The Hon. Chathura Galappaththi

¶ 01 Thank you, Hon. Chairman.

¶ 02 While I have much to say on Fisheries as a representative from Devinuwara, I will focus on the Digital Economy Ministry matters highlighted by our State Minister, Hon. Dilip Wedaarachchi.

¶ 03 There is confusion between digitization and digitalization. Digitization is converting analogue information—like records or forms—into digital data (e.g., entering NIC data into a system). Digitalization is transforming processes—public or private—into digital workflows (e.g., applying online for an NIC and receiving it by post). Many in the State apparatus still do not clearly distinguish the two. The Digital Economy Ministry is essential and can shape our next generation of growth, but all ministries must align, not just the President or the Digital Economy Ministry.

¶ 04 Over the past year, the State Minister listed achievements—GovPay for government payments at some institutions; cloud upgrades; digitizing birth and death certificates and President’s Fund services; telecom tower expansions; school infrastructure; and talk of a “Super App.” These are good, but to reach a US$15 billion digital economy, we must go further—most importantly, digitizing the procurement system.

¶ 05 Public perception is that every tender is corrupt. The Government’s core promise is to end corruption. The best solution is to digitize procurement end-to-end. Initial steps have been taken—please implement it within the next year. It will benefit this and future governments and be a transformative change.

¶ 06 Under a previous administration, there was momentum with a capable team, but key people like Dr. Sanjiva Weerawarana left within months. Today there is renewed interest and a good team, but we see resignations again on social media without reasons. That risks eroding trust. The President’s and Ministry’s interest alone is insufficient; line ministries must also be ready.

¶ 07 I give two examples. First, an AI-related legal solution (“Al Pazz”) was presented to the Hon. Minister of Justice, Harsha Nanayakkara, who immediately asked the Secretary to engage. Four months on, no follow-up. The Minister’s interest exists; below that, it fades. Universities have the need but not the budgets; ministries have budgets but not the drive.

¶ 08 Second, the “rdmns.Ik” railway mobile app made by a youth group has an agreement with the previous Government, the current Minister is supportive, and has directed the GM—but it still is not operational. The whole State machinery must be readied and mindsets changed. Both Government and Opposition must embrace a digital-state mentality.

¶ 09 Capacity building is essential. Many ministry IT units work in silos, unfamiliar with collaborating under a common national vision. Bring them together to align.

¶ 10 On startups, we often forget the SME “middle layer.” Not just top-tier firms like WSO2 or Virtusa, or fledgling startups, but the 100–150 employee companies with delivery capacity and cash flow. There is no protective programme for them. In digital procurement, criteria such as 10 years’ experience, prior government projects, and high turnovers exclude capable SMEs. Create conditions for them to bid.

¶ 11 We must move startups to commercialization—providing guidance on marketing, planning, investment, funding and branding—through a supportive government body. Many startups start and then stall.

¶ 12 Domestic capital alone is insufficient; we need foreign capital. To build a startup ecosystem, make Sri Lanka a place where venture capitalists and entrepreneurs choose to locate, with a clear roadmap and allocations. Conferences alone will not bring investment; we must target and attract Australian, US, European and Singaporean investors. Our advantages: relatively low costs and competitive labour. If we had signed ECTA then, we could have ridden India’s current momentum—missed opportunities.

¶ 13 Even so, Sri Lanka has unique strengths: product quality, communication and ethics. These help us survive. To attract investors we need tax benefits; otherwise firms will domicile elsewhere (e.g., run Sri Lankan operations under a Singapore parent). If we aim for US$15 billion, give room for companies to return and grow here.

¶ 14 On Personal Income Tax, you pledged a Rs. 200,000 threshold but set it at Rs. 150,000. Many in IT start around that level, and mid-level talent emigrates, leaving companies with juniors; some cannot sustain under current PIT, alongside issues like macro stability, registrations, land and labour, which also affect investor decisions.

¶ 15 Startups won’t thrive by wish alone; we need entrepreneurship embedded in education—schools and universities. Private universities are updating syllabi, adding AI courses, projects and competitions. Public universities are lagging.

¶ 16 A pressing issue: internships. Some universities have dropped compulsory internships (e.g., Colombo) due to lack of placements. Post-Covid, many flocked to IT; now many are exiting the field and graduates cannot find opportunities. Consider incentivizing firms that provide internships—perhaps via tax benefits—so students gain needed experience.

¶ 17 On data centres: the Budget allocates Rs. 500 million. Yet SLT’s Matara data centre alone costs Rs. 600 million. Therefore, rather than small public spends, focus on attracting major global investors—Microsoft, Amazon, Google, Tata, Oracle, IBM—and create enabling environments.

¶ 18 Finally, AI is the largest looming challenge and opportunity. I understand a capable team has been appointed—please build a society and a next generation ready to engage AI productively. Thank you.