One way is through the CHIPS (Connect, Harness, Innovate, Protect and Sustain) Framework, which assesses a country’s digital economy across five key pillars using 58 indicators. Unlike many global indices that focus on more developed economies, the CHIPS Framework provides a benchmark that is more relevant for countries at Sri Lanka’s stage of digital development.
As part of a joint effort by GovTech Sri Lanka, the Asian Development Bank (ADB) and LIRNEasia, GovTech Sri Lanka recently convened the CHIPS Expert Consultation to review the findings of the CHIPS Benchmarking Study for Sri Lanka, with LIRNEasia leading the benchmarking study and facilitating the expert consultation.
5 Key findings from the CHIPS Benchmarking Study
1. Affordable but taxed – Sri Lanka offers affordable mobile and broadband access but also has one of the highest telecommunications tax burdens in the region, with 42% tax on voice services and 23.5% on data.
2. Connected but not fully engaged – While internet adoption has surpassed 60%, the use of digital services such as e-commerce, digital payments and digital health remains lower than many peer economies.
3. Innovation gap – Sri Lanka’s startup ecosystem is still maturing, with no unicorns and limited AI research output compared to regional peers such as India and Singapore.
4. Rising cyber risk – More than 20,000 cybersecurity incidents were reported in 2024, highlighting the need for continued investment in cybersecurity capabilities and governance.
5. A sustainability opportunity – As digital adoption grows, strengthening e-waste management and developing green digital infrastructure will be important to ensure long-term, sustainable growth.
Bringing together experts from government, industry, academia and development organisations, the consultation provided an opportunity to validate the study’s findings, share practical insights and ensure they accurately reflect the realities on the ground.
The feedback gathered will help strengthen and inform future priorities as Sri Lanka continues to advance its digital economy.
(GovTech Sri Lanka)