Home / Front Page/ Business confidence plummets to a 28-month low

Business confidence plummets to a 28-month low

Comments / {{hitsCtrl.values.hits}} Views / Monday, 11 July 2016 00:00



“The barometer of biz confidence plummets, as recent tax hikes and policy uncertainty have members of the corporate community scratching their heads over what the future holds,” says leading business magazine LMD, in its July edition.

It adds that the June LMD-Nielsen Business Confidence Index (BCI) suffered another sharp fall, continuing its southbound trajectory – the unique barometer of corporate sentiment dropped sharply to 126, which is well below its 12-month and all-time averages, of 155 and 130 respectively.

“One has to backtrack to February 2014, to match the latest BCI count. In that month, the index stood at a lowly 124, ahead of the damning UNHRC resolution on Sri Lanka and Provincial Council elections,” LMD notes.

The magazine quotes Nielsen’s Managing Director Shaheen Cader, who says that the fall comes against a backdrop of “concerns about the economy and future business performance, as businesses react to both the VAT increase and concerns about inflation.”

Meanwhile, the exclusive monthly survey – conducted for LMD, by Nielsen – reveals that businesspeople have mixed sentiments on the outlook for the economy.

While a third of respondents believe that conditions are likely to improve over the next 12 months, 36% say that it will worsen during this period. Another 30% of those surveyed expect the status quo to be maintained.

As for the outlook, LMD states: “The index has come under increased pressure because of accelerating inflation and the Sri Lankan Rupee’s vulnerability, coupled with the stringent conditions set out in the IMF’s bailout arrangement ... It follows that business sentiment could very well head south in the near term.’

The July edition of the magazine will be released to book stores and supermarkets on Friday, 8 July (for the full BCI report, go to www.LMD.lk).

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Will power cuts solve electricity crisis?

Tuesday, 23 April 2019

The country faced electricity power cuts, reminding citizens of early 1990s, which resulted in private power producers supplying electrical power with long-term power supply agreements. Today, most have completed their agreement period, but some were

Easter attack: Going beyond condemnation

Tuesday, 23 April 2019

Yesterday was Easter Sunday; 227 persons [at the time of writing] have been killed, and many times more injured. The primary targets were churches and international hotels. It seems clear that the extremist group ISIS (Islamic State of Iraq and Syria

Easter Sunday nightmare

Tuesday, 23 April 2019

This is the most important day of the year for Christians – the Peaceful Easter Sunday or Easter Day was shattered by deadly explosions in several Christian churches throughout the country; and we excoriate such hatred in our beloved country. We th

Poignant pondering on a patriarch

Monday, 22 April 2019

Almost five months have gone. It is with a profound sense of sadness that we experienced the demise of our veteran teacher, respected author, legal luminary, an accomplished ambassador, an eminent public servant and an amazing human being, Dr. Wickre

Columnists More