Business confidence nudges up

The LMD-Nielsen Business Confidence Index (BCI) recorded an increase of three basis points from the previous month, registering 120 in September.

In the latest edition of LMD, Nielsen’s Director – Consumer Insights Therica Miyanadeniya says: “The COVID-19 situation seems to be abating, the general election has come and gone, and life is slowly returning to some sort of normalcy. However, businesses as well as the people continue to grapple with the aftereffects of the pandemic.”

She adds: “Many businesses have had to cut down on their workforce as well as reduce wages to survive. This of course, has a ripple effect on the people as their wages have been constricted or they’re now out of work; and with many establishments freezing employment, this has a dire effect on the public.”

LMD reports that the impact of COVID-19 remains the most pressing concern in business circles in the country, followed by inflation, taxes, interest rates, workforce standards and import restrictions.

A spokesperson for the magazine notes: “Corporate executives seem to have a positive view on the newly-elected regime’s handling of matters of the Constitution, the Cabinet and other major portfolio announcements.”

Adding to this, she notes that “there’s the prospect of a belt-tightening budget ahead and the marginal improvement in sentiment may be offset by anxiety over how far the government will go to balance its books.”

Media Services, which publishes LMD, says the latest edition of the magazine will be released shortly while its digital version is available on WhatsApp and its social media platforms (for the full BCI report, visit www.LMD.lk).