Sri Lanka's internet market grows
Lamudi Sri Lanka examines the capacity of the nation's start-up
culture.
A growing number of internet start-ups has been investing in Sri
Lanka over the past couple of years. These start-ups focus on several
categories such as online real estate advertising, food reviews,
delivery and travel and tourism. Does this mean that Sri Lanka has a
positive outlook for digital businesses?
According to statistics obtained from Statistia, an online statistics
platform, almost a quarter of the nation's population of nearly 21
million have access to internet. The growth was distinguished after the
civil war ended in 2009, before which internet penetration was less than
five percent. Today, the growth rate has been recorded at nine percent.
Within the past five years, internet use has developed quite rapidly.
Simultaneously, the use of Facebook and other social media sites has
risen as well. As specified by Readme.lk, nearly 2.3 million Sri Lankans
had active Facebook accounts with 33 percent of them being between the
age group of 25 and 34, as of Q4 2014.
The younger generation, aged between 25 and 34, tech savvy and
exposed to trade over the internet will create a cash-free environment
in the future. As of mid-2014, it was identified that 950,000 Sri
Lankans had purchased credit cards to buy goods online or for use at
points of sale (POS).
The Sri Lankan internet market is growing significantly where people
are becoming more comfortable with purchasing goods online using credit
cards, debit cards and cash on delivery, because it is convenient. In
the search for information of any sort, be it statistics, market reports
or international updates, the internet is relied upon heavily.
Internet and social media will be the key players in the future.
Retailers who were mainly focused on selling offline have achieved more
sales via the use of online platforms. A renowned real estate agency,
Property Line, said that it rented out properties to over 50 customers
of which most were expats, through Lamudi Sri Lanka, an online real
estate platform.
Recent research by MasterCard has found that Colombo is the world's
fastest growing city. Internet plays a major role in the city attaining
this position because investors, tourists and expats explore the nation
and its future potential using the internet. Major international and
domestic luxury real estate developers maximise sales using online means
to achieve international exposure, thereby, attaining a strong inflow of
currency into the country.
Managing Director, Lamudi Sri Lanka, Hugh van der Kolff said, "Sri
Lanka has moved to the digital world only now, while many other nations
changed years ago. As an emerging nation, the country has room for
several internet start-ups to satisfy the needs of the modern buyer
without hassle."
"With developed markets reaching saturation or lack of room for new
entrants, Internet businesses are looking for emerging nations to invest
in. Hence, Sri Lanka is definitely a blue ocean for internet start-up
companies," he said. |