Sri Lanka's Digital Shift: Creating a Secure Cloud and Data Governance Syst

Published Date : 7/7/2025 

Sri Lanka is advancing its digital infrastructure by developing cloud and data governance strategies, including a sovereign cloud initiative and a national data exchange platform. The government aims to balance cost efficiency, security, and data sovereignty while fostering a fivefold growth in its digital economy. 

Sri Lanka is taking significant steps to modernize its digital infrastructure, focusing on cloud computing and data governance strategies. Following the release of a Request for Proposal (RFP) for the Sri Lanka Digital Identity (SL-UDI) project, the country is actively engaging both local and global cloud providers to build a next-generation cloud ecosystem. This initiative aligns with the nation’s broader digital strategy, which emphasizes leveraging advanced technologies to drive economic growth. n nDr. Hans Wijayasuriya, Chief Adviser to the President on the Digital Economy, highlighted the importance of public cloud solutions for cost savings and security. He noted that large cloud providers bring unmatched technical expertise and investment, but the government also recognizes the need for a local cloud infrastructure to handle sensitive data. This dual approach ensures that critical information remains within national borders while still benefiting from global cloud capabilities. n nThe proposed cloud infrastructure will combine residential, sovereign, and public elements. Dr. Wijayasuriya explained that 'sovereign' refers to a system where the government retains control over data, even if it is stored abroad under a data embassy arrangement. This model allows for tiered data classification, ensuring that highly sensitive information, such as biometric data, is protected through strict security protocols. n nThe concept of a sovereign cloud has been a priority for Sri Lanka since early 2025. The government has repeatedly stressed the need to secure sensitive biometric and biographical data linked to its national digital ID program. Sanjaya Karunasena, director of the Information Communication Technology Agency (ICTA), emphasized that the goal is to create a cloud solution that meets both local and international security standards. Discussions are ongoing to involve both domestic and international stakeholders in the cloud setup process. n nIn parallel, Sri Lanka is drafting a cloud policy that addresses data residency and sovereignty. This policy will classify data into categories such as high security, sensitive, less secure, or public. Such classifications will guide decisions on where data is stored, how it is managed, and how to optimize the cost benefits of public cloud services. The National Data Exchange (NDX) is a key component of this strategy, enabling seamless data sharing between government agencies and private institutions like banks and telecom providers. n nThe NDX, developed in partnership with Citra Lab—a joint initiative between the Prime Minister’s Office and the UNDP—aims to streamline data collaboration across sectors. This platform will support Sri Lanka’s digital public infrastructure, which includes the SL-UDI and an eLocker system for secure digital credentials. The NDX is designed to enhance decision-making and improve service delivery by facilitating data sharing without compromising privacy. n nSri Lanka’s digital ambitions extend beyond infrastructure. The government is targeting a fivefold growth in its digital economy over the next five years, driven by technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing. These innovations are seen as critical for improving public services, attracting foreign investment, and fostering a competitive digital ecosystem. n nThe ICTA plays a central role in these efforts. As the lead agency for digital transformation, it is responsible for implementing policies that balance innovation with security. The agency’s work on the NDX and sovereign cloud initiatives reflects a commitment to creating a resilient and transparent digital environment. However, challenges remain, including ensuring compliance with international data regulations and addressing concerns about data privacy. n nAs Sri Lanka moves forward, the success of its cloud and data governance strategies will depend on collaboration between the public and private sectors. Local cloud providers must be empowered to compete with global hyperscalers, while international partners will need to align with the country’s sovereignty goals. The government’s focus on transparency and stakeholder engagement will be crucial in building trust and ensuring long-term sustainability. n nOverall, Sri Lanka’s approach to cloud computing and data governance represents a forward-thinking strategy for digital growth. By prioritizing security, innovation, and collaboration, the nation is positioning itself as a leader in the region’s digital transformation. The coming years will be critical in determining how effectively these initiatives translate into tangible economic and social benefits for the country’s citizens. 

Frequently Asked Questions (FAQS): 

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

A: The SL-UDI project is a national initiative to create a secure digital identity system for Sri Lankan citizens. It involves collecting biometric and biographical data to enable access to government services, banking, and other digital platforms.

Q: How does Sri Lanka’s sovereign cloud work?

A: A sovereign cloud allows the government to retain control over data, even if it is stored abroad. This ensures that sensitive information, such as biometric data, is protected under local laws while still leveraging global cloud infrastructure.

Q: What role does the National Data Exchange (NDX) play in Sri Lanka’s digital strategy?

A: The NDX facilitates seamless data sharing between government agencies, private institutions, and stakeholders. It aims to improve collaboration, decision-making, and service delivery by creating a unified data infrastructure.

Q: Why is data classification important for Sri Lanka’s digital governance?

A: Data classification helps determine how information is stored, shared, and protected. By categorizing data into high security, sensitive, or public levels, the government can implement tailored policies that balance accessibility with privacy.

Q: What challenges does Sri Lanka face in its digital transformation?

A: Key challenges include ensuring compliance with international data regulations, addressing privacy concerns, and fostering collaboration between local and global cloud providers. Balancing innovation with security remains a priority. 

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