Sri Lanka’s digital leap: AI, Blockchain, and future of public service

By 2025, universal broadband, a cyber-secure state, and a digitally fluent populace are within reach—if Sri Lanka bets on smart, lean solutions 

 By Chanaka Jayawardhena

Picture this: a Matara farmer checks crop prices on a smartphone, a Colombo clerk pays taxes via a tap, and a Jaffna shopkeeper secures a birth certificate online—all in a day’s work. This isn’t a distant dream but the promise of “Digital Sri Lanka 2030,” the Government’s blueprint to catapult the nation into a digitally empowered future. 

The Public Sector Digitisation Project 2025 is underway, the Digital Public Infrastructure Summit of February 2025 has set the stage, and platforms like GovPay and eBMD are live. Yet, as the white paper warns, the road ahead is potholed with challenges: data breaches loom, cyber defences falter, and rural villages lag in the digital dust. With AI and blockchain as twin engines, Sri Lanka can speed past these obstacles—drawing on global ingenuity—to forge a public service system that’s efficient, transparent, and truly inclusive

A vision taking shape

The “Digital Sri Lanka 2030” white paper isn’t just aspirational—it’s a call to action, envisioning a nation where digital tools fuel economic growth, social equity, and trusted governance. Recent steps show momentum: Deputy Minister Eranga Gunasekara’s December 2024 announcement of the Public Sector Digitisation Project aims to digitise governance by 2025. The DPI Summit, backed by UNDP and ADB, spotlighted a unified digital ID, payment systems like GovPay, and data exchange frameworks. President Anura Kumara Disanayake’s administration has rolled out the decentralised President’s Fund, the eBMD system for diaspora needs, and real-time payment solutions like CEFTS and LANKAQR. 

Yet, the white paper lays bare a stark reality: only 37% of Sri Lankans aged 15-65 use the internet, with rural access and digital literacy trailing. Targets are ambitious—75% digital literacy and 99% broadband coverage by 2025—but the gap demands bold, innovative leaps.

Global lessons: Blueprints for a resource-strapped nation

Sri Lanka isn’t inventing the digital wheel; it can borrow from those who’ve paved the way. Estonia, a Baltic minnow with a population smaller than Sri Lanka’s Western Province, offers a masterclass in connected governance. Its X-Road platform links government databases securely, enabling 99% of public services online—from e-voting to tax filing. Blockchain underpins its e-Health records, cutting bureaucracy while safeguarding data. Estonia’s trick? A lean, interoperable system built with modest resources, scalable to Sri Lanka’s National Data Exchange (NDX) ambitions. 

India’s Aadhaar system, serving 1.3 billion, is another beacon. By tying biometric IDs to subsidies, it slashed leakages—saving billions—while banking the unbanked. Privacy scandals marred its rollout, but robust laws later steadied the ship. Sri Lanka’s Sri Lanka Unique Digital Identity (SLUDI), targeting 16.5 million citizens, could follow suit, using AI to streamline enrolment and blockchain to lock down data. India’s lesson: start simple, prioritise scale, then fortify trust.

Singapore’s SingPass weaves public and private services into one digital ID, letting citizens access healthcare or loans with a single login. Public-private partnerships—think Starlink’s rural broadband push in Sri Lanka—drove its success, a model the white paper champions with its $ 250 million broadband investment goal by 2025. Singapore leaned on global tech giants, a tactic Sri Lanka could mimic despite tight budgets, by luring firms with tax breaks.

Rwanda, a resource-scarce peer, proves innovation trumps wealth. Its Irembo platform digitises services like permits and licenses, using mobile penetration (77% by 2023) to bypass infrastructure gaps. AI chatbots handle queries, while blockchain secures land titles—a low-cost fix for corruption. Rwanda’s ingenuity—building on existing mobile networks—mirrors Sri Lanka’s LANKAQR rollout, showing how to stretch limited funds.

Georgia’s blockchain-based land registry, launched in 2016, cut fraud by making records tamper-proof, boosting public trust with minimal investment. Its secret? Open-source tools and phased implementation—ideal for Sri Lanka’s blockchain KYC pilot. These nations teach us that digital leaps don’t need deep pockets—just smart priorities, partnerships, and phased execution.

Tackling the titans: Privacy, security, and access

The white paper flags cybersecurity, privacy, and inclusion as make-or-break issues. Sri Lanka languishes at 83rd on the ITU Global Cybersecurity Index, aiming for 60th by 2025. AI can turbocharge this climb—think real-time threat detection, as Indonesia uses for finance, or predictive healthcare diagnostics, easing doctor shortages. Blockchain, already in the Central Bank’s KYC trial, could secure patient records or welfare payments via the President’s Fund, slashing fraud as Vietnam’s land registry does.

Privacy lags, with the Personal Data Protection Act of 2022 still toothless sans a fully operational Data Protection Authority. The white paper’s call for a transparent data governance framework is urgent—AI and blockchain thrive on trust. Estonia’s encrypted IDs offer a playbook: prioritise security from day one, not as an afterthought.

The digital divide yawns wide—45% urban internet use versus 35% rural. The white paper’s “dig once” policy, pairing broadband with public works, and Starlink’s rural reach are steps forward. But Rwanda’s mobile-first model—using SMS for service access—shows how to leapfrog infrastructure woes. Multilingual platforms, like India’s Aadhaar, and subsidised devices could pull Sri Lanka’s 61% non-internet-aware population online.

A strategic roadmap: Innovating with less

The white paper’s six pillars—connectivity, skills, digital government, cybersecurity, financial services, and sectoral digitalisation—map Sri Lanka’s route. Here’s how AI, blockchain, and frugal innovation can deliver, learning from global peers while navigating resource scarcity.

Connectivity: The 99% broadband target by 2025 needs more than Starlink. Rwanda’s mobile-centric Irembo suggests piggybacking on Sri Lanka’s 77% mobile ownership. AI can optimise tower placement, as Google does for rural India, while blockchain ensures transparent spectrum auctions, maximising limited funds.

Skills: Aiming for a 200,000-strong ICT workforce and 75% digital literacy by 2025, Sri Lanka can tap AI-driven platforms like India’s SWAYAM—free, scalable online courses. Blockchain-verified credentials, as Georgia uses, cut costs on certification. Partnerships with tech firms, per Singapore’s model, can fund training without draining public coffers.

Digital Government: The NDX and SLUDI need Estonia’s interoperability. AI can personalise life-event services—births, marriages—by 2025, while blockchain secures data silos, as Rwanda’s land titles show. Open-source tools, embraced by Georgia, keep costs low, letting Sri Lanka scale fast.

Cybersecurity: Jumping to 60th globally requires AI-powered threat monitoring, as Indonesia deploys, and blockchain-secured IDs, per Estonia. Community awareness, a white paper goal, can lean on Rwanda’s SMS campaigns—cheap, effective outreach in Sinhala, Tamil, and English.

Financial services: CEFTS and LANKAQR aim to boost digital payments. Singapore’s interoperable SingPass suggests linking these to SLUDI via blockchain, ensuring security. AI-driven credit scoring, as India’s fintechs use, can bank the unbanked without hefty infrastructure.

Sectoral digitalisation: Targeting 100,000 MSMEs digitised by 2025, Sri Lanka can mimic Rwanda’s telemedicine—AI diagnostics via mobile—stretching healthcare reach. Blockchain supply chains, as Vietnam’s agriculture shows, boost transparency in tea exports. Low-cost Centres of Excellence, per the white paper, can spark innovation with industry scraps, not lavish grants.

Resource scarcity demands creativity. The white paper’s Rs. 1 billion AI push for green energy can use open-source AI, as Georgia does, to optimise solar grids. Blockchain’s tamper-proof logs can track public funds, ensuring every rupee counts. Phased pilots—like Rwanda’s Irembo rollout—let Sri Lanka test, tweak, and scale without betting the farm.

Conclusion: Seizing the digital day

“Digital Sri Lanka 2030” isn’t a luxury—it’s a lifeline to a future where public services work for all. AI and blockchain, wielded with global savvy and local grit, can make it happen. By 2025, universal broadband, a cyber-secure state, and a digitally fluent populace are within reach—if Sri Lanka bets on smart, lean solutions. Estonia’s efficiency, India’s scale, and Rwanda’s resourcefulness light the path. With bold leadership and a united push, Sri Lanka can leap from digital laggard to regional pacesetter. The tools are here, the clock is ticking—let’s seize the day.

(The writer is Professor of Marketing, University of Surrey, UK. He could be reached via email at [email protected].)