Sri Lanka’s Digital Economy Ambitions Face Policy Bottlenecks
- CNL Reporter
- August 31, 2025
- News, Political
- Digital Economy
- 0 Comments
Sri Lanka’s fintech sector is gaining traction, but doubts linger over whether the government can meet its bold target of building a US$15 billion digital economy by 2030.
According to Central Bank data, digital transactions are rising sharply. In the first quarter of 2025, LankaPay processed more than 404 million transactions—up 48 percent from a year earlier—valued at Rs. 586 billion. Campaigns such as the Central Bank’s Digital Payments Promotion and fee waivers by banks like HNB are nudging merchants and consumers toward cashless systems.
The government’s Digital Economy Strategy 2030 aims to contribute 12 percent of GDP, achieve 95 percent financial inclusion, attract US$100 million in fintech investment, and raise fintech graduate employment from 10 to 25 percent.
Yet, industry experts warn that bureaucratic delays, inconsistent regulations, and poor inter-agency coordination are undermining progress. “The ecosystem is ready, but officials have tied hands,” one fintech entrepreneur said, noting shifting priorities that spook investors.
Cash still dominates daily transactions, while rural connectivity and device affordability remain obstacles. Without faster policy delivery, analysts caution, Sri Lanka risks falling short of its transformative digital vision, achieving only incremental progress
