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Why digital economy is key to Sri Lanka’s economic growth

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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))



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Financial literacy central to country’s development – CBSL Governor

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Dr. Nandalal Weerasinghe: ‘Financial literacy vital’.

By Hiran H. Senewiratne

Sri Lanka’s financial literacy rate is approximately 58 percent. Such literacy is absolutely necessary for the inclusion of people in the country’s financial system which in turn is central to overall economic development, Central Bank Governor Dr. Nandalal Weerasinghe said.

‘One needs to have knowledge and skills of a financial nature to figure in financial inclusiveness. While 86 percent of Sri Lanka’s population has access to the country’s financial system, 82 percent of the public has at least a savings account in the country’s banking system, Dr Weerasinghe said.

The Governor made these comments recently at the inauguration of Financial Literacy Month 2026 at the Central Bank’s Centre for Banking Studies, Rajagiriya.

Dr. Weerasinghe added: ‘Suitable, affordable and quality financial instruments are needed to enhance financial literacy in the country.

‘Financial information has to be accurate, risk-free and accountable, thus creating confidentiality in the financial system, which would enable the sector to reach greater heights’.

Meanwhile CBSL sources said: ‘The Literacy Month opened with the two-day ‘FinLit Expo Colombo’. The expo gives the public the opportunity to engage with institutions, better understand financial services, gain practical insights into managing their finances and learn how to protect themselves from financial fraud and scams.

‘The CBSL is leading the program in collaboration with stakeholder institutions. It forms part of the Financial Literacy Roadmap for Sri Lanka, which is implemented under the National Financial Inclusion Strategy (NFIS), the national framework for widening access to and use of formal financial services.

‘The Colombo event will be followed by six regional ‘FinLit Expos’ aimed at direct engagement with local communities. Partner institutions will also run awareness activities. Together, the events are intended to provide financial education to communities and encourage people to apply financial knowledge in everyday life.

‘A public awareness campaign on television, radio, newspapers and social media will extend the program’s reach. The program also includes digital financial literacy activities and the promotion of QR codes and other online payment methods.

‘The public and stakeholder institutions are encouraged to take part in the month’s activities under the theme, “Towards a Financially Literate Sri Lanka”.

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HUTCH strikes five awards as the only telco honoured at SLIM DIGIS 2.6

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HUTCH Sri Lanka strengthened its position as a leader in digital engagement by securing five accolades at SLIM Digis 2.6, emerging as one of the most recognized brands at this year’s digital excellence awards. The achievement was further highlighted by HUTCH being the only telecom operator to be recognized at the event.

Organized by the Sri Lanka Institute of Marketing (SLIM), SLIM Digis is Sri Lanka’s premier platform celebrating excellence, innovation, and outstanding achievements in the digital marketing industry. The recognition highlights HUTCH’s growing strength in digital-first, agile, and creative marketing, and its ability to respond to everyday moments, engage audiences, and deliver impactful digital campaigns.

The Gold Award for Best Use of Agile and Moment Marketing, a Silver for Best Use of Digital in a Marketing Campaign, and a Bronze for Best Performance Marketing were all awarded for “Keeping Sri Lanka Connected Through Ditwah,” HUTCH’s response to the cyclone that struck Sri Lanka in November 2025, recognised for the speed and relevance with which HUTCH kept customers better connected and informed.

HUTCH Roaming also earned two further Bronze awards for Best Use of Digital in a Marketing Campaign and Best Use of Creative Content. Bringing together AI-led storytelling, the campaign was designed around distinct customer clusters, each characterized by unique travel behaviours, needs, and perceptions, delivering relevant content for different audiences within a single overarching campaign.

“These wins are a strong reflection of how HUTCH approaches marketing today, staying close to the moments that matter to our customers and responding with speed, relevance, and creativity. Being the only telco recognised at SLIM DIGIS 2.6, and across five categories, is proof that agility and thoughtful storytelling can go hand in hand. This recognition reflects the collective efforts with our strategic partners, whose collaboration, expertise, and shared commitment brought great campaigns to life,” said Hamdhy Hassen, Chief Marketing Officer, HUTCH Sri Lanka.

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Fairway Colombo named Official Accommodation Partner of Manhunt International 2026

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(L-R): Gamunu Cooray, Ms. Tharushi Kulathunga, Avinga Wanigasekara, Arjuna Senanayake, and Jagath De Almeda at the signing ceremony held at Fairway Colombo.

Sri Lanka’s Smart Luxury Business Hotel to Host Delegates and Contestants from Over 40 Countries as the Island Nation Hosts Its First-Ever Global Pageant of This Scale

Fairway Colombo, a subsidiary of Fairway Holdings (Pvt) Ltd, has been appointed as the Official Accommodation Partner for Manhunt International 2026, one of the world’s most prestigious male pageants, scheduled to take place in Sri Lanka.

The event marks a historic milestone for Sri Lanka, as the country prepares to host a global pageant of this scale for the very first time. More than 40 contestants representing countries from across the world will arrive in Colombo, bringing together diverse cultures, international media attention, and a global audience — further strengthening Sri Lanka’s position as a premier destination for tourism, culture, and hospitality.

As the official accommodation partner, Fairway Colombo will welcome and host international delegates and contestants throughout their stay in Colombo, delivering the exceptional hospitality experience and personalized service that the hotel is recognized for.

A Landmark Partnership for Sri Lankan Tourism

“We are truly honored to be selected as the Official Accommodation Partner for Manhunt International 2026. This partnership is a proud moment not only for Fairway Colombo but also for Sri Lanka as a whole. Hosting an event of this global stature provides us with an opportunity to showcase our commitment to smart luxury, innovation, and authentic Sri Lankan hospitality to an international audience. We look forward to creating a memorable and seamless experience for all delegates and guests,” said Avinga Wanigasekara, General Manager of Fairway Colombo.

Strategically located in the heart of Colombo’s historic Fort district, Fairway Colombo is recognized as a Smart Luxury Business Hotel, combining modern comfort, advanced technology, and exceptional service. As part of Fairway Holdings (Pvt) Ltd, the property represents the group’s vision of delivering innovative, world-class experiences across the hospitality and leisure sectors.

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