AGP Executive Report

Digital Identity: India’s High Commissioner says Sri Lanka’s SLUDI national digital ID is “ready to move forward” after only a few procedural steps, positioning it as a nation-building layer for fintech, e-commerce and digital government. Healthcare Tech: Sri Lanka reports its first AI-enabled robotic surgeries, including a hysterectomy and a complex kidney procedure, highlighting potential for safer deep pelvic operations. Banking Infrastructure: DMS-IMAGO has been successfully implemented at HSBC Sri Lanka, digitising cheque clearing to improve efficiency, compliance and accuracy. Hospitality Growth Tech: Citrus Leisure partners with RateGain to use UNO Direct Stack for an end-to-end direct booking journey across Sri Lanka, aiming to cut third-party dependency. Regional Security (BIMSTEC): Ajit Doval chaired the 5th BIMSTEC NSA meeting, with members agreeing maritime law enforcement coordination principles and maritime HADR guidelines while tackling terrorism, cyber and organised crime. Energy Accountability: Sri Lanka’s coal inquiry hears substandard coal caused over Rs. 4.5bn extra costs, with grid shortfalls compensated via alternative plants. Plantation Sector: The “500 Ceylon Tea Villages” programme is launched to modernise small estates and boost tea output and exports. Financial Literacy: IRCSL and partners launch a National Essay Competition on life insurance for school children (Sinhala, Tamil, English).

Coal & Power Costs: Sri Lanka’s coal probe says substandard imports cut Norochcholai’s output and forced costly replacement power, adding over Rs. 4.5bn in extra costs in four months, with payment disputes tied to lab results before vs after unloading. AI in Healthcare: Sri Lanka reportedly carried out AI-enabled robotic surgeries for the first time, including a hysterectomy and a complex kidney procedure, highlighting lower-risk potential for deep pelvic operations. Regional Security Tech: Ajit Doval chaired BIMSTEC NSA talks in New Delhi, focusing on counterterrorism, cybersecurity, and maritime cooperation with Sri Lanka represented by the Defence Ministry. Public Health Warning: Dengue risk is rising again; a study flags roadside drainage as a major transmission driver, while hospitals face pressure as cases climb. Digital Payments: Bank of Ceylon launched BOC Flex Tap & Pay, Sri Lanka’s first mobile wallet contactless payments. Tea Sector Boost: The “Ceylon Tea Villages” programme starts with 500 villages planned to modernise small estates and lift output and exports by 2030. Climate & Water: Irrigation officials urge careful water use as El Niño raises drought risk, with reservoir storage around 48% and plans for Yala and Maha seasons.

Dengue Control: A Sri Lanka-linked study warns roadside drains are driving dengue risk, with about 70% of prevention responsibility tied to national authorities and exposed drains needing urgent covering and proper management. Digital Payments Security: Visa Sri Lanka’s Cybersecurity Conclave 2026 brought banks, regulators and government together to tackle AI-driven cyber threats and fraud, stressing public-private coordination to protect the digital economy. Digital Banking Upgrade: Bank of Ceylon launched BOC Flex Tap & Pay, rolling out Sri Lanka’s first mobile wallet-based contactless payments through its BOC Flex platform. Digital Trust Gap: An SLIIT Business School study finds Sri Lankan shoppers still don’t fully trust e-commerce security, with cash-on-delivery remaining the “safer” option—highlighting what platforms must fix to grow. National Digital Transformation: Sri Lanka began talks with development partners on strengthening digital transformation by building a skilled workforce and stronger institutions, not just technology. AI & Governance: SLID’s Corporate Director Summit 2026 will focus on why boards must put talent and culture at the centre of governance as AI and cyber risks reshape business. Aviation Innovation: CAASL is preparing a passenger drone pilot project, aiming to test operational, regulatory and safety readiness before year-end. Tea Sector Tech Push: Sri Lanka launched the “Ceylon Tea Village” programme to modernise smallholder tea, boost productivity and lift exports toward US$2.5bn by 2030.

Digital Transformation (Workforce & Institutions): Sri Lanka has started talks with international development partners to strengthen digital transformation, focusing on building a skilled workforce and strengthening institutions for digital public services—not just technology. Investor Engagement: The SEC and CSE Colombo investor forums drew 180+ participants, with Central Bank macro updates and stockbroker briefings aimed at boosting retail investor confidence. E-Commerce Trust Gap: An SLIIT Business School study finds Sri Lankan online shoppers still lean toward cash-on-delivery, pointing to security, privacy, payment authentication, and platform reliability as key trust drivers. Financial Crime Policy: Cabinet approved a 2026-2030 national policy to prevent money laundering and counter terrorist financing, citing rapid tech-driven changes in financial transactions and a FATF-aligned national risk assessment. Advanced Healthcare Tech: Sri Lanka marked a milestone with its first AI-assisted robotic surgeries at Asiri Surgical Hospital, while private healthcare leaders highlighted clinical governance and transparency as the backbone for innovation. Air Mobility: CAASL is preparing South Asia’s first passenger drone service pilot, with regulatory work under advanced air mobility plans. Digital Identity Funding: Sri Lanka’s SL-UDI project is under review due to a budget gap, with Indian bids exceeding the grant level. Cyber & Revenue Pressure: A COPF probe into a US$2.5m cyber fraud highlights institutional accountability gaps, while Verité Research says cigarette tax leakage has cost the Treasury over Rs. 25bn since 2025. Sustainability Labs: UNDP and the Environment Ministry handed over LKR 204m lab equipment to strengthen hazardous substance monitoring, including mercury and POPs disposal. Local Startup Push: Logical, a Sri Lankan AI startup, was accepted into Y Combinator and raised 150m+ rupees to build a proactive desktop AI copilot. EV Reality Check: Coverage on Sri Lanka’s EV market stresses that adoption depends on ecosystem readiness—charging, financing, after-sales, parts, and total cost of ownership.

Digital Identity: Sri Lanka’s SL-UDI unique digital identity project is under review after a funding gap emerged, with Indian company quotes reportedly exceeding the INR 3 billion grant; officials are now weighing extra funding or a scope change, while bid evaluation continues for the Indian master system integrator. Healthcare & Labs: UNDP and the Environment Ministry handed over GEF-funded laboratory equipment worth about LKR 204 million to six Sri Lankan institutions to strengthen detection and monitoring of hazardous chemicals, including mercury and persistent organic pollutants. AI in Medicine: Asiri Surgical Hospital in Colombo carried out Sri Lanka’s first AI-assisted robotic surgeries, with surgeons controlling robotic arms for procedures including uterus removal and a complex kidney operation. Public Safety: A Negombo prison riot left 20 prisoners and eight officials dead, highlighting overcrowding, gang activity, and major security failures. Cyber & Privacy (Global): OpenAI says trusted cyber-access users will need hardware-backed passkeys from Sept 1, 2026, while the UK tightens social media age rules to 16+ and debates qualified electronic signatures and land registry implementation. Public Health (Global): UK warnings note a rise in mosquito-borne illnesses among holidaymakers, including dengue and malaria, with some cases linked to Sri Lanka.

Digital Governance & Speech: Daily Mirror argues freedom of speech must be used responsibly, warning that social media abuse—fake news, edited videos, hate speech and harassment—can fuel panic and violence. Public Sector Leadership: Cabinet approved S. N. B. M. Padmasiri as new Director General of the Department of Government Factories, effective immediately. Tobacco Tax Leakage: Verité Research says Sri Lanka lost over Rs. 25bn in potential cigarette tax revenue since 2025 because taxes sit below WHO’s 75% benchmark; it launched a Cigarette Tax Leakage Tracker dashboard. Air Mobility Tech: Sri Lanka CAA plans a pilot for passenger-carrying drones (up to six passengers) to test operational, regulatory and safety readiness. Cyber/Financial Loss Claims: A report alleges US$88m and €4m were siphoned from state coffers via negligence, phishing and shell-company imports—kept hidden by official silence. AI Spotlight: Sri Lanka’s sixn.ai placed Top 5 at Singapore’s SuperAI NEXT Hackathon and won a Stripe award for its AI fashion agent Bloom; Dr. Hans Wijayasuriya also spoke at Geneva’s AI governance forums. Sustainable Built Environment: ITC Ratnadipa won “Sustainable Smart Building of the Year” at SSA 2026, citing LEED Platinum and tech-enabled sustainability. Payments & Fintech: Pan Asia Bank launched its first Mastercard Debit Card, aiming for secure, globally accepted cashless payments. Environment & Labs: A USD 38m GEF-UNDP initiative handed over analytical lab equipment to strengthen monitoring of mercury, hazardous chemicals and medical waste.

Nuclear Safety & Training: Sri Lanka says it will uphold international nuclear safety and security standards as the SLAERC and IAEA run a regional nuclear forensics training course in Colombo, strengthening law-enforcement readiness for nuclear/radioactive incidents. Hazardous Chemicals & Health Waste: The Environment Ministry launched a USD 38.2m GEF-UNDP project to improve monitoring and disposal of mercury, POPs pesticides and healthcare waste, including handing over new analytical lab equipment to boost compliance. Healthcare Upgrade (India–Sri Lanka): India pledged about Rs. 600m in medical equipment for the new Deniyaya Base Hospital under the Aftermath Cyclone Ditwah project, aiming to expand safer diagnostics and treatment. Circular Economy Research: Hirdaramani Apparel and the University of Moratuwa will run a three-year “From Waste to Wonder” study turning textile waste into eco-friendly ceiling panels. Digital Anti-Corruption: CIABOC is rolling out centralised electronic asset and liability declarations for public officials, with penalties for late submissions, as part of IMF-linked governance reforms. Policy Debate (Rice for Industry): Government moves to allow locally produced rice for non-food uses like beer and liquor sparks questions over who benefits—farmers or large processors. Trade & Tech Ecosystem: Sri Lanka’s digital entertainment scene gets a boost with HyperCon 2026, a major esports and creator convention planned for August in Colombo.

Healthcare Tech & Capacity: India will donate about Rs. 600 million in medical equipment for Sri Lanka’s new Deniyaya Base Hospital under the “Aftermath Cyclone Ditwah Project,” aiming to upgrade modern care for the Matara district. Hazardous Waste & Labs: The Environment Ministry launched a USD 38.2m, 5-year UNDP/GEF-backed programme to strengthen mercury and healthcare waste management, handing over advanced analytical lab equipment to boost monitoring of hazardous chemicals. Public Health Crisis: Dengue keeps worsening, with over 67,200 cases and 47 deaths reported by July 11, while hospitals struggle with overcrowding and authorities keep closing hotspots like universities. Digital Health Expansion: VitalHub acquired Finland’s Buddy Healthcare for €8.6m plus performance earnouts, expanding care coordination with web and mobile tools used across Europe. Energy Efficiency Finance: DFCC Bank partnered with Co-Energi to offer energy audits, technical advisory, and sustainable financing to help businesses cut costs and improve resilience. Maritime Tech: CWIT began Phase 2 with two ship-to-shore electric cranes and seven rail-mounted gantry cranes to boost Colombo Port capacity and smarter cargo handling. Policy & Economy: A World Bank official says Sri Lanka’s macro stabilisation is real, but lasting recovery depends on jobs, investment, and competitiveness—especially reforms in trade, the investment climate, SOEs, skills, and innovation.

Digital Insurance Upgrade: SLICGL launched “Beechat,” Sri Lanka’s first generative AI, trilingual (Sinhala/Tamil/English) insurance assistant, offering instant policy info and 24/7 claim-status support via its website and customer portal. Mobile Payments Push: Bank of Ceylon rolled out BOC Flex Tap & Pay, a wallet-based contactless solution using virtual cards for NFC POS terminals and online merchants through its BOC Flex app. Export Tech Partnership: Dialog Enterprise renewed its strategic partnership with the National Chamber of Exporters, promising cloud, cybersecurity, AI, IoT and data analytics plus training for SMEs to digitise export operations. Port City Next Phase: Colombo Port City is moving beyond real estate, with RFPs planned for an international university, hospital and school to attract multinational firms and skilled talent. Rice Market Reform: Sri Lanka removed long-standing restrictions on surplus rice use, enabling value-added products like beer, wine, biscuits, cakes and animal feed to protect farmers from price collapses. Policy Debate on Digital Identity: An editorial flags a funding gap in the India-backed SL-UDI project after bids for the Master System Integrator reportedly exceeded the pledged grant by more than double. Cyber & Fraud Crackdown: Interpol reported 5,811 arrests and $293m in seized/blocked assets from Operation First Light 2026 targeting social engineering and related money laundering. Water Infrastructure: China-backed Thambuttegama water supply project was inaugurated, adding a treatment plant, intake system, towers and 204 km of pipelines for 25,000+ households.

Colombo Port City: The Port City Economic Commission says it will soon issue RFPs for an international university, hospital and school to build the institutional base needed to attract multinationals and skilled talent. Digital Economy & Payments: Dialog Enterprise renewed its strategic partnership with the National Chamber of Exporters to boost exporters’ digital transformation with cloud, cybersecurity, data analytics, AI and IoT. Mobility Tech: TruRout launched Sri Lanka’s first zero-commission ride-hailing model, using daily subscriptions for drivers and removing surge pricing for passengers. Smart Buildings: Hikvision Sri Lanka wrapped up the Shaping Intelligence – Smart Building Summit 2026, showcasing AIoT for safer, more efficient and sustainable building operations. IP & Innovation Policy: Sri Lanka reaffirmed its push for a modern, inclusive IP system at WIPO Assemblies, highlighting digitisation of trademark records and support for creators and MSMEs. Water Infrastructure: A China-developed Thambuttegama water supply project was inaugurated in Anuradhapura, adding treatment capacity and a 204 km network for 25,000+ households. Healthcare Budget Signals: The 2027 Budget will prioritise stronger public healthcare, including primary care “Arogya Suwa Seva Centres” and tech upgrades in state hospitals. SME Finance Reality Check: Union Bank CEO Dilshan Rodrigo warned SMEs undermine credit access by understating revenues and using multiple accounts, forcing banks to rebuild financials.

Water & Infrastructure: China-developed Thambuttegama water supply project was inaugurated in Sri Lanka’s Anuradhapura, featuring an 18,000 m³/day treatment plant, 204 km of pipelines, and expected benefits for 25,000+ households. Digital Finance: India’s PM Modi announced plans to integrate India’s UPI with New Zealand’s payment network—another push for cross-border Digital Public Infrastructure. Cybercrime Crackdown: Interpol says Operation First Light 2026 led to 5,811 arrests and $293m in illicit assets seized/frozen across 97 countries, targeting scams like romance, investment fraud, impersonation and sextortion. Smart Mobility: Hayleys Aventura commissioned Sri Lanka’s first outdoor automated rotary parking system to ease space constraints in growing cities. Health Policy & Tech: President Anura Kumara Dissanayake says the 2027 Budget will strengthen public healthcare via primary care “Arogya Suwa Seva Centres” and advanced tech in state hospitals. Circular Economy Research: University of Moratuwa’s Pro Green Lab and industry partners will study turning textile waste into ceiling panels. Energy/Climate: Deputy Environment Minister urged research-led, regenerative construction to protect ecosystems at the 14th World Construction Symposium in Colombo. Migrant Workers Social Protection: Sri Lanka plans a more flexible “Rataviru” pension scheme for overseas workers, funded with Rs. 2.1bn from the Kuwait Fund, with a digital app planned for verified remittance records.

Digital Payments & DPI: PM Modi announced India and New Zealand will connect India’s UPI with New Zealand’s fast-payment system during a historic state visit, aiming to expand cross-border fintech links. Migrant Workers’ Social Protection: Sri Lanka will introduce a more flexible Rataviru pension scheme for overseas workers, funded with Rs. 2.1 billion from the Kuwait Fund, with benefits tied to employment period and income plus a plan for a dedicated digital app to verify remittance records. Public Healthcare Upgrade: Sri Lanka’s 2027 Budget will prioritise stronger primary care via “Arogya Suwa Seva Centres” and faster tech upgrades in state hospitals, with suspended hospital projects restarting. SME Lending & Tax Records: Union Bank CEO warned SMEs are hurting access to credit by understating revenues and running multiple accounts, forcing banks to rebuild financials. Maritime Tech & Ports: Global shipping lines are exploring stakes in Sri Lanka’s port assets, including Colombo’s East Container Terminal and Hambantota, as transshipment competition heats up. Smart Urban Infrastructure: Hayleys Aventura commissioned Sri Lanka’s first outdoor automated rotary parking system to tackle space constraints in growing cities. Deep-Sea Science: Sri Lanka audiences joined a live ship-to-shore deep-sea event showcasing real-time research operations. Agriculture Climate Support: An Agro-Climate Advisory Lab in Kurunegala is delivering seasonal weather guidance to farmers, building on a multi-year climate-resilient farming and advisory model. Circular Materials Research: University of Moratuwa and industry partners will test turning textile waste into ceiling panels, aiming for lightweight, durable, biodegradable construction inputs.

Healthcare Upgrade: President Anura Kumara Dissanayake says the 2027 Budget will strengthen public healthcare with more primary care via “Arogya Suwa Seva Centres,” tech upgrades in state hospitals, and restarting 26 suspended hospital projects. SME Credit Crunch: Union Bank CEO Dilshan Rodrigo warns SMEs are locking themselves out of finance by understating revenues and profits, forcing banks to rebuild financials from sales records. Medical Training Policy: A debate piece questions why Sri Lanka still requires mandatory overseas training for specialist certification, arguing for optional local accredited pathways. Deep-Sea Science Link-Up: Oceanswell hosted a live ship-to-shore event connecting Colombo audiences with Schmidt Ocean Institute’s R/V Falkor during a locally led deep-sea expedition. Digital Trust & Cyber Fraud: Sri Lanka’s digital economy officials say scam operations are relocating to Sri Lanka as enforcement tightens elsewhere, while Parliament’s COPF reports a cybercrime-linked public fund loss of about US$2.5m. Smart Urban Parking: Hayleys Aventura commissioned Sri Lanka’s first outdoor automated rotary parking system to tackle space-limited city parking. Renewables Push: BOI says Sri Lanka is moving from hydrogen plans to investor outreach for green hydrogen and ammonia projects. Energy Connectivity: The EU launched a €5m regional energy interconnectivity programme across South Asia, including Sri Lanka. Payments Expansion: Dialog Pay launches inside the MyDialog app, enabling Lanka QR payments across 100,000+ outlets.

Digital Payments Push: Dialog Pay is launched inside the MyDialog app, unifying connectivity, payments and financial services and enabling Lanka QR use across 100,000+ outlets—another step toward a more inclusive digital economy. Cybercrime & Public Loss: A parliamentary probe says Sri Lanka lost about US$2.5m linked to cybercrime fraud, pointing to systemic failures across institutions and calling for criminal investigations. Scam Displacement Warning: At MWC Shanghai, Sri Lanka’s digital economy deputy minister warned scams are relocating to Sri Lanka as enforcement tightens elsewhere, urging cross-border responses. Green Energy Investment Drive: Sri Lanka’s BOI has closed an RFI to attract investors for green hydrogen and ammonia projects, aiming to turn surplus renewables into export-ready fuels. Tax Policy Overhaul: Experts urge Sri Lanka to redesign investment tax incentives to match OECD BEPS Pillar Two rules, warning of investor flight if reforms lag. Construction & Sustainability: The 14th World Construction Symposium opens in Colombo with calls for research-led, regenerative construction that protects ecosystems and cuts emissions. Agriculture Climate Tech: An Agro-Climate Advisory Lab in Kurunegala is boosting rice yields, with climate guidance and support credited for higher harvest outcomes. Health System Pressure: Sri Lanka faces a kidney stone surgery backlog of 5,000+ patients; a new Mirigama centre is set to open to reduce waiting lists. Dengue Control Intensifies: Sri Lanka ramps up dengue response with mosquito control drives and predictive risk targeting as cases rise. Energy Cost Equity: Data shows electricity use patterns are uneven—tariff changes hit households likely running air conditioners more, widening daily cost gaps.

AI & Work in Sri Lanka: A new look at generative AI says white-collar roles are now at risk, not just manual jobs, as AI systems increasingly produce text, images, audio, video and code. Electricity Cost Reality Check: Data shows an average Sri Lankan’s daily electricity use barely runs an AC for about 39 minutes, with higher tariffs hitting households using over 180 units. Aviation Tech Upgrade: Jaffna International Airport’s control tower has received an Air Situation Display System to improve aircraft tracking and controller awareness using radar and ADS-B inputs. Digital Payments for Indigenous Entrepreneurs: Bank of Ceylon rolled out BOC Flex and Lanka QR in Dambana to help indigenous businesses accept secure digital payments. Energy Connectivity Push: The EU launched a €5m cross-border power trade project across South Asia, including Sri Lanka, to link grids and expand cleaner electricity access. Construction & Sustainability Forum: The 14th World Construction Symposium and Sustainability Awards 2026 begins in Colombo, bringing research and industry leaders together. Research Funding (Regional): An APU assistant professor, Dr Prem Taba, won a SAARC research grant for a museum-focused heritage project. Governance for Tech-Ready Boards: SLID will hold the Sri Lanka Corporate Director Summit 2026 on future-ready board leadership. Marine Science vs Strategy: A report flags China’s expanding research fleet in contested waters as potentially serving strategic “gray-zone” aims. Healthcare Infrastructure Restart: Sri Lanka has restarted 26 major health projects to build a more technologically advanced public health system.

Healthcare Infrastructure Restart: Sri Lanka has restarted 26 major health projects after earlier capital-spending pauses, with President Anura Kumara Dissanayake saying the goal is a modern, technology-ready public health system, not just repairs. Air Traffic Tech Upgrade: Jaffna International Airport’s control tower has been fitted with an Air Situation Display System to improve aircraft tracking and safety, using radar and ADS-B inputs. Digital Civil Services Leadership: The Registrar General’s Department completed the RGD2DX leadership program with UNDP and WHO support to modernize Sri Lanka’s civil registration and vital statistics system. Hypertension Research Spotlight: Sri Lanka’s hypertension work is being highlighted as globally influential, with a Hypertension Summit 2026 set for 11 July to push early screening and better treatment. Prison Overcrowding Alarm: A new report argues Sri Lanka’s prison crisis is driven by failures across the justice chain, warning that building more prisons won’t fix overcrowding without remand and rehabilitation reform. AI and Jobs Shock (Global): A report says major Chinese tech firms have cut about 1.3 lakh jobs amid AI adoption and restructuring. Construction & Sustainability Forum: The 14th World Construction Symposium and Sustainability Awards 2026 begins in Colombo on 10–11 July, bringing research and industry together. Circular Economy Push: A fish-waste valorisation project in Puttalam is turning discarded seafood by-products into export-ready animal feed ingredients. Education for a Tech Future: PM Harini Amarasuriya says reforms starting in 2027 will shift schooling toward practical, skills-based vocational and technical training.