Regional Consultation on e-commerce for Sustainable Development in Asia Pacific. Implementing Legal Reforms for Inclusive e- Commerce

Transcription

1 Regional Consultation on e-commerce for Sustainable Development in Asia Pacific Implementing Legal Reforms for Inclusive e- Commerce 30 th October 2017 Jayantha Fernando Director / Legal Advisor, ICTA & Chairman LK Registry

2 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

3 Sri Lankan Digital Landscape Transition to Digital Economy Internet has benefitted Sri Lanka s growth potential First in South Asia to Liberalise Telecom Sector and introduce competition (Telecommunications Act No. 25 of 1991) - 4G Mobile Providers, 19 ISPs, 5 gateways --- On-going Consolidation No Common - Point of Inter-Connection Mobile Usage Over 107% (More mobiles and toothbrushes)!!! 1 st in South Asia to introduce Mobile Payment Regime Internet Contributor to Economic growth 30% per annum growth in BPM workforce & 5 th Largest Revenue Earner Sri Lanka ranked No 1 in South Asia in Networked Readiness Index (NRI)

4 Network Readiness Index (NRI)

5 UN e-government Index Leapfrogged 41 places since 2012 Ranked 6 th in ASEAN following S. Korea, Singapore, Japan, Malaysia & China Ranked 7 th globally in High On-line Service Performance, relative to income Ranked 37 th in Online Service Sub index Ranked 38 th in e-participation. Effective ICT Legal Policies played a significant role to improve the state of e-government

6 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 7 th March 2006

7 Electronic Transactions Act No. 19 of 2006 Overview 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 (17 th October 2017) More inclusive framework for e-commerce Aligned with the UN Convention on the Use of Electronic Communications in International Contracts(UN ECC)`

8 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

9 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

10 UN ECC & Electronic Transactions Act Amendments (2017) UN Electronic Communications Convention (UN ECC) Negotiated ( ) and Adopted (23 rd Nov 2005) Sri Lanka was signatory to ECC along with China & Singapore Ratified on 7 th July 2015 application w.e.f 1 st 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 Act Framework e-signature Service Providers Section 18 Designation of a Certification Authority Order published in the Gazette 1829/29 of 24 th 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 11

12 Certification Service Providers (CSPs) in Sri Lanka Example from the Banking Sector 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 Customs Dept Online Customs Declarations Single Window Paperless Trading Mobile Providers and others

13 Digital Commerce & Payments Mobile Payment Regime for Inclusive e-commerce 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

14 Impact of Electronic Transactions Act on Delivery of e-services Successful e Government Applications Lanka Gate / Country Portal accessible through or 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 Electronic Visa Online process Policy Reforms FR Circular 447/2010 facilitate use of Credit cards for Government services provides through Electronic Means E-Government Policy (December 2009)

15 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

16 ETA & UN ECC Ratification by Sri Lanka Conclusions 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)

17 Thank You! &