The banking and finance sector is one of the highly competitive industries in Sri Lanka and as a result of this it has been evident that the industry is facing challenges to further grow their business also due to most of the leading institutions are capable of providing similar services to the customers due to maintaining of similar scale products and services and similar standards due to strict regulations from Central Bank as well. Therefore, all the established financial institutions are looking at digital transformations as a priority in addition to the other business development strategies to achieve market diversification by developing new business opportunities considering the generation effect with the help of emerging technologies. The Digital Transformation initiatives taken by most institutions have faced several challenges due to lack of comprehensive digital strategy, non-identification of proper process re-engineering requirements, and non-selection of optimized technology used to deliver the digital business solutions. Factors such as defining a comprehensive digital strategy with strong leadership, transformation of existing processes to compatible with digital products and services, usage of right and the cost-effective technology, customer engagement and customer service are some of the key factors that have a great impact in delivering successful digital business solutions combining with digital technology.