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Sri Lanka to start National AI Fund
Sri Lanka is launching a National AI Fund with an initial investment of Rs 100 million (US$ 333,000) aimed at nurturing local innovation and adding significantly to the US$15 billion digital economy targeted by 2030, according to a report published by Biometric Update.
Sri Lanka is aiming for a fivefold growth in its digital economy over the next five years, with a strong emphasis on artificial intelligence (AI) as an essential element of its growth strategy.
AI is projected to generate between US$1.5 to US$1.8 billion, representing 10-12 percent of the digital economy, Dr. Mothilal de Silva, Chairman of Sri Lanka Telecom (SLT), said at the launch of Sri Lanka’s first AI Expo & Conference 2025 in Colombo, organised in partnership with the Ministry of Digital Economy and Huawei. The event is designed to position Sri Lanka as a leader in the global AI landscape.
Dr. de Silva noted that SLT-Mobitel’s shift from a traditional telecommunications provider to a technology enabler, leveraging its wide infrastructure. This infrastructure, which includes a nationwide fiber network and a 5G-ready Mobitel network, is critical for the implementation of real-time AI applications and supports scalable development through AI-upgradable data centres and cloud solutions.
“The question is not whether AI will transform the world, but if Sri Lanka will lead or follow,” said Dr. de Silva.
The AI Expo, scheduled for September 29 and 30, will feature international experts from major tech companies and stage live demonstrations of AI applications across various sectors, including healthcare, education, and agriculture. To endorse accessibility, mini expos will also be held in several cities, including Jaffna, Anuradhapura, Galle, and Kandy.
Dr. de Silva called for partnerships among the government, private sector, and academia to collectively change Sri Lanka into an innovative and responsible AI leader.
Dr. Hans Wijayasuriya, the Chief Advisor to the President on Digital Economy, told Biometric Update in June that a national AI policy draft is in the works, and that an advisory committee on AI is currently focusing both on future direction and strategy, infrastructure regulation, policy, guardrails and protection, along with the rights of citizens in an AI era.
“When harnessed alongside guardrails which give primacy for inclusion and responsible application, AI has the potential to deliver profound and transformational outcomes for Digital Economy acceleration and Public Service delivery,” Dr. Wijayasuriya said.
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Cabinet approves establishment of Activity-Based Learning Centers at Regional Level for Commerce Education
The importance of establishing learning centers at regional level has been identified in order to achieve multiple objectives, including the development of teachers, utilization as a hub for new technology and resource sharing, enhancement of vocational and higher education opportunities, efficient utilization of limited physical and human resources, integration of new technologies with subject-specific knowledge,
sharing of limited resources to ensure equitable access to education, and development of skills in line with regional potential, thereby contributing to the qualitative development of commerce education.
Accordingly, the project to establish 100 activity-based learning centers for the enhancement of commerce education has been included in the Public Investment Programme as a major investment project in general education, with an estimated total cost of Rs. 289 million, to be implemented during the period 2026–2028.
Having considered the proposal submitted by the Prime Minister, in her capacity as the Minister of Education, Higher Education and Vocational Education, Cabinet approval was granted to establish and operationalize 25 regional centres covering all 25 districts.
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M/s. Resources Development Consultants (Pvt) Ltd appointed to prepare Feasibility Study and detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura
Approval was granted at the Cabinet Meeting held on 21-10-2025 to carry out a feasibility study and prepare detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura.
The calling of expressions for this purpose has been conducted under the national Competitive Procurement Procedure, and 8 bidders have submitted their Expression of Interest in that respect.
Following the evaluation of technical proposals submitted by the short-listed bidders, and financial proposals of the 4 eligible institutions have been opened. Subsequent to the evaluation of the aforementioned financial proposals, the Consultant Procurement Committee has recommended awarding
the consultancy for the feasibility study and preparation of detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura to M/s. Resources Development Consultants (Pvt) Ltd at a total cost of Rs. 356.22 million (exclusive of taxes).
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Transport, Highways and Urban Development to award the said procurement in line with the above recommendation.
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Import and Export (Control) Regulations No. 01 of 2026, issued under the Imports and Exports (Control) Act, No. 1 of 1969, to be submitted for concurrence of the Parliament
The Special Import Licence Regulations No. 01 of 2023, published in Extraordinary Gazette No. 2312/77 dated 01-01-2023, prohibit the importation of retreaded tires, including those used for aircraft.
However, the Ministry of Ports and Civil Aviation has made a request that an exemption be granted to permit the importation of retreaded aircraft tires classified under HS Code 4012.13 for Sri Lankan Airlines.
Taking into consideration essential operational and safety requirements, it has been decided to permit the importation of retreaded aircraft tires classified under HS Code 4012.13, subject to the recommendation of the Ministry of Ports and Civil Aviation, provided that such tires comply with the requirements specified by internationally recognized aviation authorities and are imported by Sri Lankan airline operators engaged in international air services under a duly executed supply agreement between the airline and a certified international supplier.
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to submit the Import and Export (Control) Regulations No. 01 of 2026, published in Extraordinary Gazette No. 2481/02 dated 23-03-2026 under the provisions of the Imports and Exports (Control) Act, No. 1 of 1969, for the concurrence of the Parliament.
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