Sri Lanka’s Business Confidence Index shows increase of 13 basis points in October.
Daily FT: The exclusive LMD-NielsenIQ Business Confidence Index (BCI) provides a semblance of relief; it has climbed a heartening 13 basis points to 89 in October, from September’s 76, the business magazine LMD reports in its latest edition.
“Little comfort though as we must acknowledge that two in five households are reportedly poorly nourished today,” it added.
NielsenIQ Director – Consumer Insights Therica Miyanadeniya says in the magazine that: “concern over the socio-political status of the country is waning as businesses and people are in a race to survive against a backdrop of extreme economic hardships.”
The business journal adds: “It seems hardly believable that only a year ago, the unique barometer stood at 111 basis points and the nation basked in an ascent that continued for five months. It’s hoped that the uptick 12 months later will set the trend for the index’s trajectory.”
A spokesperson for LMD’s publisher, Media Services, speaking exclusively to the Daily FT notes: “Despite the increase in business confidence, Sri Lanka and its private sector are in for a rocky ride. Ahead of us is Budget 2023 and whether or not the IMF grants the much needed $ 2.9 billion Extended Fund Facility.”
“And while sealing the IMF deal will bring some respite, the debt restructuring process that is apparently underway together with seeking new sources of funding and investment hold the key to Sri Lanka’s immediate future,” the magazine asserts.
The uptick in business confidence in Sri Lanka is an overall indication that the country’s economy is back on the path to recovery after facing challenging economic conditions following the global pandemic. Despite the challenges, many local businesses in the country have recorded growth and profits, indicating resilience as well as the growing business potential in Sri Lanka. The country is also targeting on becoming a business destination in the South Asian region and Sri Lanka’s geographical positioning in the Indian Ocean as well as the stong trade ties enjoyed by the country have further expanded business/investment opportunities in Sri Lanka. Apart from exploring business/investment opportunities in Sri Lanka, foreign businesses/investors could also look at forming partnerships or joint ventures with local businesses with the aim of expanding operations.
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