SL’s e-commerce rules still playing catch-up

Sri Lanka’s fast-expanding e-commerce sector is currently operating in a policy vacuum as critical regulatory gaps undermine consumer _ protection, transparency, and trust in the digital marketplace.

- SHABIYA ALI AHLAM

Despite the boom in online trade, the report warns that the regulatory framework governing e-commerce in Sri Lanka remains fragmented and underdeveloped, according to the recently launched State of the Economy 2025 report by the Institute of Policy Studies (IPS). It pointed out that while Gazette Notification No. 2332/15, issued in 2022 under the Consumer Affairs Authority Act, introduced basic disclosure requirements for online vendors, it remains “largely procedural and does not adequately address critical areas such as transaction security, digital contracts, product liability, or intellectual property rights.”

A major concern is the absence of legal obligations for digital platforms and intermediaries.

“Currently, no legislation exists regarding the functionality of e-commerce marketplaces (e.g., Daraz) or social media platforms (eg., Facebook, Instagram) to examine vendors or ensure compliance with consumer protection standards,” the report noted.