Sri Lanka’s LMD-Nielsen Business Confidence Index (BCI) records recovery in economic sentiment in June
Sri Lanka’s LMD-Nielsen Business Confidence Index (BCI) poll has reportedly recorded an improvement in the sentiment surrounding the country’s economy.
Accordingly, economic sentiments have improved in June with 11% of respondents to the monthly index poll stating that it will improve when compared to only 6% in May.
“Many of the economic problems witnessed are because local companies don’t produce enough and due to high taxes,” a business person has been quoted as saying in Daily FT.
The Daily FT has reported that when it comes to business prospects, the outlook has improved with 25% and 28% (versus 3% and 15% in the preceding month) expecting sales volumes to improve in the short and long terms respectively.
A respondent to the exclusive survey has been quoted as saying: “The current business climate is not promising in terms of sales volume growth. However, we anticipate that conditions would improve once the situation calms down.”
“People don’t have enough money to purchase the things they need. Therefore, they stick to spending on essentials and trying to save the little money they have left. So we have a hard time selling our products,” another respondent has stated.
A poll participant has said that “we’ve faced delays in many activities and planned investments because we had to depend on Board of Investment (BOI) approvals that weren’t provided on time, resulting in substantial costs being incurred.”
OSL take:
The results of the Business Confidence Index is indicative of the growth path of Sri Lanka’s economy. The government’s economic polices, the development drive and measures taken to improve the ease of doing business environment in the country have all contributed to the overall growth of Sri Lanka’s economy. Given the increasing business confidence in Sri Lanka and the country’s geographical positioning in the Indian Ocean along with its many trade pacts with foreign countries, Sri Lanka is undoubtedly the best business destination in the South Asian region.
| Article Code : | VBS/AT/24072019/Z_6 |