Legal and Human Factors Contributing to Resistance Against the Digitization Process in Government Institutions in Sri Lanka

Data and information are increasingly stored in electronic media, offering significant benefits, particularly in terms of efficiency. This includes faster and easier access to information, reduced storage space, minimal workforce requirements for management and handling, reduced paperwork and printing costs, and environmental protection through material conservation. Additionally, the risk of data loss is reduced, as digital records can be more easily maintained and duplicated compared to physical documents. Minimizing repetitive data entry can save time, reduce human error, and facilitate analysis of available data. Despite these advantages, few state-owned enterprises have fully transitioned to digital operations. Key barriers to this transition include financial constraints, lack of physical resources, inadequate legal frameworks, resistance to change among management and employees, and limited understanding of technological advancements and legal requirements. While financial and resource limitations can be addressed through government support, legal provisions for electronic transactions have been in place since 2006 and were updated in 2017. Therefore, the primary challenges remain resistance to change and limited awareness of technological and legal updates. Addressing these issues is crucial for enabling state-owned enterprises to fully digitize their functions and services in compliance with existing regulations.