I was trying following example but with external URLs:
http://android-developers.blogspot.com/2008/09/using-webviews.html
The example shows how to load an HTML file from assets folder (file:// url) and display it in a webview.
But when I try it with external URLs (like http://google.com), I am always getting a "Website Not Available" error. Android's built-in browser is able to access all external URLs.
I suspect that it has something to do with permissions but wasn't able to confirm it.