Sri Lanka has secured a significant $50 million grant from the World Bank to advance its digital transformation project. This funding aims to modernize government services, enhancing accessibility for citizens across the nation.
Overview of the Grant
The World Bank Board of Executive Directors approved this grant to support the Sri Lanka Digital Transformation Project. The initiative will focus on upgrading digital government infrastructure, fostering online services, and improving cybersecurity measures.
Key Components of the Digital Transformation
- Shared Digital Platforms: The project will develop platforms that allow government services to be accessed online.
- Cybersecurity Enhancement: Strengthening data protection measures is a critical part of this initiative.
- Skills Development: The program will include training to manage digital systems effectively.
- Digital ID Issuance: The initiative will support the rollout of digital IDs, enhancing identification processes.
The Sri Lanka Unique Digital Identity (SL-UDI) has been in development for several years. Built on the industry-standard MOSIP platform, SL-UDI will replace the existing electronic national ID and integrate biometric data. The issuance of digital IDs is expected to commence later this year, with partial funding provided by the Indian government.
Impact on Economy and Innovation
World Bank Group Manager for Sri Lanka, Gevorg Sargsyan, emphasized that digital transformation drives inclusive growth and enhances service delivery. By investing in core digital platforms and skills, the project aims to improve governmental services and stimulate private sector innovation.
The funding will also focus on enhancing Sri Lanka’s digital economy, which accounted for approximately 4% of the GDP in the previous year, totaling Rs. 1.3 trillion (around $3.7 billion). The government aims to increase this sector’s contribution to $5 billion by 2030, with some officials projecting a rise to 15% of GDP.
Support for Startups and Job Creation
As part of the initiative, the World Bank plans to launch an accelerator for digital startups, particularly targeting female innovators. This effort is expected to foster growth in the technology sector, attract $10 million in private investment, and generate thousands of new jobs.
Anna Metz, a senior digital specialist at the World Bank, remarked that as public services transition to digital formats, the demand for local technological solutions will increase. A competitive IT sector is crucial for developing and maintaining modern digital systems.
India, Sri Lanka’s neighboring country, serves as a model for digitalization in government services, notably through its Aadhaar program—a biometric digital ID system that currently serves 1.4 billion citizens. This positions India as the leader in global digital ID systems.
