World Bank approves US$ 50M project to support Sri Lanka’s digital transformation

The World Bank Board of Executive Directors has approved a US$50 million project to support Sri Lanka’s digital transformation.

The project will promote innovation and investment in Sri Lanka’s digital sector, modernize government services, and make them easier to access and more responsive to the needs of people and businesses, the World Bank Group said in a statement.

The Sri Lanka Digital Transformation Project will support practical, people-centric digital solutions, including an integrated online citizen service portal for government services, a secure system for sharing data across government agencies to improve efficiency and transparency, a digital locker for storing digital documents, and a government cloud platform that can be scaled as demand increases.

These investments in Sri Lanka’s digital public infrastructure will be complemented by training programmes to help citizens and public servants use these new digital services with confidence.

“Digital transformation is a powerful driver of inclusive growth and better services,” said Gevorg Sargsyan, World Bank Group Country Manager for Sri Lanka and Maldives. “By investing in core digital platforms and skills, this project will improve how services are delivered to people and businesses and create new opportunities for private sector-led innovation.”

Beyond improving public services, the project will also help strengthen Sri Lanka’s technology and start-up sector. Through a digital start-up accelerator, the project will foster innovation, strengthen the local start-up ecosystem, and encourage female entrepreneurship.

Mid-sized technology firms will also benefit from targeted programmes to help them reach customers and investors in international markets. These efforts are expected to attract around US$10 million in private investment over time, supporting job creation and higher IT export earnings, it said.

“Better digital government and a stronger IT sector go hand in hand,” said Anna Metz, World Bank Senior Digital Specialist and Task Team Leader. “As public services go digital, demand grows for local technology solutions. At the same time, a more competitive IT sector strengthens Sri Lanka’s ability to develop and maintain modern digital systems.”

The project builds on the work done by the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which has supported Sri Lanka’s start-up and innovation ecosystem through investment and advisory services.

In addition, the project will strengthen Sri Lanka’s ability to prepare for and respond to emergencies. As the country faces increasingly frequent cyclones and climate-related disasters, robust digital systems can support data-driven decision-making, real-time information sharing across government agencies, and better coordination of emergency services and relief. Digital service delivery will also ensure that essential government services can continue during crises and allow authorities to quickly identify affected communities, share critical information, and deliver assistance electronically.

The project will be implemented by GovTech Sri Lanka (Pvt) Limited, in close collaboration with the Ministry of Digital Economy, it added.

Aligned with Sri Lanka’s national development goals and the World Bank Group’s Country Partnership Framework, the project reflects a shared commitment to leveraging digital technologies to improve public services, strengthen public sector efficiency and governance, and build an inclusive digital future for Sri Lanka.