Sri Lanka’s business confidence rebounds amid macro challenges notes LMD-Nielsen BCI
Daily FT: The results of the latest LMD-Nielsen Business Confidence Index (BCI) survey registered a notable increase of 10 basis points to 119 in December from 109 of the previous month, reflecting a seven month high.
According to LMD, this marks an improvement compared to where the index stood a year ago (83) and places it 10 points above its 12-month average.
NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya notes that 2021 “has been both a difficult and turbulent year for businesses, the population and the country as a whole. Sri Lanka has paid a high price, and it’s hoped that 2022 will bring new life and energy to a country reeling from the fallout from COVID-19.”
Commenting on the sensitivities impacting the index, she said: “As business, people and the nation look forward to a better year, business confidence is likely to continue rising as corporates formulate new strategies to salvage and improve on what was lost due to the pandemic.”
Meanwhile, a spokesperson for LMD points out that “as 2021 came to a close, sentiment remained resilient – even following Budget 2022, which has been viewed with some concern in business circles.”
“As Sri Lanka’s economic challenges are set to continue in the New Year, with uncertainty adversely impacting the global landscape as well, the trajectory of the BCI is likely to depend on how the Government plans to avert further economic hardships,” she adds.
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 impact of the global Covid 19 pandemic. The country’s geographical positioning in the Indian Ocean, the many trade agreements as well as concessions enjoyed by the country and the continuously improving ease of doing business environment have all helped Sri Lanka’s economic expansion programme. Also, the ongoing development programme and the positioning of the country as an emerging business destination in the South Asian region have also added to Sri Lanka’s economic expansion. All these have opened up many business/investment opportunities covering all key economic sectors.
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