Advocata commends the launch of E-registry for businesses
ECONOMYNEXT – Advocata is commending the decision taken by the Department of Census and Statistics (DCS) to launch an e-registry portal to register unregistered and registered businesses in Sri Lanka.
In a press release issued on Friday, August 21, the think tank called on Cabinet to support this reform and said it “looks forward to the fruition of this proposal.”
It said that this “will allow thousands of Sri Lankan entrepreneurs, unregistered micro, small and medium businesses to formalize their ventures.”
Registration will help gain access to formal sources of finance, the most serious problem faced by small businesses in Sri Lanka, the release said.
“Research carried out by the Advocata Institute identifies a significant array of regulatory barriers that discourage or hinder micro and small enterprises. An all-island survey carried out during the course of our research identifies access to finance as a critical problem,” Advocata said.
The further analysis identifies the complexity of the business registration process and related regulation as a barrier to registration.
According to the DCS, 45% of micro-enterprises and 10% of small enterprises remain unregistered in Sri Lanka, even though sole proprietorships account for 63.1% of all businesses in the country, and account for 27.1% of national employment.
Advocata Institute’s report titled “Barriers to Micro and Small Enterprises in Sri Lanka” which can be accessed on https://www.advocata.org/, provides a comprehensive analysis of the problems faced by these businesses.
Implementing policies that incentivize the registration of businesses would be a step towards achieving the government’s vision of empowering entrepreneurs and creating a vibrant national ecosystem for businesses, the release added. (Colombo, August 22, 2020)
Reported by Arjuna Ranawana