Sri Lanka is a middle-income country having a strategic location in Indian Ocean shipping lanes which gives regional logistical advantage. As envisaged in the government’s policy statement “Vistas of Prosperity and Splendor”, government’s economic goal is to position Sri Lanka as an export oriented economic hub at the center of the Indian Ocean by improving trade logistics, attracting Foreign Direct Investments and boosting firms’ abilities to compete in global markets. The Government of Sri Lanka (GoSL) has recognized the need to foster private sector growth and export-orientation of the economy as a key element to attaining the overcharging objective of becoming an upper-middle-income economy.

In 2017, the Government of Sri Lanka articulated a Roadmap for investment climate reforms in the areas covered by the World Bank Group (WBG) Doing Business report with technical assistance from the WBG. The roadmap highlights recommended actions to be undertaken with key milestones and responsibilities across inter-agencies, appointment of taskforces covering each thematic area and provides recommendations on the organizational setup to coordinate and monitor the reform process.

Status of EoDBI Programme in Sri Lanka-

https://www.doingbusiness.org/content/dam/doingBusiness/country/s/sri-lanka/LKA.pdf

During the period from 2011 to 2013 the EoDBI position of Sri Lanka reported for 89,83, and 85 respectively. However, during the period beginning from 2014 up to 2018 the rank for investment climate deteriorated continuously due to various reasons. Again in 2019 the EoDBI rank changed to a positive trend.

In May 2017, the Investment Climate Roadmap received the approval of the Cabinet of Ministers providing highest level endorsement to implement the Doing Business Reform Program in Sri Lanka. Accordingly, the then Ministry of Development Strategies and International Trade (MoDSIT) was tasked with coordinating and monitoring the reform program including establishment of an Investment Climate Secretariat at the Ministry.

Along with the administrative change in the Government in 2020, the task of spear heading the Doing Business Program was reassigned to the State Ministry of Money & Capital Market and State Enterprise Reforms under the Ministry of Finance ensuring a similar setup which existed prior to the Government change. A Steering Committee headed by the Hon. State Minister and as members, the Ministry’s Secretary, Ministry’s Director General and Chairmen of task forces representing each thematic area composed the high-level reform implementation progress assessment mechanism including unblocking issues and bottlenecks paving the way to proceed with reforms implementation. Individual task forces are headed by the respective Chairmen and comprised of members coming under the relevant agencies who are entrusted with the technical level implementation of reforms.

Operational Framework of DBI Programme

Task Forces for Implementation of DBI Programme

Starting a Business	Dealing with Construction Permits	Getting Electricity
Responsible Agencies 1. Registrar of Companies 2. Department of Inland Revenue 3. Department of Labor 4. Central Bank of Sri Lanka 5. Export Development Board 6. Industrial Development Board 7. Ministry of Public Service, Provincial Councils and Local Government 8. Chamber of Commerce 9. Information and Technology Communication Agency	Responsible Agencies 1. Urban Development Authority 2. Ministry of Public Service, Provincial Councils, and Local Government 3. Colombo Municipal Council 4. Information and Technology Communication Agency 5. National Water Supply & Drainage Board 6. Institute of Engineers, Sri Lanka 7. Sri Lanka Institute of Architects 8. National Construction Association of Sri Lanka	Responsible Agencies 1. Ceylon Electricity Board 2. Colombo Municipal Council 3. Ministry of Power Renewable Energy 4. Sri Lanka Institute of Architects 5. Public Utilities Commission of Sri Lanka 6. Lanka Electricity Company (Pvt) Ltd
Registering Property	Getting Credit	Protecting Minority Investors
Responsible Agencies 1. Registrar General’s Department 2. Ministry of Lands 3. Ministry of Industries 4. District Secretariat, Colombo 5. Survey Department of Sri Lanka 6. Department of Valuation 7. Colombo Municipal Council 8. Divisional Secretariat, Colombo 9. Information and Technology Communication Agency 10. Department of Revenue, Western Provincial Council	Responsible Agencies 1. Credit Information Bureau 2. Central Bank of Sri Lanka 3. The Financial Ombudsman Sri Lanka 4. Commercial bank of Sri Lanka 5. Bank of Ceylon 6. Ministry of Consumer Affairs Authority 7. Department of Motor Traffic 8. Department of Registrar of Companies	Responsible Agencies 1. Colombo Stock Exchange 2. Security and Exchange Commission of Sri Lanka 3. Ministry of Finance 4. Department of Registrar of Companies
Paying Taxes	Trading Across Borders	Enforcing Contracts
Responsible Agencies 1. Inland Revenue Department 2. Sri Lanka Customs 3. Central Bank of Ceylon 4. Department of Labor 5. Ceylon Chamber of Commerce 6. Department of Commerce of Sri Lanka 7. Tax Appeal Commission 8. Employees’ Provident Fund 9. Employees’ Trust Fund Board 10. Department of Trade Investment Policy	Responsible Agencies 1. Sri Lanka Customs 2. Department of Commerce of Sri Lanka 3. Department of Trade Investment Policy 4. Department of Imports & Exports Control 5. Department of Exchange Control 6. Ministry of Health 7. Department of Agriculture 8. Sri Lanka Standards Institution 9. National Intellectual Property Office 10. Sri Lanka Ports Authority 11. Airport & Aviation Services Sri Lanka (Pvt) Ltd 12. Sri Lanka Export Development Board 13. Ceylon Chamber of Commerce	Responsible Agencies 1. Ministry of Justice 2. Board of Investment (BOI) 3. Ministry of Finance 4. Ministry of Industry & Commerce 5. Judicial Service Commission 6. Attorney General’s Department 7. Legal Draftsman Department
Resolving Insolvency
Responsible Agency 1. Ministry of Justice 2. Board of Investment (BOI) 3. Ministry of Finance 4. Ministry of Industry & Commerce 5. Judicial Service Commission 6. Attorney General’s Department 7. Legal Draftsman Department

The State Ministry coordinated all government agencies relevant to doing business programme and completed doing business data submission for EoDBI-2022 based on the corresponding period of May 2020 to April 2021 on 28 th May 2021 through the online link provided by the doing business team. Altogether 24 reforms covering seven regulatory areas were submitted by the State Ministry on behalf of Sri Lankan Government. Though COVID-19 pandemic situation caused disruption to the economy as well as to the investment climate promotion activities, the State Ministry set a short-term plan to move up the EoDBI as much as possible in 2022 and has planned to upgrade its position within 60-70 among 190 world economies by 2025 as a mid-term target.

Ministry of Finance, Economic Stabilization & National Policies

State Ministry of Money & Capital Market and Enterprise Reforms

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