Categories: Education

Sri Lanka Announces Incentives to Boost AI and Digital Infrastructure Development

President Anura Kumara Dissanayake announced that Sri Lanka will offer several incentives to encourage the establishment of artificial intelligence (AI) data centres in the country. Speaking during the 2026 Budget Speech, he emphasized the strategic importance of AI in the global economy and said the government will provide concessions to companies investing in this sector.

The President also proposed a five-year tax exemption for the construction of new digital communication towers, along with a simplified and faster approval process to support the expansion of digital infrastructure.

He highlighted ongoing progress in Sri Lanka’s digital transformation, including the rollout of the GovPay payment system, the establishment of the National Cyber Security Operations Centre, improvements to citizen document services, the launch of the GovTech Institute, and the issuance of 5G licenses. A Digital Economy Authority is also expected to be established soon.

To ensure wider participation in the digitalTo ensure wider participation in the digital economy, the government plans to expand broadband access nationwide and encourage foreign investment and entrepreneurship. The 2026 Budget allocates Rs. 3,000 million to support next-generation infrastructure, including AI, cloud computing, and data centres.

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