BIZNES Magazine (1)

Department of Business Management The Department of Business Management, established in November 2021, is one of the youngest departments in the faculty. Despite its relative youth, it is characterized by its industri- ous and forward-thinking approach. The department's primary commitment lies in contributing significantly to the knowledge and the nation's growth. This is achieved through the dual avenues of creating and disseminating knowledge and active participation in various national development activities. A distinguishing feature of the department is its unwavering dedication to ensuring the profes- sional success of its graduates. This dedication is exemplified by the close partnerships the department forges with industries, resulting in a plethora of opportunities for internships and valuable industry exposure. These initiatives play a pivotal role in equipping undergraduates with the necessary skills and experiences to stand out in the competitive job market.

CONTENT 01 D i g i t a l D i s r u p t i o n Mr.Samitha Sulakshana 05 Sri Lanka's Digital Journey and Path Ahead Dr. Ruwan Weerasinghe Digitizing Sri Lanka's Hospitality: 09 Paving the Path to Tourist Delight Dr. Prasad Jayasuriya 13 From Tradition to Tech: Sri Lanka's Businesses Embrace the Future Mr. Fairooz Habeeb 17 Revolutionizing Sri Lanka’s Banking: Digital Disruption Sparks Innovation Mr. Kavinda De Zoysa 27 The NFT Boom Mr. Dilshan Abeygunawardene 31 Programmatic AdvancementIn Sri Lanka: Adstudio.Cloud Tech Industry Expert’s Lessons on 35 Navigating Digital Transformation Mr.Heshan Karunarathna 39 Data-Driven Media Planning in the Digital Revolution Mr. Shashi De Silva

VICE-CHANCELLOR’S MESSAGE As the vice-chancellor of the University of Ruhuna, I wish to extend my heartiest congratulations to the Department of Business Management on initiating this venture “Biznes” the new magazine. It gives me great pleasure to issue a message for this great effort led by a newly established department. I am inspired by the interest, passion, and enthusiasm of the department and its capacity for such creativity. The magazine mainly explores digital disruption, digitalization of businesses, and emerging technologies by focusing on a pool of new technical notions, such as Artificial Intelligence (AI), Machine Learning, Blockchain, Digital banking, etc. In my view, this first issue of the magazine would be a great opportunity to gain a wide array of opinions from experts. Beyond that, this would offer a thorough knowledge of the digitalization of business in Sri Lanka and new trends in the context of a digitalized era. This would serve as a constructive platform to share insights on digital disruption. Some of these are new concepts while others had been the subjects of discussion for some time. These need to be discussed in the current context of the economy and way forward in our country. Hence, I would like to appreciate and extend my best wishes to all those who contributed to the first issue of the magazine. I wish all of you every success in creating a revolutionary milestone and succeed in great achievements on the way forward with ‘Biznes’. Senior Prof. Sujeewa Amarasena Vice-Chancellor University of Ruhuna Sri Lanka

DEAN’S MESSAGE As the Dean of the Faculty of Management and Finance, I am delighted to hear that the Department of Business Management is launching its official magazine, ‘Biznes’. It is a remarkable development that they initiated this magazine and published its first issue within a short period since the inception of the department. Undoubtedly, the Biznus will initiate thought-provoking discussions on recent developments in business management and make them accessible to a broader readership within and outside the university. Concurrently, the Biznus will serve as a student-centric learning tool for undergraduates of the faculty to develop a multitude of skills . Importantly, in its first issue, the magazine focused on ‘digital disruption’, a timely topic appealing to young minds. Though Digital disruption is no longer a new topic, the effect of digital disruption is being felt recently across all industries and sectors like nowhere before. For example, Digital disruption is rapidly changing how we live and work leading to a new normal. Every day, we are compelled to embrace new technologies and learn new ways of working. Digital technologies have opened up numerous opportunities for the growth and transformation of businesses through innovation and creativity while creating enormous challenges. As a result, Digital disruption forces business firms to remodel their businesses, unlock new sources of value, and rethink their strategies. Otherwise, their very survival is challenged. Through this magazine, I am sure that Biznes will shed a remarkable light on the digital disruption and its impact on the business world. I take this opportunity to congratulate and appreciate the initiatives taken by the members of the Department of Business Management and the hard work of the editorial team in publishing the Biznes. Also, I must extend my appreciation to all contributors to this issue. Undoubtedly, this type of publication will bring the faculty to new heights. I am looking forward to reading the future issues of Biznes. Prof. Manjula K. Wanniarachchige Dean,Faculty of Management and Finance, University of Ruhuna, Sri Lanka

MESSAGE FROM HEAD OF THE DEPARTMENT As the head of the department, I am honored to introduce the‘’BIZNES’’ which is the official magazine of the Department of Business Management. This is an incredible achievement that wouldn't have been possible without the collective effort of both academic staff and students. In an era where technology is advancing at an unprecedented pace, digital disruption has become an unstoppable force that has reshaped industries, empowered consumers, fostered innovation, and transformed the workforce. Embracing this disruption is crucial for businesses and individuals to stay ahead of the curve. By embracing digital disruption, we can unlock new avenues for growth, create value for customers, and build a more innovative future. As such, I think it is a timely need to start a dialog among the academic and business community about the digital revolution. I strongly believe that 1st issue of the BIZNES magazine would patronize this dialog. I have no doubt that our new magazine will make a significant impact among readers. I would like to congratulate on this momentous occasion and grateful to be a part of this team. Dr. Tharaka R. Wijesundara Head of the Department, Department of Business Management, Faculty of Management and Finance, University of Ruhuna, Sri Lanka

DIGITAL DISRUPTION ADVISOR Dr. Tharaka R. Wijesundara EDITOR Mr.Rohan Laksiri EDITORIAL BOARD Miss. Madhavi Wijesekara Mr.D.D. Bamunukula DESIGN Mr.D.D. Bamunukula Miss. W.A.A. Prasangika Mr. G.D.I.D. Udana PUBLISHED BY Department of Business Management Faculty of Management and Finance University Of Ruhuna Wellamadama , Matara www.mgt.ruh.ac.lk [email protected] The professional opinions and views expressed by the BIZNES Magazine are those of the interviewees and do not necessarily re ect the o cial policy or position of the University of Ruhuna. All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission

Sri Lanka's Digital Journey and Path Ahead Academics’ View Dr. Ruwan Weerasinghe Can you share a little bit about Would you mind telling us how machine learning. Most of our new yourself? you entered this field of study? models are machine learning How did you shift from field of models. Therefore machine I graduated from University of Mathematics to IT field? conversion was also a big prob- Colombo as a Mathematics and lem for me in those days. As a Statistics graduate. I wanted to In fact, the field of information result, I became interested in DNA do my masters in computing technology and the field of sequencing and became interest- back in 1989 as I was interested mathematics are related to each ed in other problems, and my in it, but we only had basic other. Because fields like second favorite field was bioinfor- programming at the time. Then I programming often use matics. went back in ’91 to do my PhD on mathematical and statistical Having recently become interest- Natural Language Processing as models. So I decided to leave the ed in the humanities and social my research area as I was math field but had to use my sciences, my latest area of interested in it during my mathematics skills again here. investigation has been the area of masters. When I returned in 1994 agent-based modeling in com- rather than doing my NLP From the first language model we puting. research, first I had to get did, we understood that the together with a few others and statistical model works well than Indeed the field of natural SLT to try and set up internet the rules-based models here, and language processing was disrupt- facilities at universities and in it showed which areas had a high ed three months ago by large the country itself. For seven score point or not. language models like ChatGPT, an years I did not carry out any example of generative artificial research except supervising Being an academician in a projects of undergraduates. In department is not an easy task. intelligence. If you're 2001 I quit being an academic Because to be an academic solving a problem using and returned to research on one needs a degree in that the English language, Data driven Natural Language subject. Since I also did not it's almost a must to Processing. During that time, I have a degree or much try using formats also got semantical knowledge in computer like ChatGPT. appointments one in France and science, I also faced many ChatGPT is based one in USA. Last year that field problems. on a word- gained a lot of attention, things processor-first model like ‘ChatGPT’ is a result of that We would like to know the new developed by Google. kind of language model. research areas that you are currently invested in? What should we generally consider as the scope of digital My primary research area is economy? natural language processing. It mainly uses data driven methods. I Registries are essential infra- So those fields are called structure for building services like e-government and business 051

communication. Examples of Currently the world is UNIVERSITY OF RUHUNA basic documents include functioning in a digitalized era personal and land documents, and the process of digitizing only BUSINESS MAGAZINE The lack of a personal register has sped up due to the pandemic led to confusion with multiple IDs when everyone turned to online Even universities in certain areas and the lack of a land register has platforms to carry out their tasks. have returned to how things used led to illegal land acquisition. I In this process of digitizing/ to be. A digital signature should conclude that registries are vital digital conversion do you think include some features like non to creating a stable and that Sri Lanka is sufficiently repudiable. Because it will organized society. keeping up with the rest of the generate a code and only the world? authorized person can sign. There will be a need to have certain information infrastructures That's one area that you should What are the main drawbacks/ in place to achieve greater be looking at, and how do you limitations in digitizing? transparency in government encourage people to work with operations. I think businesses flexible work practices.Apart from but our cloud providers like SLT, should be registered in addition to that, invest in digital infrastructure Dialogue obviously don’t have people and land to facilitate this because it is important to have that level of automation that transparency. While there is the infrastructure in order to run these massive international cloud currently an electronic archive of the business. Updating some of providers have. For example these companies, further infrastructure the systems or improving internet cloud providers will ensure that if is needed in areas such as connectivity should be the focus your server goes down that e-procurement, which will result in along with paying attention to there’s a backup server that will greater visibility in government adopting digital marketing so you come into action after a certain procurement. can reach new customers. period, automatic backups are there, security available 24/7. So, I think APIs, or application There are some limitations with without committing to that it is programming interfaces, are a the processes isn't it, in the difficult to provide such quality better way to define software government sector? services. But on the cloud it is than relying on predefined much easier and much cheaper. software. APIs allow for loose Correct, in the government some For which we will have to use SLT. coupling, meaning that different departments have com- Apart from that almost everything organizations can use different pletely gone back to else is generally highly secured software while providing access the original and fault tolerant if to the information they need. An ways. They example of a university system rejected all where different universities use the other different software, so instead of things forcing them to use specific and have software, a World Bank project gone defines an API that allows them to back. access the required information. In my opinion, these kinds of loosely coupled environments produce better results than trying to force people to use certain software. E-commerce platforms like Takas have been very successful.

it is on the commercial clouds. of the minister which is not how ‘ Wrong way to So, that’s one of the issues, it was set up initially. When I was go about bottle necks. graduating at that time joining it is to the civil service was something I completely ban the looked up to, but over my use of ChatGPT ... lifetime I have seen that today academics should very few promising people do so. let students Without strengthening that it use ChatGPT would be hard to have long term ’ projects, and without long term coming up with innovative How would you think that Sri projects it's quite difficult to offerings that are in between Lankans as a nation and as establish a digital economy formalized layers by taking and individuals should work to based on government and sometimes distributing the risk overcome previously mentioned business services enabled of lending financial aid avoiding limitations? through digital means. rigorous process of screening loans. I think one of the main issues For a moment if we divert our that we face is this five-year attention towards digital Even businesses like \"Pick Me\" are election cycle. So if you think of economy could you enlighten based on data driven infrastruc- any productive and useful us with some of its emerging ture. They have very timely data project like citizens registry in trends and especially its new about the location of the vehicle, India called the \"wdOdr\" (adhara) research areas? the location of the client, the Project wouldn't have been destinations, routes and possible unless it was rolls out Globally it looks like FinTech, everything. These companies are over for a long period, probably financial sector is really mod- totally based on data driven about 10 years from the ernizing using not only crypto infrastructure. Like so there is a beginning.The political system in currency, which had its ups and need for a national infrastruc- India is not that different from downs.FinTech is a large compa- ture. ours but their bureaucracy is ny that has found gaps in quite strong, so the bureaucracy financial sector, such insurance A great example is, in London the is what maintains continuity and and banking and is coming to fill city council has made all their successive generations of those gaps. These sectors are transport data public, allowing politicians in Sri Lanka have the public to use it innovatively weaken that bureaucracy so for trip planning and traffic much that today secretaries of congestions. the ministries are the CEOs, but they don't act so, they act as the Even using Google, with our people who carry out the order phones we can engage in trip planning and traffic congestion and everything. So, a similar kind of thing is needed with 07

UNIVERSITY OF RUHUNA government information. So, the map. However, unfortunately as BUSINESS MAGAZINE biggest hurdle for that there is the government didn't have a no government data policy or proper vision for it, it’s kind of in and players like Sanath classifications, making it difficult a state of flux now I would say Jayasuriya and T. M Dilshan to access the information. To emerged and improved the address this, the process of how How can a nation measure and team’s performance. Similarly, to get information should be be aware to keep track on its the technology world in Sri Lanka transparent. So, in an digital growth? has a massive bias to those who environment like that it is know English, limiting the difficult to talk about digital ICTA had a measure of digital number of people who can economy. government used to compare participate. Which is like limiting departments and ministries. cricket to the elite schools. Considering the current level of These measures were used to As a solution we try to promote digitalization in Sri Lanka, could compare and make inclusivity in technology by you give us a brief run down on departments and ministries working on projects such as how we got here, the digital compete to improve their translating Wikipedia pages into history in Sri Lanka. indices which helped to increase Sinhala and encourage the use their of language translation tools like While I was still a student, performance however, Google Translate. We went from University of Colombo and something good like that is no five (5) Wikipedia pages in University of Moratuwa acquired longer there, due to government Sinhala to about 12,000 and now mainframe computers, which changes. up to 15,000 or 17,000 but that is were placed in freezing rooms. still a really small amount Other than some places like There are now international comparatively. Due to the State Engineering Corporation, measures such as the ease of limited number of Sinhala or this led for these universities to doing business index and Tamil Wikipedia pages, inability set up consulting arms to do e-government based on to access such resources is early projects, such as issuing services., and the services are really frustrationg. I've been passports. classified at different levels, working with Dialog and some informal and transactional and people to fund a Google In 1998/99, private companies so on and the top level is translate front end, to translate came together and an ICT road integrated. questions and responds. map for Sri Lanka was finalized, LinguaGPT is a start-up which was supported by the For national digitization company that involves a Sri World Bank and the ABD. World including the private sector, Lankan as well that has enabled Bank took the lead, and it was SLASSCOM is an organization people to learn English, initially known as the East Sri that focuses on export, and FITIS, programming, and management Lanka initiative and that lead to Federation of Information in their mother tongue which I the formation of ICT Agency of Technology Industry Sri Lanka think is a game changer. Sri Lanka. may have an idea on how to However, I feel that they will run measure the digital growth. out of funds and if their user The initial idea of the ICTA was to base growth without funds they catalyze the IT industry to create As the ending remarks of this would have to shut it down. products and services for the interview could you share your I think the wrong way to go government, enable the private comments on the future about it is to completely ban the sector, and start communi- research potential of Sri Lanka use of ChatGPT, the better way is ty-based projects like ‘Nana in this digitalization era? to do innovative things like flip Sala’. classroom, where academics However, the original idea of Okay, since I'm coming from the should let students use ChatGPT being lean and mean and agile educational field I have some to prepare for assignments and was abandoned. The East Sri biases of course. I grew up in a academics themselves should Lanka project was well designed time when the Sri Lankan cricket become experts at prompt with five main pillars, but it took team was all from reputed engineering. This will help them different turns and became Colombo schools and performed remain and continue their politicized. The ICTA came up poorly. To open this out, regional profession. with a digital economy road tournaments were organized 08

Digitizing Sri Lanka's Hospitality: Paving the Path to Tourist Delight Dr. Prasad Jayasuriya Director - Tourism Planning, Development and Investor Relations Sri Lanka Tourism Development Authority How has the digital transfor- (SLTDA) taken to support digital mation impacted the Hotel adoption in hotels and hospi- and hospitality industry in tality businesses? Sri Lanka? The Tourism industry in Sri Lanka includes a majority of Digital transformation is all stakeholders representing the about integrating SME sector. Thus digital adoption appropriate technology as is quite challenging, as many the core of your business SME’s believe it as a costly and strategy and in Sri Lanka it is non-priority item under current not yet fully explored or used circumstances. Although some by most stakeholders in the big organizations in the tourism tourism industry. However, the sector have either adopted or hotels and service providers who initiated digital transformation, have either initiated or used the task of SLTDA is to support digital transformation correctly, and ensure majority have changed the way they stakeholders go through the operate; by making useful data process of digital adoption. So, available across all functions of given these conditions, the an entity, they have not only SLTDA had taken initiatives to increased efficiencies, but also support digital adoption by have managed to save building industry stakeholder operational expenses, making awareness and knowledge on a significant impact in their the benefits of digital adoption. businesses. What specific initiatives has the Sri Lanka Tourism Development Authority

UNIVERSITY OF RUHUNA The SLTDA intends to get An online booking platform is a BUSINESS MAGAZINE assistance from funding 24/7 and 365 day reservation agencies wherever possible to system which gives freedom to contamination risks. Although carry out this task successfully potential tourists to make SLTDA facilitated and increased to achieve the objective of reservations at their the stakeholder knowledge on reaching digital adoption convenience. On the other hand the benefits and importance of through better understanding digital marketing facilitates and such services through and knowledge of its benefits. help in reaching potential awareness programmes tourists through digital conducted during pandemic, What are the key benefits that communication methods and due to the difficulties industry hotels in Sri Lanka have online channels. These two, went through and going through, experienced as a result of namely, digital marketing and only a very few managed to embracing digital online bookings taken together start such services in their technologies? have undoubtedly helped in hotels. Such services include the attracting more tourists and use of digital technology to The key benefits enjoyed by the maximizing sales, mainly due to ensure contactless bookings, hotels and service providers who improved and effective check-in/check-out, keyless are using digital technologies communication of the room entry, voice command are the efficient workflow and destination attractions and technology, non-touch control positive culture with improved opportunities with virtual panels, digital menus at systems and procedures at all experiences and details coupled restaurants, digital travel levels of the organization that with the booking freedom they information, online ticket issuing drive work effectiveness; these provide. for attractions etc. The SLTDA is result in cost savings and hopeful that with continuous increased competitiveness and In what ways has the Sri Lanka awareness creation, the industry profits, thereby making it easier Tourism Development Authority will consider these options for to reach strategic goals and facilitated the implementation implementation when their objectives. of contactless and digital individual businesses start doing services in hotels? well. How has the use of online booking platforms and digital Contactless and digital services How do you see the role of marketing strategies have gained much momentum social media in promoting Sri contributed to attracting more especially after the COVID 19 Lanka as a tourist destination tourists to Sri Lanka? pandemic to minimize and enhancing visitor experi- ences? A key priority for Sri Lanka tourism is effective marketing, to accelerate the recovery to ‘normal’ tourist flows and to attract new target market segments. Of course, the traditional means of promotions and marketing used so far has not given Sri Lanka Tourism the required results up to the expected levels in terms of branding and positioning. Thus, there is a need to introduce a more technology-based approach for marketing and promotions, while servicing the new emergent customer segments such as millennial and gen z travellers who seek social media reach. With social media platforms 10

such as instagram, facebook, etc. to ensure privacy and data whatapp, twitter, youtube etc. security. Going forward, when becoming very popular amongst majority industry partners adopt a large majority of potential digital technologies, we as the travelers, social media regulatory body intend to work promoting is today considered on a comprehensive cyber as an essential tool for business security plan for the entire promotions. Therefore, through tourism industry. the use of social media, destinations can be not only discovered by potential tourists, but also they are in a position to virtually experience the same, giving a glimpse of what they can expect and experience. Due to all these features, social media can be used as a very powerful tool to promote Sri Lanka as a tourist destination. What measures have been put Have there been any specific ‘ There are examples of ‘ in place to ensure data security success stories of hotels in Sri success stories from and privacy of tourists in the Lanka effectively utilizing some large hotel digital era? technology to improve guest chains and groups satisfaction? (both local and We as SLTDA, continue to remind international) as well tourism service providers on the There are examples of success as some high end importance of data security and stories from some large hotel boutique properties privacy in the digital age, urging chains and groups (both local where they have them to take basic measures like and international) as well as e ectively used firewalls, backups, access some high end boutique technology in their controls, encryption, using properties where they have product/service o er strong/unique passwords, effectively used technology in to improve guest enabling 2 face authentication their product/service offer to satisfaction improve guest satisfaction. However, for obvious reasons I am not in a position to mention any hotel or property names here. 11

What future plans or initiatives provide security alerts, provide UNIVERSITY OF RUHUNA does the Sri Lanka Tourism emergency contacts and Development Authority have to facilitate service provider rating BUSINESS MAGAZINE further enhance the digital etc. Further, the SLTDA hopes to landscape of the hotel and work with ICTA and Technology enabling digital footprint and hospitality industry in the Ministry to include online ticket shared media reach. In addition, country? booking of all Government we are working on improving tourist attractions/sites, SLTDA’s social media reach to The SLTDA intends to introduce a trains/transport services to build a social media community comprehensive Tourism & Travel reassure service quality through and thereby reach and engage App with advanced features in technology and later integrate them for product/destination the very near future. The the same into the App. development. We will also proposed App will have details Moreover, the SLTDA plans to continue the live of all SLTDA registered tourist create a content repository and telecasting/streaming of major hotels and service providers and develop a digital content for Sri attractions like ‘Kandy Perahara’ will support hotel reservations, Lanka Tourism as a means of and ‘Wildlife experiences’ to enhance an online engagement and viewership. 12

From Tradition to Tech: Sri Lanka's Businesses Embrace the Future Mr. Fairooz Habeeb President of the Federation of Information Technology Industry Sri Lanka (FITIS) My name is Fairooz Habeeb. I’m currently working as the Chief Operating Officer at Silver Leap Technology (Pvt) Ltd. I work as a Senior Business Consultant as well, and I’m the president of the Federation of Information Technology Industry Sri Lanka (FITIS). I’m reading for my doctorate at the Univer- sity of Kelaniya, and I am a visiting lecturer at the University of Peradeniya.

UNIVERSITY OF RUHUNA In your opinion, what do you Nowadays, we can see some BUSINESS MAGAZINE believe are the key drivers of emerging trends in the business digital disruption in Sri Lanka? world, so what emerging trends that if you don't get on with that, in the business world do you something else will take over So, these are the factors that see having the biggest impact your place. So that's my take in should be driving disruption in on Sri Lanka? terms of what we should focus terms of combining ways to on create a digital ecosystem In Even the government has this context, you see that there introduced a launch program Can you give some examples of are some factors that are called Digi Com, where they Sri Lankan companies that have contributing to this internet want to transform or make this successfully leveraged digital penetration. Businesses can exponential growth for digital technologies to disrupt tradi- easily target those people transformation by 2030 in tional business models? because they are already certain areas and how we can connected. They also use several use technology to transform. So, Now everyone is trying mobile technologies, with mobile this is the new trend. Today, leverage digital technologies. technologies being the drivers of there are no exceptions; and Large organizations are unable digital disruption these days. then there was another area to digitalize due to limited funds There’s a wide variety of options where the pandemic created an and other obstacles. They start for smartphones, mobile apps, environment for working from offering some of the services etc. Because now, we cannot home: So how do we capitalize digitally. Sri Lankan companies even expect a situation where on that now that most of the have introduced technology to payments cannot be made world has adopted existing businesses such as Pick online. In fact, before the pan- work-from-home or remote Me, which has destructed the demic, 5% of transactions were work? And also, how to enhance traditional taxi business. They done through digital channels. the customer experience and use their mobile app to connect Now you have seen that the focus on the health and wellness riders and consumers, making it government's technology part of both customers and easier for them to book and pay and government or even employees is also very for services and delivery of food, industry organizations get important to promote in the groceries, and other items. This together and raise investment sectors we are focusing on. has made everyone's lives funding and incubation to have Some of the areas, like trends or easier. There are a few other some initiatives come out. structures that we are picking up examples that I would mention Especially from a technological or should be focusing on are in at ikman.lk. If anybody wanted to point of view as well as the the industry, like health tech. This purchase a vehicle or any other development that needs to be is very important for any product, from electronics to considered. Those are the organization in terms of vehicles to anything, it was a factors, I would say, that are adapting to these emerging very convenient way to driving the structure. trends. We should understand purchase and sell. Another example for e-commerce, I would say, is “Kapruka.” 14

‘‘ Digital transformation is a major challenge due to a lack of infrastructure, skills, and the right talent. Sri Lanka needs 12,000 IT graduates to develop digital solutions in emerging areas such as data scientists, big They disrupted the grocery data analytics, delivery field of the business web 3.0 industry, so they can order almost anything online. technology, crypto Although some businesses have currencies, improved with digitalization, be changed to enable people to and others face challenges. So, what pay subscription licenses in are the key challenges that dollars and keep servers outside. ’’cyber security businesses in Sri Lanka face Clouds are available, but when it comes to embracing digital transformation? Digital transformation is a major challenge due to a lack of maintenance costs are high and infrastructure, skills, and the transactions in the revenue The government should play an right talent. Sri Lanka needs industry are problematic. important role in encouraging 12,000 IT graduates to develop Financial strength is also digital transformation, such as digital solutions in emerging needed. Companies need to investing in digital infrastructure areas such as data scientists, invest in cyber security to and launching initiatives to big data analytics, web 3.0 protect themselves from security promote digital technologies in technology, crypto currencies, and vulnerabilities when using the public sector. Additionally, and cyber security. The biggest digital technologies; otherwise, the government should focus on barriers to success are cultural they will become bigger issues. using programs for government barriers, such as reluctance to Businesses need strategies and staff to improve digital literacy. change and the need to adopt investments to overcome Government should support solutions according to the challenges and use technology start-ups through mentorship requirements or what people programs. Sandbox provides a think. Developed countries have What role do you see the regulated testing environment to the technology to help, but if we government and policymakers encourage digital transition. don't, it will be unsuccessful. The playing in encouraging digital Government policies regulatory environment needs to transformation in Sri Lanka? and innovations should be . 15

UNIVERSITY OF RUHUNA ‘‘ The How do you think the BUSINESS MAGAZINE government disruption will impact the job should play an market in Sri Lanka? becoming increasingly popular. important role Online marketplaces reduce the in encouraging It will definitely have an impact need for physical stores. digital on the job market. It requires Automated vehicles and online transformation, new software development taxi services are available in the such as Because there are untapped transportation sector. investing in channels to be discovered. For digital traditional businesses, you would What advice would you give to infrastructure have to go there and be the businesses in Sri Lanka that and launching present; but now new channels are looking to embrace digital initiatives to have been added as transformation? promote digital opportunities. Ex: Banking (online technologies in banking, mobile banking, and That’s one area that you should the public online wallets). In the finance be looking at, and how do you sector. sector lot of functions have been encourage people to work with Additionally, automated due to digital flexible work practices? Apart the disruption. It affects the security from that invest in digital government of jobs. Ex: Some of the infrastructure because it is should focus labor-intensive factories are important to have the on using shifting to robots. However, this infrastructure in order to run the programs for gives people the opportunity to business. Updating some of the government focus on productive tasks rather systems or improving internet staff to than manual work. connectivity should be the focus ’’improve digital along with paying attention to literacy Are there particular industries adopting digital marketing so in Sri Lanka that you see as you can reach new customers. vulnerable or susceptible to Digital Disruption? Finally, according to your point of view, what would be the Banking is being disrupted by long-term impact of digital mobile banking, which is disruption on the Sri Lankan business landscape? We must focus on customer satisfaction and a competitive environment related to products and services by developing areas which are needed to be improved using technology and automation. When considering competitiveness we must access the global market by leveraging business with technology. The impact of digital disruption on the Sri Lankan business environment is very important. There are opportunities, challenges, and space to become innovative and adaptive for digital transformation. 16

Revolutionizing Sri Lanka’s Banking: Digital Disruption Sparks Innovation Introduction to Digitization D Digital disruption is buy a bottle of water with only transactions (The Asian Banker, occurring all over the his smart watch, without having 2019). Since then, manual world in almost every to have his phone or wallet. That banking processes have been sphere of industry and is a convenient solution. Sri converted to digital processes our lifestyles have changed from Lanka too is making progress. I through digitization, leading to what it was 10 to 20 years ago to would like to lay down below the use of credit cards, debit the present status. What we have some of my thoughts around cards, online banking, mobile taken for granted, from things like digital disruption in the Sri Lanka banking, and mobile Uber to AirBnB, did not exist proba- banking industry. phone-based e-money systems bly a decade or 2 decades ago for modern transactions. from a Sri Lankan point of view. The financial sector is reportedly Most people in the West do not the most automated sector, with The adoption of technology has even carry a the majority of banks providing allowed banks to continuously physical wallet. They have online facilities for processing enhance efficiency, lower costs, integrated their payment systems transactions (Wattegama, 2021). and increase profitability. This to their mobile devices which In Sri Lanka, the introduction of increased reliance on means they do not even carry a automated technologies for technology has attracted the credit card. For instance, a person banking operations in the 1980s attention of technology going for a run could marked the beginning of the investors and created new digitization of financial avenues for business, leading to 17

the emergence of the modern crucial to provide a fundamental UNIVERSITY OF RUHUNA FinTech industry (Central Bank of overview of the emerging trends Sri Lanka, 2021). The COVID-19 in the banking industry. This will BUSINESS MAGAZINE pandemic further accelerated enable students and readers to the need for digital gain a comprehensive Deployment of transformation, with the KPMG understanding of Sri Lanka's Proof-of-Concept for the report: “The Pandemic Forces evolution and the significant Blockchain Technology based Digital Acceleration” (referenced trends in digital disruption, also Shared Know-Your-Customer below) estimating that the known as digitization. The (KYC) facility, which could pandemic accelerated digital following are some essential facilitate streamlining KYC progress equivalent to five years functions of the banking sector processes in financial in just one year. This rapid pace that will be discussed. institutions. of change is further amplified as Common Point of Sale Switch new players and innovative Mobile and internet banking (CPS), Common Electronic Fund products enter the banking Virtual banking Transfer Switch (CEFTS) and industry, giving rise to new Real Time Gross Settlement Shared ATM Switch (SAS). banking models. (RTGS) System LankaClear - operates the An illustration I would like to The rapid progress of financial Cheque Clearing System of the provide regarding emerging technology is leading to the country trends in the banking sector emergence of electronic The Sri Lanka Interbank involves, say a scenario where a payment and money transfer Payment System (SLIPS) - Chinese tourist arrives in Sri systems, which are transforming facilitates low value retail bulk Lanka and, upon settling their modern banking. By payments such as salaries and hotel bills, frequently inquires collaborating with fintech firms, pensions. about the possibility of using banks have embraced an Common ATM Switch (CAS) - WeChat as a payment option. alternative delivery channel that brand name LankaPay, enables WeChat, which is a common enhances efficiency, lowers customers to withdraw money payment method in China, is transaction expenses, and and check their account relatively novel from the fosters financial inclusion. balance at a reasonable cost perspective of Sri Lanka. from any ATM in the country. However most hotels now have With the widespread adoption of The network has expanded to this payment facility. The smartphones worldwide, link 99.95% of the ATMs in the GooglePay feature is also payment trends are shifting county over the years. available in Sri Lanka for online towards mobile applications for LankaPay Online - facilitates or in-app transaction activities transactions, such as e-money, online payments to and Alipay mobile payment QR code payments, and NFC organizations that are solution in select retail locations (Near Field connected to the platform by in island wide Sri lanka. Communication)-based transferring money directly payments using payment cards. from their current or savings If anyone wants to get more The Central Bank of Sri Lanka is account to the respective details, you could refer to the actively exploring and preparing organizations’ account. Central Bank of Sri Lanka website for these advancements in which has further details on the payment technology, ensuring Financial Sector performance system stability and security and system stability. while considering their potential implementation in the country (Central Bank of Sri Lanka, 2021). Banking in the Digital Age: Emerging Trends and Innovations Since this academic journal is targeted towards students, it is 18

‘The rapid progress of ‘ The Future of Artificial for traditional banking financial technology Intelligence (AI) and Machine transactions. Here are a few is leading to the Learning (ML) examples of how Banks and emergence of Financial Institutions (FIs) electronic payment At present, we are in the early worldwide are employing AI and and money transfer phases of implementing Artificial ML technologies: systems, Intelligence and Machine which are Learning in the FinTech sector. Using AI & ML to manage transforming modern However, it is crucial to consider cybersecurity and detect fraud. banking. that while these technologies 24/7 personalized customer By collaborating with have made significant service through Chatbots that fintech firms, advancements, there are can also pick customer behav banks have concerns regarding security and ior and its requirements. embraced an regulatory compliance. AI based systems for loans alternative delivery and credit decisions. channel It is imperative to note that in Evaluate and track latest that enhances Sri Lanka, the banking sector market trends through efficiency, must adhere to the regulations advanced ML techniques that lowers transaction set by the Central Bank of help with investor decision expenses, and fosters Sri Lanka. making processes. financial inclusion Enhance customer experience With that being mentioned, through virtual banking. banks have expanded their Process automation through involvement in API, Robotics, and rule based ML algorithms , deep streamlining operational data learning, reinforcement learning, agent systems and AI. 19

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE Reshaping Traditional Banking and click model where the bank communication as equivalent to Services is in a physical space as well as a physical signature on an in a virtual space. agreement. In the past, our parents and grandparents would go to In today's global landscape, FinTech has emerged as a physical bank branches made of there are banks that operate significant force that is causing bricks and mortar for their solely in the digital realm, disruption in the traditional banking needs. However, without physical branches or banking sector. In Sri Lanka, nowadays, most of us rely on offices. Examples of such banks various channels like mobile mobile apps to handle our include Revolut UK, Monzo Bank e-wallets, mobile payment apps, banking activities, such as UK, Wise UK, and Starling Bank UK. mobile/digital banking, and QR transferring money, making This is an intriguing development Code payment systems have transactions, and paying bills. considering the traditional transformed the traditional We rarely use websites on our perception of a bank as a banking landscape. A notable laptops for these tasks. This shift physical building made of bricks example on a global scale is in behavior has simplified and mortar, staffed with Alibaba and its payment banking and made it more individuals ready to assist platform Alipay, which many convenient. If we look back 10 customers. However, the banking people recognize. However, what years ago, people would have landscape has evolved may not be widely known is that relied more on checkbooks and significantly. Even in Sri Lanka, these platforms also function as visiting bank branches to fill out many banks now offer online large deposit-carrying deposit slips. Now, things have account opening and comply organizations, traditionally a role become much easier. For with country-specific KYC (Know held by banks. This dynamic has instance, I can pay my bills in Your Customer) regulations prompted the banking industry the evening before going to bed through online processes. to adapt quickly and be mindful within just a couple of minutes Notably, Sri Lanka has of the impact of digital using my mobile app. The added implemented the Electronic disruption caused by FinTech. security measures like Transactions Act No. 19 of 2006 This shift towards digital passwords, touch ID face (ETA), [Electronic Transactions solutions directly affects recognition IDs, and One Time (Amendment) Act, No. 25 of profitability as well. Additionally,- Password (OTP) SMS/Emails have 2017],which recognizes this trend is further amplified by provided convenience and authenticated digital the preferences of the younger protection that was not available before. Furthermore banks have converted from brick 20

generation, including Millennials Open Banking Peer-to-peer lending platform and Gen Z, who are highly tech-savvy and prefer to This allows consented third Peer-to-peer lending platforms conduct transactions using their parties to access customer data intend to directly connect lenders mobile devices, seeking in a bank using Application and borrowers, thereby simplicity and convenience. As a Programming Interfaces (API) drastically reducing the cost of result, cultural trends, the which enables third-party financial intermediation. The preferences of younger FinTech providers to present a peer-to-peer lending platforms generations, and evolving variety of solutions to consumers initially emerged as an demographics are all exerting such as mobile applications that alternative funding source for significant influence on the allow accessing banking data unbanked and underbanked banking industry. Furthermore from different financial customers who do not have the Indian company Paytm institutions and easily perform access to bank lending. However, which started as an transactions using multiple due to its cost efficiency telecommunications company banks. Open banking puts users peer-to-peer lending is now has converted their business in ownership of their data, which attracting usual customers of model into a fintech company. allows consumers the chance to traditional banks as well. take advantage of tailored and According to CBSL, Virtual precisely made financial Peer-to-peer lending is an banking, open banking, services that their original bank example of a disruptive force in peer-to-peer lending, and digital could not offer initially. As a the banking industry. Essentially, currencies are four such FinTech result, open banking will enable it brings together depositors who innovations that have the both businesses and individual have money to lend and potential to materially alter the customers to manage their borrowers who need funds. This is way traditional banking is funds more effectively. More facilitated through an integrated carried out. importantly, open banking platform that connects both promotes innovation in the parties. However, it's important to Virtual banking FinTech sector by enabling new note that most of these platforms technologies to appear and are often unregulated. Unlike Customers of a virtual bank will reshape how banks provide traditional banks, where deposits be able to perform all banking financial services. are typically covered by deposit activities from account opening insurance, many of these to making deposits to borrowing platforms may not offer such funds via mobile application or protection. On the other through internet banking instead hand, banks are dedicated of visiting a bank branch. It's to the borrowing, seen that both existing and monitoring, and newer banks are pursuing virtual recovery banking due to the cost process. They attractiveness. Due to reduced have need for physical locations and established staff, this will provide significant systems and cost savings as banks offer its capabilities services entirely through to facilitate electronic channels without these requiring physical interaction functions. In with customers. contrast, peer-to-peer platforms often rely on algorithms to assess a borrower's credit worthiness and make lending decisions accordingly. Therefore, it is crucial to recognize that the handling recognize that the handling of money is a 21

responsible matter that should Digital currencies UNIVERSITY OF RUHUNA not be taken lightly. It's not about whether peer-to-peer Two types of digital currencies, BUSINESS MAGAZINE lending is positive or negative, cryptocurrencies and Central but rather, people should be Bank Digital Currencies (CDCs), issuing government and will be aware of the risks and are likely to become significant under the full policy control of responsibilities involved. as banking and financial the issuing monetary authority. transactions conducted by the The emergence of digital Digital currencies have emerged general public becomes more currencies is probably the as a trendy phenomenon in the digital. Cryptocurrency is a biggest FinTech driven challenge realm of financial technology digital asset that is secured by faced by traditional monetary (FinTech) and digital innovation cryptography and operates and banking systems. within the banking sector. using blockchain technology, Nevertheless, it is crucial to which is a distributed ledger that Moreover, if we consider corpo- recognize that improper usage utilizes a large decentralized rate clients, the solutions availa- of digital currencies can have network of computers. ble to them today are signifi- notable implications for Anti Cryptocurrencies are not issued cantly more technologically Money Laundering (AML) efforts by any central authority such as advanced and user-friendly and other illicit activities, which a Central Bank. This also makes compared to what was accessi- is a legitimate concern. cryptocurrencies less affected ble a decade ago. Through Therefore, central banks by government interventions corporate banking internet worldwide are being cautious and thereby possibly impacting platforms, these clients can now and deliberate in their approval the effectiveness of central bank perform nearly all banking processes for digital currencies. monetary policy. On the other activities without the need to However, for the purpose of hand, CBDCs that will be issued physically visit a bank. This academic exploration, I would by a country's monetary includes tasks such as Letters of like to present a few ideas on the authority will act as a digital Credit, Bank Loan Requests, Bank functioning of digital currencies: token of the country's official Guarantee Requests, and other currency. As CDCs are issued by banking products necessary for a country's monetary authority their day-to-day operations. The they are fully backed by the COVID-19 pandemic highlighted the importance of digital bank- ing platforms as corporates in the country were able to contin- ue their operations seamlessly, even during lockdowns. This situation served as an excellent example of how embracing digital platforms allowed busi- nesses to operate without disruption. Furthermore, individ- uals and companies who were initially hesitant or unfamiliar with technology have now found digital banking methods to be much more convenient than traditional approaches. This serves as a testament to the benefits of stepping outside one's comfort zone and realizing the convenience that digital solutions bring. 22

Banks Digital Solutions to partnerships, embraced online paper), the shift towards digital Challenges in a Changing banking platforms, further platforms primarily contributes Economy accelerating their usage beyond to the conservation of paper the typical personal banking and reduces costs associated Digital disruption has become a transactions done through with storage and other areas. By major focus, but the process of mobile apps. conducting transactions digitization itself has brought digitally, all processes are great convenience to people. Therefore, automatically without verified and securely stored, When the country was hit by people knowing there was a leading to a reduction in COVID, both banks and significant push to digitization physical documentation and customers were unprepared for which has brought numerous associated expenses. working on digital platforms. benefits. Here are a few key However, due to lockdowns and advantages: 3. Increased speed and travel restrictions, there was a efficiency: Digitization rapid shift from manual to 1. Innovation and agility: Digital streamlines processes, digital processes within a few economies foster innovation by automates tasks, and reduces weeks. During the initial enabling rapid experimentation, manual work, leading to lockdown, people were unable to prototyping, and deployment of improved efficiency. Digital leave their homes, which forced new ideas. With digital platforms, systems can handle large them to adapt to a businesses can quickly adapt to volumes of data, perform work-from-home lifestyle. This market changes, launch new complex calculations, and shift also highlighted the need products or services, and execute transactions faster than for banking transactions while respond to customer demands traditional methods. working remotely, from small in a more agile manner. businesses to large Corporates. 4. Enhanced productivity: Digital As a result, the majority of the 2. Major emphasis on tools and technologies empower population, including Environmental Social and businesses and individuals to medium-sized enterprises, SMEs, Governance (ESG): When accomplish tasks more quickly sole proprietors, and considering the impact on the and effectively. With access to environment (less trees cut for online collaboration tools, cloud 23

UNIVERSITY OF RUHUNA cloud storage, and automation, Here are some key challenges BUSINESS MAGAZINE productivity can be significantly associated with the process: increased. excluding marginalized 1. Cybersecurity risks: The communities and individuals 5. Expanded market reach: increased reliance on digital from participating fully in the Digitization removes systems and connectivity digital economy. Ensuring digital geographical barriers, allowing introduces cybersecurity threats. inclusion and bridging this divide businesses to reach a broader Hackers and cybercriminals is crucial for a fair and equitable customer base. Online platforms constantly seek vulnerabilities to digital transformation. and e-commerce enable exploit, posing risks to sensitive companies to sell products and data, financial transactions, and 4. Regulatory frameworks: services globally, reaching critical infrastructure. Robust Digital economies often outpace customers beyond their physical cybersecurity measures, existing regulatory frameworks, location. education, and awareness are posing challenges in terms of essential to mitigate these risks. adapting or creating new 6. Improved customer 2. Privacy concerns: Digitization regulations. Balancing experience: Correctly designed generates vast amounts of data, innovation, consumer protection, Digital Transformation enables raising concerns about privacy competition, and cybersecurity businesses to provide and data protection. Collecting, requires agile and personalized and seamless storing, and utilizing personal forward-thinking regulatory experiences to their customers. information must be done approaches that foster Through online portals, mobile transparently, ethically, and in innovation while mitigating risks. apps, and social media, compliance with privacy companies can engage with regulations. Striking the right 5. Workforce adaptation: customers, offer tailored balance between data utilization Digitization often necessitates recommendations, and provide and individual privacy is a changes in work processes and convenient self-service options. significant challenge. skills. Some jobs may become (This could also be very 3. Digital divide: Not all automated or obsolete, requiring frustrating if not correctly done!.) segments of society have equal reskilling or upskilling of the access to digital technologies workforce to remain relevant. 7. Data Analytics: Digitization and the internet. This digital Ensuring a smooth transition for generates vast amounts of data divide can create disparities, workers and addressing that can be analyzed to gain potential job displacement is valuable insights. By leveraging crucial for a successful digital data analytics and artificial transformation. intelligence, businesses can make informed decisions, 6. Infrastructure requirements: identify trends, and predict Effective digitization relies on customer behavior, leading to robust and reliable digital better strategic planning and infrastructure, including targeted marketing campaigns. high-speed internet access, broadband connectivity, and 8. Cost savings: Digitizing reliable power supply. processes reduces the need for Developing and maintaining paper-based documentation, such infrastructure, particularly manual labor, and physical in rural or underserved areas, infrastructure. This can result in can be a significant challenge, cost savings for businesses, such but is crucial for equal access as reduced printing and storage and participation. expenses, streamlined operations, and optimized 7. Digital literacy and skills gap: resource allocation. To fully benefit from a digitized economy, individuals need While digitizing an economy digital literacy and relevant offers numerous benefits, it also skills. Bridging the digital skills presents certain challenges. gap, promoting digital literacy programs, and providing training opportunities are essential for 24

enabling individuals to requires a comprehensive Conclusion participate and thrive in the approach that considers digital economy. inclusivity, security, privacy, In conclusion, digitization has education, and policy revolutionized the way we live, I wish to reiterate, even with the frameworks to ensure that the work, and communicate. It has increasing focus on digitalization benefits of digitization are transformed industries, empow- and the rise of FinTech, banks maximized while minimizing ered individuals, and connected and fintechs must exercise great potential risks and disparities. the world in unprecedented caution when it comes to ways. With the widespread information security and World Bank Recommendations adoption of digital technologies, adherence to regulatory we have witnessed the digitiza- requirements. In various I would also like to draw tion of information, services, and countries, one of the major attention to the World Bank processes, leading to increased hurdles encountered is ensuring “Sri Lanka Development Update” efficiency, productivity, and both security and compliance. report given as a reference accessibility. From online shop- Significant amounts of collected which has a few ping and digital banking to data contain sensitive and recommendations in page 10-11 telemedicine and remote work, confidential information, of that report, where one of the digitization has opened up new necessitating the recommendations point out that possibilities and opportunities. implementation of extra security the country needs to be moving However, it is essential to ensure measures. Risks associated with from a cash payment social inclusivity, privacy, and security these factors include data benefit factor to a transfer in this digital era, while also breaches, hacking incidents, program which has specific addressing the digital divide to cybercrime, fraud and similar identified individuals with bank ensure that the benefits of threats. accounts (a more modern digitization reach everyone. As payment system vs cash we continue to embrace digiti- Addressing these challenges payments), which will ensure zation, it is crucial to balance requires collaboration between that proper end use of funds will technological advancements governments, businesses, go to the actual, most needy with ethical considerations and communities, and individuals. It segment of the society. human-centric approaches, Digitization will ensure the end ensuring that we harness the use of funds vs cash being power of digital transformation handed out to individuals, which for the betterment of society as was done in the past. a whole. 25

About the Author Mr. Kavinda De Zoysa Kavinda de Zoysa, is a senior banker with 30 years of banking experience in Sri Lanka, currently the Director/Country Business Head (Sri Lanka) for Banking Capital Markets and Advisory at a leading Global Bank / International Financial Institution. He is a FCMA (UK), FCIM (UK) & FIB (SL). Obtained his MBA from the University of Colombo (Merit pass) and was a Gold medalist. Kavinda is also a Senior Assessor and sits on the CIMA U.K. Global Membership Panel since 2011, having held the posi- tion of Vice Chairperson of the panel. Kavinda is the current Chairperson for the MESANA Regional Engagement Group of the Association of International Certified Professional Accountants (Association). He was a Chief Examiner, Moderator & Advisor to the Institute of Bankers of Sri Lanka. He is also a visiting lecturer for MBA programs. The writer's opinions and ideas presented above are his own and do not reflect those of the organization he works for. 26

MR. DILSHAN ABEYGUNAWARDENE Could you introduce yourself and explain what NFTs are and how they work in simple terms to our readers? I am Dilshan Abeygunawardene, an entrepreneur and content creator with 350,000+ followers on YouTube, Insta- gram, and Facebook. I’d like to call myself an influencer. I'm the host of one of Sri Lanka's top-rated and influential podcasts and have won over 70 awards and certificates both locally and internationally. I have disrupted Sri Lanka's freelancing sector by introducing NFT generation. NFTs are digital creations that can be authenticated and have value. Popular brands such as Coca-Cola, Nike, and Gucci have released NFTs, which increase in value as demand increases. Is there a certain limit to the number of NFTs that could exist in the world? No, one could create a collec- tion of 100,000 NFTs. However, being widely available will reduce its value. So, as a rule of thumb, at once, around 10,000 NFTs are created.

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE Can you tell how you For example, imagine that you Does this mean we can use entered this NFT space? want to buy a virtual plot of land NFTs as an investment? in the metaverse. You could use Honestly, it was by chance, at an NFT to represent ownership of NFTs are a highly volatile and new random. I’d like to say that I was in the land. The NFT would be stored technology, and it is the right place at the right time on a blockchain, which would important to not invest beyond and saw an online group on Fiverr ensure that the one's means in anything. When where school students had ownership of the land is secure releasing an NFT, the price can achieved a lot. Back in 2015, I built and cannot be counterfeited. You vary. It is the responsibility of an Android game for just 5 dollars could then use the NFT to sell the whoever released it to maintain on Fiverr, and I kind of gave up on land to someone else, or to rent it its value through projects, it. out. investments, and partnerships. Popular NFT collections like 'Board However, I believe social media As an example, NFTs are used as a Ape Yacht Club' allow people to can be a great platform to currency in the metaverse, in become part of the crowd and discover great opportunities. games and software, and to build networks rather than I wasn’t that good at purchase certain items. investing in the NFT itself. programming, but I got help from Assuming that there are only my friend to build software to 5,000 gold skins, one must NFT collections involve buying create images on Fiverr, which purchase an NFT from their blue-chip projects with the was successful and gave us good collection, and that’s how image opinion of their community and customer reviews. This helped us NFTs are connected. communicating on Discord grow and market our software, servers about what to do with the earning us the title of one of the What do you think are the main money they've earned. This highest-earning NFT freelancers. benefits of NFTs for both the money is known as a creator and the buyer? community wallet and can be The concepts of block chain invested in companies on a large and metaverse are gaining NFTs offer compelling scale, such as the S&P 500 index. popularity. Can you explain advantages for both creators and how NFTs fit into this idea of a buyers in the digital asset land- Earlier, you mentioned digital world? scape. For creators, a something about a community well-executed Blue chip NFT wallet. Could you explain that a In the metaverse, NFTs can be project, leading to increased bit more? used to represent ownership of profitability through NFT sales. virtual land, clothing, and other Moreover, NFTs provide an avenue NFT collections require items. This could allow users to for high-risk investment, enabling members to join Twitter and buy, sell, and trade virtual assets sellers to set their selling prices in Discord groups. A 'community in a secure and transparent way. cryptocurrencies like Ethereum, wallet' is usually included, where potentially yielding substantial 20% of the income earned is returns. However, maintaining a collected and everyone has the positive brand image within the right to vote on how to use it. This industry is essential for sustained fund can be invested in an S&P success. 500 company, and the profit can be shared next year. We have seen NFTs being used in different ways, from digital art to music and even sports. What are some of the most exciting uses that you have seen so far? NFTs are a form of token that can be bought by artists to gain access to their concerts or music. These NFTs can also be used as VIP passes, discounts from stores, and limited-edition items. In Sri Lanka, Seylan Bank has released an NFT collection. After verifying the NFT, the user can use it as a VIP pass. 28

Could you tell us the status of The easiest thing is that if you ‘ ...........many ‘ those NFTs released by Seylan have a brand, you can easily businesses are Bank? release shares of an NFT encouraging collection. This would be a good The Sri Lankan rupees were not opportunity for a the metaverse, valid for use in the block chain, so well-established business. they gave away NFTs for free to and NFTs will people who send foreign remit- Will NFT have a future? tances.. be used as a There will be a future for blue-chip With the rise of NFTs, we are projects, and NFTs released under currency or seeing an increase in digital well-known brands will have a assest in the disruption. What are some of future. There are some NFTs that the ways that NFTs are chang- have gained value due to the metaverse. ing the way we think about trend and hype, but those will ownership and value in the eventually lose their value. digital world? Additionally, many businesses are encouraging the metaverse, and Ownership is digitally verified NFTs will be used as a currency or through a decentralized network asset in the metaverse. Compa- called the block chain. The nies like Nike, Adidas, Tiffany, government of the country or Gucci, Time Magazine, Budweiser, other governing bodies and Nickelodeon, McLaren, Lacoste, the individuals do not have Australian Open, Coca-Cola, etc. authority over it or have an have released their official NFT impact on it. NFTs like crypto collections, which have made the currency are digital assets concept of digital assets stronger controlled by their users, and this and built trust in people. At one could affect the economic time, there was even a talk, structures of nations. Hence, around April 2022, where governments are trying to then-chancellor Rishi Sunak regulate them, but most crypto announced the creation of \"NFT currency users are opposed to for Britain,\" which could be traded this idea. However, in my online, even though later the UK opinion, there should be a certain government dropped its plans. level of control, such as implementing a KYC verification process, to prevent scams. What are some exciting business opportunities emerging from NFTs, and how will they change the business world in the future? 29



PROGRAMMATIC ADVANCEMENTS IN SRI LANKA: A Spotlight on ADSTUDIO.CLOUD ABOUT COMPANY. “ AdStudio.Cloud has created an ecosystem where ad space Programmatic advertising buyers and sellers have more control over their advertising is a data-driven method campaigns. of buying and selling ad Zmessenger (Pvt) Ltd. started in 2002 as a mobile marketing space that uses company and has since gained exposure to data analytics, algorithms and machine software development, digital advertising, and media learning to show the right management, leading to the introduction of programmatic ad to the right audience in advertising technology in Sri Lanka in 2019. real time. It has AdStudio.Cloud offers a comprehensive package of tools to revolutionized digital help marketers and advertisers efficiently carry out result display advertising. oriented campaigns. These tools include data collection, “ audience measurement, DMP activation, data visualization, A/B testing, and media mix optimization. 31

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE PROGRAMMATIC ADVERTISING IN A NUTSHELL. Programmatic advertising is a data-driven method of buying and selling ad space that uses algorithms and machine learning to show the right ad to the right audience in real time. It has revolutionized digital display advertising. Programmatic advertising is the buying and selling of digital advertising space through automated platforms, allowing advertisers to make informed decisions based on real-time data. DISTINGUISHED FEATURES OF PROGRAMMATIC ADVERTISING COMPARED TO TRADITIONAL MEDIA ADVERTISING. PROGRAMMATIC TRADITIONAL Purchasing Digital ads are purchased Ad buyers and publishers Efficiency and sold automatically manually buy and sell ads. Pricing using specialized software Traditional media is sluggish and time-consuming. Also, Process Programmatic advertising the manual efforts required is a fast and efficient way. It are costly and prone to human error. reduces human effort and costs less. The publisher who advertises the ads in the resource The ‘real-time bidding’ mechanism is used in this negotiates, purchases, and case. Ads are traded on a monitors the advertisement. precision basis, with the Advertising costs are cost determined by need directly related to the and demand in real time. publisher’s decisions and It is an automated process requirements. that consolidates all data It is a manual process in into a single dashboard. which you purchase This information can be used internally to trade directly from the seller and frequently exchange dynamically. trade requests. Optimization Real-time data allows for Difficult to optimize until the Analytics optimization at any interval as project is finished. needed. Has shortcomings of targeting and granularity. It makes the Enables precise targeting process less transparent and and granularity, makes makes tracking expenditure the process transparent, difficult. and offers data on expenditure. 32

THE BENEFITS OF BEING A LOCAL PROGRAMMATIC a 100% local programmatic PROGRAMMATIC ADVERTISING COMPANY advertising platform. It provides ADVERTISING FOR THE ADSTUDIO. CLOUD FACILITATES value ADVERTISERS CAN BE PUBLISHERS WITH. added services such as online PR OUTLINED AS BELOW. dissemination, Web Banner 01 . Dedicated Ad Slots creation, Direct Placements and 1. Add value to the advertising 02. 100% local currency bidding SEO, and is futuristic in its vision to budget 03. 100% local publishers become the number 01 With an enormous quantity of 04. Support EST content programmatic advertising data at your fingertips, you can 05. Interactive Dashboard platform in Asia target viewers with the right message at the right time and HOW ADSTUDIO.CLOUD HAS EVOLVED TO KEEP UP WITH location. SUPPORTS THE LOCAL MARKET TRENDS/DEMANDS. ECONOMY 2. Real-time measurement and Supports local language optimization AdStudio.Cloud has been creative and ad displays, and Each ad's performance is increasing the value of call-to-action rates for tracked in real time, eliminating programmatic advertising and advertisers using international the need to wait weeks to contributing nearly 28 Million platforms. AdStudio.Cloud uses optimize a live campaign. Rupees annually to their local local currency for real-time publisher network, retaining this bidding to on data or privacy by 3. High transparency value within the country and prioritizing privacy-friendly data Brands can now enjoy complete boosting the local economy. sources and contextual fee transparency and know advertising. exactly where and how much of AdStudio.Cloud was able to their money is being spent. provide local marketers with digital media inventory and 4. Opportunity of contextual targeting shorter campaign Contextual targeting offers a execution times seamless and less intrusive way during the pandemic, to reach your target audience. despite AdStudio Cloud provides 5. Multi-channel and format rupee-bid ad reach inventory trading to Programmatic advertising can local corporations as reach customers at multiple Sri Lanka face touch points – mobile, desktop, economic challenges. tablet, in-app, TV and even AdSudio.Cloud is the out-of-home. The possibilities pioneer in Sri Lanka to are endless. create and implement 33



TECH INDUSTRY EXPERT'S LESSONS ON TNRAAVIGNATSINGFODIGRITAML ATION CMord.CMeHoGred.eseHnGheIneastnnehIrnakntaanetrriknouaanntariaoul n(rnPaaavltt(rh)PanLvtttadh) nLtad Profile I am currently working at CodeGen as the head of business development for renewable and sustainable solutions. Before joining CodeGen, I was at a couple of other tech companies and at Lake House, where I worked on projects involving the digital transformation of clients such as Sri Lanka Tea Board and Sri Lankan Telecom. I got my bachelor’s degree from the University of Moratuwa in IT and my master’s degree from the University of Sri Jayawardenapura, Postgraduate Institute of Management. 35

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE ‘‘ THOSE WHO DO NOT GET ON BOARD WITH THIS WHOLE DIGITAL TRANSFORMATION JOURNEY WILL HAVE TO THINK TWICE ABOUT THEIR SURVIVAL AND EXISTENCE. ‘‘ on board with this whole digital transformation journey will have to think twice about their survival and existence. Since we are discussing digital How would you see the impact How significant is it for destruction and digital of this digital transformation in businesses to undergo digital transformation, what does Sri Lanka in the next five transformation? Specially for digital transformation mean to years? the businesses in Sri Lanka? you? Currently, a good result that we It’s quite significant if they want Basically, what digital can see with the COVID-19 to be competitive in the local transformation means to me is, pandemic is that people were global markets. They need to transforming the organizations forced to get on with digital digitally transforming from their paper-based, manual devices. As a result of that, more themselves into multiple fields. form to more digital, and more Sri Lankans are using One is their operations, and the computer-based operations the devices and utilizing other is their marketing and with software systems in place. different software applications. creating awareness of who they That transformation also Now it has become quite easy are. So, they need to focus on involves quite a bit of change for someone to understand what both aspects and get management, ensuring there is a software application is. themselves into the digital world a smooth transition of people, Currently, I see the companies as quickly as possible. Otherwise, who are one of the key factors that are moving in this direction it will become extremely that affect the success of this having better processes with challenging for them, especially whole process. Ultimately, those more efficiency in their overall with this competition. But in Sri people becoming aware of the processes, and they can keep Lanka itself, there are more whole transformation journey their operational costs at a companies that are coming in and playing an active role in it, lower figure with higher profits. and evolving in the digital space. will lead to the whole According to me, for the next five So, the conventional players will organization becoming more years, those who do not get have a lot of challenges in their productive. existence. 36

Can you provide an Could you mention some These things are solution for example of a successful digital common challengers that Sri those challenges. Last thing is transformation project that you Lankan business face where people’s perceptions. Workforce have led or been a part of? undergoing digital need to understand the benefits transformation and your of it rather than thinking they One project that I can say is Sri suggestions to overcome them? may lose jobs when a system Lanka Tea Board. Having their is introduced. People need to ERP setup, finally we managed to As a challenge, we can see that figure out how to survive in get it completed within about 6 the elder generation trusts a digital space rather than months, which had been physical documents than avoid it. dragging for 7 years, simply by documents in systems cause, understanding the bottlenecks sometimes the start-ups and How do you see these and the actual problem where medium size businesses face emerging technologies, such as the issue was with the people cost problems when they are artificial intelligence and block having insecurity about losing going to invest huge amount chain, influencing digital jobs. That’s why I said in most of on hardware and software. transformation? the projects, sometimes you They may not properly assess may have the perfect system, the return on investment in it. We are using AI to support most but you forget to look at the But, there are several ways to of the solutions but they also people aspect, as to how the overcome this. For example; have certain limitations. This AI people in that organization are now you do not have to pay based chat applications were going to be and how much they large amount as a Capex.There banned in several countries understand in terms of the value is much software on the cloud. because they can be misused. it will bring to their lives. There You can pay monthly or based So, companies need to make will be a lot of resistance coming on your usage.As well, you do sure protect the privacy of in, and as a result, expected not have to purchase servers, individuals. These days our data outcomes may not be achieved, as everything is on the cloud. is available over the internet. If and sometimes even the project you do not use applications might fail, like what was going to properly, your privacy could be happen to the Tea Board. But lost. Some applications can fortunately, due to the exact your valuable information. commitment from the senior So you must be mindful of them. management, we were able to Companies need to work on successfully turn it around and ethical side of things and build basically create more software solutions using AI, awareness among people. As a Machine learning, IoT, AR, VR- result, today they are one of the augmented reality and Virtual very few government reality that can help people with organizations (among disabilities. There’s a lot that can organizations that export tea, be done, however we also must rubber, and coconut) to have a be cautious about the limita- proper ERP system in place. tions as well. It’s important to discuss the challengers that business face with this digital transformation. 37

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE Finally, can you discuss the ‘ THE LATEST DIGITAL ‘ time when the digital disruption DISRUPTION THAT OCCURRED occurred in your industry and WOULD HAVE BEEN WITH THE how your organization adapted CHATGPT THAT IS COMING IN. SO to it? IT WAS ABLE TO COME UP WITH FAST SOFTWARE PROGRAMS The latest Digital disruption that AND GENERATE ANSWERS TO MOST occurred would have been with OF THE QUESTIONS the ChatGPT that is coming in. BUT NOW PEOPLE ARE FIGURE OUT So it was able to come up with ISSUES WITH IT. fast software programs and generate answers to most of the questions but now people are figure out issues with it. Again, that could be the latest disrup- tions in the tech industry, where some people are losing jobs. Therefore that is one of the most recent disruptions that is there, where it took the world by storm. 38

DATA-DRIVEN MEDIA PLANNING IN THE DIGITAL REVOLUTION MR. SHASHI DE SILVA Profile I’m Shashi De Silva. I have more than 18 years of experience in advertising. My expertise lies in media planning. I have a degree in physical science with a specialization in statistics, which helps me to use analytical and optimization techniques in my work. I have worked with many notable clients throughout my career, including international brands like Nestle, WUSC, and TECNO Mobile, as well as local big brands like Mobitel, DSI, Cargills, Commercial Credit, and Phoenix. 39

UNIVERSITY OF RUHUNA BUSINESS MAGAZINE “ “ Before, media planning involved enables clients to monitor their traditional media channels; campaigns' performance and WITH THE DIGITAL REVOLU- television, radio, newspapers, make data-driven decisions in TION, MEDIA PLANNERS and magazines. The media real time. NOW HAVE ACCESS TO A planning process was manual, time-consuming, and required Another application is the use of BROADER RANGE OF MEDIA a lot of resources to gather data analytics tools to gain CHANNELS; SOCIAL MEDIA, data and insights. Media insights into audience SEARCH ENGINES, MOBILE planners relied heavily on behaviour and preferences. demographic data and Media planners can use these APPS, AND VIDEO audience measurement tools. tools to analyze data from STREAMING SERVICES. After the media buying was various sources, including social AND ACCESS TO REAL-TIME completed, the results were media, search engines, and DATA, WHICH ENABLES THEM measured mainly by post website analytics. campaign surveys and ratings. TO DEVELOP MORE As an innovation-driven With the digital revolution, Media What do you mean by media planners now have access to a company, could you please planning and how about your broader range of media involvement with it? channels; social media, search mention some of the engines, mobile apps, and video Media planning is an essential streaming services. And access innovations that your company process that helps clients to to Real-time data, which make informed decisions before enables them to develop more introduced? buying media. The objective is to effective media plans. Clients create a comprehensive have higher expectations We have implemented a strategy that optimizes media regarding transparency and user-friendly cloud-based web spending to achieve the desired accountability, which has led to application that allows our communication goals. Media the development of new tools clients to easily access planning involves both and technologies that provide information; on previous qualitative and quantitative more detailed insights into campaigns, the status of their measurements that determine media performance. current media schedules, the best approach for reaching monitor their competitors, the target audience. What are the current providing a comprehensive and Media planning requires a up-to-date overview of their scientific strategy that takes into applications that you’re media plans which enables account various factors; them to make informed audience behaviour, media implementing while working decisions and adjustments as consumption patterns, and needed. competitive landscape. Even if with digital platforms? we are currently in the process the creative content is of developing a mobile app that compelling, the media plan must One is the development of a will provide the same level of be developed in line with the real-time reporting system that accessibility and convenience objectives to reach the target provides clients with instant as the website but with the audience as planned. Therefore, updates on their media benefit of being able to access media planning is a crucial part schedules' status. This system the system on the go through of any media campaign. mobile devices. What is your experience regarding working with media planning before and after the digital revolution? 40

What are the global trends that In your point of view, in which digitalization. This can be you noticed within the scope of position does Sri Lanka current- achieved through innovations in media planning? ly stay on media the digital front, such as the planning in an era of the digital automation of operational tasks One is the increased focus on revolution? through digital platforms. And data-driven media planning. by focusing on digital Media planners are leveraging Sri Lanka is in the midst of a infrastructure, and developing data analytics and insights to digital revolution in media the necessary digital skills in the develop targeted and effective planning. Traditional media workforce. Additionally, media plans. They are using channels are still popular, but promoting foreign investment various tools and technologies digital channels are rapidly and improving regulation can to collect and analyze data from gaining ground. This has led to help create a level playing field different sources, including a greater focus on data-driven for all players in the digital social media, search engines, media planning and industry and build trust and and website analytics. programmatic advertising. confidence in the industry Another trend is the rise of However, there are still “ programmatic advertising. This challenges to be addressed in allows media planners to Sri Lanka's media planning SRI LANKA IS IN THE MIDST OF A automate the buying and selling industry, including a lack of DIGITAL REVOLUTION IN MEDIA of ad space in real-time, based standardization and regulation, PLANNING. TRADITIONAL MEDIA on data and algorithms. as well as a shortage of skilled CHANNELS ARE STILL POPULAR, professionals in the field. Mobile advertising has become BUT DIGITAL CHANNELS ARE an essential component of What are the ideas that you are RAPIDLY GAINING GROUND. media planning. Media planners looking forward to improving Sri THIS HAS LED TO A GREATER are developing media plans that Lanka in this digital podium in FOCUS ON DATA-DRIVEN MEDIA target audiences across the near future? different mobile devices and PLANNING AND platforms to reach consumers It is important for stakeholders PROGRAMMATIC ADVERTISING where they spend most of their need to prioritize improving time. efficiency and effectiveness “ through innovation and Transparency and accountability are also becoming in creasingly important for clients, to know where their ad spend is going and how it is performing. Finally, media planners are recognizing the importance of integrating traditional and digital media channels in their media plans. This allows for a more holistic and comprehensive approach to media planning, resulting in better reach and engagement with the target audience. 41



Student Team N. N. W. Gunawardena T.A.H. Tharushika W.S. Gunasekara H. A. C. Kavindi W. C. Pavindya A.M H. Aththanayake S.K. Rathnayake N.G.Y.M. Dinithra P. A. Vithanage W.V.P.C Lakshani D. D. T De Silva W. B. Dhananjana W.G.H.C Wijendra M.I.N Hiqma M.M.F Suraiya D. C. Salpadoru D. D. T. R. Poththawela