Economic sentiment on the decline: Survey

The latest LMD-Nielsen Business Confidence Index (BCI) survey reveals that economic optimism continued its downward trajectory in March with only 11% of corporate executives expecting an improvement over the next 12 months compared to 16% in the previous month. Nielsen’s Managing Director Sharang Pant observes that this is despite the improvement in inflation. 

The majority (45%) of those polled expect economic conditions to ‘stay the same’ in the 12 months ahead while a notable share expects prospects to worsen. 

LMD notes that optimism regarding business prospects in the short and long terms is also on the decline as fewer (22% and 21% respectively) respondents expect sales volumes to improve compared to almost one in three in February. 

According to a majority (51% and 63% respectively) of survey participants, short and long-term biz prospects are expected to remain the same.

The survey also reveals that a majority (81%) of corporates are looking to maintain their current workforce over the next six months; the share of corporates planning on increasing their workforce has decreased to 17% from one in five in February.

Media Services, which publishes LMD, says the April edition of the pioneering business magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story features an exclusive interview with one of Sri Lanka’s leading taxonomists and the former Chairman of the Sri Lanka Tea Board Rohan Pethiyagoda, in which he shares his views on the state of the nation and tea industry (for the full story, log onto www.LMD.lk).