Oct 21, Colombo: Sri Lanka is listed as the most improved country in South Asia, doing business survey, by climbing up 9 notches being 89th from the previous position at 98th. The country expects to rank higher in the 2013 survey.
The global survey conducted by the International Finance Corporation (IFC) and World Bank found that Sri Lanka implemented the most reforms of any of the eight economies in South Asia, helping to create a better environment for entrepreneurs.
The survey compared 183 countries from Afghanistan to Zimbabwe using data current as of June 2011.
The Central Bank of Sri Lanka says that although the substantial tax reforms Sri Lanka implemented during 2011 were highlighted in the 2012 survey, the data were not taken into account in the computation of the ranking in terms of the Doing Business Methodology, as a period of one year had not elapsed since the tax reforms.
“Accordingly, a considerable improvement in the Doing Business ranking in 2013 could be expected when these reforms, other reforms which came into effect after June 2011 are considered and envisaged reforms are implemented, moving the ranking closer to the target ranking of 30 in 2014,” the Bank said in a statement Friday.
Sri Lanka has implemented measures to reduce tax costs to businesses by abolishing turnover tax and reducing corporate income tax, value added tax and nations building tax rates.
The ranking of Sri Lanka in the area of Protecting Investors improved dramatically from 74 to 46, an improvement of 28 places. This was achieved by amendment of the CSE listing rules requiring greater corporate disclosure on transactions between interested parties, the Central Bank revealed.
The IFC-World Bank report assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, protecting investors, getting credit, resolving insolvency and trading across borders.