"...Sri Lanka implemented the most reforms of any of the eight economies in South Asia, helping to create a better environment for entrepreneurs," World Bank and IFC said in a statement releasing the Doing Business 2012: Doing Business in a More Transparent World.
Sri Lanka had abolished a turnover tax, a 'social security', reduced rates on corporate income tax, a valued added tax and a 'nation building tax'.
Investor protection had been increased by the greater corporate disclosure on transactions between related parties.
To move up in the rankings a state has to constantly reform and make it easier for citizens to engage in economic activities ahead of other countries who are giving their citizens more freedoms to fulfil their aspirations and create value.
Sri Lanka's has adopted a conscious strategy to moving up in doing business rankings.
Elsewhere in South Asia, the Maldives remained the best place to do business at 79, slipping one place.
Pakistan slipped to 105 fro