Sri Lanka's Digital Economy: New Business Models

Published Date : 7/29/2025 

Sri Lanka is looking to diversify its digital ecosystem by exploring new business models, including licensing, public-private partnerships, and outcome-based procurement, to ensure sustainable digital transformation. 

Sri Lanka needs to consider different types of business arrangements for its digital ecosystem, moving beyond traditional procurement-based interactions, according to a top government official. The Chief Adviser to the President on Digital Economy, Dr. Hans Wijayasuryya, emphasizes the importance of exploring various models to drive sustainable digital transformation.

We need to be open to other forms of interactions such as licensing off a service where the government issues a license for an entity to carry out that service and pay the government a license fee while ensuring regulatory compliance. Additionally, new procurement models, licensing models, or public-private partnerships (PPPs) where the government can part invest or present a business plan that the private sector can also invest in, should be explored. This approach can change the traditional model of buying and building to creating a business model, similar to the telecom industry.

Digitalization and investments in digital transformation must be backed by unique and bankable business models. Dr. Wijayasuryya stresses that if a service or technology process is not paid for, it will not be successful. It must generate returns in terms of citizen satisfaction or financial returns to the stakeholders involved. This shift from procurement-based interactions to more innovative models is crucial for the sustainability of digital initiatives.

The same model could be applied to cloud infrastructure and digital public infrastructure (DPI) platforms, as well as industry platforms like high-velocity, revenue-generating ones such as ticketing. Dr. Wijayasuryya also advocates for new forms of procurement, such as outcome-based procurement. This form of procurement involves the government presenting an issue to be solved without prescribing the method, opening up opportunities for innovation where smaller companies can compete through innovative solutions to solve problems more efficiently and cost-effectively.

In summary, Sri Lanka is taking a forward-thinking approach to its digital economy by exploring a range of business models that can ensure sustainable and innovative digital transformation. These models, including licensing, public-private partnerships, and outcome-based procurement, are expected to drive the country's digital infrastructure to new heights, enhancing citizen services and economic growth. 

Frequently Asked Questions (FAQS): 

Q: What are the different business models being considered for Sri Lanka's digital ecosystem?

A: Sri Lanka is considering various business models, including licensing, public-private partnerships (PPPs), and outcome-based procurement, to ensure sustainable digital transformation.

Q: Why is it important to have bankable business models in digital transformation?

A: Bankable business models are crucial because they ensure that the services or technologies are financially viable and generate returns, either in terms of citizen satisfaction or financial returns to stakeholders.

Q: What is outcome-based procurement?

A: Outcome-based procurement is a form of procurement where the government presents an issue to be solved without prescribing the method, allowing for innovative solutions from smaller companies.

Q: How can these new business models be applied to cloud infrastructure and digital public infrastructure platforms?

A: These models can be applied to cloud infrastructure and digital public infrastructure platforms to ensure sustainable and innovative solutions, enhancing citizen services and economic growth.

Q: What is the role of public-private partnerships in Sri Lanka's digital transformation?

A: Public-private partnerships (PPPs) can play a significant role in Sri Lanka's digital transformation by allowing the government to part invest or present a business plan that the private sector can also invest in, fostering collaboration and innovation. 

More Related Topics :