(UNDP) For 30 years, the Human Development Index (HDI) showed a consistent increase in development progress and a decrease in inequality. Although the crises of 2020-2021 disrupted this trend, last year’s report saw tentative signs of recovery. The 2025 HDR has quashed this optimism.

Amid ongoing global turmoil, inequality has increased for the fourth consecutive year. The situation is especially severe for countries with the lowest Human Development Index (HDI) scores, as the most vulnerable continue to fall further behind. According to the new report, Sri Lanka’s HDI rank remains at 89, while the Gender Inequality Index has risen to 93 from 122 in 2024. The HDI measures the average achievement in three basic dimensions of human development: a long and healthy life, knowledge and a decent standard of living.

Marking a pivotal moment for digital transformation and inclusive development, Sri Lanka, on Friday, launched the 2025 Human Development Report (HDR) published by the United Nations Development Programme (UNDP), titled ‘A Matter of Choice: People and Possibilities in the Age of AI’.

The launch event was co-hosted by the Ministry of Digital Economy (MoDE) and UNDP in Sri Lanka with the participation of Eranga Weeraratne, Deputy Minister of Digital Economy; Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy; Waruna Sri Dhanapala, Acting Secretary, Ministry of Digital Economy; Azusa Kubota, Resident Representative, UNDP in Sri Lanka, among other high-level dignitaries. The event served as a platform for a multi-stakeholder dialogue, bringing together over 200 participants from the government, development partners, UN agencies, the private sector, academia, and civil society.

Azusa Kubota, Resident Representative, UNDP in Sri Lanka, underscored the significance of the moment, noting, “Sri Lanka’s Human Development journey is a story of resilience and ambition, but recent years have shown us that progress cannot be taken for granted. The 2025 Human Development Report reminds us that we stand at a crossroads: one path leads to deepening divides, while the other leads to inclusive transformation. Artificial Intelligence can propel human development if it is people-centred. At UNDP, we believe AI must serve people, not replace them. This is why we are proud to have supported Sri Lanka’s first AI strategy—anchored in equity, ethics, and empowerment”.

The launch event included the presentation of key findings from the 2025 HDR, which highlighted global, regional, and Sri Lanka-specific trends in the dynamic field of artificial intelligence. The HDR Report 2025 explores AI’s transformative impact on human development, emphasising that the choices societies make in its design, governance, and application will determine whether the technology becomes a catalyst for empowerment or a driver of exclusion.

Speaking on the Government’s role,  Eranga Weeraratne, Deputy Minister of Digital Economy, stated, “AI is no longer optional; it can empower or exclude. AI is changing how we work, what skills are needed, and which jobs will grow. But here’s the truth — those who are prepared will thrive. And we want Sri Lanka to be ready. If we adapt smartly, AI can be the engine for the next generation of jobs. New industries, new services, and entirely new careers will emerge. Sri Lanka’s AI Strategy chooses inclusive empowerment, grounded in trusted data, talent, digital infrastructure, innovation, and ethics. Our goal is a US$15 billion digital economy by 2030. AI will be key to building a future-ready, ethical, and inclusive economy for all Sri Lankans.”

The launch coincides with a pivotal moment in Sri Lanka’s digital transformation journey. Since late 2023, UNDP has partnered with the Ministry of Digital Economy and is continuing its support provided to the previous Committee on Formulating the Strategy on AI (CFSAI) to support the formulation of Sri Lanka’s first National Artificial Intelligence Strategy. This collaboration has involved technical assistance, policy advisory support, and facilitation of dialogue among international and local experts. The strategy, informed by both global best practices and national development priorities, is designed to be inclusive, forward-looking, and tailored to the unique needs of Sri Lanka. Throughout this process, UNDP provided sustained support to ensure the strategy is firmly anchored in human development principles, promoting both equity and innovation at its core.

Noting the importance of AI’s transformative role in society, Dr. Hans Wijayasuriya, Chief Advisor to the President on DigitalEconomy, stated, “When harnessed alongside guardrails which give primacy for inclusion and responsible application, AI has the potential to deliver profound and transformational outcomes with respect to Digital Economy acceleration and Public Service delivery.  The UNDP’s Human Development Report identifies socio-economic development levers which in concert with Sri Lanka’s Digital Economy Blueprint will shape AI and digital policies that are equitable, forward-looking, and responsive to the needs of all Sri Lankans”.