Internet and current laws

The recent Seagull scam where a group of Sri Lankans invested in an Internet based, money-making scheme which turned sour has raised questions about Internet regulation by Sri Lankan authorities.

Asked for his comments, Jayantha Fernando: Legal Advisor/Program Director of ICTA (Information & Communication Technology Agency of Sri Lanka), said:

The Electronic Transactions Act No. 19 of 2006 was enacted in March and it recognizes and gives legal validity to online contracts. This doesn't prohibit the way in which contracts can be drafted. The Internet is a novel information sharing mechanism where parties can originate websites from other countries where the target audience can also be in another country. The government can produce rules and regulations whereby certain activities can be restricted in the country of the target audience.

Schemes where the public is asked to contribute either in local or foreign currency and increasing the number of participants in these types of schemes are prohibited.

The Central Bank of Sri Lanka has also brought in certain changes to the Banking Act in which certain schemes or marketing schemes are prohibited. Section 83 (C) of the Banking Act states that "any person who directly or indirectly initiates, offer, promotes, advertises, conducts, finances, manages or directs a prohibited Scheme commits an offence punishable by fines and/or imprisonment as stipulated in the Act." Under the Banking Act, anyone engaging in schemes of this nature will be committing a criminal offence. This is regulatory.

If this Seagull Softwares matter is taken to courts, the court will have to interpret if it falls under any of those illegal schemes. It's up to interpretation.

Parliament is now considering the Computer Crimes Bill under which certain types of offences are identified and those offences include using a computer or network for the purposes of committing offences envisaged under other statutes. It is under consideration by a parliamentary standing committee on law. They want to make appropriate changes to the bill. The progress is very positive.