Business Confidence Index shows Sri Lanka’s business confidence continuing to hold firm
Daily FT: “Sri Lanka’s sole barometer of business confidence edged up to above where it stood a year ago despite ominous signs that the economic crisis is unlikely to abate anytime soon,” says LMD, in its forthcoming March edition.
It explains: “The BCI (Business Confidence Index) edged up by two basis points from the previous month to register 124 in February, which represents a 10-month high. This means that the unique index is four notches higher than a year ago and a healthy 15 points above its 12-month average of 109.”
This is the third month in succession that the barometer has headed north, despite the state of the economy, the forex crisis, ongoing shortages of essentials and an on-off power scenario, the leading business magazine observes.
NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya says in LMD: “In spite of rising COVID-19 cases, life seems to go on. Businesses and the people are learning to live with virus, it seems; and the fear that it commanded in the past has diminished.”
A spokesperson for LMD states: “Businesspeople may continue to adopt a longer-term perspective if there’s a resolution to the forex crunch in sight – and for that to materialise, there are increasing calls for debt restructuring measures to be adopted.”
“A solution to the power crisis and the impact of the war in Ukraine will also weigh on the minds of corporates in the shorter term,” he adds.
Despite facing many challenges, especially challenges posed by the global Covid 19 pandemic, Sri Lanka’s economy has shown great resilience and is once again back on the path to growth. Many economic sectors in the country have shown a positive growth even amidst the pandemic. Also, many companies in the country’s private sector recorded a steady growth and profits despite pandemic challenges. All these have helped increase business confidence in Sri Lanka. The ongoing development programme and the positioning of the country as an emerging business destination in the South Asian region have also helped expand business/investment opportunities in Sri Lanka. The country’s geographical positioning in the Indian Ocean, the many trade agreements as well as concessions enjoyed by the country and the ease of doing business have further added to Sri Lanka’s attraction as a growing business destination.
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