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Going Crypto: Sri Lanka’s Misguided Digital Priorities

The Sri Lankan government recently announced its crypto committee, along with a few other blockchain-related proposals as part of the “Digital Sri Lanka” campaign. The idea of utilizing cryptocurrencies and blockchain at a national level is an interesting one, theoretically. Though one can’t help but ask if our digital initiative priorities are in place.

It’s one thing to announce that you’re going crypto. But it’s another entirely to understand the technologies and implement them in ways that would benefit a country like Sri Lanka. But more importantly, our country is still plagued with infrastructural issues that require more active involvement on a wider scale.

So perhaps it’s best to focus efforts on addressing some of the more important tech needs before going full steam ahead with crypto? Here are five to start.

1. Our internet needs fixing

There’s a reason why we keep bringing this up. Affordable quality internet is the foundation that almost every other digital solution is built on. Digital banking, online education, even crypto and blockchain need reliable internet. In Sri Lanka, it’s anything but reliable.

But what’s worse is how even amidst an enthusiastic digital adoption phase, it’s leaving many communities displaced. In certain areas, the situation is so dire that even a data card is unaffordable.

As some of us struggle to get decent internet speeds, others struggle to afford even a data card

For students like Methvi (above) who rely on affordable internet for their education, this paints a grim picture. Mind you, stories like Methvi’s aren’t uncommon and it’s one that continues to leave both students as well as teachers helpless.

So maybe it’s a better idea to go full steam ahead on improving our internet infrastructure instead?

2. Fix the eGov mess

The past few years have seen governments attempting to launch a variety of digital projects. But governments’ track records around digital projects aren’t always promising. For instance, recent reports of the e-RoC digital platform by the Department of Registrar of Companies has been problematic, to say the least. The platform has become defective and is now cause for concern both by corporates and foreign investors.

Unfortunately, this isn’t a one-off issue. The World Bank has pointed out that 90% of the eGovernment projects they have funded have produced less than desirable results. During the first four months of 2021 alone, the World Bank has disbursed USD 134.4 million in loans. However, the bulk of these loans have been redirected towards projects related to roads, water supply, ground transport, and sanitation among others. None of these included any ICT-related component.

Speaking of government projects, it was recently announced that a four-acre land acquisition by the TRCSL was approved by the Cabinet. The land is to be used by the TRCSL for construction work including a water park. In other words, the regulatory body on telecommunications in the country will be heading a water park project. Not really the best use of public-funded entities to say the least.

3. Upgrade security

If it’s one thing that a government should be screaming about when it comes to modernizing, it’s placing a higher emphasis on cybersecurity. Sri Lanka is often reactive towards cybersecurity threats as opposed to being proactive about the whole situation. This needs to change. If not, the LK Domain Registry hack will be the least of our worries.

Yes, we do have the data protection bill in the works. But that will only be a drop in the bucket if we don’t build on it and put cybersecurity higher up the priority list. Particularly in a landscape where we’re looking to implement a digital database of all Lankan citizens.

4. Will we ever get PayPal/Stripe in Sri Lanka?

Sri Lankans have been wanting PayPal to enable inward remittances for years. So far, nothing has really materialized other than the occasional reminder about renewed interest in getting the service onboard. At this point, it’s unclear what the actual reasoning is, whether it’s a regulatory issue or if PayPal deems Sri Lanka too small a market. But it’s something that’s hurting Sri Lanka’s digital future in more ways than one.

Sri Lanka's misguided digital priorities | Crypto committee
The lack of PayPal/Stripe is leaving many freelancers in the dark

Sri Lanka does have local alternatives that do a decent job. But local payment platforms can only go so far in bridging this gap. Particularly in the absence of an international platform on the scale of PayPal or Stripe.

5. Our transport sector desperately need a digital upgrade

There are a lot of inefficiencies with our existing transport infrastructure and one of them is the extent to which we’re underutilizing technology. For instance, take the railway system. There is no question about the convenience and affordability of trains in Sri Lanka. It’s a popular choice of transportation even among tourists.

But booking tickets aren’t always fun. On certain routes like Colombo-Badulla, booking a 1st class ticket sometimes requires you to do so at least a month prior. This is regardless of it being online or offline.

Then there’s the matter of the actual tickets. One has to wonder at what point will Sri Lanka move away from the decades-old cardboard pieces to a more modern digital solution. Nobody really enjoys waiting in queues every day while moving between work. A simple online option or even a smart card would make life easier for many travelers and commuters.

Should we be reassessing our digital priorities?

To be fair, modern technology trends like crypto and blockchain do offer the potential be a productive endeavor. But as seen above, Sri Lanka already has plenty of other areas that requires a more active engagement for an effective digital push. If we are to reap the economic benefits of a true digital Sri Lanka, perhaps it’s time we should consider reassessing our country’s digital priorities?

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5 Comments

  1. Sri Lankan initiatives are driven by political agenda. The next Gov will change all these efforts drastically.
    We need to stop getting useless, unethical, rouge, politicians driving these initiatives. It should come from the relevant ministry. If they can’t come up with frame works why as people we pay taxes and fund these state run organizations?

  2. Why do these topics and PayPal to Sri Lanka always come when there is a election. Also I seriously doubt Namal Rajapaksa’s technical knowledge. What qualification does he have to hold that portfolio? Who are his advisors?

  3. Where is ICTA? Digital ministry? Who is Namal R, and what qualifications does he have to head Digital Sri Lanka? Anything political initiated has a history in this country not to last!

    Namal Rajapaksa do all us a favour and play your favourite sport, and leave these to the relevant ministry. Empower them to take the lead, it would be more sustainable. You don’t need to plaster your face in subjects and subjects your not good at or rather don’t understand.

  4. Who are these jokers in the committee? I don’t see a single tech lead or someone experienced in this subject. Why is the IT industry itself not consulted + not on the board? And why is SLASSCOM and CSSL silent about these B*S*?

  5. The operational arrangement or rather the institutional structure of the Digital initiatives should be very different from a typical government ministry. The key stakeholder engagement model should be clearly visible, the private sector, the public, and key process owners(Authoritative government institutions who own the processes).

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Written by Neville Lahiru

You'll often find him immersed in all things tech and interactive media. Spends his off-hours trying to catch up on the annual Goodreads reading challenge (and fails) or gaming the night away with Apex Legends. Also, spends too much time on Twitter.

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