Sri Lanka’s Digital Shift: Growth vs. Governance Risks 📈

The 2026 budget has allocated Rs. 30 Bn to accelerate Sri Lanka's digital transformation, focusing on Digital Public Infrastructure (DPI). However, analysts warn of a "rights vacuum" and "efficient authoritarianism" if technical rollout precedes legal safeguards. • Overall Figures & Timeline • Total Budget: Rs. 30 Bn (approx. US$ 98 Mn) for 2026 initiatives. • Digital ID (SL-UDI): Rs. 2.2 Bn allocated; launch expected by Q3 2026. • Start-up Fund: Rs. 1.5 Bn (US$ 5 Mn) to catalyze the ICT/BPM ecosystem. • The Digital Divide Based on UNDP data, a significant gap threatens to "hard-wire inequality": • 39% of households remain offline. • 34% gender gap in internet use. • Disability Gap: Only 7% of persons with disabilities have internet access, vs. 24% of the general population. • Key Risks & Sector Impacts • Governance: The Online Safety Act (OSA) and biometric collection proceed without vernacular (Sinhala/Tamil) documentation, risking the exclusion of linguistic minorities. • Disaster Management: Evidence suggests 2025 cyclone fatalities were exacerbated by a 12-hour delay in Tamil-language warnings. • Apparel & Textiles/Finance: Move toward a cashless society (waiving fees on gov payments < Rs. 5,000) lacks "analogue alternatives" for those with low digital literacy. • Policy Recommendations Experts urge donors to condition disbursements on: • Trilingual Transparency: Simultaneous release of all DPI documents. • Legal Safeguards: Fully operational Data Protection Authorities before data collection. • Inclusive Consultations: Documented engagement in Northern and Eastern provinces. _Note: Summary based on provisional 2026 budget data and recent socio-economic analysis._