Sri Lanka Unveils National 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 ambitious goal of a US$15 billion digital economy by 2030. 

Sri Lanka is making significant strides in its digital transformation with the launch of a National AI Fund. The fund, initialized with Rs 100 million (US$ 333,000), is designed to nurture local innovation and support the country's vision of a US$15 billion digital economy by 2030.

Sri Lanka aims to achieve a fivefold growth in its digital economy over the next five years, with a strong emphasis on artificial intelligence (AI) as a key driver. According to Dr. Mothilal de Silva, Chairman of Sri Lanka Telecom (SLT), AI is projected to generate between US$1.5 to US$1.8 billion, representing 10-12 percent of the digital economy.

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, Dr. de Silva highlighted SLT-Mobitel’s transformation from a traditional telecommunications provider to a technology enabler. This shift is supported by a nationwide fiber network and a 5G-ready Mobitel network, which are crucial for the implementation of real-time AI applications and the development of 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,” Dr. de Silva emphasized. 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 transform Sri Lanka into an innovative and responsible AI leader. Dr. Hans Wijayasuriya, the Chief Advisor to the President on Digital Economy, noted that a national AI policy draft is in the works, and an advisory committee on AI is currently focusing on future direction and strategy, infrastructure regulation, policy, guardrails, and protection, along with the rights of citizens in an 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 in Sri Lanka's National AI Fund?

A: The initial investment in 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: What sectors will the AI Expo & Conference 2025 showcase?

A: The AI Expo & Conference 2025 will showcase AI applications in healthcare, education, and agriculture, among other sectors.

Q: Who is Dr. Mothilal de Silva and what is his role in the AI initiative?

A: Dr. Mothilal de Silva is the Chairman of Sri Lanka Telecom (SLT) and played a key role in the launch of the AI Expo & Conference 2025.

Q: What is the focus of the national AI policy draft being developed?

A: The national AI policy draft focuses on future direction and strategy, infrastructure regulation, policy, guardrails, and protection, along with the rights of citizens in an AI era. 

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