Home / Front Page/ Business confidence slumps in August

Business confidence slumps in August

Comments / {{hitsCtrl.values.hits}} Views / Monday, 11 September 2017 01:54

The exclusive LMD-Nielsen Business Confidence Index (BCI) declined sharply to 121 in August, reflecting a slump of 13 basis points from the prior month, the latest edition of business magazine LMD reports.

Nielsen’s Managing Director Sharang Pant opines: “The upward trend over the past five months comes on the back of easing inflation and interest rates, and the granting of GSP+ but has probably been stunted by the controversy around the transparency of the Government’s bond sale in the last few weeks.”

“This is substantiated by the fact that while inflation and interest rates are lesser worries for businesses and consumers, political instability and corruption are perceived as larger issues,” he explains.

The one-of-a-kind monthly survey reveals that only one-in-five (21%) respondents believe the economy ‘will improve’ in the coming 12 months. And while the majority (43%) expect conditions to ‘get worse’, over a third of those surveyed state that the economy will ‘stay the same’.

However, where business prospects are concerned, almost half of Nielsen’s survey sample has a positive outlook: respondents believe that business will improve in the coming 12 months. Moreover, about two-thirds of corporate executives feel that business will stay the same or improve in the next three months.

On the contrary, businesspeople say that the investment climate in the country may take a hit due to issues related to transparency with 51% stating that the environment is ‘poor’ or worse.

Looking ahead, a spokesperson for LMD notes that “a major shift in the BCI’s fortunes or misfortunes is unlikely to eventuate in the near term. That said, Nielsen’s next survey is likely to be an eye-opener on many counts.”

LMD’s publisher Media Services says the September edition of the magazine is now available at bookstores and supermarkets. For the full BCI report visit www.LMD.lk.


Share This Article


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

Tamil actor Kamal Haasan stars in new role as political leader

Saturday, 24 February 2018

Srinivasan Kamal Haasan is one of India’s foremost film actors. Known popularly as Kamal, the talented and versatile thespian has not only excelled as an actor onscreen, but has successfully engaged in other cinematic spheres too. The multi-faceted

Yameen’s economic offensive to counter political adversity ahead of presidential poll

Saturday, 24 February 2018

The embattled Maldivian President Abdulla Yameen, who is facing intense political opposition both in and out of the country, hopes to win the September, 2018 presidential election using a combination of political belligerence and a strong economic pr

In the end, there was nothing

Saturday, 24 February 2018

Much more than a storm in a tea cup! To a non-discerning person, it all seemed like the final battle of the counter revolution. President Sirisena was up in smoke trying to oust Prime Minister Ranil Wickremesinghe for no articulated reason. He asked

Shouldn’t Govt. prevent parliamentary system from decay and destruction?

Friday, 23 February 2018

The wrong people teach us the best lessons. As a clever nation, we had always used our ballot and chased the wrong people

Columnists More