Digital Transformation and Operational Efficiency in Sri Lankan SMEs

This research investigates how digital tools improve operational efficiency in small and medium enterprises (SMEs) in Sri Lanka. With increasing digitalization, many SMEs are adopting cloud computing, ERP systems, and e-commerce platforms.

🔹 Objectives

• To identify key digital tools adopted by SMEs in Sri Lanka.

• To analyze their impact on cost, productivity, and customer service.

• To examine challenges SMEs face in digital transformation.

🔹 Methodology

A mixed-method approach was used. Data were collected via surveys (n=60) and in-depth interviews with SME owners in Kandy and Colombo.

🔹 Key Findings

• 72% of SMEs reported improved efficiency post-digitization.

• Main barriers: cost of software, lack of skilled staff.

• E-commerce and cloud tools had the highest impact on performance.

🔹 Conclusion

Digital transformation boosts SME efficiency significantly, but government training and financial support are crucial for broader adoption.