Sri Lanka is not so hot to do business, says a World Bank study

Sri Lanka might spend millions marketing itself as a paradise destination but a recent World Bank study finds that as a place to do business in, the island is no heaven. Sri Lanka might spend millions marketing itself as a paradise destination but a recent World Bank study finds that as a place to do business in, the island is no heaven. The World Bank’s latest ‘Doing Business in 2005’ – a yearly report that ranks countries on investment friendliness – lumped Sri Lanka with Bhutan and Nepal in the third best quartile as an overall business destination.

The a report, compiled by the World Bank and International Finance Corporation, analyses regulations in 145 countries from Albania to Zimbabwe for the ease of doing business.

Out of the 58 countries that made changes to its business environment, only three were in South Asia – India, Pakistan, and Bangladesh – and India still came in at the bottom.

The report finds that although South Asian countries are rich in human resources, labour costs are high due to heavy retrenchment expenses – in fact firing is most expensive in this part of the world.

On average it takes 86 weeks of wages in severance, pena