New laws to strengthen existing e-commerce legal framework
New laws will be introduced to strengthen the existing e- commerce legal framework ensuring fairness and protection of rights for both businesses and consumers who use online e-commerce platforms, Justice Ministry officials said.
The aim is to update regulations to provide better protection for consumers in electronic commerce establishing a modern consumer protection structure suitable for the e-commerce marketplace.
This decision was taken at a meeting held recently at the ministry chaired by Justice Minister Ali Sabry and State Minister of Digital Technology and Enterprise Development Namal Rajapaksa with the participation of representatives of several leading online trading platforms and senior officials.
“Measures will be taken to remove legal and market barriers and promote trust among both consumers and small businesses while encouraging the development of the Sri Lankan digital economy,” a senior official of the ministry said.
The new law and amendments to existing relevant laws are to be introduced by studying research reports presented on e-commerce regulations in consultations with online traders, start-ups, institutions, individuals and professionals involved in online transactions, he disclosed.
The committee appointed to review the e-commerce legal framework and relevant agencies has reached an agreement to devise this legal framework following further discussions on this matter.
E-commerce has now become a growing business in Sri Lanka with at least 20 start-ups including buy and sell online portals and websites.
All commercial banks provide online banking services. Travel companies, hotels, and a few large retailers have online trading services.
E-commerce companies offer Sri Lankan customers access to a large number of global products.
Many global ecommerce sites, including PayPal, are accessible in Sri Lanka for overseas purchases with limitations due to insufficient refund mechanism and inward receipts.
A 2.5 per cent stamp duty has to be paid when using credit cards issued by local banks for foreign currency transactions. Transactions in local currency are exempted from this duty.
At present, Sri Lanka does not have a local body to regulate e-commerce businesses. In this context, the Tourist Hotels Association of Sri Lanka (THASL) has urged the government to consider regulating e-commerce businesses.
Increased competition from international e-commerce sites such as Booking.com and Airbnb has resulted in demands for its services among local online entrepreneurs, industry sources said.
Online sales have been picking up fast in
Sri Lanka, which is seen as an emerging market in South Asia.
It has been observed that the country has a remarkable growth potential, and it could become a leading competitor in the e-commerce space in the region.
In the aftermath of the COVID-19 pandemic situation, consumers will be continuing online buying while increasing sales of essential commodities, other products and services, ministry sources revealed.
Businesses with the existing e-commerce models were distinctively placed to take advantage of the opportunities emerging with the change in consumer behaviour.
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