Economic sentiment improves: Survey

Sentiment surrounding the economy improved in October, according to the latest LMD-Nielsen Business Confidence (BCI) poll with a third of respondents expecting economic conditions to improve in the next 12 months.

An executive who participated in the exclusive monthly survey states: “Due to the upcoming election, we believe that the economy will continue to remain the same and not demonstrate any major improvements or downturns.”

Meanwhile, another respondent notes that, “High taxes coupled with high interest rates on loans make it difficult for any business to be profitable and survive.” As for business prospects, the outlook for the short and long-terms appear more positive with 36% and 45% respectively expecting sales volumes to increase.

To this end, a businessperson explains: “As the holiday season approaches, we hope that this would have a positive impact on business.”

Meanwhile, prospects for investment appear to be dim with 79% of survey respondents viewing this as a bad time to invest.

“Investors do not want to make any major investments because of the upcoming election and therefore, conditions will for the most part remain the same,” one corporate executive asserts.

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

LMD’s Cover Story features a synopsis of Sri Lanka’s past presidential elections and a profile of the upcoming election’s front-runners, as well as a special report in which five candidates respond to five burning questions posed by LMD (for the full story, log onto www.LMD.lk).