Digital transformation has become a cornerstone of modern economic growth, driving efficiency, productivity, and innovation across sectors. The integration of digital tools, automation, and AI has optimised operations in manufacturing, services, and public administration while enabling new business models, startups, fintech solutions, e-commerce platforms, and digital services.
Digital payment system has facilitated seamless financial transactions for millions of small businesses, significantly boosting economic activity. Similarly, countries like South Korea and Singapore have leveraged AI and robust digital infrastructure to enhance global competitiveness, while China’s digital governance platforms demonstrate how technology can improve transparency, accountability, and public service delivery on a massive scale.
Digital transformation promotes social inclusion, financial access, and entrepreneurship. Mobile banking, digital payment systems, and fintech applications have extended financial services to underserved populations. It also creates employment opportunities in IT, AI, data analytics, fintech, e-commerce, and digital marketing, while upskilling the workforce. Digital tools bridge urban-rural divides, empower women and youth, and enhance access to education, healthcare, and agricultural services. By fostering innovation, supporting startups and SMEs, and transforming key sectors, digitalisation becomes a strategic driver of sustainable growth, inclusive development, and long-term economic resilience.
Over the past decade, India has undergone one of the most rapid digital transformations in the world. What began as a strategic national vision to empower 1.4 billion citizens through digital infrastructure has evolved into a socioeconomic revolution that is reshaping governance, commerce, education, healthcare, and daily life. With widespread mobile connectivity, large-scale digital identity systems, world-leading payment innovations, and a thriving entrepreneurial ecosystem, India today stands as a global model of inclusive digital development.
For Sri Lanka—an economy undergoing fiscal reforms, governance restructuring, and institutional modernisation—India’s transformation offers a powerful blueprint.
India’s digital revolution is built on three foundational components of Digital Public Infrastructure (DPI)—public digital goods designed to be universal, secure, low-cost, and scalable. (See Table)
| Company | Contact |
|---|---|
| Digital Component | Impact / Data |
| Aadhaar Biometric ID | Over 1.33 Billion people enrolled – world’s largest digital ID system |
| Jan Dhan Yojana | 503 million financial inclusion accounts opened since 2014; owned by women |
| Mobile Connectivity | 1.2 billion mobile connections; 840 million intemet users (2024) |
The integration of Aadhaar + Mobile + Bank accounts (the JAM Trinity) has enabled universal identity verification, digital KYC, and seamless delivery of welfare benefits.
India’s digital transformation
India’s digital transformation is driven by breakthrough platforms, like UPI, which now accounts for nearly half of the world’s real-time digital payments, handling over 14 billion transactions monthly and enabling financial inclusion for millions of small merchants, drivers, farmers, and micro-enterprises. This low-cost, universal digital payment ecosystem has strengthened SMEs, e-commerce, rural markets, and government revenue systems. Alongside this, India has become the world’s third-largest start-up hub, with more than 105 unicorns valued at USD 450 billion, creating millions of tech-enabled jobs across fintech, edtech, mobility, SaaS, and AI. Strong policy support under Startup India, Digital India, and Make in India has accelerated this growth. Digital governance platforms—such as CoWIN, DigiLocker, UMANG, ABDM, and eSanjeevani—have transformed public service delivery, improved transparency, cut administrative costs, and expanded citizen trust, demonstrating how large-scale digital infrastructure can reshape national development.
India’s digital revolution has reshaped everyday life across education, health, and rural development. More than 250 million students accessed online learning during the pandemic, while platforms like DIKSHA recorded over 3.5 billion learning sessions, marking a new era of digital education. In health, telemedicine expanded rapidly with more than 100 million remote consultations, supported by emerging AI-based diagnostics and digital health records. Rural communities have also been transformed through mobile-based agriculture advisories, digital crop insurance, online land records, and direct government payments to farmers, greatly improving transparency and financial stability. This widespread digital inclusion has empowered women, youth, and rural households, laying the foundation for strong economic impact. Today, India’s digital economy accounts for 11% of GDP—about USD 345 billion—and is projected to reach USD 1 trillion by 2030, supported by booming e-commerce and fintech sectors. Digital systems have reduced transaction costs by up to 80%, improved tax efficiency, and saved over USD 30 billion through direct benefit transfers, while the labour market has expanded with 7.7 million gig workers and a 5-million-strong IT workforce contributing 8% to GDP. India’s digital transformation is, therefore, not just a technological shift but a profound economic restructuring shaping the nation’s future.
Way to accelerate economic growth
Sri Lanka can accelerate economic growth and inclusion by building a scalable Digital Public Infrastructure (DPI). Key initiatives include a unified National Digital ID with biometric and mobile verification, linked bank accounts for all citizens, and a national instant payment platform (LK-UPI). Such infrastructure would enhance transparency in social welfare programmes like Samurdhi, pensions, and student allowances, reduce fraud and leakages, improve SME credit access, and speed up government revenue collection. Complementing this, a cashless, low-cost economy can be achieved by expanding QR-based digital payments for public transport, hospitals, government services, local vendors, tourism, and taxes, connecting informal workers to formal markets while curbing corruption. To foster innovation, Sri Lanka should develop a start-up ecosystem through a National Start-Up Mission, university innovation labs, government-private venture capital funds, export incentives, and policies supporting fintech, agritech, healthtech, and green tech sectors. Modernising public service delivery through a Digital Land Registry, e-Health IDs, DigiLocker for certificates and licences, and unified digital education platforms can reduce delays and inefficiencies. Finally, promoting digital agriculture and rural services—including AI-based crop monitoring, digital soil health cards, e-marketplaces, and mobile advisory systems—can significantly increase productivity and income for the 25% of the workforce employed in agriculture. Together, these measures can transform Sri Lanka into a digitally empowered, inclusive, and economically resilient nation.
Sri Lanka’s high mobile connectivity
Sri Lanka has achieved high mobile connectivity, with 29.3 million connections in 2025, equivalent to 127% of the population, and 32.49 million in 2024. Internet adoption remains moderate, with 12.4 million users in 2025 (53.6% penetration) and 26 million subscriptions including mobile broadband.
Broadband infrastructure is improving, as median mobile speeds are projected to rise from 20.22 Mbps, in 2025, to 45.64 Mbps, in 2026, while fixed broadband speeds increased from 22.30 Mbps to 31.67 Mbps. Data consumption is growing rapidly, reaching over one million terabytes in Q3 2024, with 69% via mobile broadband. Financial inclusion is strong, with 88.9% of adults holding a bank account, digital literacy at 63.5%, and a bank branch density of 17 per 100,000 people. The digital economy contributes Rs 1,342 billion (4.5% of GDP), including ICT/BPO services (Rs 606.7 billion, 2.03% of GDP) and e-commerce (Rs 735.2 billion, 2.47% of GDP), with 52% of internet users making at least one online purchase per month. However, government digital engagement remains low, with only 26% accessing information online and just 4% completing transactions digitally, indicating significant potential for public-sector digitalisation.
A Digital Roadmap for Sri Lanka (2025–2035) outlines a phased approach to building a digitally competitive nation. Phase 1 (2025–2027) focuses on laying the foundation with a National Digital ID system, launch of LK-UPI, full digitisation of government payments, 100% smartphone and 4G/5G coverage, and the introduction of DigiLocker Sri Lanka. Phase 2 (2027–2030) aims to expand the ecosystem through a national cloud service for ministries, digital health records for all citizens, cashless public transport, university innovation hubs, and AI adoption in agriculture and manufacturing. Phase 3 (2030–2035) envisions a transformed economy with digital export trade platforms, smart city and smart village networks, AI-driven governance, expanded IT outsourcing, and a digital tourism platform. India’s digital revolution demonstrates that technology becomes truly transformative when it is inclusive, affordable, and accessible to all citizens.
Ideal combination
By combining smart policy design, scalable digital infrastructure, and public trust, India has built a world-class digital economy, empowered rural communities, strengthened governance, and boosted productivity across sectors. Sri Lanka—benefiting from high financial inclusion, rising digital literacy, and a young workforce—has the opportunity to replicate and adapt this model. Digitalisation should not be seen merely as an ICT project, but as an economic strategy, a tool for governance reform, and a pathway to sustainable growth. With urgency and vision, Sri Lanka can create a more competitive economy, a transparent state, and an inclusive society for the decades ahead.
Visvalingam Muralithas
is a researcher in the legislative sector, specialising in policy analysis and economic research. He is currently pursuing a PhD in Economics at the University of Colombo, with a research focus on governance, development, and sustainable growth.He holds a Bachelor of Arts in Economics (Honours) from the University of Jaffna and a Master’s degree in Economics from the University of Colombo. His academic background is further strengthened by postgraduate diplomas in Education from the Open University of Sri Lanka and in Monitoring and Evaluation from the University of Sri Jayewardenepura.
In addition to his research work, Muralithas has contributed to academia by teaching economics at the University of Colombo and the Institute of Bankers of Sri Lanka (IBSL), and has also gained industry experience as an investment advisor at a stock brokerage firm affiliated with the Colombo Stock Exchange.
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Autor(en)/Author(s): Visvalingam Muralithas
Dieser Artikel ist neu veröffentlicht von / This article is republished from: The Island, 24.11.2025
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