Economic sentiment continues to be weak: Survey

Saturday, 12 February 2022 01:07 - - {{hitsCtrl.values.hits}}

The latest edition of leading business magazine LMD reports that “pessimism surrounding the national economy continues to be weak although corporate executives express a slightly more positive outlook about the investment climate in Sri Lanka.”

Citing the January LMD-NielsenIQ Business Confidence Index (BCI) survey, the magazine notes: “Perceptions in business circles about the economic climate over the next 12 months continue to be pessimistic.”

LMD reports that 79% of survey respondents expect conditions to worsen, which is eight percentage points higher than in the previous month.

Meanwhile, the share of survey participants with an optimistic outlook has by and large remained the same (6%, versus 5% in December) while 15% believe the economy will ‘stay the same’ during this time – from 24% in the preceding month.

As for the investment climate, it continues to be viewed with disdain by the business community with a notable majority (82% – albeit down from 90% in the prior month) describing it as ‘poor’ or worse, the magazine states.

“There is some respite, however, as 18% now view the investment climate as ‘good’ or ‘fair’ compared to one-in-10 a month ago,” it adds.

Media Services, which publishes LMD, says the February 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 features HNB’s Chairperson Aruni Goonetilleke, who discusses developments taking place in the banking sector (for the full story, log onto www.LMD.lk).