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Websites and Mobile applications – how does jurisdiction apply ??

I have a few questions about the legal jurisdiction of websites and mobile apps. I would appreciate it if the members of the site can shed some light on them.

1. If you develop and host a website in your own country (say, Sri Lanka, in my case) – can someone sue you in a foreign country ?

2. If you develop a iPhone application in Sri Lanka and market it via the iTunes app store – can you be sued in a different jurisdiction ?

Note that the TOS specifies that the legal jurisdiction is Sri Lanka.

Since I build medical websites / mobile applications – (a field with great potential for litigation !) I am very interested in knowing about this.

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