Foreign investment in Sri Lanka is governed by the Foreign Exchange Act. The Foreign Exchange Regulations No. 2 of 2021, issued under this Act, specify the types of investments that foreigners may undertake. There are no limitations on foreign ownership in sectors relevant to digital trade. Section A.8 of Part I of the Schedule to the Regulations restricts foreign ownership in mass communications to 40%; however, the term "mass communications" is not defined.

Pursuant to Section 71 of the Intellectual Property Act, where an applicant for the grant of a patent has neither an ordinary residence nor a principal place of business within Sri Lanka, such applicant must be represented by an agent domiciled in Sri Lanka. The name and address of the agent must be included in the application, which shall also be accompanied by a power of attorney duly executed in favour of the agent by the applicant.

It is reported that a shortage of personnel at the National Intellectual Property Office (NIPO) has led to a significant backlog in patent application processing. This staffing inadequacy is reported as the principal factor contributing to delays in application processing.

Sri Lanka is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II).

Section 3.1.1 of the 2024 Procurement Guidelines on Goods, Works, and Non-Consulting Services, provides for a preference towards domestic procurement. In fact, International Competitive Bidding (ICB) is required only when the capacity of domestic contractors, suppliers, or service providers is limited (regardless of contract value), or when the applicable agreement with a Foreign Funding Agency explicitly mandates the use of ICB procedures. The 2024 Public Procurement Manual confirms that ICB is the required procurement method only when local capacity or competition is limited, or when complex procurements are undertaken for which the necessary technology or expertise is not available domestically. Notably, while the previous regime (as outlined in the 2006 Procurement Guidelines and Manual) established a monetary threshold of LKR 300 million (approx. USD 1 million) for the use of ICB, this threshold is no longer retained under the regulations.

Under Section 7.7.1 of the 2024 Procurement Guidelines, domestic preference may be applied in procurement processes conducted under either International Competitive Bidding (ICB) or National Competitive Bidding (NCB). This preference aims to promote national construction and manufacturing industries and may be granted when domestic contractors and/or locally manufactured or locally value-added goods and information systems compete with foreign contractors and imported goods. The Guidelines establish the overarching entitlement and conditions under which preference can be considered, but refer to the Procurement Manual for the operational criteria and procedures.
Section 7.7.1 of the Procurement Manual 2024 provides a margin of preference for domestically manufactured goods, including information systems products, where this preference is expressly stated in the bidding documents. To qualify, the goods must contain at least 30% local content in the ex-works price, consisting of local labour, raw materials, or components, as defined in Section 5.15 of the Manual. The bidder must be registered under the Companies Act No. 7 of 2007 and must submit an affidavit together with certified audited financial statements demonstrating the required level of local value addition. For contracts funded by the Government of Sri Lanka, the applicable margin of preference is 20%. For contracts financed by foreign funding agencies, the applicable margin is determined by the relevant loan or credit agreement. The preference is applied solely for bid evaluation purposes by adding the relevant percentage to the evaluated price of non-qualifying bids, and it does not affect the final contract price. The Manual does not establish an equivalent margin of preference for services generally.

There is no public procurement law in Sri Lanka, and all government procurement is conducted in accordance with established guidelines and manuals. It is reported that the absence of a dedicated procurement law creates ambiguity within the legal framework and has contributed to elevated levels of political involvement in the selection of procurement awardees, inadequate contract management, limited transparency, and insufficient oversight of procurement processes and outcomes.
Foreign stakeholders have also noted that opaque procurement practices and the uneven enforcement of anti-corruption measures may distort competition in public tenders, creating disadvantages for firms committed to high compliance standards.

Taiwan has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Taiwan has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Taiwan has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.

Importing goods from China is generally prohibited or restricted, except for items specified in Article 7 of the Regulations Governing Trade between the Taiwan Area and the Mainland Area, or as otherwise designated by the competent authorities. The "List of Commodities for Which Importation of Mainland China Product is Prohibited" includes CCC Code 8517.69.00.00-4, covering transmission apparatus other than apparatus for radiobroadcasting or television. This category encompasses a wide range of ICT equipment used for data and voice communication over wired and wireless networks, such as routers, modems, and other network communication devices.

According to Arts. 6 and 7 of the Regulations Governing the Export and Import of Strategic High-tech Commodities, importers of certain high-tech products are required to obtain either an international import certificate or a written assurance certificate from the International Trade Administration (TITA). As specified in Section I of the "Regulation Governing Types of Strategic High-Tech Commodities, Specific Strategic High-Tech Commodities and Exportation to Restricted Regions", this authorisation requirement applies to all strategic high-tech goods, including those listed in the Export Control List for Dual Use Items and Technology and the Common Military List. The latter includes, among other categories, equipment for the manufacturing of semiconductor devices or materials, as well as telecommunications systems, equipment, components, and accessories.

According to Art. 5 of the Regulations Governing Export of Commodities, the International Trade Administration (TITA) shall compile a “List of Commodities Subject to Export Restriction” in accordance with export regulations and commodity classifications as announced. Exporters of commodities included on this list must comply with the procedures established therein and obtain prior authorisation from TITA. Without such approval, export is prohibited.
According to the most recent version of the List of Commodities Subject to Export Restriction, several goods of particular relevance to the ICT sector require export authorisation. These include:
- Silicon and compound semiconductor wafers (e.g. CCC HS Codes 3818.00.10.15-7 to 3818.00.10.90-5), which serve as essential substrates in the manufacture of integrated circuits and electronic devices.
- Doped chemical elements and compounds for electronics (3818.00.90.00-7), used in the fabrication of semiconductors and microelectronic components.
- Gallium-based compounds such as gallium phosphide, gallium arsenide, and gallium aluminium arsenide (e.g. 2853.90.12.00-1, 2853.90.30.00-9, 2853.90.40.00-7), which are critical for high-speed electronics.
- Artificial graphite (3801.10.00.00-3), widely employed in lithium-ion batteries and thermal management systems for ICT hardware.
- Fluoropolymers, including polytetrafluoroethylene (PTFE) (3904.61.00.00-7 and 3904.69.00.00-9), are used in high-performance cable insulation, printed circuit boards, and protective coatings in electronic equipment.

Under Art. 13 of the Foreign Trade Act, and Art. 5 of the Regulations Governing Export of Commodities, the export of certain high-tech commodities is prohibited unless authorised by the competent authority. As set out in Section I of the "Regulation Governing Types of Strategic High-Tech Commodities, Specific Strategic High-Tech Commodities and Exportation to Restricted Regions", the authorisation requirement applies to strategic high-tech goods, including equipment for the manufacturing of semiconductor devices or materials; telecommunications systems, equipment, components and accessories; among others. The procedures and documentation for such exports are further detailed in Chapter 3 of the Regulations Governing Export and Import of Strategic High-Tech Commodities.
According to Section III of the "Regulations Governing Types of Strategic High-Tech Commodities, Specific Strategic High-Tech Commodities, and Exportation to Restricted Regions", and in line with Art. 5 of the Regulations Governing Export of Commodities, exports to Iran, Iraq, North Korea, China, Sudan, and Syria are restricted. Examples of export prohibitions include:
- Iran: Controlled goods include electronic devices, mineral ores, semiconductors, integrated circuits, resistors, chips, photovoltaic components, battery cells, machinery parts, pumps, furnaces, and automobile motors.
- Russia and Belarus: Controlled goods include semiconductors, circuits, resistors, chips, machinery components, pumps, furnaces, and automobile motors.
- China: Export controls cover 12 categories of semiconductor manufacturing equipment, such as chemical mechanical polishers, photoresist strippers and developers, rapid thermal processors, deposition apparatuses, cleaning equipment, dryers, electron microscopes, etchers, ion implanters, photoresist coaters, and lithography equipment.
Taiwan also maintains a Strategic High‑Tech Commodities (SHTC) Entity List. Taiwanese firms are required to obtain approval from the International Trade Administration (ITA) prior to exporting any strategic tech goods to entities included on the list. A total of 10,844 organisations and individuals have been designated. In June 2025, Taiwan added a further 601 entities, among them the Chinese companies Huawei Technologies Co. and Semiconductor Manufacturing International Corporation (SMIC), as well as additional entities based in countries such as Pakistan, Iran, Myanmar, and China.