The growth of information technology in the business world is spreading at a phenomenal rate. The success of a business organization stands at the usage of IT in their business. Growth of E-Commerce is the new born business method, which has orginated through an extensive usage of IT in their business. SMEs under the BOI in Sri Lanka are far behind the fast moving world of IT. Though E-Commerce is accelerating at a high pace,most of the SMEs are still at the lower level compared to their competitors in business. This study will focus on the level of adoption of E-Commerce in a population of 30 SMEs. The results on the adoption of E-commerce showed a significant relationship with the two firm based characteristics. That is Management Involvement and adoption of IT. The study also identified E-marketing and supplier service as the critical success factors in adoption of E-Commerce. Therefore, this research is conducted to assess the readiness for E-commerce among the SME in Sri Lanka, and hopefully the research will help to convey the awareness among the SME towards ecommerce and help them to speed up their involvement in e-business.
