their duty of suppressing this menace.
The Deputy Minister of Defence reported that, throughout 2025, a series of highly successful operations were conducted leading to numerous arrests. This was achieved through close coordination and mutual cooperation among the tri-services, the police, the Special Task Force, Police Narcotics Bureau, local law enforcement and international agencies. He noted that this
same spirit of cooperation and commitment has continued into 2026, resulting in the seizure of a large stockpile of drugs.
On behalf of the Honourable President, he extended gratitude to all who contributed to these efforts, specifically acknowledging the Commander of the Navy, the Inspector General of Police, the Police Narcotic Bureau, and the crews of the Navy’s Offshore
Patrol Vessels.
Moreover, the Deputy Minister declared that drug smuggling has become a national crisis, fueled by youth involvement and social crime. With borders secured under the “Nation United” National Mission, he warned traffickers to cease operations and urged users to abandon the destructive habit.
The Deputy Minister urged the public to report suspected drug smugglers to law enforcement via the hotlines 1818 or 1997 and also commended the role of media institutions and journalists in raising public awareness about the dangers of narcotics through responsible reporting.
Meanwhile, the two (02) multi-day fishing trawlers, along with a haul of narcotics, eleven (11) suspects, and communication equipment, were handed over to the Police Narcotic Bureau for
further investigation and legal proceedings.
News
Engineers draw red line as CEBEU warns of union action over appointed date
Engineers at the Ceylon Electricity Board have drawn a clear red line over the government’s plan to gazette the appointed date for restructuring the utility, warning that trade union action will follow if the move is pushed through without addressing their core demands, the Sunday Island learns.
The powerful Ceylon Electricity Board Engineers’ Union (CEBEU) says preparations are already under way for industrial action, most likely after the appointed date gazette is published, should the Minister proceed without resolving outstanding issues raised repeatedly by engineers.
“If the appointed date is gazetted without addressing our demands, we will have no option but to take trade union action,” a senior electrical engineer told The Island, stressing that the warning should be taken seriously.
CEBEU sources say the engineers’ demands are aimed at preventing a structural and financial crisis in the electricity sector, rather than blocking reform. They insist that unbundling the CEB without first putting in place firm safeguards would expose the sector to instability and consumers to higher costs.
The engineers’ key demands include: legally binding financial safeguards to ensure the proposed Electricity Generation Company is viable from inception; protection against the transfer of legacy liabilities, extraordinary costs, or inefficiencies to new entities or electricity consumers; enforceable accountability for management and policy decisions that inflate system costs; genuine, structured consultation with technical professionals before irreversible decisions are taken; and a halt to gazetting the appointed date until these safeguards are formally incorporated.
Engineers warn that rushing the appointed date would lock existing weaknesses into the new structure, making them harder—and more expensive—to fix later. “Once the appointed date is gazetted, there is no rewind button,” a senior engineer said. “If the foundation is flawed, the entire structure will suffer.”
Meanwhile, according to energy analyst, Dr. Vidhura Ralapanwe, electricity sector reforms must be grounded in technical and financial reality, not driven by administrative timelines.
He has cautioned that implementing structural changes without correcting underlying governance and cost issues risks destabilising the sector and undermining public confidence.
CEBEU officials reject claims that the union is resisting reform. They say engineers are being sidelined in decision-making while being held responsible for system performance. “We are accountable for keeping the system running, but our professional warnings are being ignored,” one engineer said. “That is not reform; it is reckless governance.”
With the Minister yet to gazette the appointed date, tensions within the power sector are rising sharply.
Engineers say the government now faces a stark choice: engage with professionals and fix the problems first—or brace for confrontation in a sector where disruption will have coutrywide consequences.
By Ifham Nizam ✍️
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