With digital transformation gathering steam worldwide, Sri Lanka is working on ensuring that it has the proper defenses to tackle issues that may arise with this progress, announcing plans to establish a legal framework that would support its digitalization initiatives.
Deputy Minister of Digital Economy, Eranga Weeraratne, has introduced two proposed regulations, the Digital Economy Act and the Cyber Security Act, both intended to help Sri Lanka safely build its digital economy.
Fully aware that digitalizing the country will not be an easy task and will require substantial resources to guarantee its success, Sri Lanka is looking to establish a new authority under the Digital Economy Act that will focus on overseeing projects aimed at integrating advanced technologies across various industries and services.
The move to consolidate digital economy functions into a single body aims to bolster government efficiency by simplifying processes, reducing overlap, and accelerating decision-making.
“The Digital Economy Act is essential because we need proper policies and frameworks for the digital activities we are currently undertaking,” said Weeraratne.
On the other hand, the Cyber Security Act is the tabled legislation to safeguard the country against cyberattacks. This proposed Act is both timely and reportedly necessary due to the considerable increase in cybercrime in Sri Lanka in 2025, which is anticipated to escalate further this year.
According to the Sri Lanka Computer Emergency Readiness Team (Sri Lanka CERT), there were over 12,650 complaints of social media misuse and cybersecurity incidents in 2025, underscoring the need for heightened public awareness and calling on the government to improve the country’s cyber resilience.
Earlier in February, Sri Lanka launched a nationwide program to link state agencies operating in critical data infrastructure to the National Cyber Security Operations Center (NSCOC) for better threat monitoring, early warning alerts, and to establish a coordinated incident response.
Similar to the Digital Economy Act, Sri Lanka is planning to create a new authority that would oversee the country’s cybersecurity measures under the Cyber Security Act.
“As we move toward digitalization, it is crucial that we have the right protections to face threats in cyberspace,” Weerarante said. “We need to ensure that cyber security measures are properly and legally enforced within these digital systems.”
While many recognize the importance of these draft legislations, which are currently in their final stages, some have opposed them, claiming that enacting them instead of just reforming existing similar mandates may only lead to bureaucratic inefficiency and higher costs.
Sri Lanka’s bold bet on digital ID
Sri Lanka’s digital transformation doesn’t end here, with the government announcing progress in its digital identity initiative.
By the third quarter or fourth quarter of 2026, the national administration will begin distributing the first batch of the Sri Lanka Unique Digital Identity (SL-UDI) to citizens, a project that has been in the works since 2021.
Weeraratne confirmed that the initiative is in its final stages, with the procurement process for the SL-UDI Master System Integrator (MSI)—an entity tasked with the scheme’s implementation and testing phase—to conclude in April.
With the SL-UDI, Sri Lankans will no longer have to depend on their physical ID cards when going to various locations or availing state services, including banking, welfare, and official documentation.
Along with the digital ID, Weeraratne said the development of a “super app” is in the pipeline, which aims to consolidate state services into a single platform.
The SL-UDI is part of the government’s 35.6-billion-rupee ($120 million) digitization project presented by President Anura Kumara Dissanayake in November.
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Source: https://coingeek.com/sri-lanka-gears-up-for-digital-era-with-new-laws-national-id/
