Sri Lanka’s digital leap forward comes under spotlight at Disrupt Asia 2025

President Anura Kumara Disanayake, who also serves as the Digital Economy Minister touring the Startup Showcase held parallel to Disrupt Asia 2025 yesterday 

By Charumini de Silva

Sri Lanka’s digital ambitions took centre stage yesterday, as Disrupt Asia 2025, the country’s flagship startup conference and innovation festival drew global investors and entrepreneurs, highlighting growing confidence in its tech future. 

The main conference held under the patronage of President Anura Kumara Disanayake, who also serves as the Digital Economy Minister, brought together over 100 venture capitalists from 20 countries and international startup delegations. The President also toured the Startup Showcase.

Digital Economy Deputy Minister Eng. Eranga Weeraratne called the forum a milestone in Sri Lanka’s transformation agenda. “Disrupt Asia 2025 is a catalyst to empower our youth, attract global investment and accelerate our digital economy. It creates the vital bridge between talented entrepreneurs and global opportunities, positioning Sri Lanka as the gateway for innovation across South Asia,” he said.

A high-powered panel discussion titled “Roadmap to Becoming South Asia’s Innovation Hub” featured Central Bank Governor Dr. Nandalal Weerasinghe, ICTA Chairman and Presidential Adviser on Digital Economy Dr. Hans Wijayasuriya, Senior Economic Adviser to the President and EY Sri Lanka and Maldives Country Managing Partner Duminda Hulangamuwa, and World Bank Country Manager for Sri Lanka and Maldives Gevorg Sargsyan with TWC Holdings Founder and Chairman Thilan Wijesinghe moderating the session.

The panellists comprising top economic leaders, policymakers and development partners outlined reforms needed to sustain macroeconomic stability, investment agenda boosting digital exports, strengthening startup financing and positioning the country as a hub for innovation. 

Economic stabilisation and growth momentum

Dr. Weerasinghe noted that the economy has made a sharp turnaround from the 2022 crisis. “We now have adequate reserves, a stable currency, political stability and a stock market at an all-time high,” he said. 

The Governor said Sri Lanka has posted six consecutive quarters of growth, now approaching 5% with medium-term growth potential of around 5% per year.

The Governor opined that the stability must be coupled with reforms and technology adoption to fast-track the country’s next growth trajectory.

Digital exports and institutional reforms 

Dr. Wijayasuriya underlined the ambition of more than doubling exports to $ 5 billion by 2030. “The sector plateaued at $ 1.5 billion, but the global market has shifted from cost arbitrage to product innovation, IP, trust and governance. Sri Lanka must catch the next wave,” he added.

Dr. Wijayasuriya also highlighted two breakthroughs; allowing foreign direct investments (FDIs) into startups to be redeployed in overseas subsidiaries, enabling Sri Lankan ventures to scale globally, while retaining IP at home and a new institutional structure. He said the Digital Economy Ministry will set national policy, while the newly incorporated GovTech Ltd., will execute strategy. “This blend of consistency and innovation-permissive regulation will trigger exponential opportunity capture,” Wijayasuriya said.

Responding to concerns over outward investment restrictions, Dr. Weerasinghe confirmed the Central Bank is gradually easing capital controls introduced during the crisis. Noting that relaxation is happening economy-wide, he said special recognition is being given to startups in technology and other growth sectors like constructions and tourism. “We fully support enabling outward investment in qualified ventures, so they can scale internationally, whilst remaining anchored in Sri Lanka,” he pointed out.

World Bank support for skills, infrastructure and nomad push

Sargsyan elaborated the World Bank’s alignment with the Government’s digital vision, particularly on three key pillars of skills, policies and infrastructure. Despite producing strong STEM talent, there are currently 10,000 unfilled vacancies in the ICT sector due to skills mismatches. Thus, the World Bank plans to help bridge this gap through reskilling, accelerator support and digital public infrastructure. “We don’t need to reinvent the wheel, if Sri Lanka can adapt global best practices in digital ID, payments and data exchange; it can create an incredibly competitive system,” Sargsyan said.

The World Bank Group Country Manager outlined plans of the IFC to bring a global accelerator into Sri Lanka in partnership with local players, alongside scaling up venture capital financing and exploring opportunities particularly in the North and East. “Parallel initiatives are underway to position Colombo as a digital nomad hub, with heritage zones clusters being developed to attract global talent,” he said.

Legal reforms and investment climate

Hulangamuwa highlighted progress on a series of laws to attract private investments, ranging from reforms to the Port City frameworks and Strategic Investment Act to the introductions of a long-awaited Public-Private Partnership (PPP) law. “With these reforms coupled with stable macro fundamentals, Sri Lanka can attract the FDIs required to sustain 6-7% GDP growth,” he opined.

He also noted that a parallel effort is underway to address gaps in venture capital facilitation, including work on Limited Liability partnership (LLP) law and interim measures through the Securities and Exchange Commission’s collective investment schemes.

Hulangamuwa disclosed that the Board of Investment (BOI) has confirmed plans to reactivate two IT parks in Galle and Kurunegala through PPPs, while also exploring policy frameworks to make underutilised public assets available for private sector-led innovation hubs. “Virtual Special Economic Zones, allowing remote incorporation and frictionless digital operations are also in the pipeline, based by BOI approval,” he added.

Fintech, procurement and digital government

On fintech, the CBSL Governor, acknowledged past criticism of restrictive frameworks and announced liberalised entry for innovators into the Central Bank’s regulatory sandbox, without requiring prior partnerships with licenced financial institution. “A five-year national payments and settlements roadmap will also be published to guide reforms,” Dr. Weerasinghe confirmed.

ICTA Chief stressed the importance of fast-tracking digitisation in Government though modern procurement guidelines. “The aim is to move towards, agile, outcome-based procurement that allows startups and SMEs to compete, within the framework of the National Procurement Commission,” Dr. Wijayasuriya. 

The four-day event, which runs till tomorrow (20), was opened with the Venture Engine competition, where 12 promising startups pitched to top investors. It will conclude with the Innovation Festival at Trace Expert City, expected to draw more than 5,000 participants. Over 50 startups are showcasing products alongside workshops, pavilions and networking opportunities, making it one of Sri Lanka’s largest-ever public tech events..

- Pix by Lasantha Kumara