Economic perceptions continue to be negative: Survey

Tuesday, 9 August 2022 03:47 - - {{hitsCtrl.values.hits}}

While there is an ever-so-slight uptick in economic perceptions, despite the state of the State, the big picture is that Sri Lanka’s economic prospects continue to be viewed with anxiousness by the business community, says leading business magazine LMD, in its August edition.

“The country is at a breaking point with frustrations riding high,” observes NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya.

She continues: “In this environment, the Business Confidence Index (BCI) has remained static at 49 while the Consumer Confidence Index (CCI) declined by three basis points to an unthinkable 12 from last month’s 15.”

However, LMD reports that: “There’s reason for cautious optimism as the most drastic assessment of the economy since the LMD-NielsenIQ BCI survey commenced in January 2003, June’s massive majority (88%) of respondents to poll who anticipated a deterioration in the next 12 months, has improved to 82%.”

A spokesman for LMD adds: “For the first time in six months, this optimism is also seen in business executives who expect an improvement – from 4% in June to 15% in early July.”

LMD notes: “This sense of cautious optimism is also reflected by businesspeople with regard to their company’s sales volumes. Whilst more than half expect business to ‘get worse’ in the 12 months ahead, those who expect things to remain stable have risen from 23% to 28%.”

As for the investment climate, the magazine notes: “There’s been little movement in the opinion of the 98% of businesspeople who have maintained that the current investment climate is ‘poor’ or ‘very poor’ – this has been the case since May.”

LMD’s publisher Media Services, says the August edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

Its exclusive Cover Story, which commemorates the pioneering magazine’s 28th anniversary, features the ‘voice of the young’ – the magazine has published interviews with more than 30 head prefects of schools across the island, covering their aspirations and where they see the nation heading.