E-commerce offers new avenues for Sri Lanka’s export growth

Sri Lanka can expand its export base and improve global market access for small businesses by addressing regulatory, logistical and digital infrastructure barriers to cross-border e-commerce, according to a new report by ODI Global and the Sri Lanka Association for Software and Services Companies (SLASSCOM).

The report, titled “E-commerce and International Trade in Sri Lanka: Findings from a Survey of 953 Exporters and Importers,” highlights the growing role of digital commerce in international trade while identifying reforms needed to strengthen the country’s competitiveness.

Launched at GovTech Sri Lanka in Colombo on October 8, the study found that seven in 10 exporters surveyed already use e-commerce, including 72% of micro, small and medium-sized enterprise (MSME) exporters. However, high customs and documentation costs, delivery delays, payment difficulties and gaps in cybersecurity and digital skills continue to constrain the sector’s growth.

Around 80% of surveyed e-commerce exporters reported difficulties with complex documentation, while most business-to-consumer and business-to-business export shipments took more than two weeks to reach customers.

Deputy Minister of Digital Economy Eranga Weeraratne said e-commerce offered Sri Lankan businesses, particularly MSMEs, significant opportunities to reach international markets.

He stressed the need to simplify trade processes, strengthen digital infrastructure and logistics, and develop the skills required for businesses to compete globally. The findings indicate that e-commerce could help smaller enterprises diversify export markets, test overseas demand and establish direct relationships with international consumers at lower cost.

Exporters using digital channels reported broader access to markets in the Middle East, Europe and Asia. Direct-to-consumer trade is also expanding in sectors such as groceries, packaged foods, health and beauty products, and electronics.

Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy and Chairman of GovTech Sri Lanka, said firm-level research was essential to understanding business experiences, benchmarking progress and developing policies to improve competitiveness in digital trade.

Dr. Ganeshan Wignaraja, Visiting Senior Fellow at ODI Global and a co-author of the report, said supporting small businesses and addressing cost barriers were critical to strengthening Sri Lanka’s position in the digital economy.

The study, based on an island-wide survey conducted between October 2025 and February 2026, covered 953 exporters and importers, representing 9% of Sri Lanka’s trading firms.

The report recommends coordinated reforms to modernise trade infrastructure, simplify customs procedures, improve logistics and payment systems, strengthen cybersecurity and expand practical digital skills. The authors said creating an enabling environment for cross-border e-commerce could help diversify Sri Lanka’s exports, encourage innovation and build a more resilient export economy.