Ease of Doing Business in Lanka

Sri Lanka's rank in the Ease of Doing Business Index 2009 has gone up one point from 103 in 2008 to 102 in 2009.

The Doing Business Report published by the World Bank, International Finance Corporation and Palgrave Macmillan investigates the regulations that enhance and constrain business activities in 181 countries. Doing Business 2009 is the sixth in the series.

The report measures 10 stages of the life of a business; starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across orders, enforcing contracts and closing a business.

According to the report during the period under review, the only positive reform that has taken place in Sri Lanka is in "getting credit". The report indicates that the reforms are most needed.

Sri Lanka's position and details of ranking under each category are as follows:-

Starting Business: Rank 29. To start a business it has to follow four procedures, takes 38 days, incurs 7.1 (% of income per capita) cost and minimal capital requirement (% of income per capita) is 0.

Dealing with construction permits: Rank 161. It has to follow 21 procedures, takes 214 days and incurs 1,486.5 (% of income per capita) cost.

Employing workers: Rank 110. Difficulty of hiring index (0-100) 0, Rigidity of hours index (0-100) 20, Difficulty of firing index (0-100) 60, Rigidity of employment index (0-100) 27 and firing cost (weeks of salary) -169.

Registering property: Rank 141. It has to follow eight procedures, takes 83 days and costs 5.1% of property value.

Getting credit: Rank 68. Strength of legal rights index (0-10) 4, Depth of credit information index (0-6) 5, Public registry coverage (% of adults) 0, private bureau coverage (% of adults) 8.7.

Protecting investors: Rank 70, Extent of disclosure index (0-10) 4, Extent of director liability index (0-10) 5, Ease of shareholder suits index (0-10) 7, Strength of investor protection index (0-10) 5.3.

Paying taxes: Rank 164. Payments (number per year) 62, Time (hours per year) 256, Total tax rate (% of profit) 63.7.

Trading across borders: Rank 66. Documents to export (number) 8, time to export (days) 21, Cost of export (US$ per container) 865, Documents to import (number) 6, Time to import (days) 20, Cost to import (US$ per container) 895.

Enforcing contracts: Rank 135, Procedures (number) 40, Time (days) 1,318, Cost (% of claim) 22.8.

Closing a business: Rank 43. Time (years) 1.7, Cost (% of estate) 5, Recovery rate (cents on the dollar) 43.4.

GW