Sri Lanka has been eager to promote investments into its fleetly developing frugality, and this is apparent in the several changes it has made to its programs to produce a more favourable investment climate. Then we will look at the reforms that have been enforced over the times that make it easier for original entrepreneurs to start a business in Sri Lanka while also encouraging foreign investors to enter the request.
Registering a business
In 2007, the Sri Lankan government began to simplify the process of starting a business. It espoused a new Companies Act that excluded the need for the delicate process of carrying several blessings from colourful officers and introduced a standard enrollment figure. It also made it a voluntary choice for companies to gain notaries and sanctioned company seals in order to start business operations. This was taken a step further in 2013 when the government computerized its Hand Provident Fund and Employee Trust Fund systems, which made the process of carrying the applicable enrollment figures much briskly.
In 2009, the private credit office of Sri Lanka set up a system for banks to modernize information and gain credit reports online. This allowed the private credit office to collect loan details from all fiscal institutions, adding their content. The new Companies Act established in 2007 also strengthened creditors’ rights by precluding the claims of secured creditors from getting firmed when the company goes into liquidation. This prevents any detention in creditors reacquiring their plutocrat. With a new system connection process introduced in 2010, the government strengthened access to credit information, which saw a massive increase in the registry data that was collected. Following this, in 2013, an electronic collateral registry was established along with rules for its operation, which further strengthened its secured deals system.
In 2012, Sri Lanka reduced the quantum of levies applied to businesses by rescinding the development duty and social security donation. The government also reduced rates on commercial income duty, value-added duty and nation erecting duty. An electronic form system is to be enforced in 2014, which will make it much easier for companies to handle their duty payments.
A new EDI system was enforced in 2006 to allow customs affirmations and weight manifests to be electronically submitted and reused. In addition to this, an Electronic Deals Act was legislated to allow trade documents similar to checks, quilting lists, and bills of exchange to be submitted to customs in electronic form. In 2013, the ASYCUDA World Electronic Data Exchange system was enforced to reduce import times. An electronic payment system for harborage services was also enforced to cross-border grease trade.
In 2012, Sri Lanka strengthened its protection of investors by taking an advanced position of commercial exposure for deals between interested parties. An electronic system was enforced at the Land Registry of Colombo in 2013 to speed up property enrollments. Carrying construction permits was also made easier as erecting permit freights were reduced, and the need for duty concurrence was excluded. The process of carrying an electricity force was also bettered by restructuring the mileage’s internal workflow to reduce the time taken in recycling new operations.