Legal issues in the IT field

Key IT Laws in Sri Lanka

1. Electronic Transactions Act, No. 19 of 2006 (Amended 2017)

Legalizes electronic contracts, digital signatures, and electronic documents, giving them the same legal status as paper-based documents. The 2017 amendment expands the scope to include biometric authentication and strengthens provisions for cross-border e‑commerce facilitation.

2. Computer Crimes Act, No. 24 of 2007

Criminalizes offenses such as unauthorized access to systems, data interception, and the disclosure of passwords. This law forms the backbone of cybercrime enforcement in Sri Lanka.

3. Intellectual Property Act, No. 36 of 2003

Protects creative and technological works, including software, trade secrets, and integrated circuits. It ensures protection through copyright, trademarks, and patents—essential for safeguarding digital innovation.

4. Payment and Settlement Systems Act, No. 28 of 2005

Empowers the Central Bank to regulate electronic payment systems and ensure the safety and efficiency of fund transfers in the digital space.

5. Payment Devices Frauds Act, No. 30 of 2006

Targets fraud related to payment devices such as credit/debit cards. It penalizes falsification, cloning, and unauthorized use of such devices.

6. Personal Data Protection Act (PDPA), No. 9 of 2022

Enacted in March 2022, this landmark law governs how personal data is collected, processed, stored, and shared. It introduces key rights for data subjects, including:

  • Right to access, correction, and erasure (right to be forgotten)
  • Right to object and withdraw consent
  • Mandatory breach notifications and impact assessments
  • Establishment of a Data Protection Authority

Some provisions took effect in mid-to-late 2023, but enforcement of penalties and full rights is still pending final implementation.

7. Online Safety Act, No. 9 of 2024

Effective from February 1, 2024, this law introduced the Online Safety Commission, which can regulate or remove online content deemed "prohibited," including:

  • Misinformation or disinformation
  • Hate speech
  • Content considered culturally or politically harmful

It allows penalties against both platforms and individuals. Critics argue it may risk suppressing free expression and hinder digital innovation.

Recommended Books

  • Licensing Digital Content: A Practical Guide for Librarians
  • Cyber Law: A Legal Arsenal for Online Business
  • The Tech Contracts Handbook: Cloud Computing Agreements, Software Licenses, and Other IT Contracts for Lawyers and Businesspeople
  • A Practical Guide to Software Licensing: For Licensees and Licensors

Key Legal Topics

  • Website: Terms of Use
  • Privacy Policy
  • Non-disclosure Agreements (NDAs)
  • Employees: Non-Compete Agreements
  • Acceptable Use Policy (AUP)
Location: Colombo, Sri Lanka

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