Sri Lanka’s LMD-Nielsen Business Confidence Index increases to six month high in August this year
The LMD-Nielsen Business Confidence Index (BCI) has reportedly increased by 20 basis points to 94 in August this year. It has also been recorded as the highest increase in the index since November last year.
The LMD magazine has noted that the barometer now stands one point shy of where it was a year ago and five points above its 12 month average of 89.
Nielsen’s Managing Director Sharang Pant has been quoted as saying, “Sentiment is improving with both businesspeople and consumers feeling that the worst is behind them and the future has better things in store. This is backed by macro and micro factors, such as export performance, currency stability, inflation and others.”
He has also noted that in LMD the businesspeople have cited “the positive signals provided by the authorities in attracting tourists back to the island” as the reason for the improvement, adding that similar initiatives are expected to bring investments into the country as well.
In the latest issue of the LMD business magazine, political uncertainty is highlighted among the most notable national concerns in the face of the upcoming presidential election, the Daily FT has reported.
Meanwhile, taxes have been cited as the main business concern.
However, LMD has reported that concern regarding national security has subsided compared to previous months.
OSL take:
The increase recorded by the Business Confidence Index in August this year, is indicative of the continuous growth of Sri Lanka’s economy. It is also indicative of the growing business potential in the country. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made Sri Lanka the ideal business destination in the South Asian region. Therefore foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/06092019/Z_1 |