Dilrook Kannangara

Best evidence of the economic disaster of the Yamapalanaya regime can be seen from the steady collapse of Sri Lanka’s position in Ease of Doing Business Index.

Sri Lanka continues to slip down in Ease of Doing Business Index. In 2017 for the first time India has surpassed Sri Lanka! This will have dire consequences as foreign investors will prefer India to Sri Lanka.

Sri Lanka’s ranking is slipping down by the year.

2013 – 81 (highest ever achieved)

2014 – 89

2015 – 99

2016 – 107

2017 – 111

At this rate it will be down to 120 next year. This is accompanied by a steady decrease in Foreign Direct Investments, investor confidence and foreign reserves. If the new constitution or 13 Plus is passed by parliament, things will turn worse as different provinces will have different restrictions particularly based on ethnicity, religion and political views. Chinese investments will be barred in the northern and central provinces while Israeli investments will be blocked in the east. Certain food items and industries engaged in them will be curtailed in certain provinces and extremist practices will force investors fleeing some provinces badly in need of foreign investments.

Given the shrinking of the Sri Lankan economy, 2018 will most likely have a recession. This will be the first recession in 17 years. The last recession was in 2001.