Anuradha Perera
In a world where digital transformation is crucial, Sri Lanka has stepped up. It announced a plan to change its tech scene drastically. President Ranil Wickremesinghe is leading this move. The goal is to make Sri Lanka a key player in the global tech world. This is happening despite economic challenges and a rise in VAT.
The President is set on boosting Sri Lanka’s tech advancements. He promises to keep IT industry exports tax-free. At the same time, he plans to invest more in AI and tech development. This strategy aims to establish Sri Lanka as a growing digital center while building strong global ties.
Sri Lanka’s change is part of a bigger plan. It aims to boost the economy through digital innovation, even with VAT increases. The government wants to invest in key areas. Will these efforts put Sri Lanka at the forefront of Asia’s digital future?
Key Takeaways
- Sri Lanka’s emphasis on a holistic digital transformation to spur economic prosperity.
- Government commitment to keeping IT industry export services untaxed, despite VAT adjustments.
- Targeted investments in AI and technology development through revenue generated from the new VAT.
- Initiatives like the Digital Transformation Agency and AI Centre to shape Sri Lanka’s tech policy and innovation.
- Projections for the educational sector’s digital modernization with planned tech-focused institutions.
- International collaboration, especially with India for setting up an IIT campus, to enhance education and technology in Sri Lanka.
President’s Vision for a Digitally Driven Economy
Sri Lanka is on the edge of a huge change, moving towards a tech-savvy future. The President aims to blend Sri Lanka’s tech efforts with global market opportunities. This shift involves filling the economy with digital advancements.
It’s about using the chance to free the IT sector from financial limits. And doing so with strong support and plenty of resources.
Exemption of IT Services from Income Tax
The government has made a smart move by not taxing IT services sold abroad. This change aims to draw more international IT business to Sri Lanka. It’s a key part of the plan to boost Sri Lanka’s exports and grab a bigger global market share.
VAT Revisions and Support to the IT Sector
The new VAT changes show Sri Lanka’s commitment to a competitive IT environment. The VAT increase to 18% matches global rates like India’s. It sets up a business scene with exports not taxed, helping Sri Lanka grow digitally while meeting international standards.
Commitment to Research and Development Funding
A new phase of innovation begins with the government investing Rs. 9.5 billion in research and development, focusing on AI. This investment aims to push Sri Lanka into a tech-advanced future. It seeks to boost digital innovation in Sri Lanka, helping the IT sector aim for $7 billion in revenue.
This plan aims to reshape Sri Lanka’s tech sector and urges the government to support tech growth. It’s a smart move towards making Sri Lanka known for technology. The goal is a digital economy that thrives on big digital changes.
Implementation of Strategic Technological Agencies
Sri Lanka is starting a major shift towards digital. By setting up new, strategic groups, a big step is taken in this journey. The Digital Transformation Agency (DTA) and the AI Centre lead the way. They help create policies and manage innovation for Sri Lanka’s tech scene.
The Digital Technology and Innovation Council works with them, speeding up tech commercialization. They make sure research funds for technology development in Sri Lanka are well used. This supports an environment ready for digital change.
These groups offer a new focus compared to the Information and Communication Technology Agency of Sri Lanka (ICTA). They are key in moving towards digital solutions in many sectors. This builds a strong, tech-forward future.
- Advance policy-framework conducive for technological innovation.
- Manage and allocate research funds to maximize the impact of technological investments.
- Support the commercialization of innovation, ensuring that ideas transition into practical applications that bolster economic vitality.
These agencies together will turn Mauritius’ digital dreams into real, positive changes. Their work promises a sustainable, tech-savvy growth.
Advancing Education and International Collaborations
Sri Lanka is stepping into a digital future, with big plans for its schools. The President sees education as vital for tech growth. By improving schools and working with other countries, Sri Lanka aims to be a leader in digital tech.
Educational Reforms and University Expansions
The President plans major changes in education. More universities focused on science and tech will open. This will not just make education better but also grow a skilled tech workforce. It’s a big step for Sri Lanka’s tech ambitions.
Establishment of an IIT Campus with India’s Partnership
A big sign of teamwork is a new tech campus, built with India. The Indian Institute of Technology (IIT) is known for its great tech programs. This partnership will help Sri Lanka train top-notch tech pros, moving forward in digital innovation.
