Business confidence rebounds

The LMD-Nielsen Business Confidence Index (BCI) registered an increase of six basis points to 126 in March. According to leading business magazine LMD, this marks the highest point for the unique index over the last 12 months, placing it 20 points above the average for this period while reaching its all-time average too.

Commenting on this result, Nielsen Director – Consumer Insights Therica Miyanadeniya states: “Businesses are slowly opening up with some resorting to a hybrid model of working from home (WFH) and office; and life in general is also picking up.”

“New cases of COVID-19 as well as the death rate are also coming down and with the vaccination drive underway, hope is rising once again among the people and businesses,” she explains.

LMD reports that the main concern in corporate circles continues to be the impact of the coronavirus, as well as inflation, and bribery and corruption. Meanwhile, the spread of COVID-19 is cited as the most pressing national concern.

As for the future of the BCI, Miyanadeniya opines: “If the current trend continues with more and more people being vaccinated, and business picking up as well, both the BCI and Consumer Confidence Index will continue to improve.”

Meanwhile, a spokesperson for LMD notes that the effectiveness of Sri Lanka’s immunisation program and spread of the virus are likely to continue to have an impact on sentiment going forward – particularly “if new COVID-19 cases continue to decline and the country reaches herd immunity in the months ahead”.

The publisher of LMD, Media Services, 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).