Abstract:
The Fourth Industrial Revolution (Industry 4.0) has transformed global manufacturing through the integration of digital technologies such as the Industrial Internet of Things (IoT), artificial intelligence, and data analytics. For Sri Lanka, where Small and Medium Enterprises (SMEs) contribute significantly to the economy, adopting IoT presents both an opportunity and a challenge. Despite accounting for over 50% of the national GDP and employing nearly half the workforce, Sri Lankan SMEs, particularly in sectors like textiles and food processing, face barriers to digital transformation, including limited technical skills, financial constraints, and inadequate infrastructure. This study proposes a structured, phased roadmap to enable IoT adoption among Sri Lankan SMEs, tailored to the country’s unique socio-economic and industrial landscape. The research employs a qualitative approach, supported by literature reviews, case studies from developing economies, and expert insights. A pilot survey of 25 SME managers revealed low awareness but high interest in IoT technologies. Targeted awareness workshops and modular training programs significantly improved understanding and skills, with competency levels increasing by 55% post-training.
Pilot installations of low-cost IoT sensors demonstrated tangible benefits, including a 20% reduction in machine downtime and 12% improvement in energy efficiency. The study underscores the importance of a National IoT Strategy aligned with Sri Lanka’s digital policy, along with financial incentives, sector- specific IoT starter kits, and regional innovation hubs. Public-private partnerships and industry-academia collaboration are identified as key enablers for sustainable IoT integration. The roadmap emphasises inclusivity, recommending targeted efforts to involve women and marginalised communities in the digital workforce.
With coordinated efforts and strategic interventions, Sri Lankan SMEs can transition to smart manufacturing, enhancing competitiveness and contributing to equitable economic growth. The proposed framework also offers a replicable model for other developing nations pursuing inclusive digital transformation.
