regional consultation on e-commerce for sustainable ......–sri lanka was signatory to ecc along...
TRANSCRIPT
Regional Consultation on e-Commerce for Sustainable Development in Asia Pacific
“Implementing Legal Reforms for Inclusive e-Commerce”
30th October 2017
Jayantha Fernando
Director / Legal Advisor, ICTA
& Chairman LK Registry
Outline
• Sri Lanka’s Digital Landscape
• Sri Lanka Electronic Transactions Act (ETA) –Legislation for inclusive e-Commerce
• Adoption of UN Electronic Communications Convention
• Effect of 2017 Amendment
Sri Lankan Digital LandscapeTransition to Digital Economy
� Internet has benefitted Sri Lanka’s growth potential
�First in South Asia to Liberalise Telecom Sector and introducecompetition (Telecommunications Act No. 25 of 1991) - 4G MobileProviders, 19 ISPs, 5 gateways --- On-going Consolidation
�No Common - Point of Inter-Connection
�Mobile Usage – Over 107% (More mobiles and toothbrushes) !!!
� 1st in South Asia to introduce Mobile Payment Regime
� Internet Contributor to Economic growth – 30% per annum growth in BPMworkforce & 5th Largest Revenue Earner
�Sri Lanka ranked No 1 in South Asia in Networked Readiness Index (NRI)
Network Readiness Index (NRI)
UN e-Government Index
• Leapfrogged 41 places since 2012
• Ranked 6th in ASEAN following S. Korea, Singapore, Japan, Malaysia & China
• Ranked 7th globally in ‘High On-line Service Performance, relative to income’
• Ranked 37th in Online Service Sub index
• Ranked 38th in e-Participation.
• Effective ICT Legal Policies played a significant role to improve the state of e-Government
Electronic Transactions Act No. 19 of 2006
• Long title– AN Act TO RECOGNISE AND FACILITATE THE FORMATION OF
CONTRACTS, THE CREATION AND EXCHANGE OF DATA MESSAGES, ELECTRONIC DOCUMENTS, ELECTRONIC RECORDS AND OTHER COMMUNICATIONS IN ELECTRONIC FORM IN SRI LANKA; AND TO PROVIDE FOR THE APPOINTMENT OF A CERTIFICATION AITHORITY AND ACCREDITATION OF CERTIFICATION SERVICE PROVIDERS; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH OF INCIDENTAL THERETO
– All transactions and business done in “electronic” form would be recognised under the Act, except those specifically excluded under Section 23 (Last Wills, Power of Attorney, Transfer of immovable Property etc)
• Legislation enacted – 7th March 2006
Electronic Transactions Act No. 19 of 2006Overview of Policy Framework
• Based on UNCITRAL Model on e-Commerce 1996– Ensures functional equivalence, Party autonomy and Technology
Neutrality • Legal basis for Digitization and e-Government• Legal Basis for Sector specific Certificate Authorities
established (for Banking + Govt and Commerce) – ICTA is the National CA (Root)
• Rules for admissibility of Electronic Evidence
• Amendments to the ETA – (17th October 2017)– More inclusive framework for e-Commerce– Aligned with the UN Convention on the Use of Electronic
Communications in International Contracts(UN ECC)`
UN Electronic Communications Convention (UN ECC)• UN Convention on the Use of Electronic Communications in
International Contracts”• Expansion of e-Commerce (virtual goods – such as MP3
music, software downloads)• Three reasons for Convention
– To Promote further uniformity (despite the success of the Model Law, several countries still lack legislation on electronic commerce); Uniformity on “Electronic Signatures” – Art 9(3)
– To Enhance legal certainty for international contracts by allowing contract partners to know in advance whether electronic contracts will be upheld abroad; and
– To adapt existing international conventions, since form requirements in international conventions were created long before the Internet
UN ECC Provides Greater Legal Clarity for SME’s (Inclusive e-Commerce)
• Advertising goods or services on the Internet or through open networks - Does not constitute a binding offer or Unilateral contract
• Should be considered as “invitation to make offers” – Article 11
• Art 11 Amounts to “Invitation to Treat” – requires formal offer from buyer and acceptance by seller
• Enables seller control over contract terms• Article 11 - Includes proposals to make use of
interactive applications for placement of orders through information systems
UN ECC & Electronic Transactions Act Amendments (2017)
• UN Electronic Communications Convention (UN ECC)– Negotiated (2001-05) and Adopted (23rd Nov 2005)– Sri Lanka was signatory to ECC along with China & Singapore– Ratified on 7th July 2015 – application w.e.f 1st Feb 2016
• ETA Amendments (2017) – Greater confidence for e-Commerce– Definitions in ETA similar to UN ECC – “Location of Party’s business” (Not dependent on factors like domain
address, location of servers and place where system is accessed)– Greater clarity for “dispatch & receipt of a communication”– Online Web based Sales – “Invitation to make offers”– Use of “automated message systems” for Contract formation– Ability to “correct input errors”– “Technology Neutral” framework for legal recognition of “e-Signatures”
• Broader Definition and Concepts – based on Article 9 (3) of UN ECC
11
Electronic Transactions ActFramework e-Signature Service Providers
• Section 18– Designation of a “Certification Authority”– Order published in the Gazette 1829/29 of 24th Sept 2013– ICTA functions as the National CA
• New Section 18A – Task Force for better Governance• Section 19 and 20 Amended in 2017
– Voluntary Licensing Regime for CSP’s (Certificaton Service Providers)
– Any provider of Service could function and get legal recognition– Party autonomy in the use of e-Signature standards– Industry best practices for SMEs
• Lanka Clear Ltd established Sri Lanka’s Financial Sector CSP (Lankasign)– LANKASIGN –ensure authenticity for Sri Lanka Interbank
Payment System (SLIPS) and CEFT– No paper work in fund transfer process – Total volume of Inter-Bank Transactions over Rs 2 Trillion– www.lankaclear.com
• Customs Dept – Online Customs Declarations– Single Window Paperless Trading
• Mobile Providers and others
Certification Service Providers (CSPs) in Sri LankaExample from the Banking Sector
• Mobile Commerce influenced by the Electronic Transactions Act No. 19 of 2006
• Payment & Settlement System Act No. 28 of 2005– SLIPS and CITS– Mobile Payments Regulated under Mobile Payment Guidelines
No. 1 and 2 of 2011 issued pursuant to Regulations under Payment and Settlement Systems Act No. 28 of 2005
– Mobile Payment Guidelines No 1 of 2011• Governs Bank-led Mobile Payment Services
– Mobile Payment Guidelines No. 2 of 2011• Custodian account based system for Non-Bank Service Providers
– Mobile Payment Regulations - June 2013
• Creates Consumer Trust & Confidence in Digital Commerce
Digital Commerce & PaymentsMobile Payment Regime for Inclusive e-Commerce
• Successful e Government Applications– Lanka Gate / Country Portal accessible through
www.srilanka.lk or www.lk– E – Revenue License (Western Province)– ePensions, Birth Certificate Digitisation, e-Motoring, e-
Divisional Secretariat, Government Information Centre (GIC)
– Patient Management Systems at Base Hospitals– Government Gazette/ documents online
www.documents.gov.lk– Electronic Visa – Online process www.eta.gov.lk
• Policy Reforms– FR Circular 447/2010 – facilitate use of Credit cards for
Government services provides through Electronic Means– E-Government Policy (December 2009)
Impact of Electronic Transactions Act on Delivery of e-Services
UNESCAP Framework Agreement
• Article 5 – Functional Equivalence, Technology neutrality– Aligned with ETA and UN ECC
• Article 6 – Enabling Legal Environment on Paperless Trade
• Article 10 – Adoption of relevant International Legal instruments concluded by UN
• Sri Lankan Legislation has provisions to build synergies to facilitate joining the Framework Agreement
ETA & UN ECC Ratification by Sri LankaConclusions
• Recognition of having modernised e-Commerce legislation• Provide ultimate legal certainty to cross border Digital
Commerce when a party is located in Sri Lanka– Would help market Sri Lanka more effectively for FDI
• Bring clarity and predictability to the use of electronic communications in cross border trade with other contracting states– Facilitating cross border remittances through Electronic Payments
channels, thus ensuring administrative efficiency– Cross border mobile commerce
• Create more binding uniform framework between Singapore, Australia, China etc -UN ESCAP Framework Agreement
• Legal Basis for Singapore – Sri Lanka FTA (eCommerce Chapter)
