The recent GSER 2025 shows Asia is leading the global innovation shift, with cities such as Bengaluru, Tokyo, and Hong Kong climbing the ranks. Importantly, Sri Lanka is part of this wave.
Sri Lanka’s entrepreneurial landscape is undergoing a transformation, one that is being recognized globally. The 2025 Global Startup Ecosystem Report (GSER), produced annually by Startup Genome, places Sri Lanka firmly on the map as a rising innovation hub in Asia.
Between July 2022 and December 2024, Sri Lanka’s startup ecosystem generated $821 million in ecosystem value, indicating a threefold increase since 2021. The country has consistently maintained a Top 5 global position for Affordable Talent, and currently ranks #4 in Asia, reflecting the ability to attract and retain high-quality technical talent at competitive costs. It also ranks in the Top 25 in Asia for Funding and Top 35 for Talent & Experience, signaling growing investor confidence and long-term sustainability.
The recognition is not accidental, as it is the result of deliberate, strategic action and Sri Lanka’s startup ecosystem is expanding its global footprint.
Among the many frameworks was the recent Disrupt Asia 2025, Sri Lanka’s premier startup conference and innovation festival. The event played a crucial role in catalyzing this momentum. Held over four days in September, the event convened over 5,000 participants, including 100+ investors and 43 venture capital and accelerator networks. In addition, 90+ participants from 25 countries participated in DisuptAsia. It also showcased 50 startups, facilitated live pitching, and launched a $50 million Fund of Funds to support mission-driven entrepreneurs.
The work done through Disrupt Asia is causing ripple effects already visible. The Board of Investment (BOI) has approved a flagship scheme allowing high-potential digital startups to reinvest a significant percentage of FDI capital in global subsidiaries while retaining their IP in Sri Lanka. The Securities and Exchange Commission (SEC) is working towards a new venture capital fund structure to attract foreign VC funds to Sri Lanka.
Moreover, the Government of Sri Lanka has committed $5 million in seed capital to the Digital Fund of Funds, with $45 million to be mobilized from private sources.
Scaling to new heights, Sri Lanka launched its National AI Policy in 2025, setting the foundation for an AI-driven digital economy. The strategy aims to build infrastructure, talent, awareness, and support, integrating AI to enhance public services and applications.
Sri Lanka also established a strategic AI partnership with AI Singapore in July 2025 to upskill local professionals, establish advisory support in AI governance, and share knowledge via joint research and development projects.
In September, the country hosted its first AI Expo 2025, bringing global tech leaders to Sri Lanka. The event featured live AI demonstrations in healthcare, education, and agriculture.
Currently, sectoral strengths in Agtech, Fintech, and AI are driving growth, supported by government-backed accelerators. Initiatives such as the GoviLab Agritech Accelerator is already in operation, while the Unique Digital ID rollout is underway.
These reforms are more than policy shifts. They are foundational steps toward building a more robust investment ecosystem. With GSER 2025 highlighting Sri Lanka’s strengths, it also highlighted the need for deeper funding flows. The relatively low volume of early-stage investment compared to global averages is a call to action, and Disrupt Asia has responded by creating the infrastructure, visibility, and investor engagement needed to change that trajectory.
Expanding the country’s global startup footprint, delegations have participated in the StartupTN Global Summit 2025, and are preparing for the Asia Berlin Summit 2025, WebSummit Qatar, LEAP Saudi , and Echelon Singapore in 2026. The main objective of these engagements is to ensure strong ecosystem branding for Sri Lanka.
Sri Lanka is working towards building structural advantages, such as faster incorporation, stronger IP protection, VC‑friendly regulations, and a Virtual Special Economic Zone, to become an attractive destination for globally oriented startups
With over 12,000 ICT graduates annually and a vibrant culture, the country is also becoming a magnet for knowledge-based services and global talent.
The reforms now underway are strong launchpads. With investor follow-ups in progress and startups being nurtured for scale, 2026 promises to be a year of accelerated growth. Sri Lanka’s startup ecosystem is far from evolving, it is ascending, showcasing resilience, ambition, primed to scale, truly reflecting ‘An Island Rising’.
Marc Penzel, Founder and President, Startup Genome said, “Sri Lanka is solidifying its position as a rising innovation hub powered by exceptional technical talent, business-friendly policies and innovative government support. Its strategic location coupled with emerging focus on AI bolstered by new digital infrastructure and regulatory sandboxes, enable founders to innovate and scale. We are honored to continue our long-term partnership with ICTA to spotlight Sri Lanka’s momentum in this year’s Global Startup Ecosystem Report and to support the ecosystem as it continues to scale globally.”
