In a major push to accelerate its digital transformation, Sri Lanka recently hosted an Investor Forum in Melbourne, Australia, to attract foreign capital and expertise. The event, a collaboration between the Consulate General of Sri Lanka in Melbourne and Australia’s Department of Foreign Affairs and Trade (DFAT), convened over 70 attendees, including government officials, industry leaders, and potential investors.
The forum was part of a larger initiative to welcome a high-level Sri Lankan delegation, which included Digital Economy Deputy Minister Eranga Weeraratne and Dr. Hans Wijayasuriya, the President’s Chief Advisor on Digital Economy. Deputy Minister Weeraratne underscored the nation’s strategic vision to reach a US$15 billion digital economy by 2030, emphasizing the need for inclusive access to digital opportunities for all citizens.
Dr. Wijayasuriya, in his keynote, echoed this ambitious goal, highlighting the need for a robust institutional framework and a strong apex organization to oversee the digital economy’s expansion. The panel discussion, titled ‘Investing in Asia’s Next Digital Frontier,’ reinforced the idea that a comprehensive digital strategy is the key to positioning Sri Lanka as a regional hub for digital innovation.
Representatives from Australia, including Ashling James from Global Victoria, recognized Sri Lanka as a close economic partner and noted the state’s own commitment to fostering a thriving digital ecosystem. Peter Ward, Managing Director of Dijital Teams, shared his company’s positive investment experience in Sri Lanka, citing the country’s strengths in key sectors and encouraging others to invest.
My Analysis: A Call for Coordinated Action and Strategic Focus
This investor forum is a critical step in Sri Lanka’s digital journey, signaling a clear intent to move from a planning phase to an execution phase. However, while the ambition is laudable, the path forward is complex and requires more than just high-level discussions. My analysis identifies several key areas where the country must double down to turn this vision into reality.
1. The Need for Coordinated Implementation 🤝 Sri Lanka’s Digital Economy Strategy 2030 is a well-structured document, encompassing six strategic areas from infrastructure to cybersecurity. But as we’ve seen in other emerging economies, the greatest challenge is not the strategy itself but its implementation. Industry experts have warned of “inconsistent policies” and “sluggish implementation” that could derail the $15 billion target. This forum rightly emphasizes a “robust institutional framework” to provide clear leadership and accountability. Sri Lanka’s success will depend on its ability to overcome bureaucratic bottlenecks and ensure a unified approach across all government agencies, a point previously highlighted by the World Bank.
2. Bridging the Gap: Talent and Innovation 🧠 The forum correctly identifies Sri Lanka’s “rich talent pool” and “dynamic entrepreneurial spirit” as key assets. However, simply having a skilled workforce isn’t enough. The country must actively bridge the gap between academic skills and industry needs, particularly in advanced fields like AI, which is expected to drive up to 12% of the digital economy’s growth. The government’s push for initiatives like the National AI Fund and a national AI policy is promising. But it must also focus on creating an environment that encourages proprietary product development over traditional outsourcing. As one expert noted, “when you create a good product, it sells itself.” Sri Lanka needs to build global brands, not just be a back office for others.
3. Tapping into the Diaspora and Global Partnerships 🌏 The presence of the Consul General and the hosting by the Australian government underscores the strategic importance of the Sri Lankan diaspora. This is a massive, often untapped, resource. Victoria alone hosts a vibrant Sri Lankan community, and leveraging this network for investment, knowledge transfer, and mentorship is a smart play. The success story shared by Dijital Teams is a powerful case study for potential investors. Sri Lanka must continue to actively engage its diaspora and build strong technological partnerships with global digital hubs like India, Singapore, and the UAE to gain greater visibility and competitiveness in the global market.
4. A Cautious but Optimistic Outlook 🌱 The vision to become a high-income economy by 2048, with the digital sector as a key driver, is a significant undertaking. The challenge is immense, particularly given past policy inconsistencies and current economic hurdles. The recent launch of a Digital Economic Authority and a Unique Digital Identity Project are steps in the right direction, but they must be followed by consistent, transparent execution. Sri Lanka’s digital future hinges on its ability to move beyond bold announcements and demonstrate a sustained commitment to creating a stable, predictable, and supportive environment for innovation and investment. The Melbourne forum is a start, but the real work begins now.
