Introduction: The Case for Reform
Sri Lanka’s local industries are demanding an urgent overhaul of the country’s e-commerce regulatory framework. Business leaders argue the current system is outdated, fragmented, and largely unenforced. As a result, both consumers and legitimate sellers are left vulnerable to fraud, poor quality products, and unfair competition.
With online shopping now mainstream, industry stakeholders insist the time has come for a clear, enforceable, and modern e-commerce framework that supports local businesses while protecting consumers.
Why the Urgency? E-Commerce’s Rapid Rise Meets Weak Rules
E-commerce in Sri Lanka has exploded in popularity, particularly following the COVID-19 pandemic. Today, Sri Lankans buy everything online—from groceries and clothes to electronics and home appliances.
But this rapid growth has also exposed major regulatory gaps:
Sellers on social media operate with virtually no oversight.
Counterfeit or poor-quality goods are common.
Consumers have little recourse when they’re cheated.
There’s no effective mechanism for resolving cross-border disputes.
Industry groups warn that unless these challenges are addressed quickly, consumer trust will erode—ultimately slowing the growth of Sri Lanka’s entire digital economy.
The Call for a Comprehensive Legal Framework
Many local industry players are urging the government to move beyond voluntary guidelines and introduce a robust, enforceable e-commerce law.
They want legislation that clearly defines:
✅ Licensing and registration requirements for online businesses (including those on social media).
✅ Mandatory transparency around pricing and returns policies.
✅ Strong data protection and privacy standards.
✅ Dispute resolution mechanisms for domestic and cross-border sales.
✅ Strict penalties for fraudulent or unregistered sellers.
Such a framework, they argue, would help level the playing field for responsible businesses while protecting Sri Lankan shoppers.
Industry Voices: “We Need Enforcement, Not Just Guidelines”
A major complaint from industry groups is that existing “guidelines” are non-binding and unenforced.
While Sri Lanka’s ICT Agency (ICTA) has released voluntary e-commerce guidelines in the past, there’s no legal obligation for sellers to follow them.
Chamath, who runs an online electronics store in Colombo, says:
“We try to do things right. We offer warranties, genuine products, and good service. But it’s hard to compete with sellers who don’t pay taxes or ship fake items through social media.”
Meanwhile, Amaya, who sells handmade clothing online, explains:
“Clear rules would actually help me. I want my customers to trust me and feel safe buying online. The current system doesn’t support small businesses that play fair.”
Industry associations argue that self-regulation simply hasn’t worked—and only legally enforceable rules can create a fair and trusted online marketplace.
Consumer Protection at the Heart of Reform
At the core of these calls is consumer protection.
Sri Lankan online shoppers frequently share stories of:
Prepaying for items that never arrive.
Receiving counterfeit or damaged products.
Facing unclear or non-existent refund policies.
Such experiences hurt consumer confidence. Industry leaders argue that a well-designed e-commerce law would help restore trust in online shopping, encourage more people to buy online, and benefit the entire economy.
Global Context: Lessons from Other Countries
Sri Lanka isn’t alone in facing these challenges.
Countries around the world have grappled with the need to balance e-commerce growth with consumer protection.
✅ The European Union enforces strong consumer protection rules, requiring clear returns policies, honest advertising, and GDPR-compliant data privacy.
✅ India has released a draft e-commerce policy to ensure fair competition, transparency, and consumer rights—even in a highly fragmented online marketplace.
Industry groups in Sri Lanka argue that while the country doesn’t need to copy foreign models wholesale, it can certainly learn from them when designing its own legal framework.
The Role of ICTA and Policy Makers
Sri Lanka’s ICT Agency (ICTA) has acknowledged these issues. It has signalled that an E-Commerce Policy is under development.
However, industry groups fear progress is too slow. They’re urging the government to prioritise this work and ensure that any new policy:
Is developed through broad consultation with businesses of all sizes.
Avoids creating burdensome red tape that stifles small local sellers.
Includes strong enforcement mechanisms and penalties for rule-breakers.
What Consumers Want
Ultimately, consumers want what any shopper does:
✅ Confidence that what they see online is what they’ll get.
✅ Clear information about prices, delivery, and returns.
✅ Fair and responsive dispute resolution if something goes wrong.
By setting clear, enforceable rules, Sri Lanka can give shoppers the trust they need to embrace online commerce fully. That’s good for customers, good for local businesses, and good for the broader economy.
Striking the Right Balance
Business leaders are quick to note that regulation shouldn’t kill the entrepreneurial spirit powering so many small online businesses.
Instead, they want a fair, practical framework that:
✅ Protects consumers from fraud and abuse.
✅ Supports legitimate sellers who want to grow responsibly.
✅ Positions Sri Lanka’s online businesses to compete regionally and globally.
Looking Ahead: Building a Modern, Fair Digital Marketplace
Sri Lanka stands at a crossroads in its e-commerce journey. As online shopping becomes mainstream, the country has a real opportunity to build a fair, secure, and thriving digital marketplace.
Industry stakeholders are clear: they’re ready to work with government and policy makers to design rules that balance growth and consumer rights. But they insist that the time for vague guidelines is over.
Sri Lanka’s online economy is ready for real reform. And local industries say the time to act is now.
