ECONOMYNEXT – Arton Capital, a Canadian-based financial consultancy that offers advice and services to improve mobility and draw foreign investors says Sri Lanka can boost the strength of its passport, and also draw investors through residency programs.
Sri Lanka ranks 84 on the Arton Capital Global Passport Power Ranking, along with Nigeria, Ethiopia and Iran. Sri Lanka requires visas for 143 countries, compared to 34 for Singapore and 19 for Dubai.
https://www.passportindex.org/byRank.php
Sri Lanka is 10 ranks above Syria, which is at the bottom at 94.
Weak Passports
“Sri Lanka is not visa free to Europe, to the UK, to Canada and the US,” Armand Arton, Founder and Chief Executive of Arton Capital, told Economy Next.
“It doesn’t rank in the top tier of passports. However, the power of the passport can be increased.”
“This is something that we assist many countries with, to achieve our shared goal.”
Pakistani passport holders require visa for 134 countries and Bangladesh passports require visa for 149 countries, both according to the ranking of Arton Capital.
The Global Passport Power Rank by Arton Capital sorts passports by their Mobility Score (MS), which includes visa-free, visa on arrival, eTA and eVisa if the country issues a visa in less than 3 working days.
The higher the MS score, the more global mobility its passport holder enjoys, its website says.
Sri Lanka has monetary instability due to an activist central banking involving cut rates by printing money, according to critics, resulting in exchange controls and frequent currency crises.
The country has heavy out migration, including through unofficial means, amid chronic monetary instability.
In South Asia, the Maldives has the least activist monetary authority, the strongest exchange rate peg in the region and it imports labour.
Arton ranks Maldives in the first place of welcoming countries. It has visa on arrival to 194 countries, a welcoming score of 198.
https://www.passportindex.org/country/maldives/
The United Arab Emirates, a stable country with a currency board like monetary system, is ranked number 01 on the Global Passport Power Rank. The UAE has Visa free entry to 134 countries and visa on arrival for 19 countries.
France, Germany and Italy, ranked in second place with visa requirements for 21 countries compared to UAE’s 19. Visa free access is available to 137 countries.
Advisory Services
Arton Capital says it advises governments and also tailors programs to attract investments by implementing investment migration programs, for investors seeking citizenship or residency opportunities.
Stable countries, especially those with low tax rates, can attract foreign investors through investment and residency schemes.
“We propose investing in citizenship and residency schemes for foreign investors, enabling them an extra citizenship in case of insecurity in their home country, to be able to relocate or to travel to a country like Sri Lanka, which their own initial passport does not allow them to do,” said Arton.
Sri Lanka however has no naturalisation process unlike Western liberal states.
Arton Capital offers residency and citizenship programs in over a dozen territories ranging from Quebec, Canada and the UK to St. Kitts and Nevis.
“A residence in Sri Lanka would be of interest for people who would like to set up residence, mainly if they would have a tax benefit in Sri Lanka, over settling in other countries,” Arton said.
But Sri Lanka may have to compete with nations like Singapore, Dubai and Hong Kong which have low tax rates.
Countries could also attract individuals for retirement residence.
“The same can be said for people who may want to relocate while on a retirement scheme, similar to those who flock to Thailand or Malaysia for residence after retirement,” Arton said.
Investment Residency
Louissa Thomas, Director and Vice President at Arton Capital says Sri Lankans could also benefit from the firm’s programs.
With Sri Lanka in a debt crisis, investment residency schemes could help the country get funding, she said.
Arton Capital says its work in territories like Montenegro and Saint Lucia have contributed to economic growth and infrastructure development.
The investor immigration program in Montenegro was aimed at directing capital to the North of the region, where there was very little investment and high unemployment.
Over the course of a four-year project, the region’s unemployment rate fell from 30 percent to 10 percent, Arton said.
“Four- and five-star hotels have now been set up in the North of the nation, which was once completely remote to investment,” he said.
Sri Lanka has potential in real estate and agriculture, as well the projects in Colombo Port City, Thomas said.
“From my observation of the agricultural sector, there’s a lack of access to the latest technology. I think that could be an avenue for the government to look at to direct funds into,” she said.
“If you take real estate, you could program it in a way where foreign investors could purchase real estate and get a residency or citizenship in Sri Lanka.
“For example, if a property developer has ideas for projects in Port City that they would like to bring to market, we could help them with that and structure their project as part of the country’s citizenship by investment program for foreign investors.”(Colombo/Feb14/2024)