The idea of turning Sri Lanka into a regional data centre hub is an attractive one, particularly in the context of growing global demand for digital infrastructure and AI-driven services. However, it raises important economic questions, especially whether this is a viable and high-return investment strategy for a small, fiscally constrained economy like Sri Lanka.
In an article published in the Daily FT on 24 February 2026, LIRNEasia Chair Professor Rohan Samarajiva questions the feasibility of this proposal, highlighting the significant infrastructure requirements and fiscal implications involved. 
The idea of turning Sri Lanka into a regional data centre hub is an attractive one, particularly in the context of growing global demand for digital infrastructure and AI-driven services. However, it raises important economic questions, especially whether this is a viable and high-return investment strategy for a small, fiscally constrained economy like Sri Lanka.
In an article published in the Daily FT on 24 February 2026, LIRNEasia Chair Professor Rohan Samarajiva questions the feasibility of this proposal, highlighting the significant infrastructure requirements and fiscal implications involved.