Daraz-SLASSCOM report on e-commerce adoption highlights pathways for growth of digital commerce

Tuesday, 2 May 2023 00:57 -     - {{hitsCtrl.values.hits}}

President Ranil Wickremesinghe being presented with research report by Daraz Sri Lanka Managing Director Rakhil Fernando. Co-authors of the report, Anishka de Zylva and Dr. Ganehsan Vignarajah are also present


The first of its kind report titled “E-commerce: A Driver of Inclusive Growth in Sri Lanka?” was presented to President Ranil Wickramasinghe last week. Daraz Sri Lanka Managing Director Rakhil Fernando, the co-authors of the report Dr. Ganeshan Wignaraja and Anishka De Zylva and the Director of International Affairs at the Presidential Secretariat Dinouk Colombage attended the meeting.

This first in-depth study on the adoption and use of e-commerce in Sri Lanka during difficult economic times was launched at an event earlier in 2023 with Ministry of Technology State Minister Kanaka Herath by Daraz Sri Lanka and Sri Lanka Association for Software Services Companies (SLASSCOM).

The presentation to the President highlighted several key findings from the study. First, that the spread of e-commerce is an island wide phenomenon with over 50% of the respondents in all provinces saying that they use e-commerce to purchase goods and services. Second, that the pandemic increased the use of e-commerce and this trend is set to deepen. Third, that online sellers are mostly young and start-up businesses. Fourth, that various obstacles hinder the use of e-commerce in the country such as non-users lacking the requisite skills to use e-commerce, the under-development of digital payment systems, the high cost of new smartphones and gaps in trade facilitation. Finally, that as the Sri Lankan economy stabilises, the digital economy and e-commerce can support new jobs and boost incomes particularly among the country’s youth. The discussion also highlighted progress made by neighbouring economies, particularly India and Vietnam, and recommendations were made on how Sri Lanka might strive to emulate their success.

Gateway House Mumbai Professorial Fellow in Economics and Trade and ODI Global London Senior Research Associate Dr. Ganeshan Wignaraji designed and co-authored the report together with Daraz Sri Lanka Head of Public Policy and Corporate Affairs Anishka De Zylva. The survey was conducted by NielsenIQ Sri Lanka, under the supervision of Country Director Therica Miyanadeniya.

The report is based on the meticulous collection of primary data through a countrywide survey of a sample population of over 4,500 participants undertaken between March 2022 and July 2022. The survey collected information in areas that are relevant to making business strategies and public policies covering the:  (i) the use of e-commerce across provinces and districts; (ii) the types of goods and services purchased; (iii) purchasing behaviour during the pandemic; (iv) user behaviour by characteristics; (v) the types of devices and payment methods used for e-commerce purchases; (vi) factors discouraging online purchasing; (vii) the use of e-commerce for selling goods and services; and  (vii) the influence of government policy on e-commerce transactions from both a seller and consumer perspective.

The report is made available as a downloadable pdf file via the Daraz and SLASSCOM corporate websites to anyone interested in understanding the industry at a deeper level. Link: http://bitly.ws/DAKX

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