The EC sales in countries like China and India, in the Asia- Pacific region has made growth faster in the region. SL is also experiencing the growth demand for reliable EC websites as the internet penetration in SL is growing steadily. This forecast the fact that SL along with the other Asian countries is gradually becoming a large EC market globally.
The Google Project LOON has provided SL with affordable Internet solutions, thus strengthening the country’s connectivity in urban and rural areas.
In addition to this, there is an outstanding growth in the usage of smart phones. With the availability of smart phones growing rapidly, the country has shifter more towards the use of online, via desktop and mobile applications which are readily available in playstore applications on android phones as well as from apple store on IOS platforms??
The Electronic Transaction Act No. 19 of 2006 as well as the Amendment Act No. 25 of 2017 facilitates EC of SL by removing many legal barriers and ensuring legal certainty both within SL as well as internationally.
Some of the other laws that also support EC are the Computer Crimes Act No.24 of 2007, the Evidence Act No. 14 of 1995, the Payment and Settlement Systems Act No. 28 of 2005 as well as the Payment Devices Frauds Act No 30 of 2006. These legislatures have provided a great legal validity for EC and e-Business providers and have also ensured the international validity of such contracts.
While awareness of online shopping is rapidly increasing, the financial institutions are also developing in order to offer reliable online payment services so as to support the expansion of EC.
Thus this method creates a more competitive marketplace with the increase of the quality and the products and services offered by such EC websites.
The government encourage the use of an e-service gateway to streamline certain government service (gov.lk).Information regarding government departments as well as the services that can be gained through those departments can be obtained through “gov.lk” portal.
There are many other government web portals which provide many services. For example, the Inland Revenue Department enables the filing of tax returns, payment of taxes as well as renewing of revenue license through the Inland Revenue web portal (ird.gov.lk).
The booming tourism sector also contributes to the e-commerce market in SL. Travel companies, hotels have online trading services. Currently more bookings and reservations are made through online web portals.
The increase in the competition from international EC sites such as the booking.com and tripadvisor.lk locally have resulted in high demands by the tourist hotels.
Websites such as pickme.lk and uber.lk has made a drastic change in the personal transportation in SL.
Today, all commercial banks have online banking services (peoples wave by Peoples’ Bank etc.), which should be highly secured as they deal with highly sensitive data transactions.
Sri Lankan companies such as kapruka.lk, ikman.lk, daraz.lk etc. offer customers in SL, the access to millions of global products at our fingertips. Most of the global EC sites including the PayPal and amazon.com are also available in SL, but they do have limitations due to inadequate refund mechanism and inward receipts.