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Red Tape Tax

The survey selected 200 medium and large-scale businesses operating in Colombo and Kurunagela to identify major regulatory impediments affecting economic development in the country.
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rnrnAccording to the survey, a business loan on average takes 56 days to process and nearly 2 percent of the loan value is spent fulfilling the regulatory requirements of the loan.

rnrnThe study reveals that start up costs are enormous for businesses in Sri Lanka, with almost Rs. 300,000 spent on initial regulatory requirements and Rs.

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150,000 annually for registration renewals etc.

rnrnRegulatory time costs have been also identified as a major deterrent for businesses in the survey. Land acquisition, building approval and environmental clearance takes at least one month each on average.

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rnrnNearly 60 percent of the responding businessmen believe that these delays are due to lack of co-ordination between public offices and strict adherence to old fashioned FR (Finance Regulations) and AR (Administration Regulations).


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