India slips to 122nd rank in doing business in world

New Delhi, Sept 10 (UNI) India slipped two notches to 122nd rank, whereas Sri Lanka emerged South Asia's leading reformer of business regulation in the 'Doing Business Report 2009' prepared jointly by the International Finance Corporation and the World Bank.

In the report covering 181 nations of the world, India, which was ranked at the 120th position in the 2008 report, has now slipped below neighbours, including Nepal, Bangladesh and Pakistan.

The ranking, done on the basis of ease of doing business, has placed Nepal above India at 121st position, Bangladesh at 110th place and Pakistan at 77th place.

Pakistan,too, has slipped three notches from its 74th place in the 2008 report by IFC-World Bank's 6th report.

Singapore retained the first place in ranking, which is determined by ten indicators that provides quantitative measure of regulation for starting a business, getting credit, paying taxes, enforcing contracts and closing a business.

Sri Lanka (102nd rank) has emerged South Asia's leading reformer of business regulation. This top regional reformer has made it easier to obtain credit by strengthening the legal rights of creditors and enhancing the availability of credit information.

Under the new Companies Act in Sri Lanka, when a company goes into liquidation, the claims of its secured creditors are no longer frozen. Secured creditors now have the right during liquidation to seize or attach their collateral or appoint a receiver.

Sri Lanka also implemented an online system for uploading credit information. Now the Credit Information Bureau (CRIB) can collect data on all loans extended by its members.

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