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The Asian Development Bank (ADB) yesterday urged Sri Lanka to treat cybersecurity and data protection as central pillars of its digital transformation agenda, warning that national competitiveness and public trust in digital services will depend on how well the country safeguards its information infrastructure.

ADB Sectors Department 2 Director General Cleo Kawawaki said cybersecurity is not only a policy or institutional concern but a shared responsibility that must extend across government, business, and individuals.

‘This morning, I woke up with a phishing email telling me that my app had been accessed from somewhere else and that I should press a button to fix it,’ she said at the ADB Serendipity Knowledge Program (SKOP) on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development yesterday in Colombo, in partnership with the Department of National Planning of the Finance Ministry.

‘We all know what that means. It means that if I press that, it steals all my details. Cybersecurity threatens every single one of us. All of the promises of the digital economy can be undone by one person not watching out and pressing that button,’ she added.

She said that while technology and policy are critical, awareness and behaviour across society are equally vital to building a resilient digital economy.

‘It is not just a policy issue, it is not just an institutional issue, but a whole-of-society issue,’ she said. ‘Events like this can raise awareness and help us find solutions so that the promise of digital can be delivered to the whole society without the crushing risks and breaches of trust that come from these threats.’

Kawawaki said the ADB’s SKOP is a flagship initiative supporting Sri Lanka’s evolving development priorities and advancing secure, inclusive, and interoperable digital ecosystems across the Asia-Pacific region.

‘The Government has recently launched its cybersecurity strategy and is reinforcing its institutional foundations through the implementation of the Data Protection Act and the forthcoming Cyber Security Bill,’ she said.

‘As Sri Lanka accelerates its digital transformation, enabling whole-of-Government digitalisation and expanding services to citizens, the need for a secure and trusted digital economy has become more relevant than ever.’

She warned that cyber threats and data privacy risks are growing in scale and complexity, posing significant challenges to public trust, economic resilience, and national security.

‘Without trust, digital services cannot thrive. Without security, the benefits of digitalisation risk being undermined,’ she said. ‘That is why cybersecurity and data protection must be embedded by design and by default into all of the country’s digital initiatives.’

Kawawaki said the ADB is working with the Government to strengthen the country’s cybersecurity and data protection governance frameworks and build institutional capacity to respond effectively to emerging threats.

Chief Adviser to the President on Digital Economy and Information Communication Technology Agency of Sri Lanka (ICTA) Chairman Dr. Hans Wijayasuriya told the forum that Sri Lanka will anchor its digital economy strategy on cybersecurity and data protection, viewing them not as regulatory necessities but as the foundation for innovation, competitiveness, and economic resilience.

Dr. Wijayasuriya said secure data systems and privacy frameworks will define Sri Lanka’s ability to build trust and attract investment in the digital era.

‘A good data protection and cybersecurity framework provides the platform for innovation and competitive advantage. Few countries can now compete on cost; agility and trust are the new calling cards,’ he said.

He explained that cybersecurity and privacy measures form the ‘security by design’ foundation for the Government’s plan to grow the digital economy fivefold to $ 15 billion by 2029 and triple digital exports to more than $ 5 billion.

‘We designed the Digital Economy Blueprint for Sri Lanka to be Artificial Intelligence (AI)-first and anchored on trust. Cybersecurity, privacy, and ethical AI are not optional-they are the bedrock of growth,’ he added.

Dr. Wijayasuriya noted that Sri Lanka has already made significant progress with the enactment of the Personal Data Protection Act (PDPA), the establishment of the Data Protection Authority, and the development of the National Cyber Security Centre (NSSERT). These, he said, place Sri Lanka in the upper quartile globally in terms of cyber resilience.

He urged policymakers and businesses to treat trust and data governance as strategic differentiators.

‘In today’s digital economy, our unique competitive advantage must be trust, delivered through world-class cybersecurity, privacy technologies, and governance,’ he said, adding, ‘Sri Lanka should aim to be known as the Serendip of trust, governance, and safety in the digital world.’

Industry leaders and Government officials yesterday emphasised the urgent need to build a security-first and privacy-respecting culture across Sri Lanka’s digital ecosystem, highlighting enforcement challenges, data protection gaps, and the importance of public-private partnerships at the SKOP on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development hosted by the ADB in Colombo.

During the first panel discussion, moderated by ADB Digital Technology Specialist – Cybersecurity and Data Privacy Masatake Yamamichi, participants examined the role of cybersecurity and data protection in developing Sri Lanka’s digital economy, enforcement challenges, and international cooperation. Speakers included Japanese Internal Affairs and Communications Ministry Office of the Director-General for Cybersecurity Director Yuki Naruse, Sri Lanka Computer Emergency Readiness Team (SLCERT) Chairman Thilak Pathirage, Commercial Bank of Ceylon PLC Chief Information Security Officer Sunari Dandeniya, Sysco LABS Security Architect Lasantha Priyankara, and Scybers Head of Threat Intelligence Chamath Rathnasekara.

The panellists discussed the need for greater capacity building and consistent enforcement of cybersecurity policies, while stressing that rapid digitalisation across sectors has made resilience and data protection essential to economic stability. The discussion also covered emerging cyber threats, the balance between privacy and innovation, and strengthening institutional frameworks through international collaboration.

A second panel, moderated by ADB Digital Sector Director Antonio Zaballos, focused on cultivating a ‘security-first and privacy-by-design’ mindset from schools to workplaces, including within Government institutions. Speakers included LIRNEasia Founder and Sarvodaya Chairman Prof. Rohan Samarajiva, Data Protection Authority Chairman Rajeeva Bandaranaike, and Visa Sri Lanka and Maldives Country Manager Avanthi Colombage.

The discussion underscored the importance of building trust in digital services, enhancing regulatory enforcement, and improving digital literacy across both public and private sectors. Bandaranaike highlighted that regulation must evolve alongside awareness, while Prof. Samarajiva called for consistent public policy frameworks to prevent data misuse. Colombage noted that private-sector collaboration can help improve public confidence in digital transactions and strengthen cybersecurity infrastructure.

The annual cost of cybercrime to Sri Lanka could range between $ 450 million and $ 1 billion, Asian Development Bank (ADB) Digital Sector Office Director Antonio Zaballos said yesterday, calling for stronger cybersecurity measures and a shift in national awareness as the country expands its digital economy.

Speaking at the ADB’s Serendipity Knowledge Program (SKOP) on Digital Transformation: Cybersecurity and Data Protection for Digital Economy Development held in Colombo, Zaballos said global losses from cybercrime have reached $ 10.5 trillion, or nearly 9% of the world’s GDP.

‘If we were just doing a rough estimate, and we consider just between 0.5-1% of the total GDP of Sri Lanka, we would be talking around $ 450 million to $ 1 billion a year related to cybercrime,’ he said.

He cautioned that as economies become increasingly connected, they also become more vulnerable. ‘The more connected we are, the more at risk we are,’ Zaballos said, describing cybersecurity as both a development and technical challenge that must be addressed through cooperation between governments, the private sector, and citizens.

Data Protection Authority Chairman Rajeeva Bandaranaike said Sri Lanka’s challenge lies not only in technology but in fostering a culture of data privacy and cybersecurity.

‘We don’t have a culture of data privacy and data protection, and awareness levels are very low,’ he said. ‘It’s about policymakers taking ownership and embedding a sense of responsibility across society.’

Bandaranaike said Sri Lanka’s forthcoming Data Protection Act and cybersecurity legislation would lay the groundwork for better governance, but long-term awareness building was equally important. ‘Like helmets and seatbelts, data protection will eventually become second nature, but it requires consistent enforcement and education,’ he said.

Colombo Dockyard PLC yesterday confirmed it will proceed with the planned Rights Issue after shareholder approval. The major shareholder, Onomichi Dockyard Company Ltd. will not renounce its rights to Mazagon Ship Builders Ltd. but will refrain from subscribing. The resulting shares will be allotted to Mazagon, subject to shareholder approval via a Special Resolution. This procedure was approved by the Board on 1 October 2025.

Colombo Dockyard announced the Rights Issue last July to raise Rs. 13 billion as part of the deal to bring in India’s Mazagon as controlling shareholder.

The Rights Issue will be on the basis of nine new shares for every two held at Rs. 40 each. The move will see the issuance of 323,365,158 new shares.

The proceeds of the Rights Issue are intended to be utilised to strengthen the company’s financial position and improve its working capital base in view of the severe financial constraints currently faced by the company. The proceeds will also support the company’s ongoing operational and financial obligations.

In June 2025, Mazagon signed an agreement with Onomichi and DOCK to invest $ 53 million to acquire controlling interest in a strategic deal.

Human Rights Watch (HRW) yesterday said Sri Lanka’s ruinous tax policies played a central role in the country’s 2022 economic collapse and continue to deprive citizens of essential public services, calling on the Government of President Anura Kumara Disanayake to overhaul a system that ‘favours companies and wealthy people while failing to deliver adequate revenues.’

In its 101-page report, ‘Tax Giveaways, Struggling Schools: How Low Taxes Drove Sri Lanka’s Economic Crisis and Squandered its Education Lead,’ HRW said that successive Governments had pursued revenue-starving policies that weakened the State and left the country heavily dependent on regressive consumption taxes.

‘For decades, Sri Lanka has been hostage to economic policies that starve its Government of revenue and reflect a myopic focus on GDP growth,’ said HRW Senior Economic Justice Researcher Sarah Saadoun. ‘These ruinous tax policies have left education spending well behind the pace of growth, turning Sri Lanka from a global leader in public education to a laggard.’

The report said public spending on education had declined from between 3 to 5% of GDP in the two decades after independence to 1.5% in 2022, one of the lowest ratios in the world.

HRW said the resulting funding gaps had forced schools to charge fees for basic resources, widening disparities between the rich and poor and undermining children’s right to free education.

It added that Sri Lanka’s low revenue base also contributed to the country’s historic debt default in April 2022, which triggered job losses, soaring inflation, and a prolonged social crisis. HRW said the problem began with the liberalisation policies of the late 1970s but was exacerbated by former President Gotabaya Rajapaksa’s sweeping 2019 tax cuts, which ‘dealt a devastating blow to revenues.’

The report found that by 2022, tax exemptions granted to companies cost the Treasury an amount equivalent to 56% of total revenues, almost three times the national education budget. It also noted that 80% of Sri Lanka’s tax income came from goods and services, burdening lower-income households disproportionately.

‘Sri Lanka’s economic quagmire makes it clear that growth alone is not enough to fulfil human rights,’ Saadoun said. ‘The Government should finally establish a progressive tax system and use its income so that it adequately funds education and other public services that benefit all Sri Lankans.’

HRW urged the Government to eliminate costly corporate tax exemptions, introduce a wealth tax, and strengthen enforcement mechanisms. It said Sri Lanka’s experience illustrates how tax competition among developing countries has spurred a global race to the bottom that undermines human rights.

The group said that while the Disanayake administration has taken limited steps, including a Rs. 6,000 transfer to poor families, it has yet to significantly expand the education budget.

It urged the Government to raise spending to at least 4-6% of GDP in line with international standards and to align fiscal policy with its human rights obligations to mobilise the maximum of available resources for education, health, and social protection.

Uniting around the goal of promoting healthy ageing, Health Ministers of member states of the World Health Organisation (WHO) South East Asia Region adopted the Colombo Declaration on Tuesday.

The Colombo Declaration on ‘Healthy ageing through strengthened primary health care’ was endorsed by the 78th Session of the WHO Regional Committee held in Sri Lanka. It is aimed at the health and wellbeing of the ageing population of the region, and this approach and focus will be adopted by countries, including Bangladesh, Bhutan, North Korea, India, Maldives, Nepal, Sri Lanka, Thailand, and Timor Leste.

This initiative was taken in recognition of the region’s rapid demographic shift, with the population aged 60 years and above protected to nearly double, from 11.3% in 2024 to 20.9% in 2050. Ministers emphasised that this demographic shift was both a reflection of progress and a call to adapt health systems to new realities.

‘Older people are rights-holders and valuable members of society, and that optimising intrinsic capacity and functional ability across the life-course is central to achieving healthy ageing,’ the statement affirms.

The Colombo Declaration outlines 10 core commitments:

1. Embed healthy ageing in national policies and primary health care (PHC)-oriented

2. Combat ageism through laws, inclusive policies, public sensitisation, education, and intergenerational initiatives

3. Ensure health sector leadership while multisectoral coordination

4. Prioritise and allocate adequate resources for policies and programs targeting older people

5. Deliver integrated, right-based, person-centred and gender sensitive care

6. Strengthen the health and care workforce

7. Strengthen age-and-sex-disaggregated data systems

8. Create inclusive, age-friendly environments

9. Harness digital health and innovation

10. Promote research and knowledge exchange

WHO South-East Asia Officer-In-Charge Dr. Catharina Boehme said, ‘This is a unique moment for the Region to celebrate and a first globally … for healthy ageing through strategic primary care. Thanks to the historic foresight of Sri Lanka in making this an important topic.’

She explained that when older people were healthy and maintained functional abilities, they remained valuable assets who strengthened families, communities, and economies. She added that primary health care was therefore the most effective and inclusive path to achieving universal health coverage and ensuring that older adults can lead long, healthy, and meaningful lives.

‘Lasting progress will depend on increased domestic investment. Healthy ageing must be embedded in national budgets, health plans, and social protection systems. Broader partnerships are essential,’ Boehme explained, adding, ‘Development banks, civil society, the private sector, academic institutions, and philanthropies have vital roles to play in mobilising resources, driving innovation, and scaling solutions.’

During this regional committee in Colombo, WHO also launched the Regional Youth Council.

Speaking on the significance of this declaration, Health and Mass Media Minister Dr. Nalinda Jayatissa

said that the issue of elderly health was emerging as a national and regional concern with improved longevity.

‘This is of special importance for Sri Lanka as we are predicted to have 1 in 4 Sri Lankans aged 65 years or older by 2045, making ours the fastest ageing population in South Asia. Therefore, it is crucial to improve health services and social care for our elders as many older people are facing challenges in getting the support and health care they deserve.’

Health and Mass Media Ministry Secretary Dr. Anil Jasinghe also spoke at the event, noting that in Sri Lanka, ageing has coincided with a rise in non-communicable diseases in the country. He said that this required a reversal of the health pyramid. ‘Ideally, care should begin at the primary level and only move upwards,’ Jayasinghe said, adding that Sri Lanka’s system functioned the opposite way, and that the country needed to start care at the primary level to achieve its health goals.