Driving a Digital Future: How Sri Lanka’s Digitalization Journey Can Transform the Nation

BY Nadun Gunawardana

As the world wrestles with economic challenges and unpredictability, one question remains at the forefront: How can we navigate uncertainty while fostering sustainable growth? For many countries, digitalization and decarbonization have emerged as core strategies to tackle this. These two transformative trends hold vast opportunities, yet they also bring significant challenges that nations must overcome to realize their full potential.

In Sri Lanka, digitalization has become a central theme, even shaping recent presidential debates. Candidates widely recognized digitalization as essential to advancing the country’s growth, and the current administration has embraced it as a national priority. This vision, as laid out by the government, seeks to empower Sri Lankans through transparent, efficient governance and by supporting key sectors—including agriculture, manufacturing, tourism, SMEs, and sports. In doing so, the government aims to boost citizens’ quality of life, cultivate a thriving digital economy, and enhance sustainable development.

Why Digitalization Matters: Creating Social, Economic, and Industry Value

Digitalization has the potential to reshape multiple dimensions of national development, bringing significant benefits to social, economic, and industrial spheres.

On the social front, digitalization enables better governance and elevates citizens’ quality of life through efficient, service-oriented public sector processes. Digitally enabled government systems contribute to global objectives like SDG 10 (Reduced Inequalities) and SDG 16 (Peace, Justice, and Strong Institutions), while promoting inclusive growth, stable employment, and well-being, aligning with SDG 3 (Good Health and Well-being).

From an economic perspective, investing in information and communications technology (ICT) has proven to drive substantial GDP growth. Digitalization not only revitalizes traditional sectors but also fosters new industries, amplifying economic gains. Research indicates that each dollar spent on ICT can boost GDP by up to 3.5 dollars, with even greater impacts observed in developing economies. Prioritizing digital infrastructure thus enables countries to enhance their competitiveness on both regional and global stages.

Digitalization also fuels industry innovation by driving structural shifts and quality improvements. This evolution accelerates industrial upgrades, preparing economies to adapt swiftly to new demands and growth opportunities. It provides industries the tools to cut costs, increase efficiency, and establish new revenue streams.

For businesses, digitalization offers an accessible way to streamline operations, improve products, and tap into additional revenue channels. Digital solutions help companies boost efficiency, from internal processes to customer service, strengthening their standing in both local and international markets. By leveraging digital tools, local businesses can enhance their global competitiveness, creating a resilient, dynamic business landscape for the future.

Framework and Blueprint for National-Level Government Digitalization

As nations around the world advance digital transformation initiatives, a structured model is essential to guide the effective implementation of digital services in the public sector. By collaborating closely with government representatives, industry experts, and other stakeholders, a government can develop a digitalization blueprint aligned with the National Development Plan to improve service delivery and access for citizens. Following best practices, successful digital transformation involves three critical components:

1. High-level design and strategy aligned with national objectives.
2. Detailed, actionable project plans with defined goals and leadership accountability.
3. Establishing short-term priorities that allow for quick, impactful results.

In this model for government digital transformation, six foundational layers are identified: Device, Connectivity, Foundation, Platforms, AI Foundation Models, and Applications. Together, these layers lay the groundwork for a phased approach that enables the government to efficiently scale public services, automate workflows, and make services accessible online for citizens.

The Device Layer represents the initial data-gathering stage of this digital framework. By deploying smart devices—such as Computers, RFID/QR scanners, AI-enabled CCTV cameras, body-worn cameras, and digital tools for civil servants—governments can automatically collect real-time data across various public sectors. This layer allows continuous monitoring and streamlines workflows, ensuring that government decisions and services reflect real-time conditions. For instance, an automated traffic monitoring system can collect data on vehicle flow and road conditions, directly informing urban planners for efficient traffic management and road safety.

Moving up, the Connectivity Layer provides the communication backbone that allows data to flow smoothly across all public services. For this to work effectively, resilient, high-speed networks are essential. Governments need to build or integrate existing network infrastructure, such as fiber & 5G deployed by ISPs, to ensure that data is shared seamlessly and securely. Public and private networks should operate under a unified policy to ensure data security. For example, a smart city program relies on uninterrupted data from traffic sensors and cameras, enabling efficient city management and fast responses to urban issues.

The Foundation Layer focuses on computing power and storage to process large amounts of data. This layer includes national data centers, cloud platforms, and Infrastructure -as-a-service (IaaS) solutions, allowing governments to run complex applications and store significant amounts of data. Centralized data centers reduce redundancy and boost efficiency by enabling multiple departments to access shared resources.

The Platforms Layer forms the backbone of government digital services, providing shared tools like unique identity (UID), secure payment platforms, and single sign-on (SSO) capabilities that streamline access for citizens and boost efficiency across departments. By centralizing these essential services, government agencies can securely share data and collaborate seamlessly, reducing redundancy and enhancing the citizen experience. With open APIs, these platforms allow for easy integration, fostering innovation as new applications can be built on top of a secure, scalable foundation. This shared infrastructure not only simplifies service delivery today but also enables future growth and adaptability

The Applications Layer embodies the benefits of digital transformation by making government services easily accessible to citizens. Automated, AI-enhanced applications can improve efficiency in sectors like public safety, healthcare, education, and transportation. Through secure online platforms, citizens can access key services—such as applying for permits, scheduling medical appointments, or checking social welfare eligibility—directly from their devices, eliminating the need for physical visits. For example, a digital government portal could allow residents to complete tasks such as renewing IDs, paying fines, or even voting, all from a secure, centralized online system.

Finally at the core of the framework, the AI Foundation Models Layer introduces advanced AI capabilities that enhance government services and workflows. By analyzing data from various departments, AI models can provide predictive insights that allow for faster, more accurate decisions. AI-driven systems can automate routine tasks, such as processing applications for social welfare programs or providing personalized responses to common citizen inquiries. An AI-powered customer support platform, for instance, could assist citizens with questions about online services, directing them to the appropriate digital resources, improving response times, and allowing government staff to focus on more complex cases.

A core element of the government’s digital transformation blueprint is the structured and secure sharing of infrastructure and data, which avoids duplication and eliminates information silos that hinder innovation and efficiency. By centralizing infrastructure, such as data centers, cloud services, and networking systems, government departments can access shared resources that scale as needed, reducing costs and ensuring all public sectors—from healthcare to public safety—can leverage a secure, unified backbone. Structured data-sharing further enhances decision-making and service delivery, allowing departments to access comprehensive, cross-departmental data insights while protecting sensitive information through strict security protocols. For example, health officials can track trends using aggregated health data without compromising patient privacy, and traffic data can be shared between transportation, urban planning, and emergency services for coordinated response and resource allocation. This collaborative, unified approach empowers government agencies to break down silos, draw deeper insights from combined data, and improve public services, positioning the government to make evidence-based decisions and continuously enhance service delivery.

Openness and inclusivity

One of the key strengths of the government’s digital transformation plan is its focus on openness and inclusivity. This approach ensures that the system isn’t controlled by just one company or organization. Instead, the goal is to bring together a wide range of partners—local tech companies, multinational technology leaders, research institutions, and others—to collaborate and contribute to building a more efficient and adaptable system. This open model allows the government to focus on key national priorities, while benefiting from the expertise of various specialists who bring innovative solutions to the table.

However, it’s important to understand that being “open” doesn’t mean simply plugging in different technologies and expecting them to work perfectly together right away. While it’s great to encourage participation from different partners, it’s equally crucial that the solutions being introduced—whether they’re devices, software, or systems—are carefully tested for compatibility, security, and long-term functionality. Rushing to integrate different technologies without proper checks can create serious problems down the line.

For instance, imagine if different healthcare systems used by hospitals and government agencies didn’t properly share data because they weren’t fully compatible. This could lead to delays in medical care or errors in health records. Similarly, in a digital system that handles sensitive government data, security must be top-notch. If various technologies aren’t thoroughly tested for security vulnerabilities, there could be risks of data breaches or cyberattacks.

But the openness of this system offers a significant advantage: it encourages greater participation from local organizations. With clear guidelines and standards in place, local tech companies have more opportunities to get involved in government projects, building solutions that can compete with international offerings. By working alongside global technology leaders, local organizations are pushed to adopt international standards, which in turn helps them grow. This collaboration can open up new opportunities for these businesses, not just locally, but also on the global stage.

For example, when local companies develop applications—such as a highway tolling system—each component, including the software, sensors, and toll gate devices, must be rigorously tested to perform securely, accurately, and reliably in real-world conditions. Standardization ensures that these systems, sensors, and applications work seamlessly together, enabling smooth data sharing and functionality across platforms. Interoperability is equally important, allowing the tolling system to connect with other government and public sector platforms, which reduces redundancy and maximizes the value of shared infrastructure.

To prevent any technical or security issues, the government must ensure that any new technology added to the system follows clear standards, so it can work smoothly with other parts of the digital infrastructure. This includes rigorous testing for integration and security to protect sensitive data. In short, the open system must be carefully managed to avoid any potential problems while allowing for a diverse and dynamic set of partners.

By encouraging collaboration and openness, while also maintaining strict standards for compatibility and security, the government can create a digital ecosystem that not only benefits citizens, businesses, and the public sector but also opens doors for local companies. This approach drives innovation and helps local organizations grow, making them competitive on the global stage while ensuring that the system is secure, reliable, and built to last.

Role of Leadership, Change Management, and Upskilling

In embracing digitalization, it’s clear that nations stand to benefit immensely across social, economic, and industrial domains. However, achieving these outcomes requires more than just adopting new technologies; it demands effective digital leadership, proactive change management, and a sustained focus on upskilling the workforce. Successful digital transformation hinges on strong leadership that can envision and implement policies aligned with national priorities, ensuring seamless integration of digital initiatives into every sector.

Equally vital is a well-planned approach to change management, which ensures that transitions are smooth, minimizing disruptions and maximizing value. In parallel, investing in people’s skills—particularly in digital competencies—empowers individuals and businesses alike to fully engage with and benefit from this transformation. A forthcoming article will delve into the specific strategies for cultivating digital leadership, managing change effectively, and fostering a culture of continuous learning, underscoring their essential roles in realizing a truly resilient and innovative digital economy.

The author is an ICT industry expert, currently serving as the Solution Director for Huawei Technologies Lanka Company Private Limited.

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Reference architecture for industry intelligence (Source: Huawei)