Sri Lanka has been given the 97th place among the 184 countries rated as the freest to carry out business in. According to the rating done by the premier Washington-based think tank Heritage Foundation and the Wall Street Journal, Sri Lanka’s economic freedom score is 58.3, which is 1.2 points higher than last year, reflecting solid gains in trade freedom, monetary freedom, and business freedom.

So far as South Asian nations are concerned, Sri Lanka with its score point at 58.3 is ahead of Bangladesh (53.2), Bhutan (56.6), Pakistan (54.7), and India (54.6).

The Sri Lankan economy continues to progress toward greater economic freedom, registering significant score gains in the past two years. Notable changes have been implemented in key areas. Regulatory efficiency has been considerably enhanced through establishment of a streamlined business formation process and simplification of licensing requirements. Non-tariff barriers are relatively low, statutory tariff rates have been reduced, and many import surcharges have been eliminated, the report adds.

Heritage Foundation further states that, ‘Nevertheless, challenges to economic freedom in Sri Lanka are considerable, particularly in strengthening the fundamentals. Property rights are undermined by an inefficient judicial system that remains susceptible to substantial corruption and political influence. The heavy state presence in the economy continues to hamper private-sector development.’