In Sri Lanka and Nepal, a new wave of AI innovation is shaping the future. Instead of focusing on fears of automation and job losses, entrepreneurs and investors are looking at AI as a tool for empowerment and growth. From Colombo to Kathmandu, local talent is harnessing AI to solve real-world problems and create new opportunities.

AI Driving Change in Sri Lanka’s Tech Scene

At TRACE Expert City in Colombo, a tech hub in Sri Lanka, a simple soap refill dispenser caught attention. It was donated by USAID, a reminder of past international support. Now, with aid decreasing, Sri Lanka is turning inward to develop its own tech talents. The campus buzzes with energetic entrepreneurs eager to make a difference. One startup, Jendo Innovations, is already deploying AI-powered medical devices internationally. According to Heminda Jayaweera, the executive director of TRACE, Sri Lanka has some of the best affordable talent in the region to develop AI applications.

This local focus on AI is not just about business. It’s about creating solutions tailored to Sri Lanka’s unique needs. Startups are exploring AI for healthcare, agriculture, and education, especially in rural areas where 33% of the population lives. The widespread use of mobile devices makes AI-based health diagnostics and information sharing feasible even in remote communities. However, cultural factors like literacy levels and language preferences influence how AI tools are designed and adopted. Voice-driven AI, for example, is more practical than text-based interactions in many cases.

Empowering Women and Building Communities in Nepal

Meanwhile, in Kathmandu, Nepal, a different kind of AI story is unfolding. Venture capitalist Preeti Adhikary and doctor Kisu Rawal are excited about women entrepreneurs completing AI training sessions. Adhikary sees new confidence and ideas emerging among women eager to grow their businesses. She believes AI can be a powerful equalizer, helping underserved communities access new markets and services.

Adhikary’s organization, Momo VC, works to connect Nepal’s tech ecosystem through initiatives like The Great Nepali Diaspora and The Empowered Women Network. These groups aim to share talent globally and support local women entrepreneurs. The recent AI training session was part of this effort to bring AI knowledge to those who need it most. In Nepal, AI is still in its early stages, but local startups are exploring how to adapt AI tools to fit cultural and infrastructural realities. Voice interactions are preferred over text, and community-based recommendations often rely on word-of-mouth, which influences how AI models are built and used.

Unlike in many Western countries, concerns about AI stealing jobs are less intense in Nepal and Sri Lanka. The workforce is still developing, and many companies have limited resources for digitizing legacy systems. This means AI adoption focuses more on practical applications like health diagnostics and local business growth rather than automation fears. As these countries continue to grow their tech ecosystems, they’re showing how AI can be a force for good, especially when tailored to local needs and cultural contexts.

Inspired by

• https://www.computerworld.com/article/4159786/reporters-notebook-in-nepal-and-sri-lanka-ai-boom-brings-hope.html

Sources

• thegreatnepalidiaspora.org
• oxfordinsights.com