Sri Lanka Initiates AI Fund to Enhance Digital Economy

Published Date : 8/14/2025 

Sri Lanka has initiated a National AI Fund with an initial investment of Rs 100 million (US$ 333,000) to foster local innovation and contribute to the country's US$15 billion digital economy target by 2030. The fund aims to position Sri Lanka as a leader in the global AI landscape. 

Sri Lanka is making significant strides in the digital economy with the launch of the National AI Fund, which has an initial investment of Rs 100 million (US$ 333,000). This fund is designed to nurture local innovation and play a crucial role in achieving the country's ambitious goal of a US$15 billion digital economy by 2030.

Sri Lanka is targeting a fivefold growth in its digital economy over the next five years, with artificial intelligence (AI) being a cornerstone of this strategy. Dr. Mothilal de Silva, Chairman of Sri Lanka Telecom (SLT), highlighted this vision at the launch of Sri Lanka’s first AI Expo & Conference 2025 in Colombo, organized in partnership with the Ministry of Digital Economy and Huawei. The event aims to position Sri Lanka as a leader in the global AI landscape.

AI is projected to generate between US$1.5 to US$1.8 billion, representing 10-12 percent of the digital economy, according to Dr. de Silva. He emphasized SLT-Mobitel’s transformation from a traditional telecommunications provider to a technology enabler, leveraging its wide infrastructure, including a nationwide fiber network and a 5G-ready Mobitel network. This infrastructure is essential for the implementation of real-time AI applications and supports scalable development through AI-upgradable data centers and cloud solutions.

“The question is not whether AI will transform the world, but if Sri Lanka will lead or follow,” stated Dr. de Silva. The AI Expo, scheduled for September 29th and 30th, will feature international experts from major tech companies and showcase live demonstrations of AI applications across various sectors, including healthcare, education, and agriculture. To ensure accessibility, mini expos will also be held in several cities, including Jaffna, Anuradhapura, Galle, and Kandy.

Dr. de Silva stressed the importance of partnerships among the government, private sector, and academia to collectively transform Sri Lanka into an innovative and responsible AI leader. Dr. Hans Wijayasuriya, the Chief Advisor to the President on Digital Economy, mentioned that a national AI policy draft is in the works, and an advisory committee on AI is currently focusing on future direction, strategy, infrastructure regulation, policy, guardrails, and protection, along with the rights of citizens in the AI era.

“When harnessed alongside guardrails which give primacy for inclusion and responsible application, AI has the potential to deliver profound and transformational outcomes for Digital Economy acceleration and Public Service delivery,” Dr. Wijayasuriya said. 

Frequently Asked Questions (FAQS): 

Q: What is the initial investment for Sri Lanka's National AI Fund?

A: The initial investment for Sri Lanka's National AI Fund is Rs 100 million (US$ 333,000).

Q: What is Sri Lanka's target for its digital economy by 2030?

A: Sri Lanka aims to achieve a US$15 billion digital economy by 2030.

Q: Who is the Chairman of Sri Lanka Telecom (SLT)?

A: Dr. Mothilal de Silva is the Chairman of Sri Lanka Telecom (SLT).

Q: What is the projected contribution of AI to Sri Lanka's digital economy?

A: AI is projected to generate between US$1.5 to US$1.8 billion, representing 10-12 percent of the digital economy.

Q: When is the AI Expo & Conference 2025 in Colombo scheduled?

A: The AI Expo & Conference 2025 in Colombo is scheduled for September 29th and 30th. 

More Related Topics :