Sri Lanka’s business confidence at five-year high
Daily FT: In its January edition, business magazine LMD notes that “the election of a new government has ignited a surge of optimism and speculation about the country’s economic future.”
“Against a backdrop of prolonged economic turbulence, the government’s pledge of change has struck a chord with a business community that’s eager for both stability and growth,” it adds.
LMD reports that in December, the LMD-PEPPERCUBE Business Confidence Index (BCI) surged by 20 basis points to reach 174 (up from 154 in the preceding month). “This marks its highest point since January 2020 – which ironically, followed the November 2019 presidential election – and a high for 2024,” it observes.
A spokesperson for the magazine notes that this is the fourth month that the barometer crossed into triple digits last year.
She adds: “The index stands 51 points above its historical average of 123. And it is 65 points higher than its 12-month average of 109.”
Meanwhile, PepperCube Consultants says in the magazine that “sentiment surrounding the economy remains consistent with the results prior to the general election, though optimism about sales volumes in both the short and longer term has improved since then.”
OSL take:
Sri Lanka’s economy is on a growth path with an expansion in overall economic activities and interest shown by foreign businesses/investors to explore the growing business/investment opportunities in the country. The increasing business confidence in Sri Lanka also indicates the growing business potential in the country. Sri Lanka has positioned itself as an emerging business destination in the South Asian region with the support of the country’s positioning in the Indian Ocean and the strong trade ties enjoyed by the country with many foreign countries. The Sri Lankan government is also attracting more foreign investors to the country with many incentive schemes on offer for foreign businesses/investors exploring opportunities in the country. The overall expansion of Sri Lanka’s private sector and the growth and profits recorded by them have also added to Sri Lanka’s attraction as a growing business destination in the region. Given all these developments, foreign businesses/investors could explore the growing business/investment opportunities in Sri Lanka while also looking at forming partnerships or joint ventures with local businesses with the aim of further expanding operations locally as well as internationally.
Article Code : | VBS/AT/20250121/Z_3 |