Business confidence nudges up but politics dogs corporate mindset

Leading business magazine LMD says, in its forthcoming July edition, that “goings-on in the political arena continue to dog the corporate mindset”. 

It adds that “despite the apparent progress on the economic front,” the business community continues to be apprehensive about the political environment in the country, as evidenced by the latest LMD-Nielsen Business Confidence Index (BCI). 

The index made marginal gains in June, nudging up by five basis points to 159. As LMD notes, this result comes “on the back of the stagnation witnessed in recent months.” 

LMD quotes Nielsen’s Managing Director, Shaheen Cader, who explains: “Business confidence has picked up slightly, on the basis of good company financials, combined with short-term (the next three months) optimism.” 

As for perceptions about the economy, 41% of poll participants state that conditions will improve in the 12 months ahead, while 26% are expecting a deterioration and a third are of the view that the status quo will prevail, the magazine reveals.

A spokesman for LMD elaborates: “There’s a fairly high level of confidence, as far as the economy goes, although some survey respondents feel that there hasn’t been any major change in Sri Lanka’s economic landscape, given that politics has dominated the national scene in recent months.”

LMD concludes: “The index is unlikely to make any notable headway sans a major shift in the political landscape – one that is likely to come about only in the aftermath of general elections.”

Media Services, which publishes LMD, says that the magazine will be released to bookstores and supermarkets by Friday 10 July (for the full BCI report, go to www.LMD.lk).