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e-Commerce: Complex documentation affects 68-80% of exporters: ODI

Around 68- 80% of Sri Lankan exporters report that navigating complicated paperwork requirements as a challenge, with e-commerce exporters reporting marginally higher difficulty in handling documentation, according to a recently published Overseas Development Institute (odi) report titled: “E-commerce and International trade in Sri Lanka”.

“Complex documentation requirements are the most reported customs challenge, affecting 68–80% of exporters, followed by security clearance requirements (42–58%). This suggests that process friction is the primary constraint to exporters, rather than issues related to the physical movement of goods," the report noted, acknowledging the strain on the general category of exporters.

"E-commerce exporters reported slightly greater difficulty navigating documentation requirements as well as security and clearance processes than non-e-commerce exporters, suggesting that friction is higher for digital sellers and that digital trade is more exposed to system readiness gaps."

The report further noted that Sri Lanka's budding e-commerce segment has the potential to significantly expand its export market – as a trade multiplier – helping it bypass geographic and logistical barriers. It also noted that 70% of exporters used e-commerce for trade.

“E-commerce can act as a significant trade multiplier in Sri Lanka. It could function as a ‘magic bullet,’ particularly in the export sector, by expanding market access beyond traditional geographic and logisticzal constraints. Indeed, 70% of exporters in the sample said they were users of e-commerce for trade, while the figure for importers was 75%."

"Our survey findings indicate that e-commerce can act as a significant trade multiplier in Sri Lanka. That is, it may be able to function as a ‘magic bullet,’ particularly in the export sector, by expanding market access beyond traditional geographic and logistical constraints. E-commerce also appears to be reshaping trade flows by enhancing both exports and imports through increased efficiency, connectivity and scale," the report said.