• Digital Economic Authority to handle policy, governance
• Second entity to focus on project implementation, support
• ICTA employees’ future to be decided via liquidation process

The Government has decided to proceed with the winding up of the Information and Communication Technology Agency of Sri Lanka (ICTA), with plans to replace it with two new entities.

Speaking to The Sunday Morning Business, Deputy Minister of Digital Economy Eranga Weeraratne pointed out that the previous Government had taken a Cabinet decision to close down the ICTA, adding that the new Government intended to proceed with and give effect to this decision. 

However, he revealed that they planned to replace the ICTA with two new entities established under the Ministry of Digital Economy.

“The former Government took a decision to shut down the ICTA. We will continue the dissolution, but we will establish two entities in its place under the ministry,” he said.

Weeraratne stated that one of the proposed new entities titled the Digital Economic Authority would be tasked with policy development and governance.

Commenting on the second entity, he noted: “The other entity will be tasked with implementing projects and providing support as well as maintenance.”

He added that they planned to establish these new entities within the year.

Addressing the fate of the existing ICTA employees, he stated: “A liquidator will be appointed and a liquidation process will take place, during which a decision will be made on whether the existing employees will be absorbed into one of the entities or not. This will be decided by the liquidator.”

The previous Government announced its decision to wind down the ICTA as far back as 2022, when, during the 2023 Budget speech, former President Ranil Wickremesinghe as the then Minister of Finance proposed that the ICTA be abolished since it had completed its role.

The former Government announced that the ICTA would be replaced by an entity titled the Digital Transformation Agency, established by the proposed Technology Promotion Act.

The ICTA, an institution wholly owned by the Government, was formulated and operationalised to implement the e-Sri Lanka Development Project funded by the World Bank from 2004-2011. Through this project, the ICTA was to be used to develop Sri Lanka’s economy, reduce poverty, and improve the quality of life of the people of the country. 

However, the sunset clause of the ICTA contained in the Information and Communication Technology Act No.27 of 2003 was amended in 2008, allowing it a permanent existence.