Ceylon Chamber and IT industry stakeholders raise concern over sluggish Digital ID progress

• Express serious concern about ongoing delays in implementing Digital ID system in Sri Lanka
• Say Digital ID is a pivotal component for driving economic transformation by reshaping country’s economy
• Point out Digital ID could help to ensure effective benefit transfers, boost tax revenues and accelerate development
• FITIS and SLASSCOM assert that Digital ID serves as foundation for all digital transformation in Sri Lanka 

The Ceylon Chamber of Commerce, together with the IT industry stakeholders, yesterday expressed concern over the continued delays in implementing the Digital ID system, which they said could propel the transformation of the Sri Lankan economy.

“As a foundational pillar of a digital economy, the Digital ID holds immense potential to play an integral role in reshaping economic revival, safeguarding vulnerable communities with effective benefit transfers, enhancing tax revenues and accelerating development,” a media statement said.
Hence, it urged the government to expedite and finalise this crucial initiative.

The Ceylon Chamber pointed out that valuable lessons can be drawn from the experiences of nations such as India, Singapore, Thailand and Kenya, which have made significant strides by investing in comprehensive digital ecosystems encompassing the Digital ID, digital payments and broadband infrastructure. 
“These countries exemplify how robust digital public infrastructure can accelerate economic growth and enhance global competitiveness,” the statement noted.

Ceylon Chamber Chairman Duminda Hulangamuwa emphasised that the provision of a distinctive digital identity for both citizens and businesses, through the Digital ID, not only streamlines processes and enhances compliance but also drives efficiency in governmental transactions. 

“… it serves as a catalyst for expanding the tax base, increasing tax revenues and minimising leakage, all while avoiding undue burden on the public through heightened direct taxation and regressive indirect taxes,” he added.
The Federation of Information Technology Industry Sri Lanka (FITIS) and Sri Lanka Association for Software Services Companies (SLASSCOM) further stressed the imperative need to fast-track the implementation of the Digital ID. 

“The Digital ID is the baseline for all digital transformation in the country, encompassing both the government and private sector,” FITIS Chairman Indika de Zoysa stated.
SLASSCOM Chairman Jehan Perinpanayagam encouraged the authorities to expedite the implementation of this project, as it is very much in line with the vision of a digital economy shared by the president and would be vital in the reform agenda, preventing fraud and mismanagement, widening the tax base and improving efficiencies for all citizens. 

“We believe that the implementation of the Digital ID is an absolute necessity for our nation’s growth and prosperity. It is the catalyst that will usher Sri Lanka into a new era of a digital economy, ensuring we remain competitive on the global stage,” the Ceylon Chamber said. 
Sri Lanka’s Digital ID project is funded by India and India has already handed over INR 450 million to Sri Lanka, as an advance to initiate the project.

The initiative, which began with the signing of a memorandum of understanding between Sri Lanka and India in March 2022, has faced opposition from political parties, who have raised national security concerns regarding India’s involvement in the project.