ICTA Forges Strategic Alliance with Brandix to Fuel Sri Lanka's Startup Ecosystem
Sri Lanka
Sri Lanka
MEMBERS:
Information and Communication Technology Agency of Sri Lanka
"Sri Lanka is poised to grow to a $15 billion digital economy by 2030, fueled by a Digital & AI Strategy inviting global investors to partner with us in our journey."
Highlights
Sri Lanka boasts a resilient mindset, with problem solving and innovation driven by entrepreneurial activity. The ecosystem attracts global, multilateral investors including VCs, corporations, and angel investors, including early-stage VC nVentures, which funded four startups in 2023. The DigiEcon Global Investment Summit 2024, in partnership with MasterCard, The United Nations Economic and Social Commission for Asia and the Pacific, and the Bill and Melinda Gates Foundation (BMGF), serves as a gateway to Sri Lanka's digital investment ecosystem.
In November, Sri Lanka hosted Global Entrepreneurship Week, where it placed seventh on the leaderboard. The ecosystem’s 872 startups build a tech industry supported by numerous initiatives, agencies, and organizations. AccelerateHER, from Hatch and the U.S. Department of State, is Sri Lanka’s first accelerator for female founders. The Information and Communication Technology Agency of Sri Lanka’s Suhuruliya 2.0 National Strategy aims to enable ten thousand female entrepreneurs with digital technology and access to the international market. By 2026, the program aims to make 50% of women in Sri Lanka active contributors to the national economy.
Sri Lanka is undergoing a wide digital transformation. In January 2024, grassroots organization Sarvodaya partnered with entrepreneurship developer Hatch to launch the GoviLab AgriTech Accelerator, a key piece of Sri Lanka’s Inclusive Digital Agriculture Transformation Strategy. The national initiative is supported by collaborative efforts of the government and the accelerator and investor BMGF, with support from PwC India. The National Digital Economy Strategy 2030 is a roadmap to create a high-revenue economy through digital transformation. In 2023, President Ranil Wickremesinghe committed to forming a presidential AI task force to promote AI usage.
Ecosystem by the Numbers
NUMBER OF UNICORNS
(H2 2021 - 2023)
Sub-Sector Strengths
Fintech
In January 2024, Accelerating Asia Ventures’ Cohort 9, including shopping aggregator Mintpay, pitched their startup to global investors. nVentures supports Fintech startups including Mintpay, SmartCOOP, and Simplebooks. In October 2023, Alipay+ and LankaPay signed an MOU to enhance inbound and outbound cross-border digital payments, allowing users of Asian e-wallets from the region to use cashless payments in Sri Lanka. In February 2024, the first UPI transaction was completed. BankTech Asia 2024 took place in Sri Lanka in March.
Govtech
The government has prioritized digitalization through public infrastructure and digital public goods. Digital submission, signatures, and payments cut processing time by 93%, and QR codes for international customs enable verification. The government developed an e-payment gateway and digital registration portal. Digital Government Forms allow citizens to complete forms and receive services online. The Digital Health Blueprint enabled more than 85 hospitals to digitize medical records and care. The National Capacity Building Workshop was held in June 2023 to propel Sri Lanka's journey towards digital government transformation.
Agtech & New Food
In 2023, BMGF committed $343,250 for water research and announced it will establish agriculture data systems in Sri Lanka,strengthening digital public infrastructure and climate expertise. The Business Research and Development (BREAD) Center provides state support for AgTech startups. Catalyst Good Life X’s Road to Regen accelerator strengthens the regenerative organic agriculture ecosystem in Sri Lanka. In January 2024, Sri Lanka became a producer of mint oil for NASA as part of its small-scale farming plans for extended lunar exploration and long missions to Mars.
Reasons to Move Your Startup to Sri Lanka
Access to Talent
Sri Lanka’s tech talent pool is known for high-end product engineering experience, problem solving skills, and ingenuity. Around 5,000 tech students graduate annually. The Industry Reconnaissance & Engagement Program is a 15-week module offering students a comprehensive understanding of IT-related businesses. Upskilling and Placement for the Digital Economy is a six-month program for non-IT graduates and vocational students seeking careers in the Digital Economy.
Startup-Friendly Environment
Sri Lanka’s position leverages 180 degrees of opportunity from MENA to SEA. Electronic Travel Authorization visas can be extended for up to 270 days and Colombo Port City provisions introduced in 2023 allow tax exemptions and incentives for businesses. Long-term visa programs are available for foreign investors. Sri Lanka holds free trade agreements with India and Pakistan, allowing for ease of global expansion. Sri Lanka’s transparent regulatory frameworks provide stable foreign investment security.
Supportive Community
Sri Lanka has a wide network of startup and corporate support. Startup SL has supported 867 startups and 28 ecosystem partners and aims to generate 10,000 employment opportunities and connect 1,000 startups by year-end 2024. The Stanford Seed Transformation Program fassists Sri Lanka founders to scale. The MJF Charitable Foundation Small Entrepreneur Programme has supported over 2,000 entrepreneurs from less fortunate communities and entrepreneurs with disabilities.
Selected Startup Organizations
Startup Genome Members
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Information and Communication Technology Agency of Sri Lanka
Key Ecosystem Players
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