Budget 2027 names a Digital Startup Fund of Funds, inside a Rs 10,000 million package

The official Budget Speech 2027 names a Digital Startup Fund of Funds. It does not give the fund its own standalone allocation. In the English text (printed pages 19–21), “Strengthening the Digital Startup Fund of Funds to attract private investment into Sri Lankan businesses” is one item in a list of proposals, after which the speech says: “It is proposed to allocate Rs. 10,000 million for the above proposals.”

That package also includes, among other measures, a National Artificial Intelligence Centre of Excellence at Wijerama Mawatha, Lanka Government Cloud 3.0, GovPay and QR payments, a legal framework for Virtual Asset Service Providers, and broadband vouchers for 750,000 selected school students. The official text does not say how much of the Rs. 10,000 million is for the Fund of Funds, who will administer it, what instrument it will use, who can apply, or when it opens. “Strengthening” implies something already exists or has been approved; the speech does not say what is being strengthened.

What live blogs reported

At 3:13 PM Asia/Colombo on 12 November 2026, Newswire’s live updates recorded: “Rs. 10,000 million has been allocated for a Digital Entrepreneurship Fund to support the growth of digital businesses and entrepreneurship.” Daily FT logged the same measure at 3:18 PM as “Rs. 10 billion Digital Entrepreneurship Fund to be established.” At 3:32 PM, Newswire added that the government would “strengthen funding for digital startups and new digital ventures in the private sector, allocating Rs. 10 billion for this purpose.”

Those totals match the official Rs. 10,000 million. Two differences remain. The official name is Digital Startup Fund of Funds, not Digital Entrepreneurship Fund — a name that does not appear in the official English digital section. And the Rs. 10,000 million is proposed for the package above, not as a startups-only cheque. See the companion post on the ministry allocation, which covers how Rs. 18,500 million already allocated to the Ministry of Digital Economy “will be increased to Rs. 28,500 million.”

A pre-budget Daily FT report had flagged a Cabinet paper for a venture-capital Fund of Funds, a virtual special economic zone, and a $5 billion digital-exports target by 2030. The official speech now names the Fund of Funds. It does not, in the digital or tax sections opened for this draft, confirm a virtual SEZ or a $5 billion digital-exports target. The speech’s USD 5 billion-by-2030 figure is for plantation-sector export earnings, not digital exports.

Who it is for

The official purpose is “to attract private investment into Sri Lankan businesses.” A fund-of-funds typically invests in other funds rather than directly in startups, but the speech does not say that this one will. It does not name IT/BPO firms, freelancers, a revenue cap, or a nationality or incorporation test. Until rules are published, no founder should assume they are in — or out.

What founders should do now

Do not put this Rs. 10,000 million, or an assumed slice of it, into a cash-flow or fundraising model. Watch for a Treasury or Ministry of Digital Economy notice that names the administrator and the instrument. If you already have a digital product or export revenue, keep ordinary records — incorporation, tax filings, user or revenue figures — so you can move if a call for applications appears. A hand-reviewed public listing on BuiltList can serve as a public record of the product while you wait. The official speech is on the Treasury site. Parliament’s second-reading vote is at 6:00 PM on 20 November and the third-reading vote at 6:00 PM on 14 December (Parliament news, 11 November 2026).

What we still don’t know

We do not know how much of the Rs. 10,000 million is for the Fund of Funds, who will run it, who can apply, what instrument it will use, or when it opens. We also do not know what existing vehicle is being “strengthened.” Written after the official English speech PDF was opened on 12 November 2026.

Sources opened on 12 November 2026, and checked against the official Budget Speech 2027 PDF on treasury.gov.lk (https://www.treasury.gov.lk/web/budget-speeches/section/2027; file https://www.treasury.gov.lk/api/file/ea495202-fcb1-4c78-b34e-58389cb20738), English text printed pages 19–21; Newswire, Daily FT and Daily Mirror live blogs; Daily FT pre-budget digital-exports report. Not legal, tax or investment advice. Draft by BuiltList Research for builtlist.space/blog.