Reforms roar!

• Sri Lanka best in South Asia and in world’s top 10 for most number regulatory reforms in 1H, says IFC-WB report
• Country moves up in Doing Business 2013 ranking to 81 from 89 previously  despite widespread concerns over Revival Bill
  
   

A new IFC and World Bank report finds that from June 2011 to June 2012, Sri Lanka implemented the most regulatory reforms among the eight economies covered in South Asia, helping to create a better environment for local entrepreneurs.

The Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises released yesterday ranked Sri Lanka among the 10 economies globally that improved the most in the past year across three or more areas measured by the report.  IFC-World Bank said it marked the first time since 2005 that a South Asian economy has ranked so high.

Sri Lanka was also ranked 81 out of 185 economies as opposed to 89th position in the previous survey. IFC-WB said Sri Lanka launched a host of computerised systems that made it easier to open a business, register property, and export products through customs. It also strengthened its secured transactions system by publishing in the official gazette in August 2011 the regulations regarding the operation of the Secured Transactions Registry maintained by the Credit Information Bureau of Sri Lanka.

The report shows that Bangladesh and India also improved business regulations in the past year as measured by Doing Business. India made dealing with construction permits easier for firms by establishing strict time limits for preconstruction approvals. Bangladesh improved access to credit information by establishing an online platform for sharing such information.

“India stands out in the region as an economy that has consistently improved since 2005,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group.

+“After establishing its first credit bureau in 2004, India focused mostly on simplifying and reducing the cost of regulatory processes in key areas such as starting a business, paying taxes, and trading across borders.”

Globally, Singapore tops the ranking on the ease of doing business for the seventh consecutive year. Joining it on the list of the 10 economies with the most business-friendly regulation are Hong Kong SAR, China; New Zealand; the United States; Denmark; Norway; the United Kingdom; the Republic of Korea; Georgia; and Australia.

Doing Business analyses regulations that apply to an economy’s businesses during their lifecycle, including start-up and operations, trading across borders, paying taxes, and protecting investors. The aggregate ease of doing business rankings are based on 10 indicators and cover 185 economies.

Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labour force, or the resilience of financial systems.

Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 10th edition of the global Doing Business report series.

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.