The Online Safety Act No.9 of 2024 was passed by Parliament on 24 January. It intends to establish the Online Safety Commission, to provide safety from ‘prohibited’ statements made online, to prevent the use of online accounts and inauthentic online accounts for prohibited purposes, to make provisions to identify and declare online locations used for prohibited purposes in Sri Lanka, and to suppress the financing and other support of communication of prohibited statements.
Given that there are proposed amendments to be made to the Online Safety Act, businesses, especially those with an online presence, may potentially be impacted.
Significant consequences
Speaking to The Sunday Morning Business, cyber security advisor Asela Waidyalankara said that this could have an impact on the country’s digital economy. As he pointed out, the Asia Internet Coalition (AIC), comprising all major tech companies, notes that there is a responsibility assigned to them through the Online Safety Act, identifying them as internet intermediaries. The AIC’s latest statement unequivocally states that the bill, in its current form, is unworkable.
Part of Sri Lanka’s digital economy, including the civil sector, relies on various digital platforms. An example is the presence of Small and Medium Enterprises (SMEs) that operate through social media. If these services were to be impacted due to their stance against the Online Safety Act, it could have significant consequences for SMEs. Any changes to the regulatory landscape may affect SMEs and their operations, Waidyalankara noted.
“If we consider our IT-BPO sector and its primary export markets, namely the US and the European Union, which essentially comprise the Western countries, there is a noteworthy correlation. The countries that have expressed reservations about this piece of legislation align with these key export markets. Consequently, there is a potential impact on the IT-BPO sector, as these nations have hypothetically indicated concerns about the legislation, suggesting that it could be perceived as a scheme stifling freedom of speech. This underscores the intricate relationship between the regulatory environment, the perspectives of these countries, and the dynamics of trade.”
He also outlined that there was an ecosystem of content creators which depended on these digital platforms and if these platforms decided to scale back their operations or change the mode of certain tools and platforms available in Sri Lanka, there would be a direct impact on the industry.
“No one is disputing that online safety has to be considered in this country. Online safety-based legislation exists worldwide. However, as with all other technology legislation, the clock is ticking due to the multitude of stakeholders as well as the complexities involved, such as establishing a Telecommunications Regulatory Commission (TRC) and a Government-controlled tech lab.
“These are international and global companies that must be dealt with, so ensuring a transparent and comprehensive consultative process is crucial. Considering that the time spent from drafting to enactment is only about five months, many feel it’s insufficient for an adequate consultative process,” Waidyalankara stressed.
‘No impact’
Meanwhile, speaking to The Sunday Morning Business, State Minister of Technology Kanaka Herath said that Sri Lankan businesses faced no such impact at present.
“It all depends on the AIC. There will be no impact on online marketing either. The only concern I have is that most of these regulations are yet to be implemented. There is no way to see beyond that,” he noted.
When contacted, the Information and Communication Technology Agency of Sri Lanka (ICTA) declined to comment on the subject.
Concerns over attempts at control
Meanwhile, Federation of Chambers of Commerce and Industry of Sri Lanka President Keerthi Gunawardane stated that there were several concerns related to the act’s attempt at exerting control.
“It’s crucial for it to be transparent, as this transparency fosters prosperity. Any company engaging in online activities should not face excessive controls. This is a fundamental requirement for the industry,” he noted.
“For straightforward businesses, such as those manufacturing simple products, the impact might be minimal. However, for entities operating in the realm of social media, where information flows openly, any attempt at control can lead to misinformation. Even major tech giants rely on various social media groups for information, and if that information is restricted or censored, it is harmful,” Gunawardane added.
“This situation was evident in Pakistan some time ago, when attempts were made to control information. Many organisations opposed the move, and eventually, the act was removed. It highlighted the importance of allowing information to flow freely,” he concluded.
Ensuring quality and credibility
Internet Society Sri Lankan Chapter Assistant Secretary and Saegis Campus and Faculty of Computing and Technology Acting Dean and Senior Lecturer Prabath Samarasinghe said that from a business perspective, he did not believe in restricting freedom on social media, as it may lead to certain disadvantages. However, he noted that as businesses faced tough competition and numerous competitors, when companies wished to share information with the community, they should ensure that the content was of high quality and prominence.
He also said that startups may sometimes provide misleading information or even publish fraudulent content, especially due to competition. In such cases, a level of control is necessary to regulate the quality and credibility of the content.
He further highlighted the importance of the information provided through digital journalism: “In today’s digital age, a significant portion of the community, possibly around 60%, is actively engaged with these digital platforms. As a result, people rely heavily on digital information. Hence, it becomes essential to strike a balance between control and freedom to allow journalists in the digital journalism field to voice their opinions.”