Govt. Lines Up Policy Reforms to Drive $5 Bn Digital Exports Target 📈

• Target & Strategy: Sri Lanka targets US$ 5 Bn in digital exports by 2030 through key regulatory, tax, and procurement overhauls aimed at creating a favorable headquartering environment. • Financing & Venture Capital: • Cabinet paper expected within weeks to launch a 'Fund of Funds' to boost startup financing. • Finalizing tax reforms on venture capital tax pass-through issues. • Revising capital mobility rules to allow foreign-funded startups to invest in overseas expansion. • Ease of Business & Virtual SEZ: • Establishing a virtual Special Economic Zone (SEZ) to reduce administrative barriers for high-growth tech firms. • Procurement reforms to give domestic technology firms easier access to public sector contracts. • AI & Innovation Push: Plans underway for an Applied AI Institution, an AI Centre of Excellence, and dedicated research and IP incentives to drive industry growth.