Sri Lanka’s e-commerce sector has the potential for significant growth, but a critical roadblock exists – the limited adoption of digital payment systems. This was the key message delivered by Daraz Head of Corporate Affairs, Public Policy & ESG, Anishka De Zylva, during a podcast discussion hosted by The Women’s Policy Action Network.
De Zylva emphasized the sluggish growth of digital payments in Sri Lanka and urged the banking sector to take a more proactive stance in promoting these services. She highlighted the need for collaboration among stakeholders to create a more dynamic digital payments landscape and incentivize consumers to switch from cash-based transactions.
The current dominance of cash creates challenges. De Zylva proposed a system where transaction costs are shifted from merchants to consumers. This, she believes, could foster competition among digital payment providers, ultimately benefitting both merchants and consumers through lower fees and wider adoption.
Sri Lanka’s JustPay system serves as an example of a cost-effective alternative. Its recent launch of JustPay Web and PayMe allows businesses to easily integrate with the platform at a fraction of the cost charged by traditional payment gateways.
De Zylva, speaking at an event supported by the Kingdom of Netherlands, also shed light on the remarkable adaptability of women entrepreneurs. She revealed that during Sri Lanka’s economic crisis, 40% of women-owned businesses leveraged online sales as a coping mechanism, compared to only 27% of men-owned businesses. This statistic underscores the potential of e-commerce as a tool for empowering women and fostering economic stability, particularly during difficult times.
De Zylva commended initiatives like ICTA’s Suhuruliya program and Daraz’s own Arya Shakthi program, which equip women entrepreneurs with the necessary ICT skills. These programs have demonstrably empowered women, with over 17,500 women entrepreneurs having undergone training.
Furthermore, De Zylva pointed to the immense, yet untapped, potential of e-commerce in Sri Lanka. Low internet and smartphone penetration rates, coupled with the global market reach offered by e-commerce platforms, present exciting opportunities. The ability to establish an e-commerce store at a lower cost and with greater speed compared to traditional brick-and-mortar businesses makes e-commerce an attractive proposition for entrepreneurs.
Sri Lanka’s e-commerce journey is poised for significant growth, but unlocking its full potential requires a collective effort to address the digital payment bottleneck. By implementing effective strategies and fostering collaboration among stakeholders, Sri Lanka can pave the way for a thriving e-commerce sector that empowers businesses and fuels economic growth.