Friday Oct 09, 2026
Friday Oct 09, 2026
Friday, 9 October 2026 00:00 - - {{hitsCtrl.values.hits}}
From left: SLASSCOM Executive Director Chaminda de Silva, ODI Global International Economic Development Group Director Prof. Dirk Willem te Velde, Digital Economy Deputy Minister Eng. Eranga Weeraratne, President’s Chief Advisor on Digital Economy and GovTech Sri Lanka Chairman Dr. Hans Wijayasuriya and ODI Global Visiting Senior Fellow Dr. Ganeshan Wignaraja at the launch of the report
Sri Lanka should negotiate comprehensive digital trade chapters in all future trade agreements, covering both goods and services, to remove barriers to cross-border e-commerce.
The recommendation comes from an ODI Global report launched in Colombo yesterday.
The chapters would set clear, enforceable rules on data flows, electronic transactions and digital market access, said the report, “E-commerce and international trade in Sri Lanka: Findings from a survey of 953 exporters and importers”. It was prepared in collaboration with the Sri Lanka Association for Software and Services Companies (SLASSCOM) and GovTech Sri Lanka.
Ongoing and future negotiations with India, China, Thailand, the UK and the European Union could include provisions on paperless trade, e-signatures and cross-border data flows with safeguards, the report said. They could also include a ban on customs duties on electronic transmissions and de minimis thresholds, the values below which low-value shipments are exempt from duties and taxes. The report said these could be complemented by standalone digital economy agreements, such as one modelled on the UK-Singapore Digital Economy Agreement, and by targeted cooperation on fintech, payments and cybersecurity.
The researchers also recommended that Sri Lanka actively pursue accession to the Digital Economy Partnership Agreement (DEPA). DEPA is currently implemented by Chile, New Zealand and Singapore and is open to new members. Its modular structure offers a practical way to align with global standards on digital trade, interoperability and data governance, while gaining technical assistance, the report said.
Beyond DEPA, the report recommended that Sri Lanka seek observer or dialogue partner status in the ASEAN Digital Economy Framework Agreement and engage with the WTO Joint Statement Initiative on E-Commerce, both of which are shaping the rules of global digital trade. Early participation would give Sri Lanka a seat at the table, influence over rules that directly affect its exporters, and access to the technical support needed for reforms at home, it said.
The trade policy push rests on evidence that e-commerce is already widening Sri Lanka’s export reach. The survey of 953 trading firms, conducted between October 2025 and February 2026, found that 70% of exporters and 75% of importers use e-commerce. Adoption is highest among micro, small and medium-sized enterprises (MSMEs), at 72%, against 56% among large exporters.
The report said e-commerce could act as a ‘magic bullet’ for exports by opening up whole regions rather than single markets. Among exporters using e-commerce, 61% sell to the Middle East and 61% to Europe, against 48% and 41% of traditional exporters. Some 47% export groceries and packaged foods, which are hard to ship through traditional channels, against 14% of non-users. Traditional exporters, by contrast, rely more on large single markets such as the US, China and the UK.
The Government responded at the launch. “E-commerce presents Sri Lankan businesses, particularly MSMEs, with a significant opportunity to reach global markets. Our priority must be to create an enabling environment by simplifying trade processes, strengthening digital infrastructure and logistics, and building the skills needed to compete globally,” Digital Economy Deputy Minister Eng. Eranga Weeraratne said.
The Government targets growth in the digital economy from $ 3.5-4 billion to $ 15 billion by 2030, supported by a $ 50 million World Bank loan.
“Building a globally competitive digital economy requires a clear understanding of where we stand and where we need to go. Rigorous, firm-level research such as this provides essential evidence for benchmarking our progress, understanding businesses’ first-hand experiences, and shaping the policies and interventions that will advance Sri Lanka’s competitiveness in digital trade,” President’s Chief Advisor on Digital Economy and GovTech Sri Lanka Chairman Dr. Hans Wijayasuriya said.
At home, the report calls for a targeted, outcome-oriented National E-Commerce Policy, drawing on practice in Malaysia, Singapore and the United Arab Emirates. The policy would set measurable national targets for e-commerce growth and digital trade participation. It would also define minimum standards for internet, payments and logistics infrastructure and create a whole-of-Government coordination mechanism with strong public-private engagement. Alongside it, the report recommends a legal and regulatory framework for cross-border e-commerce that clearly distinguishes business-to-consumer from business-to-business trade and ensures a level playing field between domestic and international players.
The report was launched at GovTech Sri Lanka at an event jointly organised by ODI Global and SLASSCOM. Speakers included ODI Global International Economic Development Group Director Prof. Dirk Willem te Velde. ODI Global Visiting Senior Fellow Dr. Ganeshan Wignaraja and report co-author Anishka De Zylva presented the findings, followed by a moderated discussion on the reforms needed to help Sri Lankan firms succeed online.
Pix by Lasantha Kumara
