Economic sentiment remains subdued: Survey

Tuesday, 19 June 2018 00:01 - - {{hitsCtrl.values.hits}}

The latest LMD-Nielsen Business Confidence Index (BCI) survey reveals that economic optimism in May remained relatively unchanged from the previous month.

LMD reports that 7% (up from 5% in the previous month) of corporate executives believe economic conditions will improve over the next 12 months. However, the majority (57% versus 48% in April) of respondents expect the economy to ‘stay the same’ during this period.

While one survey participant notes that people and businesses feel uncertain about the economy, another executive highlights the tourism industry as one of the few industries unaffected by the prevailing economic climate – as evidenced by the growth in tourist arrivals compared to the same period last year.

Short-term business prospects remain stable, LMD reports, with 18% of respondents expecting sales volumes to increase in the next three months. But prospects for the long-term have dimmed with only 13% (down from 20% in the prior month) of those polled expecting volumes to improve in the next 12 months.

The business magazine notes that half the survey participants view the investment climate unfavourably – one businessperson points to “constant political fluctuations and economic instability.”

Meanwhile, conditions are considered ‘fair’ by 44% of respondents with the remainder holding a positive view.

Media Services, which publishes LMD, says the June edition of the business magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story features an exclusive interview with IFC Country Manager for Sri Lanka and Maldives Amena Arif, in which she discusses key aspects of the organisation’s strategy for Sri Lanka’s development (for the full story, log onto www.LMD.lk).