AI data centres in Sri Lanka, President assures concessions

President Anura Kumara Dissanayake says several concessions will be granted to establish artificial intelligence (AI) data centres in Sri Lanka.

The President noted that the government will grant relief to companies to set-up AI data centres in the country, considering the importance it will play in the modern world.

President Dissanayake also pledged to grant a five-year tax concession to build digital communication towers.

To accelerate the spread of digital technology, a simpler and faster unique approval process will be established for the construction of digital infrastructure facilities such as communication towers.

Accordingly, the President proposed to suspend the tax applicable to new towers constructed under the digital technology expansion programme for a period of five years.

Meanwhile, President Dissanayake stated significant progress has been made in several areas such as introducing the GovPay system for payments related to government institutions, establishing the National Cyber Security Operations Centre, improving the document services provided to citizens through the Presidential Fund and embassies, setting up the GovTech Institute to accelerate digitalization, establishing the Digital Economy Authority in the near future, and successfully issuing 5G licenses.

To ensure the participation of every citizen, efforts are underway to expand broadband access across the country, attract foreign direct investments, and foster an ecosystem that supports new entrepreneurs, President Dissanayake noted.

The President said investments are being encouraged in next-generation digital infrastructure, including artificial intelligence, cloud computing, and data centers.

Accordingly, an allocation of Rs. 3,000 million has been provided through the 2026 Budget.