Nov 15, 2007 (LBO) – A town south-east of the Sri Lankan capital Colombo has emerged as the surprising choice of companies as the best place to do business. A study conducted by the international organization Asia Foundation in Sri Lanka on private sector business development and economic growth, found that Horana, 60 km from Colombo, had the best enabling environment for private enterprise.
The Economic Governance Index (EGI) surveyed around 5,000 firms from 48 municipal councils from all over Sri Lanka to ascertain the impediments and stimuli for private enterprise.
The EGI indicated Horana ranked highest in the overall index as having the most conducive environment for small and medium scale businesses.
It was also ranked the area with the best tax administration.
The EGI was derived after studying ten areas concerning private businesses.
Among these, the poor attitude of the government towards business was considered as the major constraint for growth of businesses by 21 percent of the firms.
Furthermore, access to land and buildings was mentioned as the second biggest constraint by 17 percent.
The survey indicated th