South Asian Association for Regional Cooperation

Seventh Meeting of the Inter-Governmental Expert Group (IGEG) on Financial Issues SAARC Secretariat, Kathmandu 20-21 May 2014 SAARC/IGEG.07/26

Paper by Sri Lanka on Ease of Doing Business

SAARC/IGEG.07/26  

A Concept Paper on The Ease of Doing Business in Sri Lanka

SAARC/IGEG.07/26  

Contents Forward

1

1.

Sri Lanka Country Profile and Economic Outlook

2

2.

About Doing Business in Sri Lanka

4

2.1

Starting a Business

6

2.2

Dealing with Construction Permits

7

2.3

Getting Electricity

8

2.4

Registering Property

9

2.5

Getting Credit

10

2.6

Protecting Investors

11

2.7

Paying Taxes

12

2.8

Trading Across Borders

13

2.9

Enforcing Contracts

14

2.10

Resolving Insolvency

15

3.

Matrix of SAARC Countries Vs. Sub Sectors

16

4.

Doing Business in Future

17

5.

References

18

SAARC/IGEG.07/26  

Forward This paper has been prepared in response to a decision taken at the Sixth Meeting of the Inter-Governmental Expert Group (IGEG) on Financial Issues held at the SAARC Secretariat, Kathmandu on 23-24 April 2013 in order to share the importance of Doing Business Ranking and the strategies adopted by the Sri Lankan Government with member countries. This Concept Paper on the Ease of Doing Business in Sri Lanka outline the country experience of improving the Doing Business Ranking of Sri Lanka mainly based on the information available in the annual Doing Business reports published by the World Bank and the International Finance Corporation (IFC). The Doing Business Ranking reflects the perspective of how domestic companies find it easy or difficult to set-up, operate and close a small to medium size business when complying with relevant regulations. The annual Doing Business indicator compares commercial regulations and its enforcement across 185 countries worldwide. The report focuses on the reforms under each sub indicator/ area that has been implemented by the relevant authorities in Sri Lanka.

SAARC/IGEG.07/26  

1. Sri Lanka Country Profile and Economic Outlook Sri Lanka is an island located 29 kilometers from the Southeastern tip of India and is positioned across several major maritime trading routes between Asia and the Middle East, Europe, Africa and Australia. The population of Sri Lanka was estimated to be around 20.3 million in 2012. Colombo, located on the western coast of the island, is the commercial capital and the largest city in Sri Lanka. During 1960s,Sri Lanka managed to make the transition from a rural economy with a dominant agricultural sector to one in which the industry and services sectors have become the engines of economic growth. Sri Lanka was also the first country in the SAARC region to liberalize its economy in 1977. Since then successive governments focused on implementing economic policies encouraging growth driven by the private sector while the Government facilitating economic activities. However, from the 1980s a slowdown in economic activities occurred due to the political uncertainty prevailing in the country as a result of the nearly three decades of civil war. Nevertheless, May 2009 marked a new chapter in the history of Sri Lanka with the end of the war, restoring peace in the economy. The country recorded impressive performance during the post war period.

The

economic growth rose to 8 .0% in 2010 and 8.3% in 2011 indicating the peace dividend. This is the first time in Sri Lanka’s history that economic growth was of 8.0% and over in two consecutive years. However, economic growth moderated to 6.4 % in 2012 largely on account of a slowdown in the recovery of the global economy which affected the external sector. All key sectors contributed to this growth recorded in post war period with special mention of the performance of the industry sub sector that contributed most to the expansion of the economy mainly due to the acceleration in the construction sub sector. Sri Lanka graduated to a lower middle income country status in 2008. The per capita income increased progressively to US $ 2,923 in 2012 from US $ 2,014 in 2008. The consumer price inflation which remained double digit level during the pre-war era, improved to single digit for a fourth consecutive year. The year-on-year inflation, as

SAARC/IGEG.07/26   measured by the Colombo Consumers Price Index (CCPI) (2006/07=100) recorded 9.2% in December 2012 while the annual average rate of inflation stood at 7.6% in December 2012. The declining trend observed in the unemployment rate over the past few years continued in 2012 recording the all-time lowest unemployment rate of 4%. The balance of payment (BOP) position strengthened during post war period due to improvement in the trade and current accounts and an increase in long term inflows to the capital and financial accounts including proceeds from the international sovereign bonds, foreign direct inflows and other inflows to the banks and the private sector. Official reserves increased from US$ 3 billion level to a range of US$ 6 to 7 billion equivalent to about 4.5 months of import coverage thereby reducing the country’s vulnerability to external shocks. Greater flexibility in determining the exchange rate was allowed by the CBSL limiting its intervention in the domestic foreign exchange market. The government introduced a fiscal consolidation programme under which succeeded in reducing the budget deficit from 9.9% of Goss Domestic Product (GDP) in 2009 to 6.4% of GDP in 2012, in line with this, the debt to GDP ratio also declined to 7.9%, contradicting the declining trend observed during the recent past. The CBSL used the monetary policy appropriately during post war period to contain rapid expansion in monetary aggregates and thereby preserving the macroeconomic stability of the country. The Sri Lankan economy is expected to continue its momentum by continuing in a high growth path largely reaping the benefits from improved infrastructure facilities and favourable macroeconomic conditions. Envisaged medium term growth targets of US$ 4000 by 2016 can be achieved through encouraging private sector to utilize the investments made by the government to improve infrastructure facilities in order to support the expansions in productive capacity. Attracting foreign direct investment to the country can be realized through maintaining consistent policies and a conducive business environment that would result in sustaining the projected growth momentum.

SAARC/IGEG.07/26  

2. About Doing Business and Doing Business in Sri Lanka The Doing Business Project was launched by the World Bank Group with the intention of providing an objective basis for understanding and improving the regulatory environment for businesses around the world. “Doing Business in 2004” the first report published covered 5 indicator sets compared across 133 countries. The latest report published, covers following 10 indicator sets1compared across 185 countries. 1. starting a business 2. dealing with construction permits 3. getting electricity 4. registering property 5. getting credit 6. protecting investors 7. paying taxes 8. trading across borders 9. enforcing contracts 10. resolving insolvency. Governments committed to enhancing the economic health of their country and opportunities for its citizens, pay attention to improving the laws, regulations and institutional arrangements that shape daily economic activity. Over the years this initiative has benefited from feedback from governments, academics, practioners and reviewers. The Central Bank of Sri Lanka (CBSL) under the guidance of the Ministry of Economic Development (MED) has been engaged in an exercise since 2009 to improve Sri Lanka’s Doing Business environment and country’s relative international ranking position substantially in order to successfully attract foreign and local investment. This report highlights the collective effort made by the relevant government institutions together with the MED and CBSL in the form of main reforms implemented that have contributed towards improving Sri Lanka’s Dong Business Ranking over the years.                                                              1

There were only 9 indicator sets till 2011

SAARC/IGEG.07/26   Sri Lanka has emerged as one of the ten economies in the world that are improving the most in the Ease of Doing Business ranking, according to the latest global survey conducted by the World Bank and the IFC. Climbing eight places from 89th to be ranked at the 81st place, for the first time in 7 years, and became the second most improved economy in 2012 according to the report titled “Doing Business 2013: Smarter Regulations for Small and Medium-Size enterprises”. This report also state that the pace of implementing regulatory reforms has remained steady over the past year in South Asia, and Sri Lanka and Bhutan were the most active in this area. Below tables depicts Sri Lanka’s performance in the SAARC region based on the latest information.

Country

DB 2013 Ranking Overall Rank

South Asia Rank

Sri Lanka

81

1

Maldives

95

2

Pakistan

107

3

Nepal

108

4

Bangladesh

129

5

India

132

6

Bhutan

148

7

Afghanistan

168

8

SAARC/IGEG.07/26  

2.1 Starting a Business Sri Lanka ranks very strong in starting a

What is measured?

business sub indicator, both globally and

Doing Business measures the ease of

regionally. Reforms implemented during

starting a business in an economy by

2007 and 2012 mainly contributed to this

recording all the procedures officially

significant improvement in ranking.

required by an entrepreneur to start

Sri Lanka ranks 33rd in terms of ease of starting a business, climbing up from last year’s position of 71. In absolute terms it has become easier when compared to the past to open a new business in Sri Lanka.

up and operate an industrial or commercial business as well as the time and cost required to complete these procedures. It also records the paid

in

companies

minimum must

capital deposit

that before

registration.

There is no minimum capital requirement that companies need to comply with prior to registration. A new start-up business needs to go through only 5 procedures which takes 7 days and costs approximately 500$ in Sri Lanka. Meanwhile when compared to other selected countries in the region, such as Maldives, Bangladesh, Pakistan, Nepal and India, Sri Lanka is well ahead of the South Asia Regional Average, performing better as Maldives having a rank of 63 while India is having a rank of 173. The main reform which enabled Sri Lanka to reduce the number of procedures and the start-up time is by introducing a new Companies Act which eliminated burdensome approvals and introduced a flat registration fee by the authority responsible for registering companies in Sri Lanka.

Also, Company seals and notaries were made

optional, thereby reducing the number of procedures from 8 to 5, and the time for startup from 50 days to 39 days. In 2012, Sri Lanka computerized and expedited the process of obtaining registration numbers with the social security agencies.

Particularly, it

expedited the process of obtaining registration numbers with the Employees Provident Fund and Employees Trust Fund, which reduced the time by 29 days.

SAARC/IGEG.07/26  

2.2 Dealing with Construction Permits Dealing with construction permits in Sri

What is measured?

Lanka continues to be cumbersome and

Doing

time consuming. It takes 17 procedures,

procedures, time and cost for a

216 days and approximately 930$ to fulfill

business to obtain all the necessary

the permit and licensing requirements for

approvals

building of a warehouse. Sri Lanka ranks

commercial

at 112, lower than most of its South Asian

economy’s

neighbors except India which ranks 182.

connect it to basic utilities such as

The countries that are doing better in this

electricity,

area in the region are Maldives which

telecommunication

ranks at 19, Bangladesh which ranks at

register the property so that it can be

83 and Nepal which ranks at 97. It is

used as collateral or transferred to

evident from the information available,

another entity.

Business

to

measures

build warehouse

largest water,

a

the

simple in

the

business

city,

sewerage, services

and

that it is necessary for Sri Lanka to prioritize a strategy to reduce the steps and time taken to develop a warehouse for improving the business environment. Instead of having to visit the municipality and utilities on separate occasions, an entrepreneur should be having access to a one stop shop, where representatives from the municipality and the utilities are located in a single location. Many economies in the world have opted to adopt this concept to prevent overlap in their respective roles and improve efficiencies.

Sri Lanka can also improve the performance of this sub

indicator by reducing the time taken by the municipality to issue a development permit and certificate of conformity. This can be achieved through simplifying the internal procedures of the municipality and introduction of information technology infrastructure. Sri Lanka is expected to see improvements in this sub indicator which would affect the country’s Doing Business Ranking 2014 as the relevant municipality of Sri Lanka have implemented two reforms (i) eliminating the procedure of checking for tax arrears which will reduce the total procedures to 16 and (ii) cancelling the levy of 1% service charge of the estimated average cost for developments which will reduce the overall cost.

SAARC/IGEG.07/26  

2.3 Getting Electricity Getting electricity in Sri Lanka has been

What is measured?

observed consuming.

as It

approximately

both

costly

and

time

Doing

132

days

and

procedures required to obtain a

to

fulfill

the

takes 1257$

Business

permanent

measures

electricity

all

connection

requirements to obtain an electricity

and

connection. However, progress has been

warehouse, as well as the time and

made as it takes less or equal number of

cost

procedures (04) when compared to the

procedures include applications and

other countries in the region to obtain a

contracts

connection. In comparison to most of its

clearances from other agencies and

South Asian neighbors such as India,

the external and final connection

Maldives and Pakistan, Sri Lanka’s rank of

works. It is assumed that it’s a new

103 is marginally positive except for

construction being done for the first

Nepal which ranks 96.

time.

supply to

for

a

complete with

standardized them.

electricity

These utilities,

Sri Lanka is expecting to make significant strides in this sub indicator in the Doing Business Ranking for 2014 as the electricity utility has been able to implement three main reforms that are (i) improving process efficiencies within the utility by introducing an electronic document management system to streamline its internal workflows (ii) making information on the application, list of documents to be submitted, connection fees and cost more readily available to the customers in the website which has reduced the time taken by the customer to complete the application and (iii) increasing the number of staff and resources to conduct site inspections enabling faster turnaround of those inspections.

Further, in view of lessening the burden of

security deposits, the electricity utility in Sri Lanka provides electricity to the customer on 2 months credit. It is expected that these improvements made during 2012/2013 will support Sri Lanka to reduce time taken for external site inspection and provide cost estimates to the customer by 30 days that will assist to improve its relative ranking in this sub indicator and become the best performer in the South Asian region at the latest ranking.

SAARC/IGEG.07/26  

2.4 Registering Property Sri Lanka ranks 143 in terms of registering

What is measured?

a property placing below the upper half

Doing

of South Asian countries. It requires 8

sequence of procedures necessary

different procedures and takes 60 days

for a business to purchase property

while the registration cost around 5% of

from another business and transfer

the

the property title to the buyer’s name.

property

value.

No

reforms

to

property registration have taken place for several years until 2012.

The

Business

measures

transaction

is

the

full

considered

complete when it is opposable to

When comparing the performance of

third parties and when the buyer can

the other countries in the region, Nepal is

use the property, use as collateral for

the front runner having a rank of 21 in this

a bank loan or resell it. It is assumed

sub indicator while India and Pakistan

that the land is registered at the land

having places at the 94th and 126th

registry and free of title disputes.

,respectively. In 2012, after several years, Sri Lanka was able to improve the this sub indicator from the rank of 164 to 143 by introducing an electronic system at the Colombo Land Registry to accelerate the search time of registered deeds. This electronic system available in the official website of the Registrar Generals Department provide up-to-date information relating to deed registration on real time basis to the general public. Sri Lanka will have to look at learning from better practices in other countries that may provide ways to cut procedures, time and costs.

In Sri Lanka, land records are

predominantly paper based. These records remain under the relevant land registries island wide. Computerization of land records will make it easier for the relevant land registrars to verify the ownership, register the transaction and transfer the property title. Beyond property registration, it is necessary to look at problems that are associated with land titling.

All levels of government need to work together to implement land

registration reforms that will enable access to clearly titled lands, clarify rights of the landowners, demarcate borders and ownership which ultimately help to boost the property market in Sri Lanka and improve the business environment.

SAARC/IGEG.07/26  

2.5 Getting Credit Sri Lanka ranks 70 in terms of getting

What is measured?

credit which places behind India and on

Doing Business assess the sharing of

par

Nepal.

credit information and the legal rights

Bangladesh and Maldives rank lower

of borrowers and lenders with respect

than Sri Lanka and the South Asian

to secured transactions through two

average is recorded at 96.

sets of indicators. The depth of credit

with

Pakistan

and

According to the latest ranking, Sri Lanka has a score of 5 out of 10 on the strength of the legal right index and has a score of 5 out of 6 on the depth of credit information index.

These scores have

been achieved through the reforms implemented by the Credit information Bureau

(CRIB),

a

public

private

partnership between the Central Bank of Sri Lanka and all commercial banks.

information index measures rules and practices affecting the coverage, scope and accessibility of credit information

available

through

a

public credit bureau. The strength of the

legal

right

whether

certain

facilitate

lending

index

measures

features exist

within

that the

applicable collateral and bankruptcy laws.

Over the last few years several reforms implemented by the CRIB have resulted in improving the environment for getting credit in Sri Lanka. Such as setting up an online system for banks to update information and obtain credit reports. With it, the CRIB started collecting all loans from financial institutions, contributing to increase in coverage. Sri Lanka also started distributing more historical credit information: 2 years of defaults’ information and 5 years of positive information.

Under Sri Lanka’s new

Companies Act, which came in to force in May 2007, secured creditors claims are no longer frozen when the company goes into liquidation. Creditor’s rights are therefore positively strengthened as there are no delays in retrieving their monies. In 2010, Sri Lanka strengthened access to credit information with a new system consolidating process at the CRIB allowing credit data to be submitted by all shareholder lending institutions without any reporting threshold. The volume of registry data has grown by 10 folds compared to the same period in 2007. By 2012, the secured transaction system was strengthened by establishing an electronic, searchable collateral registry and issuing regulations for its operations.

SAARC/IGEG.07/26  

2.6 Protecting Investors The ranking of Sri Lanka on protecting

What is measured?

investor indicator is relatively moderate. It

Doing Business measures the strength

ranks

behind

of minority shareholder protection

Bangladesh and Pakistan and on par

against directors’ use of corporate

with India.

assets

49

worldwide,

places

Nepal, Maldives and the

South Asian average remain at 82. According to the latest ranking, the performance across the main three sub indices is mixed. Sri Lanka has a score of 6 out of 10 on the extent of disclosure index, a score of 5 out of 10 on extent of director liability index and has a score of 7 out of 10 on ease of shareholder suit index.

for

dealing. three

personal

gain

or

self

The indicators distinguish dimensions

of

investor

protection: transparency of related party

transactions

disclosure

index)

(extent

liability

of

of self

dealing (extent of director liability index) and shareholders’ ability to sue officers and directors for misconduct (ease of shareholder suit index). It is assumed that the buyer is a

Except in 2012, no major reforms have

publicly traded corporation listed in

been made in this particular area during

the stock exchange and has board of

last few years.

directors

was

The main reform which

implemented

was

strengthening

investor protection by requiring greater

and

a

chief

executive

officer who may legally act on behalf of the buyer.

corporate disclosure in case of transactions between interested parties in order to improve disclosure and governance for related party transactions. Sri Lanka

should focus on improving investor protection that will strengthen investors’

trust in the domestic market by providing greater transparency in companies’ operations and providing means of redress for any misconduct.

SAARC/IGEG.07/26  

2.7 Paying Taxes Sri Lanka ranks very weak in paying taxes

What is measured?

sub

Doing Business measures the taxes

indicator,

both

globally

and

regionally.

and mandatory contributions that a

Sri Lanka ranks 169 in the world and well below all the South Asian countries where Maldives is the front runner in the region

having

a

rank

of

57

while

medium size company must pay in a given

year

as

well

as

the

administrative burden of paying taxes and

contributions. It

uses

set

of

Pakistan’s position is relatively closer to Sri

financial statements and assumptions

Lanka having a rank of 162.

about transactions made over the

Businesses

must

payments

per

make year

61

and

different

spend

an

average of 254 hours per year to comply with taxes in Sri Lanka.

year. Information is also compiled on the frequency of filing and payments as well as the time taken to comply with tax laws.

In 2012, Sri Lanka made paying taxes less costly for business enterprises by abolishing the turnover tax and social security contribution and reducing corporate income tax, value added tax and national building tax rates. These improvements paved the way for the country to improve its individual ranking to its current position of 169 from the previous ranking of 175. During 2012/2013, the authorities responsible for administering the social security contribution in Sri Lanka, the Departments of Labour and the Employees’ Provident Fund was instrumental in amending the relevant legal Act making it mandatory for all employers who are having more than 50 employees to submit their social security contribution and member details to the relevant authorities through the newly introduced electronic return system.

The introduction of an electronic system is

expected to reduce the payment numbers and the number of hours which will enable to overall reduce the payment numbers to 50 and hours to 158. Simplification of Sri Lanka’s tax system by consolidating major taxes and eliminating minor taxes will result in further reduction of payment numbers. Sri Lanka should strive to make further implementation of reforms to improve its relative position in this area.

SAARC/IGEG.07/26  

2.8 Trading Across Borders Sri Lanka ranks 56 on the ease of trading

What is measured?

across borders indicator among 185

Doing Business measures the time and

economies.

cost (excluding tariffs and the time

In

comparison

to

its

neighbors, Sri Lanka performs relatively

and

well by leading in this indicator in the

associated

region but much progress could still be

importing

made.

goods by sea transport, and the

Exporting a full container load from Sri

number of documents necessary to

Lanka would take 20 days, 6 mandatory

complete transactions. The indicator

documents mandatory and cost 720$.

covers procedural requirements such

Similarly, it would consume 19 days, 6

as documentation requirements and

mandatory documents and cost 775$ to

procedures at customs and other

import standard goods to Sri Lanka.

regulatory agencies as well as the

During last few years, Sri Lanka has made several reforms initiated by relevant government institutions that has enable

port.

the

cost

They

for

with standard

also

sea

transport)

exporting

and

shipment

cover

of

logistics,

including the time and the cost of inland transport to the largest city.

to steadily improve its relative ranking and stay ahead in the South Asian Region. The major reform that was implemented in 2006 was introducing a new electronic system that enabled electronic submission and processing of customs declarations and shippers cargo manifest.

This system was complemented by signing the Electronic

Transactions Act legally recognizing the creation of an exchange of data messages, electronic documents and contracts.

These provisions lead to invoices, bill of

exchange, packing list and other supportive trade documents being accepted by customs in electronic form. In 2012, Sri Lanka was able to reduce the time taken to export by implementing the ASYCUDA World electronic data interchange system that allowed web based submission of customs declaration and making payments online.

SAARC/IGEG.07/26  

2.9 Enforcing Contracts Sri Lanka ranks 133 on the ease enforcing

What is measured?

contracts

Doing

indicator

among

185

economies. It takes 1,318 days and 40 different procedures to enforce a commercial contract in Sri Lanka and 22.8% of the value of the claim.

Business

measures

the

efficiency of the judicial system in resolving

a

commercial

before local courts. step

by

step

dispute

Following the

evolution

of

a

standardized case study, it collects data relating to the time, cost and

In comparison to most of its South Asian

procedural complexity of resolving a

neighbors such as India, Bangladesh,

commercial lawsuit.

Pakistan and Nepal, Sri Lanka’s rank of 133 are marginally positive except for Maldives which ranks 92.

The main obstacle

blocking faster enforcement of contracts in Sri Lanka is its lengthy procedures. Streamlining of this area can commence with reforming the appeal process in Sri Lanka. At present, at ever point of the trial, the appeals on procedural matters are allowed which has been taken as an advantage by the defendants to delay the enforcement of law. Therefore, Sri Lanka can follow other nations that have implemented reforms in this area and look at ways of implementing same domestically. So far, Sri Lanka has not been able to implement any reforms in this sub area of the Doing Business Indicator.

SAARC/IGEG.07/26  

2.10 Resolving Insolvency Sri Lanka ranks 51 in terms of resolving

What is measured?

insolvency

Doing Business studies the time, cost

which

places

behind

Maldives and ahead of Pakistan, India,

and

Bangladesh and Nepal.

proceedings

The South

Asian average is recorded at 103. When a firm is become insolvent in Sri

outcome

of

of

insolvency

individuals

financial institutions.

and

The ranking on

the ease of resolving insolvency is

Lanka, the average creditor receives

based on the recovery rate, which is

around 44 cents on the dollar. It takes

recorded as cents on the dollars

1.7 years and costs about 10% of the

recouped

estate value to go through bankruptcy.

reorganization, liquidation or debt

So far, Sri Lanka has not been able to implement any reforms in this sub area of the Doing Business Indicator.

by

enforcement

creditors

through

(foreclosure)

proceedings. The recovery rate is a function of time, cost and other factors such as lending rate and likelihood of the company continuing to operate.

SAARC/IGEG.07/26  

3. Matrix of SAARC Countries Vs. Sub Sectors

Economy

Starting a Business

Dealing with Construction Permits

Getting Electricity

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Resolving Insolvency

Sri Lanka

Ease of Doing Business Rank 81

33

112

103

143

70

49

169

56

133

51

Maldives

95

63

19

120

151

167

82

57

138

92

41

Pakistan

107

98

105

171

126

70

32

162

85

155

78

Nepal

108

105

97

96

21

70

82

114

171

137

121

Bangladesh

129

95

83

185

175

83

25

97

119

182

119

India

132

173

182

105

94

23

49

152

127

184

116

Bhutan

148

94

124

136

85

129

150

71

172

37

185

Afghanistan

168

28

164

110

174

154

185

94

178

164

115

SAARC/IGEG.07/26  

4. Sri Lanka Doing Business in Future In the short to medium term, implementation of following reforms is in progress in view of improving Sri Lanka performance on the ease of Doing Business Ranking.  Starting a Business – introducing an online registration system to register new businesses and setting up a one stop shop with interlinked systems connecting the Departments of Inland Revenue and Labour with the Department of Company Registrar.  Dealing with Construction Permits – introducing electronic office management systems to streamline internal workflows at the municipality and the telephone utility provider which would reduce the time taken to issue relevant licenses.  Registering Property – amending the relevant legal Acts making it mandatory to register a deed within one week and thereby reducing the current provisions available for deed registration within two weeks.  Getting Credit – CRIB in collaboration with IFC is in the process of examining the

Secured Transactions Act to propose amendments that will improve the Legal Rights Index.  Trading Across Borders – in the process of establishing a single window for traders

linking all government agencies involving in the export and import clearing process. The ports authority is in the process of improving port infrastructure to cater to the increasing demand of port related activities. The Central Bank aims to focus more on improving enforcing contracts and resolving insolvency sub indicators in the Doing Business ranking as these areas have been largely untapped to date but which has great potential to improve the relative ranking of Sri Lanka together with the above stated reforms in the pipeline.

SAARC/IGEG.07/26  

5. References 1. Doing Business in South Asia 2007, World Bank Publication 2. Doing Business 2008, World Bank Publication 3. Doing Business in Small Island Developing States 2008, Copublication of the

World Bank and International Finance Corporation 4. Doing Business 2009, Copublication of the World Bank and International

Finance Corporation 5. Doing Business 2010, Copublication of Palgrave Macmillan, the World Bank

and International Finance Corporation 6. Doing Business in Pakistan 2010, Copublication of the World Bank and

International Finance Corporation 7. Doing Business 2011, “Making a Difference for Entrepreneurs”, Copublication of the World Bank and International Finance Corporation 8. Doing Business 2012, “ Doing Business in a More Transparent World”, Copublication of the World Bank and International Finance Corporation 9. Doing Business 2013, “Smarter Regulations for Small and Medium Size Enterprises”, Copublication of the World Bank and International Finance Corporation 10. Doing Business in Italy 2013, “Smarter Regulations for Small and Medium Size Enterprises”, Copublication of the World Bank and International Finance Corporation 11. Doing Business: Sri Lanka 2013, “Smarter Regulations for Small and Medium Size Enterprises”, Copublication of the World Bank and International Finance Corporation