LEGAL ISSUES ON ELECTRONIC TRANSACTIONS: SL VS. EU

Abstract

In the modern business epoch, the electronic transactions are considered as the key method of transaction to deal with the global digital financial system. By entering into an era of IT advancement, the e-transactions are being developed throughout the business world.Consequently; people have taken place most transactions over the internet with using their electronic instruments as it is easy to fulfill their requirements without wasting time. The e-transaction can be executed by the way of business to business, business to consumer and consumer to consumer. It is noted that there is a massive growth in e-transactions due to the globalization and it opens the door to the national ebusiness as well as to the across-broader market. By the common global consensus, Sri Lanka has taken a significant effort to develop the international e-commercial law: vide the Electronic Transaction Act, No. 19 of 2006 as it is amended by the Act No. 25 of 2017. The crucial problem of this study is whether there is a sufficient protection to the consumers or businesses throughout electronic transactions in Sri Lanka, especially when using electronic signatures. This paper will be carried out based on the qualitative method: primary sources viz. relevant Acts and secondary sources viz. relevant articles, websites, journals, text book. The core objective of this study is to critically analyze the Electronic Transaction Act in Sri Lanka comparing with the European Union legislations relating to e-transactions. Yet, the contemporary law in SL has not included any penal provisions to punish swindlers who may cause grave loss or damage to innocent consumers. At the conclusion, this paper will recommend to set forth a secured legal framework which deals with electronic authentication to the protection of consumers and businesses.