Sri Lanka’s business confidence recovery continues despite lockdown
Daily FT: For the second consecutive month, the latest LMD-NielsenIQ Business Confidence Index (BCI) recorded an uptick, indicating that sentiment continues to improve. The index registered six basis points from the previous month to 104 in September.
LMD notes that this represents a four month high although it marks a deterioration compared to where the BCI stood a year ago (120) and places it one point below its 12-month average.
NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya notes that “the business environment is persistently operating under dire conditions in terms of import restrictions, foreign exchange restrictions, the depreciating value of the rupee, travel restrictions, COVID-19 related shutdowns and many other challenges.”
Where the future of the index is concerned, she says: “There is a sense of hope as businesses are adapting to new norms as they forge ahead and it is likely that the BCI will continue to improve.”
Commenting on the outlook for the index, a spokesperson for the magazine explains: “Given the escalating economic and forex concerns, and fears of shortages of items such as food and fuel, the Government’s approach to these issues will likely determine where BCI heads in the near term.”
“The forthcoming Budget proposals are also likely to have an impact in the short term at least,” she adds.
OSL take:
The resilience of Sri Lanka’s economy and the growth momentum shown by key economic sectors in the country in the midst of facing challenges posed by the global Covid 19 pandemic have resulted in the increase in business confidence along with an expansion in business/investment opportunities. The growth in key economic sectors as well as the ongoing development programme have opened up a host of new business/investment opportunities in Sri Lanka. The growth momentum has received a boost from the many trade agreements as well as concessions enjoyed by the country and the continuously improving ease of doing business environment in the country. With Sri Lanka fast becoming an emerging business destination in the South Asian region, foreign businesses/investors could explore the expanding opportunities in the island.
| Article Code : | VBS/AT/08102021/Z_7 |