Sri Lanka's Digital Shift: Crafting Sovereign Cloud and Data Governance

Published Date : 7/7/2025 

Sri Lanka is advancing its digital strategy by developing a cloud infrastructure that blends local and global expertise. The country's focus on sovereign cloud solutions, data governance, and the Sri Lanka Unique Digital Identity (SL-UDI) project highlights its commitment to balancing security, cost efficiency, and technological growth. 

Sri Lanka is making significant strides in its digital transformation, with a clear focus on cloud infrastructure and data governance. The recent release of a Request for Proposal (RFP) for the Sri Lanka Digital Identity (SL-UDI) project has sparked interest from both local cloud providers and international hyperscalers. This initiative is part of the country’s broader digital strategy, which emphasizes leveraging advanced technologies like AI to drive economic growth. Dr. Hans Wijayasuriya, Chief Adviser to the President on the Digital Economy, highlighted the importance of public cloud adoption for cost efficiency and security. However, he also stressed the need for a local cloud infrastructure to handle sensitive data that must remain within national borders. n nThe proposed cloud infrastructure will include residential, sovereign, and public elements. The term 'sovereign' refers to a cloud environment where the government retains control over data, even if it’s stored abroad under a data embassy arrangement. This approach allows for data classification based on sensitivity, ensuring that high-security data is protected while lower-risk data benefits from public cloud cost advantages. The government has been working on a sovereign cloud since early 2025, addressing concerns about the security of biometric and biographical data in its national digital ID program. n nSanjaya Karunasena, director of the Information Communication Technology Agency (ICTA), emphasized the need for a cloud solution that meets both local and international security standards. The ICTA is currently in discussions with potential partners to create a framework that includes local and global players. This effort aligns with the development of a cloud policy that addresses data residency and sovereignty, alongside a national data governance strategy. The strategy will categorize data into high-security, sensitive, less secure, or public tiers, guiding policies on storage and sharing across sectors like banking and telecommunications. n nA key component of Sri Lanka’s digital infrastructure is the National Data Exchange (NDX), which aims to facilitate seamless data sharing between government agencies, departments, and stakeholders. The NDX, developed in partnership with Citra Lab—a joint initiative between the Prime Minister’s Office and the UNDP—will enhance collaboration and decision-making. This platform is part of the country’s broader digital public infrastructure (DPI), which includes the SL-UDI and an eLocker system for secure digital credentials. The NDX is designed to streamline data access while maintaining strict security protocols. n nSri Lanka’s digital ambitions are ambitious, with a goal of achieving fivefold growth in its digital economy over the next five years. The government is prioritizing technologies like AI, the Internet of Things, and cloud computing to drive innovation. This strategy not only aims to improve public services but also to position Sri Lanka as a regional leader in digital infrastructure. The integration of sovereign cloud solutions ensures that critical data remains protected while allowing the country to benefit from global cloud expertise. n nThe collaboration between local and international stakeholders is crucial for the success of these initiatives. By combining the technical capabilities of global hyperscalers with the regulatory oversight of local institutions, Sri Lanka is creating a hybrid model that balances innovation with security. This approach addresses the challenges of data sovereignty while fostering economic growth. As the country moves forward, the focus will remain on developing robust frameworks that protect citizens’ data while enabling technological advancement. n nThe Sri Lanka Unique Digital Identity (SL-UDI) project is a cornerstone of this effort. By providing a secure and verifiable digital identity for residents, the SL-UDI aims to simplify access to public and private services. This system is supported by the eLocker, which stores digital credentials securely. Together, these tools form the backbone of Sri Lanka’s digital ecosystem, ensuring that citizens can interact with government and business services efficiently and safely. n nThe development of a comprehensive data governance strategy is another critical aspect. This strategy will define how data is collected, stored, and shared across sectors, ensuring compliance with both national and international regulations. It will also address issues like data privacy, cybersecurity, and interoperability. By establishing clear guidelines, Sri Lanka aims to build trust in its digital infrastructure and encourage private sector participation. n nAs the country continues to refine its cloud and data governance frameworks, the focus will be on scalability and adaptability. The dynamic nature of digital technologies requires continuous updates to policies and infrastructure. This includes investing in training programs to build local expertise and ensuring that the workforce is equipped to manage and secure digital assets. By prioritizing education and collaboration, Sri Lanka is laying the groundwork for a sustainable digital future. 

Frequently Asked Questions (FAQS): 

Q: What is the Sri Lanka Unique Digital Identity (SL-UDI) project?

A: The SL-UDI project is a national initiative to provide a secure, verifiable digital identity for Sri Lankan residents. It aims to streamline access to public and private services by leveraging biometric and biographical data.

Q: Why is a sovereign cloud important for Sri Lanka?

A: A sovereign cloud allows the government to maintain control over sensitive data, even if it’s stored abroad. This ensures data security and compliance with national regulations while still benefiting from global cloud infrastructure.

Q: How does the National Data Exchange (NDX) work?

A: The NDX facilitates seamless data sharing between government agencies and stakeholders. It enhances collaboration and decision-making by enabling secure and efficient access to critical information.

Q: What role do local and global providers play in Sri Lanka's cloud strategy?

A: Local providers ensure data residency and regulatory compliance, while global hyperscalers offer technical expertise and cost efficiency. This collaboration creates a balanced approach to cloud infrastructure.

Q: What are Sri Lanka's goals for its digital economy?

A: Sri Lanka aims for fivefold growth in its digital economy over the next five years, focusing on technologies like AI, IoT, and cloud computing to drive innovation and economic development. 

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