Business rankings need upgrading
World Bank report not realistic due to loopholes:
With greater political and macro-economical stability in the country,
Sri Lanka needs to upgrade its doing business rankings to attract more
Minister Basil Rajapaksa said despite the greater political and
macro-economical stability in the country, Sri Lanka’s doing business
ranking is 105 according to the World Bank report.
This World Bank report is not realistic due to some loopholes in
submitting data by various institutions, he said.
Investors before coming to Sri Lanka look at these figures. As such
the Government has to look into this matter and create an enabling
environment to attract new business ventures to create employment and
promote growth in increasing income for people. Action should be taken
to formulate new rules and regulations for the identified issues by the
Government to upgrade the business ranking, he said.
He was speaking at a seminar on ‘Improving Doing Business Ranking of
Sri Lanka’ at the Central Bank on Saturday.
Rajapaksa said this is the best time to discuss opportunities
available to doing business and address the issues that hinder business
activities because the conflict has come to an end and the world economy
is recovering from its worst situation. Sri Lanka needs to leverage on
these new strengths and will have to re-position itself in this new
environment. Hence, public sector activity should be focused on
providing an enabling environment to strengthen the role of the private
sector in the economy.
Central Bank Assistant Governor Ananda Silva said the Doing Business
Index is compiled by World Bank. It ranks countries, investigating
regulations that enhance business activities and those that constrain
Doing Business is compiled covering regulations affecting 10 stages
of the life of business which are , starting a business, dealing with
construction permits, employing workers, registering a property, getting
credit, protecting investors, paying taxes, trading across borders,
enforcing contracts and closing a business.
He said that a number of neighbouring countries are already enjoying
higher ranking and Sri Lanka needs to improve competitiveness,
productivity, efficiency and labour quality.
The Government’s aim in the next five years is to double the per
capita income. Overall a balanced and holistic approach to economic
management has been designed to ensure the foundation for a strong
economy and its competitive position in the global economy.
Many growth areas have now been identified, and there is a need to
increase investment. In order to achieve the target the country has
flexibility to introduce measures not only to support growth but also to
improve the quality of growth and its long-term sustainability.
The Central Bank too has taken several policy initiatives to
strengthen the financial system including the areas of regulatory and