Converting Sri Lanka into a commercial hub in Asia:an assessment of postwar progress with insights to the way forward

Abstract

The Government of Sri Lanka (GoSL) has embarked on a development agenda based on the Mahinda Chintanaya with the objective of converting the country to a Naval, Aviation, Commercial, Energy and Knowledge hub in Asia. In keeping with this objective, in the recent years, the GoSL has invested heavily in developing the required infrastructure and the improvement of information and communication technology. Available information illustrate that SL has made steady progress in trading across border which encompasses converting the country into a naval, aviation and commercial hub. Indices that are used to compare performance of countries show that Sri Lanka has progressed quite well. In the Global Competiveness Index (GCI) there was a marked increase in 2012-2013 with a GCI of 52 out of 142 and a score of 4.3 out of 7. Sri Lanka has posted positive indicators in doing business across borders. In 2007, Sri Lanka was ranked 99 out of 185 countries and by 2013 the country has improved in its rank to 56. In the Logistics Performance Index (LPI) published by the World Bank in 2010, Sri Lanka was ranked a dismal 137 out 155 countries. By 2012 the rank has improved to 81. Also the United Nations Development Program (UNDP) has identified Sri Lanka as an early achiever on 10 of the 21 indicators of the Millennium Development Goals. However, it is apparent that this progress can be further accelerated through reforms in the regulations & legal framework concerning the three areas, systems and procedures and the improvement of infrastructure, ICT functionalities and HR competencies.