Sept 05, Colombo: After falling in ranking last year Sri Lanka has made a slight improvement in this year's ranking in the Global Competitiveness Index (GCI) 2013/2014 which was released Wednesday (04) by the World Economic Forum.
Sri Lanka ranked at 65th place among 148 countries climbing three notches up from last year with a score of 4.2 out of 7. However the score remained the same as last year.
Sri Lanka's ranking in the Global Competitiveness Index 2013/14 released yesterday showed that the macroeconomic stability is the weakest indicator along with labor market efficiency.
The performance of a country was measured on 12 indicators (Pillars) in three categories. Institutions, Infrastructure, Macroeconomic environment and Health and primary education were included in the Basic requirements for which Sri Lanka ranked 77 overall out of the 148 countries surveyed.
In the Efficiency Enhancers category which included the Higher Education and Training, Goods Market Efficiency, Labor Market Efficiency, Financial Market Development, Technological Readiness and the Market Size, the island nation earned the 69th place.
In the Innovation and Sophistication Factors which includes Business sophistication and Innovation Sri Lanka was at the 42nd place.
Sri Lanka which is included in the category of economies in transition from the Factor-driven Stage 1 to Efficiency-Driven Stage 2, ranked better than the average for the Economies in Transition from 1 to 2 except in the Macroeconomic environment and Labor market efficiency.
The most problematic factors for doing business with Sri Lanka were the access to financing, tax rates, poor work ethic in national labor force policy instability and inefficient government bureaucracy.
Sri Lanka, which has gained 19 ranks since 2006, is the only SAARC country that has made gains in the global competiveness. India which ranks five notches above Sri Lanka at 60th rank this year has lost 15 places since 2006. Pakistan, the second largest country in South Asia, has slumped 28positions over the 2006-2013 period, the fourth biggest decline out of all economies.
Switzerland retained its 1st place position again this year as a result of its continuing strong performance across the board and Singapore ranked second for the third consecutive year. After having declined for four consecutive years in the ranking, the United States rose two positions to take 5th place this year.
The Institute of Policy Studies of Sri Lanka (IPS) was the Sri Lankan Partner Institute in conducting the Executive Opinion Survey for building the GCI rankings.