The Growth of E-commerce in Sri Lanka

According to eMarketer, retail e-commerce sales in Asia-Pacific for 2015 are predicted to reach $877.61 billion, an increase of 35.7 percent from 2014. Sales in this region are reportedly faster than the average rate worldwide. While bigger players such as China, Indonesia and India are driving the region’s growth, countries including Sri Lanka are experiencing growing demand for reliable e-commerce websites. In fact, Southeast Asia is forecast to become the third-largest e-commerce market globally.

The Internet penetration in Sri Lanka is growing, granting more people access to the Web. What’s more, this year, Google’s Project Loon will provide Sri Lanka with affordable Internet solutions, further boosting the country’s connectivity in both urban and rural areas. As a result, Sri Lanka’s already growing e-commerce sector is expected to go from strength to strength.   

Add to this the staggering growth of Sri Lanka’s mobile industry. The country now has a mobile penetration of 115 percent, according to BuddeComm, with the accessibility of smartphones growing rapidly. As the country shifts online, and more time is spent online, both via desktop and mobile, the e-commerce sector becomes more important.  

The country’s growing middle class, with an increasing disposable income to spend on consumer goods, coupled with improved Internet access, is also boosting the sector. With more money in their pockets, more middle-class Sri Lankans are turning to the Web to purchase everyday items.

2006 saw the introduction of the Electronic Transactions Act, No.19, which facilitates e-commerce by removing legal barriers and ensuring legal certainty both within Sri Lanka and internationally. While awareness of online shopping is growing, financial institutions must develop, to offer reliable online payment services to support the expansion of e-commerce, while creating a competitive marketplace.

The booming tourism sector is expected to contribute to the success of the e-commerce market in Sri Lanka. Currently, traditional methods are used to book trips to and within Sri Lanka; as more bookings are made both domestically and internationally, the country will likely follow its western counterparts in implementing an online system.

Have you checked out our new site house.lk?