Shaping Sri Lanka’s digital economy: 5G’s impact on our future

In today’s rapidly evolving world, digitalisation is the cornerstone of economic growth and innovation. From enhancing connectivity and communication to unlocking new business models and opportunities, digital transformation is revolutionising industries worldwide. At the heart of this transformation lies 5G technology—a game-changer that promises to propel nations into the next era of connectivity and economic success.

Many countries around the world are making significant strides in embracing the potential of 5G, and Sri Lanka, with its strong foundation, is on an exciting path to follow suit. As global digital economies continue to evolve, Sri Lanka has a great opportunity to position itself for future growth by advancing the commercialisation of 5G. 

Driving digital transformation and innovation with 5G

5G is more than just a faster mobile network. It is a key enabler of digital transformation across sectors, offering substantial improvements in speed, latency, and capacity over 4G. With theoretical speeds up to 100 times faster than 4G, 5G enables ultra-low latency, which will revolutionise how industries operate.

• In healthcare, 5G will facilitate remote surgeries, telemedicine, and real-time health monitoring, improving access to healthcare, especially in rural areas.
• In education, 5G will support e-learning, virtual classrooms, and collaborative learning, making quality education more accessible nationwide.
• Agriculture, a critical sector in Sri Lanka, can benefit from 5G through precision farming, automated irrigation systems, and crop monitoring, leading to more sustainable and efficient practices.

Furthermore, 5G will lay the foundation for smart cities. It will power autonomous vehicles, energy-efficient infrastructure, and improved public services. The industrial sector will also experience a transformation with Industry 4.0, as 5G supports automation, AI, and machine-to-machine communication, improving productivity and reducing costs.

Countries like China, South Korea, and the United States have already capitalised on 5G’s capabilities, achieving increased innovation, enhanced productivity, and new business opportunities. Moreover, several developing countries, including India, Vietnam, Ethiopia, and Ghana, have also adopted 5G technologies, signalling that the transition to advanced connectivity is not limited to highly industrialised nations. For Sri Lanka, 5G represents a key opportunity to modernise infrastructure, attract investments, and drive economic growth.

Sri Lanka’s growing potential in 5G

Sri Lanka’s journey toward 5G has been methodically planned. The country has made great progress with 5G trials, beginning with the first successful tests in 2020. These early efforts have laid a solid foundation, and with ongoing focus and investment, Sri Lanka is well-positioned for 5G adoption. This will bring the nation in line with its regional peers, unlocking exciting opportunities for growth, innovation, and digital transformation.

Countries across the Asia-Pacific region, like Thailand, Indonesia, and the Maldives, have made remarkable progress with 5G, achieving impressive results that have fuelled growth in their industries and economies. This progress serves as an exciting opportunity for Sri Lanka, showing the incredible potential of 5G to drive similar advancements. 

• Thailand: Thailand’s 5G rollout has boosted key sectors like manufacturing and smart agriculture, improving efficiency through automation and real-time data. The Government’s support has also helped drive growth in fintech and digital payments, contributing to an overall boost in productivity and innovation. 5G is expected to add billions to Thailand’s GDP by enhancing various sectors, positioning the country as a leader in the regional digital economy.
• Indonesia: Indonesia has used 5G to improve connectivity across its vast archipelago, significantly impacting manufacturing, logistics, and healthcare. 5G’s low latency enables faster data exchange, helping businesses cut costs and improve service delivery. With plans to expand 5G nationwide by 2024, Indonesia is poised to create thousands of new jobs and attract more investments in its digital economy.
• Maldives: The Maldives has harnessed 5G to enhance its tourism and smart city initiatives. High-speed internet has improved the tourist experience and allowed for remote services in healthcare, making it easier for visitors and locals to engage with essential services. 5G is helping position the Maldives as a modern, tech-driven destination, boosting both the tourism and healthcare sectors.

Promising Economic Impact of 5G for Sri Lanka

5G in Sri Lanka will have a significant economic impact, particularly by boosting e-government strategies and accelerating the growth of the digital economy. It will unlock new opportunities, streamline services, and fuel innovation across sectors, paving the way for a bright digital future.

•  E-government: 5G will help improve the efficiency, transparency, and accessibility of public services. By enabling ultra-fast connectivity, low latency, and the capacity to support millions of devices simultaneously, 5G allows public systems to operate in real time, deliver services remotely, and integrate data more effectively. With the Government’s ongoing push to digitalise services, initiatives such as online tax filing, digital healthcare, and e-education will become more seamless, reducing delays and improving service delivery. Additionally, real-time data processing driven by 5G will enhance decision-making in key areas like public safety, transportation, and urban planning.
• Digital economy: 5G will enable the rapid expansion of digital payments and fintech in Sri Lanka, facilitating faster, more secure mobile payments and enhancing access to financial services. Its advanced network capabilities allow financial platforms to operate with greater reliability, support complex applications like real-time analytics, and offer smoother user experiences, which are crucial for modern digital financial services. Digital banking and other fintech innovations will thrive, attracting investments and creating a more inclusive financial ecosystem.

Additionally, 5G will drive growth in e-commerce, particularly for small and medium-sized enterprises (SMEs), by improving transaction reliability and streamlining supply chains. Improved connectivity will also benefit industries like tourism, agriculture, and logistics, boosting productivity and stimulating economic growth.

Furthermore, 5G will contribute to environmental sustainability by enabling smart grids, automated farming, and remote monitoring of resources. These innovations will optimise energy usage, reduce waste, and support more sustainable practices, aligning with Sri Lanka’s goals for environmental sustainability.

Sri Lanka is already a prime destination for foreign investment, and with the rollout of 5G, it will only enhance its appeal, especially in the tech sector. The advanced digital infrastructure will create a thriving environment for innovation, driving the growth of the digital economy and opening doors to exciting new opportunities.

The road ahead: Building a 5G-ready nation

Sri Lanka is poised for a remarkable leap forward, with the swift adoption of 5G offering a fantastic opportunity to solidify its position as a digital leader in South Asia. This transformative technology will unlock new growth avenues, driving innovation and setting the stage for Sri Lanka to thrive in the digital era. 

To unlock the full potential of this transformation, the already strong leadership, collaboration, and strategic investments across all sectors can be further nurtured and strengthened, ultimately driving the success of the people. The Government has demonstrated a clear understanding of its pivotal role in fostering a supportive and beneficial environment for 5G deployment. By continuing to align policies and infrastructure to support this innovative technology, Sri Lanka can continue to build a foundation for success. This forward-thinking approach will undoubtedly inspire telecom providers to invest in the infrastructure necessary to propel this digital evolution.

The race to 5G is not just about technology; it is about economic survival in an increasingly digital world. By embracing 5G, Sri Lanka can unlock its full digital potential, positioning itself for growth and success in the global digital economy, paving the way for a bright and connected future.

(The writer is a Senior Lecturer in the Department of Industrial Management at the University of Kelaniya. He holds a PhD in International Business from Newcastle University, Australia; an MPhil and a BSc in Industrial Management from the University of Kelaniya; and a Master’s degree in Financial Analysis from La Trobe University, Australia. As a business and policy researcher, his research interests focus on technology management, international business, and advanced statistical data analysis.)