COLOMBO, Sept. 19 (Xinhua) -- Sri Lanka will launch a government-backed startup fund in January 2026 to spur innovation, attract investment, and help local firms scale globally, Deputy Minister of Digital Economy Eranga Weeraratne said here on Friday.

Weeraratne said at an event that Sri Lanka lacks a fully developed startup ecosystem, citing limited access to venture capital, misalignment between academic research and industry needs, and policy bottlenecks as key constraints.

The government will remove red tape, introduce investor-friendly reforms, and build infrastructure that lowers the cost of innovation, he said. Most importantly, the government will unlock private capital by establishing a fund with initial seed capital from the government, he said.

Sri Lanka aims to create a digital economy worth 15 billion U.S. dollars over the coming years.