Gayani Hurulle, Senior Research Manager at LIRNEasia, a regional think-tank, delves into her work on digital access as Sri Lanka is poised to embrace the transformative potential of a digital economy, propelled by the global drive towards AI adoption and digitization. Yet, according to Gayani, amid these ambitious aspirations, numerous critical challenges demand immediate attention: the pervasive deficiency in basic digital literacy, lack of adequate digital infrastructure, and continued low female workforce participation.
As digital integration becomes ubiquitous across various sectors, the lack of fundamental competencies among the Sri Lankan populace poses a significant obstacle. A survey conducted by LIRNEasia revealed alarmingly low levels of independent online proficiency, underscoring the urgent need to bridge the digital divide. Moreover, as crises like the COVID-19 pandemic underscore the imperative for rapid upskilling, addressing this deficiency becomes even more pressing. Failure to do so risks perpetuating disparities and hindering inclusive economic growth, emphasizing the paramount importance of empowering individuals to navigate an increasingly digital-centric world.
In this context, evaluating the efficacy of initiatives to lay the groundwork for Sri Lanka’s digital economy becomes crucial. From legal and regulatory adaptations to the proliferation of digital services and robust infrastructure, various factors interplay in shaping the nation’s digital trajectory. Looking ahead, challenges such as the impact of AI on employment and the imperative for building human capacity loom large. Additionally, confronting the twin challenges of brain drain and low female workforce participation requires multifaceted solutions, including infrastructure changes to alleviate burdens on women and unlock their full economic potential.
As Sri Lanka charts its course towards a digital future, navigating inequality and seizing opportunities become paramount in realizing the vision of a thriving digital economy that benefits all segments of society.
What’s the main challenge Sri Lanka faces as it aims to transition to a digital economy, considering the current advancements in AI and digitization?
Sri Lanka has embarked on a transformative journey spurred by the global surge in AI adoption and digitization, critically in the last few years. However, amidst these aspirations, there lies a crucial challenge that demands immediate attention: the pervasive deficiency in basic digital literacy.
As digital integration permeates every facet of modern life and various sectors of the economy, the requisite skill sets for diverse job roles become increasingly nuanced. Yet, at the core of effective and secure digital participation lies fundamental competencies that are lacking among the Sri Lankan populace. According to LIRNEasia’s 2021 nationally representative survey, conducted against the backdrop of the COVID-19 pandemic, Sri Lanka grapples with a stark reality: only a fraction of the population possesses the ability to independently perform basic online tasks. Merely 31% can post information online, while a slightly lower 29% can adeptly search for information and install applications without assistance.
The urgency of addressing this digital divide is underscored by crises such as the COVID-19 pandemic. Mothers, for instance, found themselves thrust into unfamiliar digital terrain, compelled to acquire skills swiftly to facilitate their children’s online education. Our survey revealed that during such crises, a significant portion of the economically active population, amounting to 18%, had to undergo rapid upskilling. Among them, over half emphasized the imperative need to learn basic online information retrieval, while substantial percentages sought proficiency in tasks as fundamental as creating user accounts (38%) and performing basic data input and processing (32%).
Yet, beyond crisis-driven imperatives, the imperative for continuous upskilling persists as a requisite for individuals to navigate the relentless pace of technological advancement. Failure to do so risks relegating vast segments of society to the sidelines of progress, perpetuating disparities and hindering inclusive economic growth. Thus, addressing the dearth of basic digital literacy is crucial, not merely as a crisis response measure but as an ongoing endeavour to empower individuals and safeguard their participation in an increasingly digital-centric world.
How effective are the initiatives in laying the groundwork for Sri Lanka’s digital economy?
Evaluating the efficacy of these endeavours requires examining various facets that interlock like pieces of a puzzle, extending beyond just digital skills. Firstly, the adaptation of legal and regulatory frameworks stands as a crucial pillar. Taxation, in particular, demands a paradigm shift to accommodate the evolving landscape of the digital economy. Countries like India and Pakistan have already implemented policy measures to address this, recognizing that traditional notions of physical presence for taxation are becoming insufficient. Without such adjustments, global tech giants could exploit legal gaps, disrupting fair competition by paying insufficient, and putting local players at a disadvantage.
Secondly, the proliferation of compelling digital services enhances operational efficiency and should be prioritized. Models like QR-based payments, prevalent in nations like India and Nepal, have reshaped peer-to-peer transactions and retail payments. Governments can lead by example, offering an array of services online, and streamlining citizen interactions. However, Sri Lanka’s adoption has been comparatively sluggish, indicating room for improvement.
Thirdly, ensuring robust infrastructure is imperative for widespread access to affordable, high-quality internet services. Sri Lanka has historically met benchmarks set by the UN Broadband Commission for mobile and fixed connections, showcasing commendable progress. Nonetheless, accessibility remains a concern, particularly for marginalized socio-economic groups. As digital service demands escalate, bridging this accessibility gap becomes paramount, safeguarding inclusivity and equitable participation in the digital economy.
What challenges will Sri Lanka face in the next decade to keep pace with Global North economies in terms of internet usage and digital skills?
The advent of AI can play a catalysing role in the future of job roles and employment. Historically, repetitive tasks that were often outsourced by developed nations to cut costs, are now vulnerable to automation. This trend may pose a risk to sectors within Sri Lanka reliant on such tasks, potentially disrupting traditional employment patterns.
Yet, amidst this disruption, opportunities for new types of employment may emerge. For instance, the creation of training datasets for AI models necessitates human intervention, albeit in roles considered lower on the value chain. However, for Sri Lanka to truly advance, it must strive to transition towards higher-value tasks, thereby enhancing its developmental trajectory. Such a shift, however, demands sufficient resources, both in terms of financial investment and the development of computing and human capabilities.
Crucially, building human capacity is essential for Sri Lanka to effectively engage with AI, not only within industry but also in terms of policy and governance. While global governance models, often spearheaded by entities like the European Union, may set standards, Sri Lanka may lack the resources to enforce such regulations. Thus, there’s a pressing need to explore less resource-intensive yet effective regulatory frameworks tailored to Sri Lanka’s context. Balancing innovation with regulation becomes imperative in navigating the complexities of the digital age while ensuring inclusive growth and development.
At a crucial moment, Sri Lanka contends with brain drain and low female workforce participation. Can infrastructure changes alleviate these twin challenges?
Despite strides in education, particularly in tertiary enrollment where women excel, their integration into the labour force remains stagnant, hovering between 30-35% over recent decades.
A significant factor hindering female workforce participation is the disproportionate burden of care responsibilities borne by women. The challenge of balancing paid work with household and caregiving duties impedes their entry and advancement into the workforce. To address this, fostering remote and flexible work arrangements emerges as a promising avenue for women to engage in economic activities. However, merely creating opportunities is insufficient. It’s crucial to establish robust support systems that mitigate the burden of juggling multiple roles.
Moreover, while online platforms and freelancing offer avenues for supplemental income, they also reveal systemic issues such as underemployment and skills mismatch among female workers. Rectifying this demands targeted interventions to ensure equitable access to opportunities commensurate with women’s qualifications and capabilities.
Enhancing social protection systems is paramount to alleviate the triple burden shouldered by women. This entails not only bolstering caregiving infrastructure but also ensuring its affordability and safety. Accessible and dependable childcare facilities can significantly ease the childcare responsibilities that predominantly fall on women, thereby enabling their fuller participation in the workforce.