Details description on Business opportunities in Sri Lanka: Sri Lanka is of 64,740 km2 approximately and located in the Indian Ocean. It is mainly a middle-income country and around 20.87 million citizens live in it. The country’s livelihood mainly depends on the agricultural sector and a service sector. The country has a very high literacy rate and many free trade options making the country more livable place to live in. The country is also good in maintaining international relationships with other countries and promote international business and globalization.
Sri Lanka is known for having a strong relationship with other countries of the world. It also initiated the Non-Aligned Movement thing can be produced in Sri Lanka so they need to get involved with international or foreign trade. International relationships are very important and are the first step in trading with foreign countries. Not ever If you re looking to invest in a country then Sri Lanka would be an ideal choice or you for their international relations. It has a large appeal and investors can enjoy the huge number of free trade agreements that are already followed with more agreements being made in the future.
Agreements include ETCA (Economic and Technology Co-operation agreement), a trade agreement with Pakistan, agreements with China and FTA with India. Sri Lanka also maintains double taxation avoidance agreements with many countries. This mainly benefits the entrepreneur and helps Sri Lanka to do business with the world.
Below are the main reasons behind investing or doing business in Sri Lanka & Business opportunities in Sri Lanka:
- FREE TRADE AGREEMENTS ON A GLOBAL LEVEL
Sri Lanka has a free trade agreement with both India and Pakistan which is another positive aspect of business opportunities in Sri Lanka. Sri Lanka has also signed a free trade agreement with Asian countries and countries like Singapore, Israel, Iran and Egypt. It is also planning to ta These FTA’s offer both existing and new entrepreneurs opportunities to trade harm international trade among countries. Anyone trading in this country trades indirectly with 25 per cent of the entire world population.
- LOCATION WHICH IS IDEAL FOR DOING BUSINESS OR BUSINESS OPPORTUNITIES IN SRI LANKA
Many country’s locations are not suitable for business. Some are located at geographically remote areas without any ports and some are very unsafe in term of the crime rate. Business opportunities in Sri Lanka are ideal because of its location. Sri Lanka happens to be situated at the cross streets of the major and critical delivery courses that associate with South Asia. Furthermore, 50 per cent of the container movement and 70 per cent of the worldwide vitality supplies happen to go through the Sri Lankan ocean drift. Sri Lanka’s geo-key area really makes it a perfect area for setting up activities and working together as it gives you the chance to enter more up to date markets and begin exchange by wandering out through transportation courses.
- BOOMING ECONOMY
Every country’s economy is a reflection of its business prospects. A good economy tells you that businesses run well I that economy. Sri Lanka’s economy and GDP gives a positive reflection on the business prospects. Another factor that makes Sri Lanka an ideal place for a business opportunity is its booming economy. Sri Lanka has its GDP growth for the last couple of years and that too at a steady rate. This means that economy has grown and so has GDP. This also means the country is producing more goods and services and is providing its business owners with more share of profit.
- ATTRACTIVE AND PRO BUSINESS ENVIRONMENT
Another positive aspect of business opportunities in Sri Lanka is its good environment for doing business. Sri Lanka has a very liberal economy that appreciates open-market trade policies and other trade policies that make it an ideal place or doing business. One more important aspect which makes business opportunities in Sri Lanka an ideal choice is in terms of ownership. All the international business owners who own business in Sri Lanka can enjoy 100% ownership of the business in Sri Lanka which is a big deal.
Sri Lanka has the most liberalized economy in South Asia. The government has initiated and signed up deregulation of business, privatization in a larger scale and an economy open to international competition. The country’s law is based on British law and follows a very strict and fair judicial system.
Sri Lanka also has a dynamic private sector of business. This sector can be used by foreign business owners as a means of the joint venture. Business has been made easier in Sri Lanka and all that an investor needs to do is come up with business ideas that are suitable in Sri Lanka and are feasible.
Sri Lanka also gives all the possible sorts of opportunities to business owners here for a better business. The government also included a number of facilities to support business.
Apart from this Sri Lanka also gives the following facility:
- The bilateral investment-protection agreement was signed with around 30 countries which help in a trade. Another business opportunities in Sri Lanka is the double-taxation avoidance agreements which have also been signed with around thirty countries.
- Sri Lanka also has a very food infrastructure and strategic framework which has transparency and this makes it ideal for investing in this country.
- GOVERNMENT POLICIES
The government needs to be friendly in terms of foreign investment. The strict law can only ruin and hamper business in a country. The government of Sri Lanka encourage business to grow and settle in Sri Lanka. The government has undertaken many policies from earlier decades that could sense foreign trade to easily access Sri Lanka. The government has constantly been working to make business opportunities in Sri Lanka keep growing. This may include lowering tariffs, quotas and increasing government subsidies and etc.
Below are the laws listed which help foreign direct investment to increase in Sri Lanka:
- Foreigners can own the entire business in most parts o the country.
- No confinements on repatriation of income, charges, capital, and on foreign exchanges identifying with current record installments.
- Foreign investment is safe and this shall be ensured by the government.
- There is transparent business laws and legal framework present in the country to support businesses.
- Bilateral investment protection and double taxation is signed with almost thirty countries around the world.
- EDUCATED WORKFORCE
Sri Lanka once had a literacy rate of 91.4% which was the highest in South Asia. This was als0o a high number in terms of other countries in the world. Both men and women in Sri Lanka are highly educated.
This high amount of education has made the workers more skilled and adaptive. Not only that but they are also aware of modern technologies needed while working.
Around 50% of the population is taught labour skills after education. English is spoken by almost everyone throughout the country.
Educated, skilled, aware employees are very common in Sri Lanka and can be hired with a competitive wage rate. The education has a huge impact on the Business opportunities in Sri Lanka.
- SOCIAL INFRASTRUCTURE
Sri Lanka has a good social infrastructure which also makes it an ideal place for business opportunity. The country has strict labour laws. The country strictly bans child labour and has a high literacy rate. The life expectancy here is also very high. The government has also invested largely in healthcare and works closely with UN to make lives better.
- LOCATION AND CONNECTIVITY
Sri Lanka is situated at the crossroads of major shipping routes connecting South Asia, Far East and the Pacific with The Americas and Europe. Sri Lanka is strategically located next to the fast-rising Indian sub-continent with close proximity to Southeast Asia and the Middle East. The country has strong air connectivity with over 100 weekly flights to India alone.
Sri Lanka is connected to the SEA-ME-WE III and IV (South East Asia – Middle East – Western Europe) fiber optic communication backbone with over 11 communication satellites orbiting overhead the south of the country.
- FAST DEVELOPING INFRASTRUCTURE
The country ’s government has initiated many programs for improving physical infrastructure development to enhance the country’s road, air, water and etc. Below are a few things that have been included:
The government has decided to make the country an ideal place for variation and naval facility hub in South Asia. The government has decided to work on ports and airports. Since this two ways trade can be made easier. thus, the government want to build airports at the best locations and wants to build ports for more convenient water trade.
The phase I of the initiative includes the Mahinda Rajapaksa Magampura Port which was introduced in the year November 2010. The port was designed or industrial purposes mainly and included cargo ships.
- INVESTMENT PROTECTION AND DOUBLE TAXATION
The country is one of the safest in terms of investing due to its law and order. Under Article 157 investment protection is ensured by law. The country has also signed many agreements including the Investment Protection Agreements (IPA) with many countries. The country also has signed a double taxation avoidance agreement with many countries as mentioned earlier.
- QUALITY OF LIFE
Another key point that made this country an ideal place to live in is its lifestyle. The country is open to new people with a new culture. Also, it is a great place to live in and a great place to work at. There are many places to visit in free time and many things to do as a means of recreation. Their social life is also very good and people are very friendly. You can find all sorts of accommodation here according to your budget. The country follows international standards in terms of living experiences. The healthcare of the country is also very good and hospitals are supported by good quality doctors and medical; instruments.