The report titled “E-commerce: A Driver of Inclusive Growth in Sri Lanka?” was presented to President Ranil Wickramasinghe recently.
This first in-depth study on the adoption and use of e-commerce in Sri Lanka during difficult economic times was launched at an event earlier in 2023 with Technology State Minister Kanaka Herath by Daraz Sri Lanka and Sri Lanka Association for Software Services Companies (SLASSCOM).
The presentation to the President highlighted several key findings from the study. First, the spread of e-commerce is an island-wide phenomenon with over 50% of the respondents in all provinces saying that they use e-commerce to purchase goods and services. Second, the pandemic increased the use of e-commerce and this trend is set to deepen.
Third, online sellers are mostly young and start-up businesses. Fourth, various obstacles hinder the use of e-commerce in the country such as non-users lacking the requisite skills to use e-commerce, the under-development of digital payment systems, the high cost of new smartphones and gaps in trade facilitation.
Finally, as the Sri Lankan economy stabilises, the digital economy and e-commerce can support new jobs and boost incomes, particularly among the country’s youth.
The discussion also highlighted the progress made by neighbouring economies, particularly India and Vietnam, and recommendations were made on how Sri Lanka might strive to emulate their success.
Dr. Ganeshan Wignaraja and Anishka De Zylva created the report. The survey was conducted by Therica Miyanadeniya and the team at NielsenIQ Sri Lanka.
The report is based on the meticulous collection of primary data through an islandwide survey of a sample population of more than 4,500 participants undertaken between March 2022 and July 2022 and collected information in areas that are relevant to making business strategies and public policies covering the: (i) the use of e-commerce across provinces and districts; (ii) the types of goods and services purchased; (iii) purchasing behaviour during the pandemic; (iv) user behaviour by characteristics; (v) the types of devices and payment methods used for e-commerce purchases; (vi) factors discouraging online purchasing; (vii) the use of e-commerce for selling goods and services; and (vii) the influence of government policy on e-commerce transactions from both a seller and consumer perspective.