This chapter talks about measuring true e-readiness of a third-world country. As a case study, e-readiness measurement is done on Sri Lanka. First, this chapter assesses e-readiness of Sri Lanka using a measuring tool that utilizes 52 socio-economic indicators. Second, based on the assessment, this chapter reveals that the measurement does not indicate true e-readiness of the country, as the tool do not model or incorporate parameters for measuring the domestic digital divide that exist between communities or groups within the country. Third, this chapter proposes a method for incorporating the domestic digital divide measures in e-readiness calculations.