Sri Lanka's Digital Future Gets $98 Million Boost for Broadband and Cybersecurity

ADB will provide an additional $1 million technical assistance grant through its Technical Assistance Special Fund to support project preparation, technical design and capacity building for the agencies responsible for implementation.

The Asian Development Bank (ADB) has approved a $98 million loan to help Sri Lanka develop a more inclusive and secure digital economy, with improvements planned for internet connectivity, government services and digital infrastructure. The investment will support the country's efforts to make public services easier to access, strengthen online security and create better conditions for businesses to grow through digital technology. Special attention will be given to women and underserved communities, ensuring that improvements in digital services reach people who currently face difficulties accessing reliable internet and online government platforms.

The financing will support the Advancing Digital Transformation Project, which focuses on expanding high-quality broadband coverage, modernizing government data systems and strengthening cybersecurity and data protection across public institutions. ADB will provide an additional $1 million technical assistance grant through its Technical Assistance Special Fund to support project preparation, technical design and capacity building for the agencies responsible for implementation. The project follows Sri Lanka's National Digital Economy Blueprint, which outlines the government's plans to improve digital infrastructure, strengthen public institutions and encourage private sector-led economic growth.

Sri Lanka has achieved widespread mobile network coverage, but reliable high-speed broadband remains difficult to access in several rural and underserved communities, creating unequal opportunities for households and businesses. Weaknesses in digital infrastructure, cybersecurity protection and technical skills also limit the government's ability to deliver efficient public services and support the growth of technology-driven businesses. ADB Country Director for Sri Lanka Shannon Cowlin said the country has made important progress in stabilizing its economy and is now prioritizing digital transformation to improve productivity, strengthen institutions and expand economic opportunities.

Expanding Broadband Connectivity and Modernizing Digital Infrastructure

The project will expand high-quality broadband services in underserved areas, helping more households, businesses and public institutions access reliable internet connections. Planned improvements include upgrading telecommunications infrastructure and moving services from older 2G networks to faster 4G and 5G technologies, which can support modern digital applications and more efficient communication. Better connectivity could allow people in rural communities to use online education platforms, access digital government services and participate more actively in the digital economy.

Government data infrastructure will also receive significant improvements through an enhanced Lanka Government Cloud 3.0, designed to make public information systems more reliable, connected and resilient. The upgraded infrastructure will allow government agencies to exchange information more effectively and reduce problems caused by disconnected digital platforms that cannot easily communicate with one another. A stronger government cloud system could make administrative processes faster, improve coordination between departments and support the delivery of services that depend on accurate and accessible digital information.

Strengthening Cybersecurity and Protecting Government Data

Cybersecurity and data protection form an important part of the investment because increasingly digital government services require dependable systems that can protect information and continue operating during disruptions. The project will strengthen cybersecurity monitoring and incident response capabilities for government agencies responsible for critical national information infrastructure, helping them identify potential threats and respond more effectively to security incidents. These improvements are expected to reduce vulnerabilities in essential government networks and support safer digital interactions for citizens, public institutions and businesses.

More secure and resilient information systems will also support essential public services, including healthcare, education and government administration, where interruptions can affect large numbers of people. Reliable digital infrastructure is particularly important during emergencies, when government agencies need functioning communication networks and accurate information to coordinate assistance and maintain critical services. Strengthening cybersecurity arrangements and data protection practices could improve public confidence in digital platforms and encourage wider use of online government services.

Improving Digital Skills and Creating Opportunities for Women

The ADB-supported project will invest in training public sector employees to improve digital skills and strengthen the ability of government institutions to manage and operate modern technology systems. Developing these capabilities will help public agencies use upgraded digital infrastructure more effectively, maintain service quality and respond to changing technological requirements. Targeted measures will also encourage greater participation by women in the digital economy, addressing barriers that can limit access to digital skills, services and economic opportunities.

Improved internet access and more efficient government platforms could reduce the time and costs involved in completing administrative procedures, allowing individuals and businesses to manage essential activities with fewer delays. Greater access to digital healthcare, education and public administration services could make everyday interactions with government institutions easier, particularly for people living far from major urban centres. By combining infrastructure upgrades with stronger cybersecurity, institutional development and digital training, the $98 million investment is expected to support Sri Lanka's transition toward a more connected, inclusive and resilient digital economy.