Sri Lanka’s economic sentiment improves in January says Business Confidence Index
Sentiment surrounding Sri Lanka’s economy has improved in January this year with 43% respondents to the latest LMD-Nielsen Business Confidence Index (BCI) survey saying conditions will improve in the next 12 months – a marked increase from the mere 19% who expressed optimism in December.
Meanwhile, slightly more than one in five (versus 37% in the preceding month) of those consulted by Nielsen have expressed belief that the economy will deteriorate during this period while the remainder expected conditions to remain the same.
According to Nielsen’s January survey, the outlook for the long and short terms appeared to have improved.
More than three-quarters (compared to 47% in the previous month) of those surveyed had reportedly stated that sales volumes will increase this year while only 5% anticipate a decline.
As for the next three months, 34% (up from 14% in December) of those polled has felt that sales volumes will improve although half of the respondents had said prospects are likely to ‘stay the same.’
As for the investment climate 20% had consider prevailing conditions to be favourable while another 30% had said the investment climate is ‘fair.’
OSL take:
Sri Lanka’s economic sentiments are on a positive path after facing internal and external challenges due to the impact of the global Covid 19 pandemic. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country helped it become a business hub in the South Asian region when the global Covid 19 pandemic affected all economies. The positive movements in Sri Lanka’s economy have helped the island’s return to normalcy. Foreign businesses/investors could therefore explore business opportunities in the country.
| Article Code : | VBS/AT/20210308/Z_4 |