Economic sentiment deteriorates – Survey

The LMD-Nielsen Business Confidence Index (BCI) survey reveals that sentiment surrounding the economy declined in January with only 62% of respondents expecting conditions to improve in the next 12 months (versus 74% in the previous month). According to an optimistic survey respondent, “the economic climate in general looks favourable for business at present.” In contrast, 8% of those consulted by Nielsen expect the economy to deteriorate in the coming 12 months while three in 10 feel it is likely to remain the same.

When it comes to the outlook for business, two-thirds of respondents say sales volumes will improve in the next 12 months compared to 79% in December. Similarly, 57% of those polled expect sales to improve in the next three months (down from 70% in the prior month). “People are spending to purchase goods and services. In the future too, we expect that this will continue to be the case after the General Election,” a businessperson explains.

Meanwhile, sentiment surrounding the investment climate has remained largely unchanged with 46% of those surveyed considering this to be a good time to invest. To this end, a corporate executive notes: “Investments happening in the country will also benefit from new policies.”

Media Services, the publisher of LMD, says the February edition of the magazine has been released to leading supermarkets and bookstores in Colombo and the outstations. Its Cover Story features a special report on the Colombo International Financial City (CIFC) or Port City (for the full story, log onto www.LMD.lk).