Business confidence in Sri Lanka holds firm amidst multiple crises notes Business Confidence Index
Daily FT: “Biz sentiment holds firm amid the rubble of multiple crises and a state of paralysis,” notes LMD, in its February edition.
It added: “Despite the bleak outlook, the outcome of the latest LMD-Nielsen Business Confidence Index (BCI) survey paints an ever so slightly more positive picture – so much so that the index is now at a nine-month high.”
LMD reports that the BCI nudged up by three basis points from December, to register 122 in January. The index now stands at where it stood a year ago and is a healthy 14 points above its 12-month average of 108, it adds.
NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya pointed out in the magazine that: “While the business confidence index has increased slightly, this sentiment is not shared by the general public as the Consumer Confidence Index (CCI) has dropped to an all-time low of 25.”
Miyanadeniya attributes the slight improvement in sentiment to “businesses formulating new strategies to salvage and improve on whatever has been lost due to the pandemic in 2021.”
Meanwhile, a spokesperson for LMD asserted: “The corporate community may well be taking a longer-term view of the macro scenario, but until there is a revival of the economy and an easing of the restrictions that the forex crisis has brought about, there is a limit to what degree such resilience can hold.”
OSL take:
Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the challenges posed by the global Covid 19 pandemic. While many key economic sectors showed a growth despite the pandemic, many private sector entities also recorded a steady growth and profits. All these are indicative of the overall strength and growth of the country’s economy. Given Sri Lanka’s ongoing development programme and the positioning of the country as an emerging business destination in the South Asian region have helped boost Sri Lanka’s business/investment opportunities. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have also added to Sri Lanka’s attraction as a growing business hub. With the country’s economy treading a growth path, foreign businesses/investors could explore the growing opportunities in Sri Lanka while also looking at setting up base in the island to engage with other countries in the region.
| Article Code : | VBS/AT/14022022/Z_2 |