USAGE OF E COMMERCE BY SMALL AND MEDIUM ENTERPRISES IN SRI LANKA

Abstract

The adoption of e-commerce by Small and Medium Enterprises (SMEs) in Sri Lanka has become an essential strategy for business growth and sustainability in an increasingly digital economy. This study examines the usage of e commerce among SMEs in Sri Lanka, drawing upon secondary data from existing literature, industry reports, SME online business sites and feedbacks and government publications. The findings suggest that Many SMEs in Sri Lanka have successfully adapted to the use of e-commerce. It has also enabled them to connect with foreign markets. Especially women and the youth community have successfully adapted to it. E-commerce in Sri Lanka has grown significantly with the increased use of the internet and smart devices, especially during the COVID-19 pandemic. The increase has been driven by increased utilization of e-payments, e-banking, online medical consultations, and esports. The biggest hindrance to the use of this e-commerce in Sri Lanka is the lack of understanding about it. Also, obstacles arise due to the problems of technical facilities and the quality of online trading, as well as the controversial situation of consumers’ trust in this system. Small and medium enterprises should implement awareness programs on this, and the need for computer literacy should be shown to the entrepreneurs, technical infrastructure should be developed through government support, in a country like Sri Lanka where there are economic problems, these SME’s Processes should be arranged so that businesses can connect to the foreign sector through e-commerce and get more dollars for the country.