The Hon. Kathiravelu Shanmugam Kugathasan

¶ 01 Hon. Chairman, in the Committee Stage Debate on the 2026 Appropriation, I address the Digital Economy.

¶ 02 The digital economy — internet-mediated, globally scaled business, professional and economic activity — is a multi-trillion-dollar domain. UNCTAD projects it could reach USD 5 trillion by 2033. It is not a siloed sector; it is an integrated approach continuously reshaping the whole economy, permeating all ministries. Public investments must drive national technology convergence.

¶ 03 This Budget allocates Rs. 16 billion to the Digital Economy Ministry (Rs. 5.9 billion recurrent; Rs. 10.1 billion capital), about 0.4% of total Budget. For a country aiming to transform into a digital economy, this is insufficient, and notably Rs. 623 million less than last year. Digital infrastructure is not discretionary — it underpins efficient service delivery, transparency and a broadened, sustainable tax base.

¶ 04 Strategic digital investment will upskill our workforce, anchor a resilient middle class, and position Sri Lanka as a South Asian digital services hub, aligning growth with social equity so that urban entrepreneurs and rural farmers alike benefit. Our strategy must benchmark against global leaders to ensure best practices.

¶ 05 South Korea leads OECD rankings (score 0.935) due to institutionalization, governance, talent and robust infrastructure — via a six-dimensional “digital by design” and “government as a platform” model with agility and integration. Piecemeal digitization across agencies, even with Rs. 30 billion, will fail. Investments like GovPay and e-Grama Niladhari must be embedded in a whole-of-government architecture with secure, seamless data-sharing across ministries.

¶ 06 India, through Aadhaar and UPI, has shown how digital public infrastructure can drive scale and inclusion, with the digital economy projected to reach 13.42% of GDP by 2026. From India we should learn “security by design”: define purposes and protections before onboarding users, as Aadhaar’s biometrics and EU’s GDPR exemplify. As we roll out SLUDI — our foundational digital ID — we must adopt this philosophy to safeguard public data and the system’s credibility.

¶ 07 Japan’s Digital Agency model acts as a control tower across public and private sectors, with a people-centered vision ensuring no one is left behind. Our Digital Economy Ministry should assert a central strategic mandate to coordinate resources and break silos so benefits reach rural communities and close the national digital divide. Even the US invests billions via its Infrastructure Law — USD 2.75 billion for digital equity and USD 42 billion for broadband — proving that developed economies also target digital literacy and capacity.

¶ 08 Sri Lanka should prioritize a significant share of its Rs. 30 billion envelope to close the capability gap. China’s five-year planning illustrates policy stability as a magnet for long-term capital; likewise we must maintain our Economic Strategy 2030 through political cycles.

¶ 09 I propose a four-pillar roadmap to accelerate national digital transformation and ensure full returns from our investments: - Governance: Enact the Online Safety Bill and an accountability statute; strengthen oversight. - Trust and inclusion: User education, informed consent, targeted equity; close the skills gap through structured programs. - Integrated services: Mandate platform adoption and interoperability for unified, accessible delivery. - Economic acceleration: Fast-track infrastructure; provide FinTech regulatory clarity; leverage global expertise.

¶ 10 The proposed Rs. 30 billion for 2026 is an advance on our economic future. Success depends not just on tech or funds but on trust, skills and collaboration. Treat digital connectivity and functional literacy as rights. By coordinating Parliament, private sector and local communities, we can mitigate structural risks — usage gaps and cybersecurity threats — and realize the USD 15 billion digital economy target by 2030, delivering resilient, inclusive prosperity.

¶ 11 The opportunity is real, the stakes substantial. The rewards make action a necessity, not a choice. Thank you.