Sri Lanka is stepping boldly into the digital age. The National Digital Economy Strategy 2030 targets unlocking USD 15 billion in digital value, supported by a Rs. 30 billion allocation in the 2026 budget for major digital initiatives. Yet progress remains uneven many government websites and project portals still show outdated information, broken links, and slow manual updates that frustrate citizens and businesses alike.
While global debates rage about AI replacing jobs, Sri Lanka has a smarter path: deploy AI as a collaborative tool to modernise public services, improve efficiency, and augment human capabilities rather than displace them.
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Sri Lanka’s Digital Progress – Achievements and Remaining Challenges
The country has recorded impressive gains in connectivity. By late 2025, internet penetration reached 59.7%, with 13.9 million users, while cellular mobile connections hit 30.3 million equivalent to 130% of the population. Platforms like GovPay marked a milestone by processing over Rs. 2 billion in digital transactions in 2025, and the World Bank approved a $50 million project to support integrated online portals and secure data systems.
Sri Lanka ranks 98th in the 2024 UN E-Government Development Index (EGDI) with a score of 0.6667, placing it firmly in the high EGDI category. Initiatives such as the Sri Lanka Unique Digital Identity (SL-UDI) lay the groundwork for seamless paperless and cashless services.
Despite these advances, persistent gaps hinder full potential. Many ministry and project websites feature stale content, incomplete project details, and manual processes that reduce transparency and slow service delivery. Overburdened staff struggle with routine updates, creating bottlenecks. This is where AI can make a transformative difference automating repetitive tasks and enabling public servants to focus on higher-impact work.
Addressing Job Fears – AI as an Augmenter, Not a Replacer
Global headlines often highlight AI-driven job displacement, but Sri Lanka’s context tells a different story. A 2025 Institute of Policy Studies (IPS) study estimated that 22.8% of the employed population roughly 1.83 million workers has some exposure to generative AI, though high-vulnerability roles remain limited. Experts project AI will displace fewer than 1% of jobs in the coming five years.
Sri Lanka’s AI adoption rate stands at just 6.2%, according to Microsoft’s latest reports well below global averages. This low baseline provides valuable time to adopt AI responsibly. The National AI Strategy prioritises ethical, human-centred implementation in the public sector, framing AI as a tool that enhances productivity.
In government operations, AI can handle routine updates, data entry, and basic citizen queries, freeing officers for policy analysis, complex problem-solving, and direct engagement. Sri Lanka already leads South Asia in AI-related job postings, with 7.3% of white-collar roles requiring AI skills in 2025. Strategic adoption can create more skilled digital governance positions rather than eliminate existing ones.
Real-World Applications – AI Solutions for Government Digital Services
AI offers practical, immediate ways to overhaul Sri Lanka’s public digital ecosystem. For outdated websites, AI-driven content management systems can automatically detect stale information, pull updates from official databases, and generate accurate project summaries. Natural language processing tools can provide real-time translations into Sinhala, Tamil, and English, broadening accessibility.
Intelligent chatbots already being piloted in some portals can manage common inquiries around the clock, cutting response times and reducing staff workload. In project oversight, AI analytics can process ministry datasets to highlight delays, budget variances, or risks, ensuring portals display current, reliable information.
The 2026 budget’s Rs. 30 billion commitment, including targeted funding for cashless transactions and digital public infrastructure, creates ideal conditions for integration. Enhancing platforms like SL-UDI with AI-powered verification and fraud detection can accelerate truly paperless services while keeping humans in oversight roles to maintain accountability and trust.
Building Capacity – Training Public Servants for the AI Era
Technology alone isn’t enough, people must lead the transition. Officers responsible for content updates across ministries, ICTA, and local authorities need accessible, targeted training in AI and emerging tools.
The National AI Strategy already emphasises workforce development through coordinated public-sector programs. Practical initiatives could include short workshops on prompt engineering, AI ethics, and user-friendly tools, delivered via existing ICTA digital literacy platforms.
Collaborations with universities, private tech companies, and international partners like the World Bank can provide certifications tailored to public administration. Focusing on quick-win modules such as AI content generators and data dashboards will build confidence fast.
Effective change management matters: early pilot projects in selected ministries can demonstrate reduced workloads and better outcomes, winning buy-in. By 2030, an AI-literate public service could power inclusive, citizen-centred digital growth, leaving no officer or community behind.
Sri Lanka stands at an exciting inflection point. Instead of fearing AI, the nation can embrace it to close digital gaps, revitalise government services, and realise the full vision of the Digital Economy Strategy 2030. With ethical implementation, comprehensive training, and a focus on augmentation, AI becomes a true development partner empowering people, strengthening institutions, and propelling the economy forward. The digital future is within reach; let’s build it together.
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