• GovTech incorporation in final stages; launch expected within 2 months
• ICTA to continue operations until GovTech becomes fully functional
• DEA to follow GovTech with World Bank support
• Govt. committed to planned institutional transition announced in 2022

Winding up proceedings of the Information and Communication Technology Agency of Sri Lanka (ICTA) has been delayed until its successor GovTech Ltd. completes its incorporation, which is at its final stages, according to the Deputy Minister of Digital Economy.

Speaking to The Sunday Morning Business, Deputy Minister of Digital Economy Eranga Weeraratne stated the Government still remained committed to replacing the ICTA with two successor entities, i.e. GovTech and the Digital Economic Authority (DEA). 

He further noted that GovTech would be established first, followed by the formation of the DEA, which would be supported by technical assistance from the World Bank.

Commenting on the winding-up process of ICTA, the Deputy Minister said: “The decision [to wind up ICTA] is still valid. We will be appointing a liquidation entity to carry out the liquidation process, which has not been started yet.”

Weeraratne added that efforts were underway at present to incorporate GovTech and initiate its operations. He further clarified that the incorporation process was now in its final stages and expressed confidence that it could be completed within approximately two months.

The Deputy Minister also revealed that until GovTech commenced operations, the ICTA would continue to function in order to maintain the existing digital platforms. He added that the winding-up process of ICTA would begin once GovTech became operational, expressing confidence that GovTech would be fully functional within the year.

Responding to queries regarding the future of existing ICTA employees, Weeraratne stated that the Government intended to consider the current ICTA staff during the recruitment process for GovTech. He added that any staff member who was willing to join the new entity would be welcomed aboard.

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, in his capacity as the 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.