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Tuesday Dec 24, 2024
Monday, 21 December 2015 00:00 - - {{hitsCtrl.values.hits}}
The prestigious Forbes magazine’s annual list of best countries for business has placed Sri Lanka 91st out of 144 nations including China (94) and India (97).
In the 2015 rankings, Denmark topped the list followed by New Zealand and Norway. Singapore is the only nation from Asia to figure in the top 10 with a place at number 8.
Two other South Asian nations, Pakistan and Bangladesh, were ranked 103rd and 121st respectively.
Based on 2014 data, Sri Lanka fared well in innovation, placed at 41, followed by market performance at 46. Sri Lanka fared worst in Monetary Freedom with a rank of 128.
Forbes said Sri Lanka continues to experience strong economic growth following the end of the country’s 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, but low tax revenues remain a 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.
