Sri Lanka's Digital Shift: New Business Models for Sustainable Growth

Published Date : 7/29/2025 

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

Sri Lanka is poised to revolutionize its digital ecosystem by considering various business arrangements beyond traditional procurement-based interactions. According to a top government official, the country needs to be open to new forms of interactions such as licensing and public-private partnerships (PPPs) to foster sustainable digital transformation.

Dr. Hans Wijayasuryya, Chief Adviser to the President on Digital Economy, emphasizes the importance of exploring new business models to support digitalization. “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 some license fee and be regulated about compliance,” he told Biometric Update. “This approach can change from buying and building to creating a business model, such as selling licenses, like in the telecom industry.”

To ensure the sustainability of digital investments, unique and bankable business models are essential. “These business models need to be bankable because, if you put cash behind the service or a technology process which no one pays for, it will not be successful. It has to be paid in terms of citizen satisfaction, or it has to be paid in terms of the returns to the various stakeholders who participated,” Dr. Wijayasuryya explained. This shift from the traditional procurement model to a more dynamic business model is crucial for the long-term success of digital initiatives.

The same model can be applied to cloud infrastructure and digital public infrastructure platforms (DPI). For instance, the government can explore licensing models for cloud infrastructure and industry platforms such as high-velocity, revenue-generating ones like ticketing. “We should be open to new forms of procurement, such as outcome-based procurement, which is a form of procurement where the government would come forth with an issue to be solved, which is the outcome, and not necessarily prescribe how the problem should be solved,” Dr. Wijayasuryya added. This approach opens up opportunities for innovation, allowing smaller companies to compete through innovative solutions that are cost-effective and efficient.

By embracing these new business models, Sri Lanka can create a more robust and sustainable digital economy. The focus on citizen satisfaction and stakeholder returns ensures that digital transformation is not just a one-time investment but a continuous process that benefits the entire society. The government’s openness to innovative procurement methods and public-private partnerships is a step in the right direction, paving the way for a more inclusive and dynamic digital future. 

Frequently Asked Questions (FAQS): 

Q: What is the main focus of Sri Lanka's digital transformation strategy?

A: Sri Lanka's digital transformation strategy focuses on exploring new business models, including licensing, public-private partnerships, and outcome-based procurement, to ensure sustainable and inclusive digital growth.

Q: Why are unique and bankable business models important for digital transformation?

A: Unique and bankable business models are crucial because they ensure that digital investments are sustainable and provide returns in terms of citizen satisfaction and stakeholder benefits.

Q: What is outcome-based procurement?

A: Outcome-based procurement is a form of procurement where the government specifies the desired outcome rather than the method of achieving it, allowing for more innovation and flexibility in solving problems.

Q: How can licensing models be applied to digital infrastructure?

A: Licensing models can be applied to digital infrastructure by allowing entities to operate services under a government-issued license, paying a fee and adhering to regulatory compliance.

Q: What are the benefits of public-private partnerships in digital transformation?

A: Public-private partnerships in digital transformation can bring in private sector investment, expertise, and innovation, leading to more efficient and effective digital solutions. 

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