In a remarkable shift that reflects Sri Lanka’s growing digital adoption, e-commerce spending via payment cards surged by 27.4% in 2024, reaching a record Rs. 367.6 billion. The data, recently released by the Central Bank of Sri Lanka, reveals a country that is rapidly embracing online commerce and digital payments as part of everyday life (Digital Shopping).
This surge highlights more than just changing consumer habits — it signals a significant transformation in the way Sri Lankans shop, bank, and do business. With the growth in card-based e-commerce spending, we are witnessing a broader narrative of recovery, innovation, and modernization in the Sri Lankan economy.
The Rise of E-Commerce in Sri Lanka
E-commerce is not new to Sri Lanka. Over the past decade, platforms like Daraz, Kapruka, and Wasi.lk have laid the groundwork. However, the scale and pace of growth in 2024 indicate a new chapter.
From fashion and groceries to electronics and education services, Sri Lankans are increasingly turning to digital platforms. The convenience of doorstep delivery, competitive pricing, and mobile accessibility has made online shopping a preferred option for many. In urban areas, it’s become the default. In suburban and even rural pockets, it’s no longer a luxury — it’s a necessity.
A key driver of this shift is the increased penetration of internet and smartphone usage. Mobile data access has become more affordable and widespread, bringing even first-time users into the digital economy. Social media platforms like Instagram, Facebook, and TikTok have also played an active role in promoting local brands and influencer-led shopping trends.
Why Card-Based Transactions Are Gaining Ground
The focus on card-based payments — including debit and credit cards — is particularly important. These transactions are trackable, secure, and widely accepted across major e-commerce platforms.
Banks and financial institutions have also stepped up. Many Sri Lankan banks now offer reward systems, cashback incentives, and flexible installment plans for online purchases made via cards. This has encouraged not only spending but a shift away from cash-on-delivery models.
Furthermore, a younger, tech-savvy population is driving change. Millennials and Gen Z consumers are far more comfortable linking cards to digital wallets or e-commerce platforms, making fast and secure purchases.
A Sign of Economic Resilience
The e-commerce boom has come at a time when Sri Lanka’s economy is gradually finding its footing after a turbulent period. A rise in digital spending suggests a return of consumer confidence — people are not only spending again but are willing to do so online, using formal financial channels.
This is especially important in a country like Sri Lanka, where informal markets and cash transactions have traditionally dominated. The move toward traceable, digital transactions offers potential upsides, including higher tax compliance, better data collection, and improved financial oversight.
How SMEs and Local Entrepreneurs Are Benefiting
One of the most encouraging trends is how e-commerce is empowering small and medium-sized enterprises (SMEs).
Platforms like TikTok Shops, Instagram marketplaces, and even WhatsApp-based order systems are helping entrepreneurs run lean, efficient online businesses. With payment gateways and local delivery partners now more accessible, small businesses no longer need a physical storefront to thrive.
From home bakers to local clothing brands and handcrafted item sellers, digital commerce has opened doors. With increased card usage, sellers benefit from faster settlements and safer transactions — a critical advantage in building a sustainable business.
Challenges That Remain – Digital Shopping
While the surge in card-based e-commerce spending is positive, there are areas that need attention:
Cybersecurity: As more consumers move online, protecting sensitive financial information becomes critical. Instances of phishing, fraud, and identity theft are on the rise, and Sri Lanka needs stronger public awareness and regulatory measures.
Digital Literacy: Despite mobile penetration, many consumers and small business owners still struggle with navigating digital platforms. Training and community programs are needed to bridge this gap.
Rural Access: While urban areas have seen rapid digital adoption, there remains a digital divide in many rural areas, where connectivity and access to banking services can be limited.
Government and Policy Support
Sri Lanka’s government has taken some positive steps toward building a digital economy. Initiatives to promote cashless transactions, improve banking penetration, and support entrepreneurship through grants and digital tools have played a role in shaping this momentum.
However, to ensure long-term growth, stronger frameworks for e-commerce regulation, taxation of online trade, and consumer protection will be essential. A digital economy requires not just innovation, but trust.
What the Future Holds
Looking ahead, the trajectory seems clear: Sri Lanka’s e-commerce market is poised to grow even further.
Here are a few likely trends to watch:
Mobile Wallet Expansion: With platforms like FriMi, Genie, and Q+ Pay growing in popularity, Sri Lanka’s digital payments landscape will continue to evolve.
Cross-Border E-Commerce: As logistical capabilities improve, more Sri Lankan sellers may look to reach customers abroad, especially in niche product categories.
AI-Powered Shopping: With AI tools now driving customer personalization, product recommendations, and even automated inventory management, digital shopping experiences are becoming more seamless.
Eco-Conscious E-Commerce: Consumers, especially younger ones, are increasingly demanding sustainable packaging, ethical sourcing, and carbon-neutral deliveries. Brands that meet these expectations will lead the way.
Final Thoughts
The 27.4% rise in card-based e-commerce spending in 2024 is more than just a financial statistic — it’s a reflection of how Sri Lanka is adapting to a digital world.
From Colombo to Kurunegala, and from Gen Z shoppers to seasoned entrepreneurs, Sri Lankans are embracing the future. With the right investments in security, education, and infrastructure, this digital shift could fuel inclusive growth and innovation across the island.
As Sri Lanka continues its journey toward economic stability, e-commerce and digital payments will be central pillars of progress — redefining how we shop, trade, and connect in the years to come.
Keywords: Sri Lanka e-commerce, digital payments in Sri Lanka, card-based online shopping, economic recovery, digital economy Sri Lanka, online business, mobile payments, SME growth, financial inclusion, cybersecurity in e-commerce
