Impact of Cloud Enterprise Systems on Business Security and Business Continuity in SMES in Sri Lanka

Abstract

Small and medium enterprises (SMEs) in Sri Lanka face critical challenges in adopting cloud enterprise systems, which hold the potential to transform business security and continuity. This research investigates the role of cloud technologies in addressing these challenges, focusing on their ability to provide scalable infrastructure, enhance disaster recovery, and improve operational resilience. The study examines key barriers to adoption, including cybersecurity vulnerabilities, compliance with complex regulatory frameworks, and limited technological readiness, which are compounded by Sri Lanka's unique economic and infrastructural constraints. Through a structured quantitative analysis of data from SMEs across diverse sectors, the study evaluates the impact of cloud adoption on business resilience. The findings highlight that effective use of cloud enterprise systems enhances data security, minimizes downtime, and supports rapid recovery during disruptions. However, the research also identifies gaps in addressing local regulatory requirements and tailoring global cybersecurity frameworks to meet the specific needs of Sri Lankan SMEs. This study contributes by proposing a cybersecurity framework that aligns with the operational and regulatory realities of Sri Lanka, empowering SMEs to mitigate risks and enhance continuity. The recommendations provide actionable insights for business leaders and policymakers, emphasizing the need for targeted support to unlock the full potential of cloud computing for sustainable SME growth and competitiveness.