Abstract:
The purpose of the research is to find the factors which persuade the consumers' trust on e commerce adoption in Sri Lanka. The creation of the Internet has reduced physical borders and made
the world a smaller place where people can able to keep in touch with one another at any time from
every nook and corner. This research arise the following research questions. How the security and
privacy concerns in online transaction relate with e-commerce adoption? How do the
trustworthiness and reliability of the web vendors relate to the consumer's adoption of e commerce? and How the performance, physical, security, privacy and delivery risk affect consumers
to adopt in e-commerce. Questionnaire was used as a research instrument and basically the
questionnaire cover two parts; such as 1st part covers questions related to online purchase and
adoption of electronic commerce. The 2nd part covers factors affecting e-commerce security,
privacy, and trust as well as risk perceptions. The extensive literature survey helped to form the
research variables and hypothesis. To measure the questions likert scale measurement was used.
The likert scale measurement were ranging from 1 - very unimportant to 5 - very important. This
research shows that, consumer's perceived privacy, security and trustworthiness of Web vendor in
e-commerce transaction positively contributes to his/her trust in e-commerce adoption. On the
other hand the influence of a consumer's perceived security in e-commerce transaction is mediated
by consumer's perceived privacy and consumer's adoption in e-commerce transaction not
negatively associated with e-commerce perceived risks.
