Sri Lanka has signed and ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Sri Lanka has enacted national legislation, namely the "Electronic Transactions Act, No. 19 of 2006", which is founded upon and influenced by the standards set forth in the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Sri Lanka has not enacted national legislation that is comprehensively based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures. Nonetheless, the Electronic Transactions Act No. 19 of 2006 implements some regulation related to electronic signatures.

It is reported that online payments from foreign to local entities face restrictions in Sri Lanka. Although these payments are permitted through licensed offline channels, such as commercial banks, the limitations apply to digital platforms and they have reportedly constrained the ability of Sri Lankan recipients to receive foreign income via online payment services, including digital wallets like PayPal.

Pursuant to Section 10.1 of the "Directions Issued to Authorised Dealers on Electronic Fund Transfer Cards", certain transactions are expressly prohibited when using credit or debit cards, including payments associated with virtual currency transactions, payments related to betting, gaming, or gambling activities outside the jurisdiction of Sri Lanka, and payments for the import of goods into Sri Lanka for commercial purposes.

Circular No. 20 of 2020, issued by the Central Bank of Sri Lanka, stipulates that the maximum value for fund transfers conducted via the Common Electronic Fund Transfer Switch (CEFTS) shall not exceed LKR 5 million (approx. USD 16,700) per transaction.

Pursuant to Section 5 of the "Payment Cards and Mobile Payment Systems Regulations No. 1 of 2013", an individual or entity may engage in the business of, or operate as, a service provider in relation to a mobile phone-based electronic money (e-money) system, provided such activity is conducted under the authority of a licence issued by the Central Bank of Sri Lanka.
In addition, Circular No. 4 of 2023 issued by the Central Bank of Sri Lanka prescribes transaction and balance limits applicable to mobile e-money accounts. Under this framework, accounts classified as "enhanced"—those subject to full Know Your Customer (KYC) compliance—are permitted to hold and transact up to LKR 150,000 (approx. USD 500) per day. In contrast, "basic" accounts, which are subject to limited KYC procedures, are restricted to a daily limit of LKR 20,000 (approx. USD 70). Additionally, the maximum stored value permissible for each account category concurrently serves as the upper limit for individual transactions across all transaction types.

The Telecommunications Regulatory Commission of Sri Lanka lists Virtual Private Network (VPN) services among the services that have been issued a license in the country. However, the regulatory text mandating the license has not been identified.

The Telecommunications Regulatory Commission of Sri Lanka lists e-mail services among the services that have been issued a license in the country. However, the regulatory text mandating the license has not been identified.

The Telecommunications Regulatory Commission of Sri Lanka lists data processing services related to air transport industry among the services that have been issued a license in the country. However, the regulatory text mandating the license has not been identified.

In August 2020, pursuant to the Imports and Exports (Control) Regulations No. 05 of 2020, the Government of Sri Lanka announced the suspension of import licences for a range of goods listed in Schedule 1 of the Regulations. These goods, which ordinarily require an import control licence for entry into the country, were temporarily restricted from importation in response to the economic repercussions of the COVID-19 pandemic. The suspension took effect on 18 August 2020 and, as of 2024, remains in force for several product categories, thereby continuing to prohibit their importation. According to the 2024 Consolidated Import Control List, import control licences remain suspended for various items, including used automatic data processing machines (HS 8471.30.10), used monitors, and projectors not incorporating television reception apparatus, among others.

Under Section 115A of the Customs Ordinance, no goods may be imported into Sri Lanka except by a registered importer. According to the Sri Lanka Trade Portal, all importers, regardless of the type of goods, must present a valid Tax Identification Number (TIN) in order to complete their registration in the customs system. In addition, certain categories of goods are subject to import control and require an import control licence issued by the Controller of Imports and Exports, which must be obtained separately prior to importation.

Pursuant to Art. 4.11 of the Imports and Exports (Control) Act, No. 1 of 1969, no person may import goods into Sri Lanka without a valid licence issued by the Controller of Imports and Exports. Art. 14 further specifies that the Minister of Finance, Economic Stabilization and National Policies can issue regulations to prohibit or regulate the import of certain goods.
The latest Consolidated Customs Import Control List of controlled goods whose import requires a licence includes telecommunication equipment and other transmission apparatus, including used smartphones (HS 8517.13.10), used isotopes other than those classified under heading 28.44 (HS 2845.90), radio navigational aid apparatus (HS 8526.91), among others.
Furthermore, according to Art. 2 of the Special Import Licence and Payment Regulations, No. 1 of 2011, only certain operators can import controlled goods. These are (i) individuals, trading either in their own name or under a business name, who are citizens of Sri Lanka; (ii) firms, partnerships, or other entities duly registered in Sri Lanka; (iii) public and private companies incorporated under the Companies Act, No. 7 of 2007; and (iv) non-nationals holding a valid visa authorising residence in Sri Lanka.

Pursuant to Art. 21.1 of the Sri Lanka Telecommunications Act, No. 25 of 1991, the import of any telecommunication apparatus in Sri Lanka is prohibited unless carried out under the authority of a valid licence issued by the Telecommunications Regulatory Commission. As established in Art. 21.2, such licences are subject to conditions determined by the Commission, including the payment of a prescribed fee and compliance with specific restrictions. Under Art. 21.3, the Commission retains the power to revoke any licence in the event of non-compliance with licensing conditions, failure to make required payments, or breach of applicable regulations.

Sri Lanka’s import regime is reportedly characterised by high entry barriers and regulatory opacity. It is reported that the discretionary nature of import approval processes contributes to regulatory unpredictability, as agencies do not follow uniformly applied standards or procedures. Requirements often vary by product or authority, creating significant compliance challenges for importers. Foreign stakeholders have expressed concern that previous administrations failed to adequately consult the private sector before introducing new regulatory measures. In addition, regulatory bodies responsible for evaluating imported products are reportedly constrained by limited technical capacity, further complicating the approval process.