How To Investing In Sri Lanka
Sri Lanka is listed as a country with lower middle income and a developing economy. The nation has so far concentrated on the industrial and utility sectors. The government is now restructuring to expand the Sri Lankan economy in order to promote a stable economy that is reflected in the recent growth rates of all key sectors, including tourism.
The government has prioritized a private-sector, trade, and foreign direct investment driven economic model. In addition to fiscal reform that has also seen changes in the budget deficit, a new Inland Revenue Act has been enacted by the government, resulting in revamped tax thresholds and a three-tiered tax system. The new budget also makes room for listed foreign-owned corporations to have less limitations on land ownership rights.
The government of Sri Lanka aims to transform the country in the coming years by establishing 5 strategic hubs – a information center, a financial hub, a naval and maritime hub, an aviation hub, and an energy hub – all of which would promote and enable more economic growth. A main area of development for Sri Lanka is the tourism market. The country’s National Export Strategy 2018 – 2022 aims to focus on six sectors including wellness tourism, leading to new opportunities and future prospects for growth for the tourism sector.
By 2020, Sri Lanka plans to improve its business climate ranking on the World Bank’s Ease of Doing Business Index, which will be among the world’s top 70 countries. Sri Lanka is officially ranked 64th overall in the 2017 Report of the World Economic Forum, out of 136 nations. It ranks 20th in productivity, which reflects the time and expense of complying with regulations. To achieve our goal of providing a sustainable and efficient economic atmosphere, the government, backed by the World Bank, has established a ‘Roadmap for Investment Climate Reforms’ that focuses on areas needing additional assistance. Eight fields have been listed for development, and prioritized.They include: I building permits, ii) property registration, iii) credit acquisition, iv) protection of minority investors, v) cross-border trading, vi) contract enforcement, and vii) insolvency resolution.
Sri Lankan government has also started to introduce new legislative reforms and regulatory / procedural changes to help improve the overall business climate. For example: stamp duties have been removed from newly issued shares, company registration is in the process of being streamlined, and both the Sri Lankan Tourism Development Authority (SLTDA) and the Investment Board (BOI) have established One Stop Units with re-engineered investment approval processes to reduce investor requirements, timeframes for development, and project implementation costs for Sr.