Country · score from open sources
Sri Lanka
South Asia
HRI 38 of 100: higher means riskier. Calm ≤33, risky ≥56. Both rays measure risk: the longer the ray, the worse.
conflict, political instability, inflation
news sentiment for the country
Horizons & uncertainty
Central line = today's level. On 4,428 country-years, assuming no change proved about twice as accurate as extrapolating a trend, so we don't invent one. The band is the calibrated 80% range of historical outcomes; * = horizon not covered by the backtest. How we tested this →
What this means for entering
no blocking issues in the covered areasContract enforcement
Courts are uneven: timing and outcome are hard to predict. Build in an arbitration clause and payment security.
Why, and what to do about it →
Rule of law -0.26 on the WGI scale (−2.5 to +2.5), weak-courts threshold −0.8; worse than 55% of countries. Courts function, but timing and outcomes are volatile.
- An arbitration clause in every contract
- Payment security for large amounts: bank guarantee or letter of credit
- Staged payments instead of long credit terms
Deal economics: Not prohibitive, but long receivables need a provision for late payment.
Regulation & licensing
Middling regulatory environment: permits are obtainable but timelines slip. Add a buffer to the launch plan.
Why, and what to do about it →
Regulatory quality -0.30 on the WGI scale (−2.5 to +2.5), unpredictability threshold −0.8; worse than 58% of countries. Permits are obtainable, but timelines regularly slip.
- A buffer in the launch plan
- A pre-filing consultation with the regulator
- A licence list with actual, not stated, timelines
Deal economics: A one-quarter launch slip is a normal scenario here: check that year-one unit economics survive it.
Corruption exposure
Corruption is noticeable: route procurement and government dealings through transparent procedures.
Why, and what to do about it →
Control of corruption -0.38 on the WGI scale (−2.5 to +2.5), high-exposure threshold −0.8; worse than 60% of countries. Corruption shows up in procedures and intermediaries.
- Procurement and tenders only through transparent procedures
- Due diligence on intermediaries and agents before signing
- A second-signature rule on payments to state counterparties
Deal economics: The main hidden cost is not the bribe but the middleman: a fixer's commission always surfaces in the deal price.
Physical security
Localised armed incidents are recorded. Check whether they touch your regions of operation: the country is not uniform.
Why, and what to do about it →
Conflict intensity 40 of 100 on the UCDP log scale (active-violence threshold 45, watch threshold 20). This counts confirmed casualties over ~12 months, not news tone.
- Match the event map in the dossier against your regions of operation
- A travel policy with per-region risk tiers
- Re-assess quarterly: localised conflicts migrate
Deal economics: Costs depend on geography inside the country: a capital office and a border warehouse carry different risk profiles and insurance prices.
Pricing & currency
Deflation -4.8%: prices are falling and demand is deferred. Discounting stops working and customers' real debt burden grows. Be careful with credit terms.
Why, and what to do about it →
Deflation -4.8% a year (World Bank, CPI): a rare regime where buyers defer purchases and real debt burdens grow on their own.
- Careful with credit terms: the client's real debt grows by itself
- Do not build the strategy on discounts: they blend into the general price decline
- Short contracts with a re-opener clause
Deal economics: Margin compresses from the price side, not costs: test unit economics against a pessimistic price path.
Operational continuity
Medium disaster exposure: check seasonal hazards and logistics headroom.
Why, and what to do about it →
INFORM Risk 4.3 of 10 (medium band 3.5 to 6.5, EU JRC): hazard exposure 3.7, coping capacity 5.1 (higher is worse).
- Check seasonal hazards for your regions
- Logistics headroom for the peak season
Deal economics: Targeted property and cargo insurance usually covers the risk without heavy infrastructure.
Derived mechanically from the live values on this page using published scales (World Bank WGI −2.5…+2.5, INFORM 0–10, UCDP intensity). Operational guidance, not legal advice.
Why this verdict
What drives the risk
data- Conflict (UCDP)40
- Political instability (WGI)57
- Inflation10
- Travel advisories · soonn/a
Conflict data: UCDP/GED, Uppsala University (CC BY 4.0).
News background
dataGDELT global news tone. Neutral background.
Doing business: governance
WGI- Rule of law-0.26
- Regulatory quality-0.30
- Control of corruption-0.38
World Bank WGI, −2.5 to +2.5 (higher is better). Shown separately, not folded into HRI, because the weights aren't backtested.
Disasters & resilience
INFORM 2026- Hazard3.7
- Vulnerability4.1
- Lack of coping capacity5.1
INFORM Risk, European Commission JRC. A separate layer, deliberately not folded into HRI, which measures conflict, political instability and inflation.
Next steps
Once the data points to a market, the entry itself is a path, and we help with each step.
Scenario session (Custom Research)
A facilitated SWOT-style session with the School: your team's readiness and blind spots for this market.
How it works →Partners & leads on the ground
Once a market is chosen: vetted local partners and lead generation to enter without burning budget.
Talk to us →Market content & launch
Localized social and content for the new market, so the entry is visible from day one.
See how →🔒 Full access: 1 year, 3 years and 10 years
Long horizons, verdict-change alerts and briefs come with paid packages.
Arxterra is for information only and is not investment, legal, tax or any other advice, an offer or a recommendation. Scores are computed from the listed sources; we do not guarantee their accuracy or completeness. You make decisions yourself. Conflict data: UCDP/GED, Uppsala University (CC BY 4.0); governance & economy: World Bank; news: The GDELT Project.