Positive outlook of Sri Lanka’s economy has carried over from July through August
Daily FT: “The positive outlook of the economy has carried over from July through August and to September; and we observe a decrease once more (from 73% to 67%) of respondents to the LMD-NielsenIQ Business Confidence Index (BCI) survey carried out in the first week of September that anticipate a deterioration in the next 12 months,” said LMD, in its October edition.
The magazine added: “It’s also heartening to note a substantial increase (from 12% to 22%) in businesspeople who expect an improvement in the economy. On the flip side however, the Department of Census and Statistics (DCS) recently reported that GDP growth contracted by a whopping 8.4% in the second quarter of this year, following the 1.6% downturn in the first three months of 2022.”
“The country continues to struggle to reach equilibrium in its effort to return to its former state of affairs. Further restrictions on imports of goods and raw materials, as well as the increase in value added tax (VAT) from 12% to 15% is wreaking havoc for many enterprises,” said NielsenIQ Director Consumer Insights Therica Miyanadeniya.
As for sales volumes, however, last month’s optimism has waned somewhat, LMD reported: “Only a third of businesspeople (compared with 43% in August) anticipate an improvement in sales volumes in the 12 months ahead.”
Three in 10 businesspeople polled in September said that their company’s sales volumes will ‘stay the same,’ up from 18 % in the previous month.
Media Services, LMD’s publisher, said the latest edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.
The magazine has broken new ground with its Cover Story by launching LMD’s ‘Refresh Sri Lanka’ campaign, which centres on an initiative to build a model nation through civic-mindedness in society.
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 challenges posed by the pandemic and ensuing economic challenges. The country’s private sector has posted growth and profits despite challenging economic conditions while several key economic sectors have posted a steady growth rate. Sri Lanka is also working on becoming an emerging business destination in the South Asian region and the country’s geographical positioning in the Indian Ocean and the strong trade ties have also helped Sri Lanka’s economic expansion. Given the growth and business potential in the country, foreign businesses/investors could confidently explore the growing business/investment opportunities in Sri Lanka.
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