Business confidence continues to shrink

Saturday, 2 January 2021 00:47 - - {{hitsCtrl.values.hits}}

Continuing its downward trend, the LMD-Nielsen Business Confidence Index (BCI) fell by eight basis points from the previous month to 83 in December, an exclusive release from leading business magazine LMD notes.

“This marks the lowest point the index has reached in 2020,” it adds.

Nielsen’s Director – Consumer Insights Therica Miyanadeniya explains: “As the country continues to grapple with the COVID-19 crisis, and struggles to ensure that there’s continuity in business operations as well as the day-to-day lives of people, the hope of an end to the pandemic is beginning to look like a far-fetched dream.”

She continues: “Reflecting this dismal situation, both the BCI and Consumer Confidence Index (CCI) continue to head south. Although both indices have not yet reached the levels post the Easter Sunday attacks in 2019, they are steadily approaching their all-time lows.”

LMD reports that the impact of COVID-19 continues to be cited as the most pressing issue for businesses in Sri Lanka, followed by high taxes, bribery and corruption. Meanwhile, the spread of the virus also ranks as the most pressing national concern.

Commenting on the future direction of the index, a spokesperson for LMD said: “There is a glimmer of hope as the world moves towards immunising people at risk of contracting COVID-19. As far as Sri Lanka is concerned, the direction of the BCI in the near-term could depend on the timing of a vaccination program.”

The publisher of LMD, Media Services, says the latest edition of the magazine will be released shortly, while its digital version is available on WhatsApp and its social media platforms. For the full BCI report visit www.LMD.lk.