World Bank issues $50M grant for Sri Lanka’s digital transformation

Sri Lanka has received a $50 million grant from the World Bank to support a digital transformation initiative aimed at modernizing government services and making them easily accessible to citizens.

The grant was approved by the World Bank Board of Executive Directors and will be channeled towards the Sri Lanka Digital Transformation Project. The program targets digital government infrastructure, including shared platforms that can deliver services online, while strengthening cybersecurity and data protection, supporting enabling regulations, and imparting the required skills to manage digital systems.

It also seeks to boost the issuance of digital IDs. The South Asian nation has been developing the Sri Lanka Unique Digital Identity (SL-UDI) for years as the advancement of its existing electronic national ID, which already stores citizens’ critical identification data, including biometrics. SL-UDI is being built on MOSIP, an industry-standard digital ID platform, and is partially funded by a grant from the Indian government. Issuance is expected to start later this year.

“Digital transformation is a powerful driver of inclusive growth and better services,” commented World Bank Group Manager for Sri Lanka, Gevorg Sargsyan. “By investing in core digital platforms and skills, this project will improve how services are delivered to people and businesses and create new opportunities for private sector-led innovation.”

While the focus is mainly on digitalizing government services, the grant will also seek to boost the country’s digital economy. According to a recent report, the sector accounted for 4% of the country’s GDP last year at Rs. 1.3 trillion ($3.7 billion). The government’s goal is to push the sector to $5 billion by 2030, with some more optimistic officials targeting an increase in its share of the GDP to 15%.

The World Bank will launch a new accelerator for digital startups, with a special focus on female innovators. It will also work with mid-sized tech firms to reach an international audience, to attract $10 million in private investment and create thousands of new jobs.

“As public services go digital, demand grows for local technology solutions. At the same time, a more competitive IT sector strengthens Sri Lanka’s ability to develop and maintain modern digital systems,” commented Anna Metz, the financier’s senior digital specialist.

Sri Lanka’s closest neighbor, India, is one of the global leaders in the digitalization of government services. At the center of this transformation is Aadhaar, a biometric digital ID that gives citizens access to public and private services. With 1.4 billion Aadhaar numbers issued, it remains the world’s largest digital ID system.

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