New measures to reduce device prices and regulate second-hand electronics

• New registration process aimed at curtailing informal “grey market”
• Digital Economy Deputy Minister Weeraratne defends current high taxation on devises as a necessary measure to fund government’s significant investments in digital infrastructure 
• However, Weeraratne signals that relief measures are under consideration 

Eranga Weeraratne PIC BY KITHSIRI DE MEL

Sri Lanka is planning a multi-pronged strategy to address the high cost of digital devices by exploring the targeted subsidies and affordable payment schemes, while simultaneously moving to formalise the second-hand market through a new registration process, aimed at curtailing the informal “grey market”.

Responding to concerns over high taxes that place smartphones and computers out of reach for many citizens, Digital Economy Deputy Minister Eranga Weeraratne acknowledged the issue but defended taxation as a necessary measure to fund the government’s significant investments in digital infrastructure.

The plans were outlined at the launch of INFOTEL 2025, the nation’s premier ICT exhibition. The event is scheduled to be held from November 7 to 9, at the BMICH, Colombo.
However, he signalled that relief measures are under consideration. 

“For communities unable to afford these devices, the government will look at certain subsidies to support them,” Weeraratne stated. He further mentioned the possibility of introducing “affordable payment schemes”, specifically targeted towards different segments of society, such as students, to ensure wider access to essential technology. This approach aims to balance the need for government revenue with the goal of increasing digital inclusion.

A key part of the government’s new strategy involves tackling the unregulated grey market for electronic devices, which often contributes to the proliferation of e-waste. Weeraratne announced plans to formalise the sector through a mandatory registration and certification system.

“We are going to introduce a process of registration,” Weeraratne explained. 

“By bringing in rules and regulations, we can address the grey market.”

This move is intended to create a structured and accountable second-hand market. By certifying and tracking devices, the government aims to ensure product quality, reduce electronic waste and provide the consumers with more reliable options. This formalisation is seen as a crucial step in managing the lifecycle of the digital devices in the country.

Weeraratne emphasised that these measures are part of a broader vision to achieve the ambitious national targets, including growing the digital economy to US $ 15 billion and achieving US $ 5 billion in IT exports by 2030. Exhibitions such as INFOTEL, he noted, are vital for driving this agenda by showcasing new technologies like AI and connecting the innovators with investors.