Country comparison overview: India and Sri Lanka

India Sri Lanka borders

NASA World Wind screenshot of India Sri Lanka borders

India and Sri Lanka are two countries located in South Asia. India ranges over a massive area of 3,287,263 km2, and is the second-most populous country in the world after China. Sri Lanka, on the other hand is an island country located to the South of India, and possesses a humbler area of land of approximately 65,610 km2. For many centuries, the country has been known as the Pearl of the Indian Ocean for its beautiful scenery.

Being neighbour countries and having a shared history, India and Sri Lanka have many similarities. Both are democratic countries and were once British colony in the past. English are recognized and widely used in both countries for education, scientific and commercial purposes. The countries are categorized in the low middle income group. In addition, both India and Sri Lanka house some of the most talented cricket players in the world.

However, as a large country, Indian economy presents more challenges compared to its neighbour. India has a GDP per capita of $1,820 while Sri Lanka’s GDP per capital is double that figure at $3,818. The most recent consensus shows that 21.9% of the Indian population is living under the poverty line, while only 8.9 % of Sri Lankan are. Both countries face problems of government transparency and income inequality.

In recent years, these countries have been actively working to encourage local and foreign business investments. Both are engaging in regulatory reforms to reduce red tape. The sectors with high potential for investments in India include Infrastructure, Electronics, Education, Food processing, Medical equipment, Pollution control, Textile machinery, Water and Sustainable energies. For Sri Lanka, the sectors with high potential are Tourism, Utilities, Infrastructure, IT, Marine services and Apparels.

The below comparison table compiled based on the World Economic Forums’ Global Competitive Report 2015/16 and the World Bank Group’s Doing Business Report 2016 might give you a brief overview about these two countries:

CategoryIndiaSri Lanka
Burden of Government regulation2764
Transparency of Government Policymaking5880
Wastefulness of Government spending5152
Co-operation in Labor-employer Relations8635
Reliance on Professional management8640
Pay and productivity4730
Quality of overall infrastructure7426
Quality of port infrastructure6058
Quality of Air Transport infrastructure7145
Efficiency of Legal Framework in Settling Disputes4226
Ease of Doing Business130107

Although Sri Lanka seems to place at higher rankings, it is important to keep in mind that India is a very large country. Therefore, each and every states in India will have its own advantages and disadvantages in doing business.

For more information on how to start and run your company in India or Sri Lanka, do not hesitate to contact us at +65 6735 0120 or email us at email[at]healyconsultants[dot]com.


Healy Consultants Group provides a wide range of corporate services across the world. Email or WhatsApp us now to find out more about our services.

2 thoughts on “Country comparison overview: India and Sri Lanka

Leave a Reply

Your email address will not be published. Required fields are marked *