Home / Front Page/ Business confidence recovers after 3 months

Business confidence recovers after 3 months

Comments / {{hitsCtrl.values.hits}} Views / Friday, 16 September 2016 00:01



The soon-to-be-released September edition of leading business magazine LMD reports that the LMD-Nielsen Business Confidence Index (BCI)has spiked by 14 points, to reach 140. As the magazines notes, business confidence has recovered from being down in the dumps in recent months. It now lies 10 points above its all-time average of 130 basis points.

“After three months of a continuing drop, the BCI has managed to recover to the same level it was in May, buoyed by a glimmer of hope on stabilising inflation and an improving economy,” says Nielsen’s Managing Director Sharang Pant.

However,he points out that “inconsistent tax policies, inflation and the depreciating rupee still remain the major concerns for businesses, with concerns on the political climate, and bribery and corruption on the rise.” 

“The constant changes to tax policies continue to burden business activities, with businesses continually having to re-evaluate their strategies, to counter the varying tax policies,” Pant observes.

The exclusive monthly survey reveals that 31% of respondents (as opposed to 29% in the previous month) believe that economic conditions will improve in the coming 12 months, while as many as 42 out of the 100 surveyed expect the status quo to be maintained. A further 27% anticipate that the national economy will get worse.

Where the outlook for business is concerned, LMD states that “slightly over a third of those polled claim that biz prospects will improve, while the majority (50%) expect conditions to remain as they are and only 16% (versus 24%, in July) feel they’ll be worse off.”

As for the investment climate, only 21% of those surveyed view it to be ‘good’ or better, while 45% consider the funding environment to be fair. As many as 34% say the investment climate is poor.

As for the future, a spokesperson for LMD says that “despite the reservations expressed by many corporates, the latest BCI suggests that there’s some degree of hope for future business prospects.”

“There may also be some jitters ahead of the forthcoming budget, so the BCI equation continues to be fraught with uncertainty,” he adds. 

Its publisher Media Services says that the September edition of LMD has been released to bookstores and supermarkets (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