The benefits of registering your business in Sri Lanka

Sri Lanka is a small island nation located to the south of India in Asia. Known as the pearl of the Indian Ocean, this country is truly the perfect place for you to set up your business. Currently, Sri Lanka has the following statistics in terms of its economy:

• Sri Lanka has a GDP of $88.223 billion, which ranks it as number 63 out of 180 countries.
• Sri Lanka has a per capita GDP of $4,067, ranking it as number 112 out of 180 countries.
• Sri Lanka’s human development index is 0.770. This means Sri Lanka has a high standard of living.
• In terms on unemployment, Sri Lanka’s value is low. At only 4.4%, this number has neither increased nor decreased.

Now that we have had a look at the economic statistics of Sri Lanka, we see that it is a rapidly growing economy. As such, the government of Sri Lanka actively encourages new foreign investment. This means, many provisions are offered to foreign business startups. Moreover, the process towards registering your company is very simple. In fact, you may even register your business online!

If you are still on the fence about registering your business in Sri Lanka, take a look below. We’ve compiled a list of the benefits of choosing Sri Lanka to register your business.

The list of benefits to registering your business in Sri Lanka

Ease of communication

Sri Lanka has three official languages- Sinhala, English and Tamil. Thus, as a foreign national, communication won’t be a problem. In fact, all official proceedings are conducted in all three languages.

Moreover, English is the main language used for international business. This means even if you have to import material, you won’t have an issue. While it is still advisable for you to learn the other two languages, it is not a requirement.

Variety

Variety is the spice of life. And Sri Lanka is full of both variety and spice. From its chilly upcountry terrain in Nuwara Eliya to sandy beaches in Galle, Sri Lanka is full of different climates. This means you are spoilt for choice when it comes to an area to set up. Moreover, with these different natural terrains, Sri Lanka is a tourist hotspot. Meaning that you will always have new customer flowing in.

Rapidly growing economy

Over past two decades, Sri Lanka has seen a rapid growth in its economy. In fact, Sri Lanka was labelled as one of the fasted growing economies of south Asia. Thus, to maintain this growth, the government has implemented methods to ease the process of business registration. As such, by registering your business in Sri Lanka, you can also reap the benefits of this growth.

The locals are friendly

A point one rarely thinks of when caught up in business planning is how the local population is. Fortunately, in Sri Lanka, the local people are friendly and welcoming to new faces. This is due to Sri Lanka having a very ethnically and racially diverse population. From Sinhalese Buddhists to Tamil Hindus, Sri Lanka has maintained cultural peace for several years.

There are several gaps in the market

As Sri Lanka is still a growing economy, the current market still has many gaps to fill. These include several industries- from entertainment to design, the Sri Lankan market is still looking for more businesses. Thus, as a new business owner, you can exploit this gap to your favour. By being a pioneer in a lacking industry, you will find yourself with more customers than you will ever need.

The registration is easy

As mentioned before, to boost the economy, the government has made the registration process very simple. Thus, you may even register your company online on their website. Moreover, registration fees are minimal and you do not require a large initial capital investment.

Minimum wage is low

The minimum wage of Sri Lanka currently stands at LKR 12,500. Which is quite affordable for new employers to pay their new hires. However, do remember that this is subject to change depending on the skill levels required. Moreover, it is always best to use the minimum wage as just a guideline. If your wages are higher than minimum wage, you are guaranteed employee satisfaction. This in turn, will boost the quality of your business.

Rent is affordable

Whether you choose to operate online via a virtual office or are renting a physical space, the cost can be minimal. This is as rent prices vary greatly from city to city. Moreover, because of all the new business start ups recently, there are now several offers and spaces for business owners.

Advertising can be easy

Finally, the biggest benefit is that advertising in Sri Lanka can be very easy. From social media to local newspapers, advertising fees are minimal. And are a fraction of the cost in comparison to the profit returns you will make. Additionally, Sri Lanka now has a very large blogging community. Thus, for a small fee, you may pay bloggers to use and review your product. Statistics show that customers are more likely to trust a blogger or social media influencer over newspaper advertisements. Thus, you won’t ever be in a shortage of advertising methods.