Sri Lanka’s business confidence recovery continues despite uncertainty
Daily FT: The LMD-NielsenIQ Business Confidence Index (BCI) survey registered an increase of seven basis points to 111 in October. In addition to being a five-month high, this points to a continued improvement in sentiment for the third consecutive month.
However, LMD notes that the index is four points shy of where it stood a year ago although it’s six points higher than the 12-month average for the first time since April.
NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya says that “with the vaccination drive in the country now being open to those under 30 and more than 85% of the over 20 age group being double vaccinated, Sri Lanka could well be on the road to controlling the spread of the virus.”
“The pandemic is abating but its short and long-term effects are beginning to be felt, with shortages and escalating prices,” she notes, in her assessment of the future direction of the index.
Meanwhile, a spokesperson for the pioneering business magazine explains: “The recent price hikes of many essential items along with the prospect of more to come – especially where fuel is concerned – may undermine confidence in the near-term.”
“How the business community views the upcoming budget proposals will also be vital along with the positives associated with an easing of lockdown restrictions,” 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 pandemic challenges. Key economic sectors in the country have shown a growth despite the pandemic. Sri Lanka is working towards becoming a business hub in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, the many trade agreements as well as concessions enjoyed by the country. Business confidence in Sri Lanka and its growing business potential have presented attractive business/investment opportunities in the country.
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