Economic sentiment remains muted: Survey

Sentiment surrounding the economy remained gloomy in August with the latest LMD-Nielsen Business Confidence Index (BCI) survey revealing that almost half of the businesspeople consulted expect the economic milieu to worsen in the next 12 months. 

A corporate executive claims that this is because of “a lack of competitiveness in the investment climate to help drive the economy forward,” and points to bribery and corruption as the main causes, LMD notes. In terms of business prospects, 15% and 19% of respondents feel that sales volumes will improve in the short and long terms respectively. One such optimistic businessperson states: “Although we are faced with unfavourable economic conditions, our company has put in place several strategies and processes to grow despite these adverse situations.”

When it comes to the investment climate, a minority (34%) of those surveyed perceive conditions to be ‘fair’ or better while the remaining respondents hold a more pessimistic outlook.

In one survey respondent’s view, conditions are “generally okay” as “there’s an improvement in foreign investments; however, the country does not possess a regime with a firm vision to take Sri Lanka forward.”

In contrast, another respondent’s assessment is that “the current investment climate in the country is in a very poor state.”

LMD’s publisher Media Services says the September edition of the magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story features an exclusive interview with the Chairman of Unilever Sri Lanka Carl Cruz, in which he offers insights into Sri Lanka’s consumer landscape, foreign investment, public-private partnerships and thought leadership (for the full story, log onto www.LMD.lk).