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))
Business
Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General
The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.
The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.
The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.
Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.
Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.
The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.
A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.
Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.
It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.
The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.
The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.
Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.
The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.
Business
Construction industry offers blueprint for Sri Lanka’s recovery
The dawn of 2026 represents a time for critical recalibration, not just ceremony, for the nation’s vital construction sector, says Eng Nissanka N Wijeratne, Secretary General/CEO of the Chamber of Construction Industry (CCI).
In a New Year message, Wijeratne reframes the annual greeting as a strategic call to action. “For Sri Lanka’s construction industry – the true backbone of our economy – the turning of the calendar is an ideal moment for a realistic and forward-looking assessment,” he states.
His vision sketches a practical blueprint where the unprecedented challenges of the recent past become the foundation for a smarter, more sustainable future.
The industry, long considered a barometer of national prosperity, has weathered severe headwinds: economic volatility and spiraling material costs. “These were not mere business cycles, but unprecedented tests,” Wijeratne notes, acknowledging the severe strain on firms and professionals. Yet, the sector’s response, he observes, has been “nothing short of remarkable,” showcasing a deeply ingrained resilience.
The Chamber’s chosen theme for the year, “Resilience through Innovation,” signals a pivotal shift from enduring hardship to actively engineering progress.
The pathway forward, Wijeratne outlines, is built on three interdependent pillars.
First is the revitalization of Infrastructure. “This is not a simple call for new projects,” he clarifies, “but a strategic push to reactivate stalled ventures and initiate sustainable developments in concert with the government and international agencies.” He emphasises that construction activity is intrinsically linked to the broader economy’s pulse, where resuming projects catalyses employment, energises supply chains, and restores public confidence.
The second pillar, technological Integration, addresses the urgent need to modernise the sector’s core. Advocacy for Building Information Modeling (BIM), green building practices, and digital project management is a direct answer to past inefficiencies. “It is a commitment to ensuring Sri Lankan construction is not just rebuilt, but upgraded becoming more competitive, cost-effective, and environmentally responsible,” Wijeratne says. ” Innovation must move from slogan to practice, transforming how the nation conceives, builds, and maintains its infrastructure,” he notes.
The third pillar, consistent policy advocacy, underpins all efforts. The Chamber positions itself as a vital intermediary, fighting for fair pricing mechanisms, streamlined regulations, and a protective framework for local contractors. Wijeratne stresses that the best-laid plans of engineers can falter without a conducive policy environment, calling for a strengthened partnership with the state to create a level playing field where skill and enterprise determine success.
Ultimately, Wijeratne’s message is a powerful reminder of the industry’s profound legacy. “When we build, the nation grows,” he states, elevating construction from a commercial activity to a national mission. The structures that rise from the ground are more than concrete and steel; they are the schools, hospitals, roads, and homes that shape the nation’s future.
As Sri Lanka steps into 2026, the construction industry’s message is clear: it is ready to transform resilience from a trait of survival into a dynamic force for innovation.
The past challenges, according to Wijeratne, have been met with grit. Now, the future must be built with vision.
By Sanath Nanayakkare
Business
Expo Commodities and STAY Naturals honoured at the Presidential Export Awards 2024/25
Expo Commodities (Pvt) Ltd, together with its member company STAY Naturals (Pvt) Ltd, has been recognized with Merit Awards at the Sri Lanka Export Development Board (EDB) Presidential Export Awards 2024/25, one of the country’s most prestigious platforms celebrating export excellence.
The awards were presented under the categories of Spices and Allied Products and Essential Oils, Oleoresins & Condiments, recognizing the companies’ consistent performance, product quality, and contribution to strengthening Sri Lanka’s presence in global markets.
The recognition reflects Expo Commodities’ continued focus on delivering high-quality, value-added Sri Lankan products while upholding international standards across innovation, sustainability, and responsible sourcing. Through STAY Naturals, the group has expanded its reach in key export markets, promoting Sri Lanka’s essential oils, oleoresins, and condiments derived from its rich agricultural heritage to customers worldwide.
The achievement also reflects the collective effort, technical expertise, and commitment of the teams behind the operations, alongside the continued trust of global partners and customers. Expo Commodities (Pvt) Ltd, part of Expo Commodities Global, is strategically focused on driving sustainable export growth and strengthening Sri Lanka’s global positioning as a reliable supplier of high-quality natural products.
Expo Commodities Global is a globally active Agri-commodity enterprise with operations spanning multiple origins including Sri Lanka, Vietnam, Indonesia, Madagascar, Comoros, Egypt, the UAE, India, Germany, and the Netherlands. The company specializes in the production, processing, and export of premium organic and conventional spices, coconut products, essential oils, oleoresins, and value-added agricultural products, delivering consistent quality through integrated and sustainable operations.
Expo Commodities Global and STAY Naturals (Pvt) Ltd are part of Aberdeen Holdings, a diversified Sri Lankan conglomerate with interests across pharmaceuticals, packaging, commodities, transport and logistics, power generation, and digital innovation, supporting long-term growth through strong governance, sustainability, and global market engagement.
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