Sri Lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Sri Lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
Select Country Guide
Telecommunications and Information Technology
Last published date:


Sri Lanka’s National Digital Economy Strategy 2030 will be implemented in phases between 2025 and 2030. The first phase focuses on reforms and targeted investments to strengthen the business climate, attract private investment, and expand service exports, while ensuring that inclusive digital services reduce corruption and improve governance and accountability. A common digital public infrastructure (DPI) will be developed, including a digital ID, payment gateway, and data exchange platform. 

The government aims to raise the digital economy’s contribution to GDP from 5 to 15 percent over the next five years.
The government has announced an “online and digital-first” policy across all sectors, and has identified several priority areas to achieve its objectives. Infrastructure, connectivity, and access are central, with reforms to the authorization regime intended to encourage investment and innovation. According to the government’s National Digital Strategy, an estimated $1 billion investment is required by 2030 to achieve universal high-speed broadband access. Sri Lanka is conducting 5G trials, with opportunities in agriculture, tourism, and other sectors as 5G rollout is expected to help attract foreign investment.

The digital blueprint envisions multiplying the size of the digital economy fivefold, from $3 billion to $15 billion, by expanding artificial intelligence, cloud, mobile-first solutions, and interoperable systems across industries. The government deferred implementation of an 18 percent value added tax on cross-border digital services from October 2025 to April 2026. Analysts warn that the tax could stifle innovation, burden businesses, and potentially lead to digital isolation. High energy costs also pose a challenge for cloud infrastructure investment, as power prices remain a critical factor for investors.

Leading Sub-Sectors

  • Telecommunications Equipment and Infrastructure
  • Software
  • Mobile applications

Opportunities

Opportunities exist for involvement in government digital transformation and in digitizing the procurement system. U.S. software and hardware vendors will find demand in the market, along with prospects for application development and telecommunications equipment.

Resources

Information and Communication Technology Agency       
Sri Lanka Association for Software and Services Companies 

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility