Sri Lanka #89 Best Countries for Business-Forbes
Posted on December 19th, 2014
Sri Lanka is placed 89th out of 146 nations in the Forbes’ Best Countries for Business 2014 ranking, Forbes announced. India has been placed 93rd, behind countries like Mexico, Kazakhstan
The best country for business this year is Denmark, which ranked No. 1 three straight years between 2008 and 2010. The top10 includes also Hong Kong, New Zealand, Ireland, Sweden, Canada, Norway, Singapore and Switzerland.
At a Glance
- GDP Growth: 6.3%
- GDP/Capita: $6,500
- Trade Balance: -3.8%
- Population: 21.9M
- Public Debt As % of GDP: 78%
- Unemployment: 5.1%
- Inflation: 4.7%
Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government’s high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government’s fiscal deficit. However, low tax revenues are a major concern.
The 2008-09 global financial crisis and recession exposed Sri Lanka’s economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.
December 19th, 2014 at 1:26 pm
The only thing I would like to point out is why would Hong Kong rank in the top 10 when doing business in Hong Kong is doing business with Beijing and Beijing along with China is one of the most corrupt nations around. But it does make sense that Singapore be ranked in that top 10 listing.
December 19th, 2014 at 1:40 pm
Bernard,
Hong Kong although under China, is a special region and not corrupt like Sir Lanka.
Ranking in fact reflects how difficult to do business in Sri Lanka without political connections. This is well known. Fooled by GDP growth and developments, my ex-company (Singapore Piling) went there , burnt and came back. They are not the only one. This is 100% pure TRUTH. Hope will be allowed.