The latest poll
from LMD-Nielsen Business Confidence (BCI) shows that sentiment around the
economy remained mostly unchanged in September with 25 per cent (up from 24 per
cent in the previous month) of respondents anticipating that the economic
conditions to improve over the next 12 months. In the meantime, 29% of those polled assume
that economic conditions should stay the same while 46% expect them to
deteriorate over the same period.
A corporate
executive comments: "We hope that after the upcoming election, the economy
will change. The country is quite unstable at the moment, and there are no
proper economic policies in place." As far as market expectations are
concerned, a larger share (nearly a third) of survey respondents think that
sales volumes will increase over the long term compared to the 24 per cent who
expect better times in the next three months.
"The
influence of the attacks on Easter Sunday is taking a turn for the better. And
the tourism industry seems to draw more business slowly," reports one
businessman. The sentiment around the investment climate remains silenced as 72
per cent (compared to 70 per cent in August) of poll respondents perceive this
as not a convenient time to invest, while a mere five per cent view the
conditions positively prevailing.
OSL Take: The
results of the Business Confidence Index is indicative of the growth path of
Sri Lanka’s economy. The government’s economic policies, 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 states,
Sri Lanka is undoubtedly the best business destination in the South Asian
region. Key sectors of the Sri Lankan economy have shown continuous signs of
growth and added to Sri Lanka’s development drive. The island nation is poised
to attract foreign businesses/investors to the country with many
business/investment opportunities.
VBS/AT/20191105/Z_TB4
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