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After the US government allowed the commercial organization to use the Internet and the development of new applications on the Internet, it is changing and shaping how business is carried out world over. It has become an integral part of national economies creating jobs and increasing productivity in companies across the economy. The impact of Internet goes far beyond dot coms and transforms traditional companies and jobs. The Internet Economy is conceptualized and defined as the collection of Internet Protocol (IP) based networks, software applications, services run on the Internet, and the human capital that makes the networks and applications work together for online businesses and agents. The Internet Economy has a natural structure or hierarchy that can be directly traced to how businesses generate revenues. This work takes an indepth look at contributors of the Internet Economy in various countries. Especially the Internet Economy in Sri Lanka is analysed with special emphasis to its contribution to the National Economy.