Analysis of the Regulation impact on Online transactions in Sri Lanka

The internet has become the foremost hub commerce in the world; millions of customers utilise the internet to purchase goods and services, however, the e-commerce penetration rate among Sri Lankan consumers remains low compared to their international counterparts. This fact could somewhat be attributed to the lack of any concrete legal foundations on data privacy in Sri Lanka, thus this study concentrates on probing the impact that regulatory mechanisms play on factors that affect online consumer transactions. The major findings of this study were that factors such as online consumer trust, Less Risk to the customer, personal data security and confidentiality of transaction all have relationships with regulatory mechanisms. Recommendations were suggested on how to improve the regulatory mechanisms in Sri Lanka thereby having a positive impact on all the variables.