Within less than six monthsโ of its pioneering consultations in Colombo, Sri Lanka swiftly moved one more step closer to formulating an e-commerce framework that would safeguard the countryโs digital transactions locally and abroad. Meanwhile Sri Lankaโs e-commerce business sector is projected to hit US $ 400 Mn by 2022.
โI thank the European Union Delegation to Sri Lanka for their continued support through the EU-Sri Lanka Trade-Related Assistance Project. We acknowledge the efforts by the ITC as the lead implementing agency and for their committed initiatives in leading this second Private Public Dialogue on Sri Lanka E-Commerce Reformโ said the Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen on 6 September in Colombo. Minister Bathiudeen was addressing the launch event of second Private Public Dialogue on Sri Lanka E-Commerce Reform at Taj Samudra, Colombo organised jointly by the Consumer Affairs Authority under hum and International Trade Centre, Geneva.
This second PPD, part of the EU-Sri Lanka Trade Related Assistance project of Euro 8 million funded by the European Union (2016-2020), follows on the successful completion of first PPD of 15-16 March 2018 in Colombo, and seeks to wrap the draft recommendations made by visiting e-commerce expert from Genevaโs ITC Professor Michael Geist following the first PPD. Professor Geist submitted his first draft report in May 2018, calling for five priority areas of intervention in the roadmap for reforms: Access (benefits of access available to all), Education, Awareness (not only individuals but SMEs and businesses as well), Payments (Eg Why isnโt Paypal not here-Is it regulatory or any other issue?) and Modernization of consumer protection laws & privacy (how digital transactions are protected across multiple jurisdictions).
โIn this second dialogue CAA is working with all stakeholders to identify specific provisions where the current Sri Lanka legal framework falls short in these five themes so that updating national laws by formulating legislative proposals could follow thereafter. We are planning to establish a modern consumer protection framework suitable for e-commerce marketplace and encourage the development of Sri Lankan digital economy by improving in the five areas identified, removing legal and market barriers and fostering trust among both Sri Lankan consumers and SMEs. As a Government Regulatory Agency it is necessary for CAA to establish national policies for consumer protection that encourages good practices applicable also to e- commerce. Sri Lankan consumer needs to be protected at Pre Purchase, Purchase and Post-Purchase stages.ย This can be done by establishing a good internet infrastructure for e- commerce, updating present legal frameworks on e- commerce, preventing misuse of consumer data, providing consumer education and enforcing relevant laws. CAA plans to bring all key stakeholders and I am pleased to say that we have included all stakeholders in todayโs PPD-they are the public organistions, civil society organisations, consumers, entrepreneurs and technical experts.โ
Visiting ITC Ecommerce expert and Prof Michael Geist (Full Professor-University of Ottawa and Canada Research Chair in Internet and E-commerce Law and who sits on the Board of CIRA (Canadian Internet Registration Authority) which manages Canadaโs .ca domains) said: โYou donโt easily pull together such a large group of stakeholders twice โit takes leadership by Minister Bathiudeen, CAA and a big load of work by ITC. Sri Lankaโs e-commerce value is smaller in comparison to the region and it represents a challenge and opportunity of its potential. My report is designed to find a way forward for Sri Lanka e-commerce. The five areas identified need further work in terms of legislative and programmatic aspects. Consumer protection laws & privacy is a foundational question โlaws on protection may be working for off-line transactions but not for e-commerce-how do you make them to work in a digital environment. Date protection has become a strong need especially since March after passing the General Data Protection and Regulation in EU and as a result many around the world is paying closer attention to these rules and there is room for action in Sri Lanka on this too. The next stage after this latest session? It could be on moving for legislation and awareness creation. Also deciding who or which stakeholder is responsible for what activity. Also collaborative work with public-private sectors, and both of them with ITC, on a global scale.โ
According to industry experts, Sri Lankaโs annual domestic e-commerce sales value including services is around an estimated US $ 40 million (Sri Lanka Rs 6.4 billion). This can grow to US $400 million by 2022. The growing importance in retail sector in Sri Lankaโs GDP which has the potential to expand to ecommerce. At present only 0.4% of Sri Lankaโs total annual retail sales (US $ 10 billion) is in e-commerce.
Leader of All Ceylon Makkal Congress