Economic sentiment mixed ahead of election: Survey

The LMD-Nielsen Business Confidence Index (BCI) poll, which was conducted in the first week of November, reveals that sentiment surrounding the economy was mixed in the lead-up to the Presidential Poll.

According to the business magazine, 32% of respondents expect economic conditions to improve in the next 12 months while 31% feel that conditions will remain the same and 37% believe there will be a deterioration.

A corporate executive says: “The economic policy of the (previous) government has meant that taxes are extremely high and bank interest rates fluctuate frequently, and this has made people lose interest in doing business.”

Meanwhile, 43% of respondents feel that business prospects will improve over the next 12 months and 36% expect improvements in the next three months.

“If there’s political stability, business will continue to function as normal. We hope that the country will offer more stability for business,” says one businessperson.

Sentiment surrounding the investment climate has improved with 7% of respondents considering this to be a good time to invest while 24% perceive conditions as ‘fair’.

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

Its cover story features LMD’s 25th ‘Sri Lankan of the Year’ – Kumar Sangakkara. It highlights Sangakkara’s recent appointment as President of the Lord’s-based Marylebone Cricket Club, his role as Sri Lanka’s foremost brand ambassador, and how the former national cricket captain has inspired Sri Lankans from all walks of life to keep faith in their country. For the full story, log onto www.LMD.lk.