Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe, has stated that online-based businesses operating in the country should be properly regulated.

He made these remarks while participating in the 9th Annual General Meeting of the Sri Lanka Retailers’ Association (SLRA).

The Minister noted that since some businesses operating in the online market are not properly registered and do not pay taxes, the legally compliant and tax-paying businesses are facing great inconvenience.

He also pointed out that it has been observed that a substantial amount of money, estimated at around USD 780 million, has exited the country through such irregular channels in the past.

Although the number of registered businesses in the country is currently estimated at around 65,000, Minister Samarasinghe stated that the number of agents and distributors under some large companies exceeds 200,000.

He further highlighted that a large number of businesses, ranging from small village retail shops to national-level B2C (business-to-consumer) operators, are still not properly registered.

Retail trade is a major sector that contributes significantly to the country’s economy by generating a large number of services and jobs, Samarasinghe said.

The Minister added that the retail sector contributes over 20% to the Gross Domestic Product (GDP) and provides employment to nearly two million people.