Digitalisation and digital connectivity are crucial components of growth today; and building a thriving digital economy in Sri Lanka has been identified as a critical national goal.
“The digital economy is simply about how our lives and the way we work are changing due to the use of technology,” the Strategic Adviser and Vice President of Huawei Technologies Lanka Indika De Zoysa explained, in a recent interview aired on LMDtv.
He cited the example of the QR code enabled rationing system, which was in operation in Sri Lanka during the fuel crisis: “What changed was not giving extra petrol or diesel but introducing the QR code – technology was bought in and the problem was solved.”
“During the pandemic, kids studied on online platforms, people worked from home, and we ordered our food and everything online. That’s how digital changes the world – and how it works,” he added.
De Zoysa also spoke about how the modern world measures the contribution of digital economies towards national economies.
He explained: “Globally, the growth of the digital economy as a percentage has overtaken that of the traditional economy. Mature markets are crossing the 50 percent mark in terms of the contribution of the digital economy to the national economy. The global average is 20-25 percent and even low income countries are crossing the 15 percent mark.”
“We have a big challenge; the latest data we have indicates that the contribution from the digital economy to the national economy in Sri Lanka is only about five percent,” De Zoysa pointed out.
He added that growing the digital economy in Sri Lanka would also play a significant role in navigating the country’s economic challenges, opining that “from a very strategic point of view, digital adoption is happening across sectors – be it agriculture, care or education.”
The Strategic Adviser and Vice President of Huawei Technologies Lanka also discussed the contribution of digital platforms to the SME sector.
De Zoysa noted that Sri Lanka has “over a million SMEs” with most of them still operating in the traditional mode and facing challenges across several functions, from bookkeeping to inventory management and market access.
Bringing these SMEs into the digital economy will help transform their potential, he added, noting that small-scale boutique hotels operating on online platforms serve as a good example.
He elaborated: “If no online platforms were available, none of these boutique hotels would have any business because traditionally, the big travel operators receive tourists and send them to the larger chains and five-star properties. Yet, you now have this model of homestays, boutique hotels and many other options made possible by digital platforms.”
Education is another sector that’s being transformed by digital technology. De Zoysa highlighted the prevailing issue of dropouts stemming from the lack of space in state universities.
“Building universities for all students is not possible so this is where you can bring digital in,” he asserted, pointing to the possibilities of introducing blended and online learning, digital learning tools and AI to transform education in the country.
Agriculture is another sector that can harvest many benefits from digital technologies.
He noted: “[We can look at] how technology can be used for agriculture related tasks like spraying fertiliser and identifying diseases using drones, taking pictures and analysing them through AI, looking at soil conditions using IoT technology, crop management, increasing productivity and reducing wastage.”
And as he said, “these are the value additions you bring when using digital technology.”
“The digital economy is not about buying computers or anything else; it’s about transforming the way you work, and bringing in value additions, saving costs and increasing productivity – that is the economic impact digital is bringing to the table,” he concluded.