Sri Lanka steps up drive to ease doing business

Sri Lanka’s newly established National Business Facilitation Centre under the Presidential Secretariat plans to create a more conducive environment for doing business by removing regulatory and infrastructure bottlenecks faced by businesses, as the Government seeks to make it easier to invest, expand operations and create jobs as part of its broader economic transformation to spur growth.

Senior Additional Secretary to the President and head of the Centre, Seevali Arukgoda told Sunday Observer Business that the initiative is aimed at addressing practical obstacles faced by businesses.

“The National Business Facilitation Centre will serve as an intermediary between businesses and Government agencies, helping resolve difficulties involving land, utilities, permits, approvals and other regulatory requirements,” Arukgoda said.

The Centre was inaugurated in Colombo on Tuesday (22) following an initiative by President Anura Kumara Dissanayake to set up a single institution through which businesses can raise problems encountered when dealing with multiple Government agencies.

“The President wanted a single institution which would look into these issues and mediate with the other Government agencies and resolve them,” Arukgoda said.

He said the institution has been set up at a time when Sri Lanka is moving from economic stabilisation towards longer-term growth, with the Government seeking to increase private investment, productivity, exports and employment.

Speaking at the event, trade chamber representatives welcomed the Government initiative and said it was in line with the World Bank Group’s new Country Partnership Framework for Sri Lanka for 2026–2030.

The World Bank has placed job creation through private-sector-led growth at the centre of its support for the country. The framework calls for reforms to improve the business climate, facilitate trade and strengthen competitiveness, with the aim of supporting Sri Lanka’s ambition of achieving 7% economic growth.

According to the World Bank, simplifying Government regulations, modernising trade processes and expanding digital Government services can help attract investment and support Sri Lanka’s objective of doubling annual export earnings to US$36 billion by 2030.

Arukgoda said the new Centre will address practical obstacles that can delay investment and business expansion.

“When they want to secure utilities, land and other facilities, and also when requiring approvals and permits from various Government agencies, businesses can encounter delays,” he said.

The Centre will examine cases and seek solutions within the existing regulatory framework. Issues requiring changes to legislation or Government policy will be referred to a National Steering Committee headed by the Secretary to the President. Around 14 Government institutions are represented in the mechanism, including agencies responsible for electricity, customs, taxation and land administration. The Board of Investment is not part of the initial structure, as the Centre is primarily focused on domestic investment, while the BOI is responsible for facilitating foreign direct investment.

The Centre will operate through units covering land and utilities, finance and regulatory matters, administration and digitalisation, policy issues and business support.

Arukgoda said the initiative would eventually move beyond resolving business complaints and develop into a broader one-stop mechanism for investors and entrepreneurs. Under a second phase, prospective investors would be able to approach the Centre with a business proposal and receive assistance in navigating the process of obtaining land, utilities, financing and regulatory approvals.

“We will be there with them, guiding them in the correct path,” he said.

The wider objective is to reduce the time and cost involved in establishing and expanding businesses, thereby encouraging greater private-sector investment and creating new employment opportunities.

The World Bank has consequently placed improving the investment climate and strengthening competitiveness at the centre of its current support for Sri Lanka. In July, it approved US$150 million under its Reforms for Growth, Resilience and Openness Development Policy Operation, supporting reforms aimed at boosting investment, competitiveness and job creation.