Sri Lanka’s LMD-Nielsen Business Confidence Index records increase of 75 basis points in December
Sri Lanka’s LMD-Nielsen Business Confidence Index (BCI) has reportedly recorded an impressive increase of 75 basis points to register 186 in December 2019, which is the highest it has been since September 2015.
LMD has stated that as a result, the BCI is almost twice as high as its 12-month average of 99 and within reach of its all-time high of 204, the magazine notes.
Nielsen’s Director, Consumer Insights, Therica Miyanadeniya has been quoted as saying in the latest edition of LMD, “This unprecedented increase has come in the wake of the new president taking the reins and the policies implemented so far.”
She has noted, “The tax concessions, reduction of VAT from 15% to 8%, lower Government expenditure, as well as other visible changes, seem to have endeared the new Government to both businesspeople and consumers.”
Similarly, a survey respondent has explained that “with the new Government and President, we hope the business climate will get better in the coming months.”
According to LMD, this sentiment is likely to bolster confidence among business people and investors in the short term.
A spokesperson for the leading business magazine has stated that “the positivity in the lead-up to the presidential poll has paved the way for the BCI to surge in the wake of recent business and investor friendly initiatives announced by the new administration.”
OSL take:
The latest report of the business confidence index in Sri Lanka is a positive sign on the economic growth in the country and also the expansion of business activities in the island. 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 it an attractive business destination in the South Asian region. Foreign businesses/investors could explore business opportunities in Sri Lanka with confidence.
| Article Code : | VBS/AT/20200108/Z_1 |