Analysis of feasibility of blockchain technology for international trade related to sri lankan construction industry

Abstract

Sri Lankan (SL) construction industry has been trading with overseas suppliers to fulfil the need for material and technology. This process faces many issues due to the poor digitalisation of the industry. The financial flow of international trade is dominated by financial institutions (i.e., banks) and the industry faces many issues e.g., delays, additional charges, complexity, lack of information sharing, and requiring legal assistance. Blockchain Technology (BCT) has emerged as a revolutionary digital technology in the past decade. Key features of BCT i.e., immutability, decentralisation, distributed ledgers, enhanced security, consensus, and speed have been identified to provide solutions for issues in the various industries including the supply chain. Hence this paper aims to investigate the feasibility of using BCT to solve existing issues in financial flow with special reference to the barriers to adopt it in the international trade of the Sri Lankan construction industry. As the data collection method, an expert opinion forum was carried out by involving both international trade experts and blockchain specialists in the Sri Lankan construction industry. Key findings present that BCT can solve issues such as transparency issues and poor information sharing between parties, excessive documentation and complexities, payment delays, and financial costs in the international trade of the SL construction industry. Further, findings revealed that the government’s approval, legal requirements, lack of knowledge and technology, and reluctance to change the industry can act as barriers to adopt BCT in Sri Lanka.