Sri Lanka’s LMD-Nielsen Business Confidence Index records increase of six basis points in March
Sri Lanka’s LMD-Nielsen Business Confidence Index (BCI) has reportedly registered an increase of six basis points to 126 in March.
According to leading business magazine LMD, this marks the highest point for the unique index over the last 12 months, placing it 20 points above the average for this period while reaching its all-time average too.
Commenting on this result, Nielsen Director, Consumer Insights Therica Miyanadeniya has been quoted as saying, “Businesses are slowly opening up with some resorting to a hybrid model of working from home (WFH) and office; and life in general is also picking up.”
“New cases of COVID-19 as well as the death rate are also coming down and with the vaccination drive underway, hope is rising once again among the people and businesses,” she has further been quoted as saying in the Daily FT.
LMD has reported that the main concern in corporate circles continues to be the impact of Covid 19, as well as inflation, and bribery and corruption. Meanwhile, the spread of Covid 19 is cited as the most pressing national concern.
As for the future of the BCI, Miyanadeniya has opined, “If the current trend continues with more and more people being vaccinated, and business picking up as well, both the BCI and Consumer Confidence Index will continue to improve.”
Meanwhile, a spokesperson for LMD has reportedly noted that the effectiveness of Sri Lanka’s immunization programme and spread of the virus are likely to continue to have an impact on sentiment going forward – particularly “if new COVID-19 cases continue to decline and the country reaches herd immunity in the months ahead”.
OSL take:
With the resumption of Sri Lanka’s economic activities following the lockdown due to the global Covid 19 pandemic, the level of confidence in the island’s economy is also increasing. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to returning to normalcy after facing the impact of the global Covid 19 pandemic. The island’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country are driving it to become a hub in the South Asian region. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210422/Z_4 |