Business Reforms in Sri Lanka
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: Sri Lanka made starting a business easier by removing the stamp duty on newly issued shares.
Protecting Minority Investors: Sri Lanka strengthened minority investor protections by requiring board and in some cases shareholder approval of related-party transactions and by requiring that such transactions undergo external review.
Starting a Business: Sri Lanka made starting a business easier by eliminating the requirement to notify the Registrar of Companies of the payment of stamp duty for the initial issuance of shares.
Dealing with Construction Permits: Sri Lanka made dealing with construction permits less time-consuming by streamlining the internal review process for building permit applications.
Paying Taxes: Sri Lanka made paying taxes more costly for companies by increasing the reduced corporate income tax rate for qualifying small and medium-size enterprises.
Dealing with Construction Permits: Sri Lanka made dealing with construction permits easier by eliminating the requirement to obtain a tax clearance and by reducing building permit fees.
Getting Electricity: Sri Lanka made getting electricity easier by improving the utility’s internal workflow and by reducing the time required to process new applications for connections.
Paying Taxes: Sri Lanka made paying taxes easier for companies by introducing an electronic filing system for social security contributions.
Trading across Borders: Sri Lanka made trading across borders easier by introducing an electronic payment system for port services.
Starting a Business: Sri Lanka made starting a business easier by computerizing and expediting the process of obtaining a registration number for the Employees Provident Fund and Employees Trust Fund.
Registering Property: Sri Lanka made registering property faster by introducing an electronic system at the Land Registry in Colombo.
Getting Credit: Sri Lanka strengthened its secured transactions system by establishing an electronic, searchable collateral registry and issuing regulations for its operation.
Trading across Borders: Sri Lanka reduced the time to export by implementing the ASYCUDA World electronic data interchange system.
Protecting Minority Investors: Sri Lanka strengthened investor protections by requiring greater corporate disclosure in case of transactions between interested parties.
Paying Taxes: Sri Lanka made paying taxes less costly for businesses by abolishing the turnover tax and social security contribution and by reducing corporate income tax, value added tax and national building tax rates.
Dealing with Construction Permits: Sri Lanka made dealing with construction permits more difficult by increasing some fees and adding a procedure.
Getting Credit: Sri Lanka improved access to credit information through a consolidation of systems at the private credit bureau allowing all shareholder lending institutions to submit credit data, with no minimum threshhold for the loans to be reported to the database.
Getting Credit: Sri Lanka improved access to credit by strengthening its secured transactions system through its new company act, under which secured creditors’ claims are no longer frozen when the company goes into liquidation and by setting up an online system for banks to share credit information at the private credit bureau, collecting data on all loans from financial institutions and distributing historical credit information covering a longer period.
Starting a Business: Sri Lanka made starting a business easier by eliminating burdensome requirements for approvals, introducing a flat registration fee and making company seals and the use of notaries optional.
Getting Credit: In Sri Lanka the private credit bureau increased the minimum threshold for loans on which negative information is distributed from 100,000 Sri Lanka rupees to 500,000.
Trading across Borders: Sri Lanka made trading across borders easier by introducing a new electronic data interchange system that enables electronic submission and processing of customs declarations and cargo manifests and by providing for legal recognition of electronic documents and contracts.