AI reduces operational costs at Sri Lanka e-commerce platform Kapruka, driving efficiency in back-office operations. The technology is helping the company optimize workflows and achieve significant savings, setting a benchmark for digital businesses in the region.
Kapruka leverages AI to streamline operations and enhance efficiency
Sri Lanka’s e-commerce industry is witnessing a significant transformation as AI reduces operational costs and reshapes traditional business models. Kapruka, one of the country’s leading online marketplaces, recently reported major operational savings after integrating artificial intelligence into its workflow.
Dulith Herath, founder and chairman of Kapruka and the Java Lounge coffee chain, confirmed on X that the company is “on track to achieve 40 percent operational cost reduction thanks to AI.” He noted that the efficiency gains were primarily concentrated in back-office functions rather than logistics, highlighting the potential of AI to optimize administrative and operational processes.
Back-office operations such as order management, data processing, and supplier coordination are often resource-intensive and time-consuming. By implementing AI-driven solutions, Kapruka has been able to automate repetitive tasks, minimize errors, and streamline internal processes. This not only reduces costs but also allows human staff to focus on strategic initiatives that enhance customer experience and business growth.
Herath also emphasized that businesses relying solely on technology without a presence in on-the-ground operations may encounter challenges as AI adoption expands. The combination of AI tools and human oversight, he argued, remains essential for sustainable efficiency and service quality.
Industry experts point out that AI adoption is becoming a competitive necessity for e-commerce companies in Sri Lanka. Platforms that integrate machine learning and automation are positioned to reduce overheads, improve accuracy, and maintain responsiveness in a rapidly evolving digital market. Firms that delay adoption risk higher operational costs and slower growth compared to AI-enabled competitors.
For Kapruka, AI implementation started with identifying high-impact back-office areas for automation. Predictive analytics now help the company manage inventory, streamline supplier interactions, and detect operational anomalies. These tools have significantly improved operational accuracy and efficiency while reducing the burden on human resources.
The implications for Sri Lanka’s e-commerce sector are substantial. As AI technologies become more accessible, more businesses are likely to follow Kapruka’s example, automating routine operations while retaining essential human oversight. This hybrid approach offers both cost savings and improved service reliability, creating a competitive advantage for early adopters.
Kapruka’s experience illustrates a broader strategy for AI adoption: begin with targeted processes, measure impact, and combine automation with human decision-making. This approach ensures operational efficiency without compromising quality and provides a scalable model for other companies in the region.
As AI continues to reduce operational costs, Sri Lanka’s e-commerce platforms are set to become leaner, more agile, and better equipped to meet growing consumer demands. Kapruka’s success demonstrates that strategic integration of technology can deliver measurable results while maintaining a high standard of operational performance.