How to start an online store in Sri Lanka
Editorial review: 28 August 2026 · By: Alston Antony
The exact sequence for launching a Sri Lankan online store: (1) define what you sell and check payment / business-model eligibility with your intended gateway; (2) choose a platform that supports how you'll be paid; (3) prepare the business documentation your provider actually requires; (4) register the domain and hosting if the platform needs it; (5) build the store; (6) add the policies and content the gateway will review; (7) submit and configure the payment gateway; (8) configure shipping / delivery / manual payment; (9) test a real end-to-end order; (10) launch, then verify settlement, refunds and analytics after go-live. The order matters - many launches stall because the store was built before checking whether the intended payment method could actually be used.
Step 1 - Define what you sell and check payment eligibility
This is the most important Sri Lanka-specific step, and it's the one most launch guides miss. Someone could spend weeks building a dropshipping store, print-on-demand shop or multi-vendor marketplace and then discover that their preferred Sri Lankan gateway does not support that business model.
Use the Sri Lankan payment gateways comparison to shortlist the providers whose requirements you can actually meet. If none of your realistic gateway options supports the business model you want, revisit the model or plan a different payment strategy before continuing.
Step 2 - Choose the platform
Choose the platform based on payment integration, operating preference, technical maintenance responsibility, catalogue / integration requirements and total cost. There are three broad routes:
- Self-hosted ecommerce - WooCommerce on WordPress. More infrastructure and platform-maintenance responsibility. Direct integrations with Sri Lankan gateways (PayHere and WebXPay both publish WooCommerce plugins).
- Hosted ecommerce - Shopify. Hosting and platform bundled. Sri Lanka is not currently on Shopify Payments' supported-countries list, so Sri Lankan merchants use a supported third-party provider - and Shopify then charges its plan-specific third-party transaction fee on eligible orders in addition to the gateway's own fee.
- Custom ecommerce. Only when business requirements (multi-warehouse, ERP, custom pricing) genuinely justify custom development.
For the head-to-head decision see Shopify vs WooCommerce. For the LKR cost picture, see ecommerce website cost.
Step 3 - Prepare business and bank documentation
Prepare the exact documentation your chosen provider requires - not a generic "register a business and open a current account" checklist. The requirements depend on the entity type and the provider:
- Formal business registration where the provider requires it (typically for private limited companies, sole proprietorships and partnerships).
- Alternative proof of business where the provider accepts it (for example home-based businesses, freelancers, or certain clubs / associations on providers that allow this).
- NIC / passport / driving licence for identity where required.
- Bank account - confirm whether a current, savings or personal account is acceptable for your business type on the provider you've chosen.
- Any category-specific documentation the provider requires for the products you sell.
If formal Sri Lankan business registration is required for your chosen entity type, follow the appropriate official Sri Lankan government process - the Divisional Secretariat for sole proprietorships, or the Registrar of Companies for private limited companies. Government registration fees and turnaround are set by official processes and are outside the scope of this tutorial.
Step 4 - Register the domain and set up hosting (if the platform needs it)
- Domain. Register a .lk (LK Domain Registry directly or via an authorised agent) or a .com (any registrar). Keep the registrant / account information under your control. See domains in Sri Lanka and .lk domain registration.
- Hosting - WooCommerce path. WooCommerce requires separate hosting. Choose by workload (dynamic ecommerce needs application and database headroom at the origin), not by SKU or order-count thresholds. See WordPress hosting for Sri Lanka for current plans.
- Hosting - Shopify path. Hosting is included in the subscription. Connect the .lk / .com via DNS - see connecting a .lk to Shopify.
- DNS. DNS changes can temporarily disrupt the website or email if configured incorrectly, so record the existing settings before making changes and allow up to 48 hours for changes to fully propagate.
Step 5 - Build the store
Set up the platform, catalogue and content:
- Theme / template that fits your brand and works well on mobile.
- Product catalogue. Real product images that represent the actual item; accurate titles, descriptions, prices and specifications. Original photography generally improves buyer confidence for physical products.
- Categories organised around how customers actually browse, rather than fixed category-count thresholds. Content-heavy catalogues can go deeper; simple catalogues can stay flatter.
- Search and filters where the catalogue is large enough to need them.
- Static pages (About, Contact) with real information.
- Checkout flow configured for the payment methods you plan to accept.
Step 6 - Prepare the store for gateway review
Sri Lankan payment providers review the store as part of merchant approval. PayHere's own application guidance says the site / app should be substantially complete before submission, and can be rejected if it isn't. Confirm that the store displays:
| Element | Why it matters |
|---|---|
| Real products / services with real prices | Gateway review; customer clarity |
| Business / contact information (name, address, phone, email) | Verification and trust |
| Terms and Conditions | Provider requirement; customer expectation |
| Return and refund policy | Provider requirement; customer expectation |
| Privacy policy | Provider requirement; data-handling clarity |
| Delivery information | Operational clarity; sets buyer expectations |
| Working checkout with visible payment methods | Confirms the store can actually complete a sale |
Step 7 - Apply for and configure the payment gateway
Submit your gateway application once the store meets the review requirements. Expect the provider to review both the documents and the live site. PayHere currently documents a typical review time of 1 to 3 days for complete applications; other providers have their own published turnaround. If the store is complete and the documentation matches your business type, approval is usually straightforward.
Once approved, configure the gateway inside the platform:
- Install the gateway plugin / app / integration supported by your platform.
- Enter Merchant ID and secrets exactly as provided by the gateway.
- Set callback / return URLs and verify webhooks fire correctly.
- Test in the gateway's sandbox first, then production (Step 9).
Detailed fees, plan structures, limits and settlement schedules by provider live on Sri Lankan payment gateways.
Step 8 - Configure shipping, delivery and manual payment
Model your fulfilment before opening the store, not after the first orders arrive:
- Delivery zones - Colombo, other districts, remote areas.
- Delivery rates - flat / weight-based / distance-based / per-item.
- Free-shipping thresholds, if any.
- Courier accounts. Contact each courier for its current merchant / COD registration and API options. Do not assume specific API workflows are universal.
- COD workflow. Collection, remittance schedule to your account, delivery-failure and return handling.
- Bank transfer as an optional manual payment method - order status flow, reconciliation, refund path.
- Tracking - what customers see and how updates flow to the store.
- Returns - customer-initiated flow, pickup vs drop-off, refund path via the original payment method.
Manual payment methods (COD, bank transfer, cheques) are treated differently by hosted platforms - Shopify's third-party transaction fee, for example, does not apply to manual payment methods.
Step 9 - Test a real order end-to-end
Sandbox testing catches integration typos; production testing catches issues sandbox can't reproduce - live credentials, real webhooks, actual email delivery, payment authorization and the operational workflow. Do both:
- Sandbox test using the gateway's test credentials to confirm the technical integration.
- Production test. Place a small real transaction through the production gateway. Repeat the checkout on at least one mobile connection / device representative of your customers.
- Confirm each stage. Cart → checkout → payment authorization → order created → customer confirmation email / SMS → admin notification → inventory decremented → fulfilment task created.
- Test failure paths. Card decline, cancelled payment, session timeout, refund workflow.
Step 10 - Launch, then verify operations post-launch
Launch is the day the URL becomes public. The last checks happen after:
- Settlement verification. After the provider's settlement window (for example T+2 on PayHere, or WebXPay's T+1 for LKR / T+2 for USD/GBP), confirm the gateway statement, the bank deposit amount, the fees taken, and reconcile against the orders processed.
- Refund workflow. Verify that a real refund flows correctly to the buyer through the original payment method.
- Analytics. Configure ecommerce analytics and the advertising / conversion tracking required for the channels you plan to use, and verify that purchase events are recorded correctly. Set up Search Console and submit the sitemap.
- Fulfilment. Confirm shipping labels print correctly, tracking updates reach customers, and COD remittance flows to your account on schedule.
- Monitor and iterate. First-order friction points are the easiest to see in the first two weeks - watch abandoned checkouts, delivery-failure rates, refund reasons and support requests.
Launch checklist
| Step | Task | Complete when |
|---|---|---|
| 1 | Define what you sell and check payment / business-model eligibility | You have at least one realistic gateway that supports your model and business type |
| 2 | Choose the platform | WooCommerce / Shopify / custom decision made and documented |
| 3 | Prepare business and bank documentation | Documents match the exact requirements of your chosen gateway |
| 4 | Register domain and set up hosting | Domain resolves; hosting active or Shopify subscription started |
| 5 | Build the store | Real catalogue, categories, checkout flow ready |
| 6 | Prepare the store for gateway review | Terms, return policy, privacy policy, contact info and delivery info published |
| 7 | Apply for and configure the payment gateway | Approved and integrated inside the platform |
| 8 | Configure shipping, delivery and manual payment | Zones, rates, COD workflow and returns modelled |
| 9 | Test a real order end-to-end | Sandbox pass + one live production order with confirmation, admin flow, and failure paths tested |
| 10 | Launch and verify operations post-launch | Settlement reconciled, refund tested, analytics recording, fulfilment verified |
Frequently asked questions
How long does it take to launch a Sri Lankan online store?
A simple store can launch much faster when products, business/payment documentation and design are ready. Custom development, content preparation, formal business registration where required, and payment-provider approval can extend the timeline substantially. Ask each provider (registrar / registry, hosting, payment gateway, courier) for their current published turnaround rather than assuming a single universal timeline.
Do I need to register a business before starting?
It depends on your business type and your chosen payment provider. PayHere, for example, requires formal business registration for private limited companies, sole proprietorships and partnerships, but accepts alternative proof of business for certain home-based businesses, freelancers, clubs/associations and government organisations. The receiving account may be a current or savings account depending on the case. Verify the exact requirements with your intended provider before starting.
When should I apply for the payment gateway?
Check eligibility early (Step 1), but submit the full application after your website is substantially complete and displays real products / services, prices, terms, return policy, privacy policy and contact information. PayHere's own application guidance says the website / app should be complete and ready to go live before it is submitted for review - incomplete sites can be rejected.
Do I need a courier account before launch?
You do not need a courier account to build the store, but you should define delivery zones, pricing, COD handling, tracking and returns before accepting real orders. Some Sri Lankan couriers offer merchant / COD registration; contact each courier for its current onboarding requirements before committing.
Can I combine online payments with cash on delivery?
Yes. A payment strategy can combine online card / wallet payments with manual methods such as cash on delivery or bank transfer. Manual methods reduce payment-gateway dependency but create separate reconciliation, delivery-failure and cash-handling considerations. On hosted platforms such as Shopify, manual payment methods are treated differently from third-party gateway payments.
Sources
- PayHere - Application process — Business review typically 1-3 days for complete applications. Requirements vary by business type; some categories accept alternative proof of business. Receiving account may be current or savings depending on case. Website / app must be substantially complete with terms, return, privacy policy and contact details before submission. Unsupported business models include dropshipping, print-on-demand and multi-vendor platforms. (checked 28 Aug 2026)
- PayHere - Fees, limits and general questions — No application fee, no initial setup fee. Plan-based fee structure (Lite / Plus / Premium). Plan limits per payment and per month vary by tier. (checked 28 Aug 2026)
- WebXPay - XGateway pricing — Currently publishes card / wallet rates directly rather than only negotiating at onboarding. Starter local Visa/Mastercard 3.50%, Economy 2.90%, Business 2.50%. Foreign-card rate published separately. Settlement T+1 for LKR, T+2 for USD/GBP. (checked 28 Aug 2026)
- iPay - operator and merchant application — iPay is operated by LOLC Finance PLC (not Dialog). Merchants can apply using NIC or Business Registration Certificate; a LOLC account is not required - any Sri Lankan bank account can be used. (checked 28 Aug 2026)
- Shopify - Shopify Payments supported countries — Sri Lanka is not currently listed. Sri Lankan Shopify merchants use a third-party gateway; Shopify's plan-specific third-party transaction fee applies to eligible orders (manual methods such as COD, bank transfer and cheques are excluded). (checked 28 Aug 2026)
- Shopify - third-party transaction fees — Additional fees apply on eligible orders processed through third-party providers; manual methods are excluded (checked 28 Aug 2026)