Shaping the digital future: Insights from Daraz Sri Lanka’s Managing Director on e–commerce evolution in the country

In this exclusive interview, Ehsan Saya, Managing Director of Daraz Sri Lanka, shares his perspectives on how e-commerce is evolving in Sri Lanka. From strategies that cater to local preferences to the platform’s long-term vision, here is what he has to say about how Daraz is revolutionising online shopping in South Asia.

How would you describe the current state of e-commerce in Sri Lanka, and what role does Daraz play in shaping this landscape?

Having the highest literacy rate in South Asia and widespread mobile phone penetration, Sri Lanka is primed for e-commerce. In fact, 43% of the country’s estimated 11 million internet users regularly make online purchases, showing significant growth, and potential for future expansion. This clearly reflects the appetite for online shopping among Sri Lanka’s young, tech-savvy population.

However, Daraz entered this market when e-commerce was virtually non-existent. We identified three foundational gaps – logistics, payments, and marketplace – and addressed them systematically. These pillars have been instrumental in adapting to shifting consumer behaviours, especially during and after the global pandemic. While middle-income households primarily drive this growth, we have observed adoption far beyond the Western Province. By catering to Sri Lankan consumers’ cultural preferences and needs, Daraz has established itself as a one-stop platform for everything from daily essentials to high-value purchases.

What strategies has Daraz implemented to cater to the unique preferences and purchasing behaviour of Sri Lankan consumers?

Rising inflation has reshaped purchasing behaviour, making price sensitivity more pronounced, particularly in categories like groceries and fashion. To address this, Daraz collaborates with sellers to ensure competitive pricing and invests in an end-to-end supply chain to improve affordability.

We’ve also increased the frequency of our double-digit sales events, such as “11.11” and “12.12”, to provide more opportunities for savings. One innovative addition is the Choice channel, which allows customers to stack purchases and enjoy free shipping, maximising their savings.

While cash-on-delivery (COD) remains the dominant payment method, we are committed to driving digital payment adoption through targeted investments and initiatives. Trust has been an ongoing issue for e-commerce in Sri Lanka, which is why people prefer COD, but we are committed to driving the adoption of digital payments in the country.

Daraz Sri Lanka has a strong focus on supporting small and medium-sized enterprises. Could you elaborate on the initiatives you have taken in this area?

Empowering small and medium-sized enterprises (SMEs) is central to our mission, which is to uplift communities through the power of commerce. Daraz Sri Lanka provides local sellers with a platform to expand their businesses with little to zero upfront investment. Our unique model rewards sellers for their dedication, offering them consistent growth opportunities based on the quality of their products and services.

To this end, we have introduced Daraz University, a free online portal that equips sellers with essential knowledge about operating on our platform. Being a digital platform ourselves, we found an online portal to be a much more efficient tool as it helps reach aspiring sellers in every corner of Sri Lanka. Our dedicated Seller Engagement team also provides personalised guidance, helping sellers navigate challenges and seize opportunities.

Community-building initiatives, such as various forums and events, also enable sellers to share experiences and learn from one another. On top of this, incentives like bonuses and recognition programmes further motivate sellers to excel.

How is Daraz Sri Lanka using data and technology to enhance customer experiences, such as personalised recommendations or AI-driven solutions?

We have invested heavily in advanced technologies to enhance customer experiences across our platform. From personalised product recommendations and improved customer service to fraud detection and inventory management, these innovations streamline operations while delivering superior value to users.

A recent revamp of our app introduced some highly personalised features, which have significantly improved conversion rates. Our Seller Centre platform has also been enhanced with an improved user interface, better data insights, and tools like automated recommendations and real-time chat monitoring, empowering sellers to cater effectively to customer demands.

What is your long-term vision for Daraz Sri Lanka, and how do you plan to achieve it amidst the evolving e-commerce landscape?

Our vision is rooted in sustainability and empowerment. We aspire to remain an integral part of Sri Lanka’s e-commerce ecosystem for the next century, creating opportunities for sellers and businesses alike to build a strong online presence. Through our focus on logistics, customer trust, and innovative solutions, we aim to establish ourselves as a driving force that pushes economic growth in the country and creates many more opportunities.

Leveraging technological advancements, partnerships with local businesses, and data-driven strategies, we are committed to making online shopping seamless, inclusive, and integral to Sri Lanka’s digital economy. In fact, the future is definitely promising, with more Sri Lankans getting online and choosing to make purchases more conveniently. Thus, our goal will be to continue to innovate and address consumer pain points with a view towards consolidating and retaining our market-leading position.

Reflecting on your journey with Daraz so far, what has been the most significant learning experience?

Over six years with Daraz, I have worked across two markets, while gaining insights from several others. My biggest learning is the immense potential of South Asia’s hardworking and humble people. They have the drive to achieve greatness; they just need the right opportunities.

At Daraz Sri Lanka, we aim to create and provide such opportunities – whether it’s for sellers, delivery heroes, consumers, or our broader team – and drive a truly transformative impact on their lives.

In a market with increasing competition and frequent price wars, how does Daraz Sri Lanka ensure its pricing strategy stands out?

While Sri Lanka is a highly price-sensitive market, discounts alone aren’t enough to build loyalty. Our approach balances competitive pricing with a strong focus on customer experience, assortment, and convenience.

We ensure customers can find what they need and have it delivered efficiently – even to the remotest regions – and enjoy a seamless shopping experience. Competitive pricing is just the final piece of the puzzle, which turns first-time buyers into loyal customers.

Leading the Pack in e-Commerce

With a forward-thinking approach, Daraz Sri Lanka is not just shaping the future of e-commerce as a market leader, but is also empowering communities, businesses, and individuals every day. As Ehsan Saya explains, the platform continues to remain a key driver of mass digital transformation in Sri Lanka, delivering a lasting positive impact on the nation’s economy and people.