Business Tips

PROBLEMS AND BARRIERS

  • Complicated trade regulations and strict regulations over imported goods.
  • Small and medium size companies are less familiarized with the western standard in accounting systems.
  • De-stuffing, and delays at the cargo due to equipment shortages.
  • Tax regulations are considered as a huge barrier in doing business in Sri Lanka. Tax rates in Sri Lanka are significantly higher compared to the neighboring countries. (World Economic Forum)
  • High cost of electricity supply
  • Lack of transparency, corruption and Political   Partiality Sector Within the business.
  • The capital, Colombo is the central hub for commercial purposes while other parts of the country are more agricultural trade based and Southern parts are tourism oriented.
  • Difficulty of tapping the economic opportunities in the Northern parts of the country due to 30 years of armed conflict in the areas and the destruction that the war has caused.
  • Inaction and inefficiency of public officials
  • Lack of clear political direction and the uncertainties in the economy.

Source: UK Trade & Investment Doing business in Sri Lanka
Http://www.ft.lk/2012/11/05/doing-business-in-sri-lanka-theres-a-long-way-. to-go /