Daraz-SLASSCOM report on E-commerce adoption highlights pathways for the growth of digital commerce in Sri Lanka

The report titled “E-commerce: A Driver of Inclusive Growth in Sri Lanka?” was presented to President Ranil Wickramasinghe on 26 April 2023. The Managing Director of Daraz Sri Lanka Rakhil Fernando, the co-authors of the report, Dr. Ganeshan Wignaraja and Ms. Anishka De Zylva and the Director of International Affairs at the Presidential Secretariat Dinouk Colombage attended the meeting.

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 Kanaka Herath, State Minister, Ministry of Technology, 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, that 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, that the pandemic increased the use of e-commerce and this trend is set to deepen.

Third, that online sellers are mostly young and start-up businesses. Fourth, that 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, that 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 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, The Professorial Fellow in Economics and Trade at Gateway House, Mumbai and a Senior Research Associate at ODI Global, London, designed and co-authored the report together with Ms Anishka De Zylva, Head of Public Policy and Corporate Affairs at Daraz Sri Lanka. The survey was conducted by NielsenIQ Sri Lanka, under the supervision of Ms. Therica Miyanadeniya, Country Director of NielsenIQ Sri Lanka.