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Sri Lanka’s business confidence near five-year high

Sri Lanka’s business confidence near five-year high

Daily FT: In its December edition, leading business magazine LMD reports that business confidence “shot up by 15 basis points to reach 154 in November, from 139 in the month prior.”
“This is the highest point the LMD-PEPPERCUBE Business Confidence Index (BCI) has reached in 2024 and the fourth month in which the barometer has crossed into triple digits this year – most recently last month, when the official rate of inflation entered negative territory,” it explains.
LMD notes that the index now stands 32 points above its all-time average of 122 and is 52 points higher than its 12-month average of 102. It adds: “What’s more, the BCI stood at a lowly 58 basis points only a year ago.”
A spokesperson for LMD notes: “It is ironic that the BCI is at a 59-month high because it was last at this level soon after the 2019 Presidential Election.”
She continues: “How corporates view the General Election outcome and expectations regarding the next budget will determine where the index heads next month.”
Meanwhile, PepperCube Consultants, in the magazine, says: “Long-term optimism regarding the economy and sales volumes has seen a slight improvement, following the boost in October.”

OSL take:
The growth in Sri Lanka’s business confidence is indicative of the overall expansion of the country’s economic expansion. The strength, resilience and growth of Sri Lanka’s economy during the past few years has resulted in the building of confidence among foreign businesses/investors to engage with Sri Lanka. The country’s strategic positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed by the country with other countries and Sri Lanka’s target of becoming a hub in the South Asian region have also helped attract foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka. Given the growing business potential in the country and the expanding opportunities, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka.

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Article Code : VBS/AT/20241212/Z_4

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