Digital Platform Regulation and Digital Policy Advisory for Sri Lanka

TULIP delivered a focused advisory engagement for the International Trade Centre (ITC), providing expert input on digital platform regulation in developing countries, with a particular emphasis on Sri Lanka. The engagement was part of the ITC’s broader support to Sri Lankan government officials on digital economy policy and trade-related aspects of digital regulation.

The regulation of digital platforms has emerged as one of the most complex and contested areas of trade and technology policy, raising fundamental questions about market competition, data governance, consumer protection, and the relationship between large technology companies and national regulatory authorities. For developing countries like Sri Lanka, these questions are particularly challenging to navigate, given the combination of rapid growth in digital commerce and services, limited domestic regulatory capacity, and the global nature of the platforms and services at issue.

TULIP’s engagement covered several dimensions of platform regulation as they relate to developing country contexts. A central theme was the regulatory landscape for platform-mediated trade and commerce, examining how different regulatory approaches — including competition law, data localisation requirements, consumer protection frameworks, and sector-specific platform rules — affect the ability of domestic businesses and consumers to benefit from digital platforms. The session drew on international experience from both advanced economies and other developing countries to identify models and approaches that might be relevant to Sri Lanka’s context.

The engagement also addressed the interface between platform regulation and international trade commitments, an increasingly important dimension as WTO members negotiate new rules on digital trade and as bilateral and regional trade agreements incorporate provisions on data flows, source code, and digital services. Tulip provided guidance on how Sri Lanka can navigate these international frameworks while preserving sufficient regulatory space to address domestic digital policy objectives.

A particular focus was placed on the competitive implications of platform markets for Sri Lankan small and medium-sized enterprises (SMEs), which represent a critical constituency for digital economy inclusion. The session examined how regulatory frameworks can support SME participation in platform-mediated commerce, address concerns about unfair platform practices, and facilitate access to digital payment systems and logistics infrastructure. The engagement contributed to a broader ITC-supported process of modernising Sri Lanka’s approach to digital economy governance.