Economic sentiment continues to deteriorate: Survey

Sentiment surrounding the economy remained dim in June, according to the latest LMD-Nielsen Business Confidence Index (BCI) survey, as almost all respondents believe that the state of the economy will ‘stay the same’ (55%) or deteriorate (44%).

In terms of business prospects, 12% and 14% of those polled expect to witness improvements in the short and long terms respectively with survey respondents expressing a range of views.

One executive finds it difficult to say if business activities will improve in the coming months “due to the constant changes in government policies.” In contrast, another corporate executive observes that “several business opportunities seem to be arising in the country especially in the tourism industry.”

The leading business magazine reveals that the investment climate is viewed unfavourably by the majority of survey participants as 63% consider it to be ‘poor’ or worse, compared to only 3% of respondents who hold a positive view.

In one businessperson’s opinion, the risk of investment is too high “due to a lack of trust in both the economy as well as the investment climate.”

This sentiment is echoed by another respondent, who says: “We do not expect the investment climate to improve anytime soon due to inconsistent decision making and constant policy changes by the government.”

LMD’s publisher Media Services says the July edition of the magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story features the ‘Best Workplaces in Sri Lanka’ as assessed by a study conducted by Great Place To Work Institute (for the full story, log onto www.LMD.lk).