Economic sentiment surges: Survey

Tuesday, 28 January 2020 01:30 - - {{hitsCtrl.values.hits}}

Sentiment surrounding the economy rose in December, with almost two-thirds of respondents expecting economic conditions to improve in the next 12 months, according to the latest LMD-Nielsen Business Confidence Index (BCI) poll.

This marks the highest level of confidence in the economy since June 2009.

In contrast, 16% of survey respondents expect the economy to remain the same, with one corporate executive noting that “it’s hard to correctly anticipate where the economy is heading because the Government is still new.”

Another businessperson stated: “There hasn’t been much development yet. The prominence given to the agriculture sector is still low. Tea exports are the same as some time back. And although taxes have been reduced, not much development can be seen.” As for the outlook for business, nearly eight in 10 (compared to 43% in November) executives consulted by the pollsters expect sales to improve in the new year. Similarly, a majority (70%) of respondents feel that short-term sales will improve (versus 36% in the previous month).

Investor sentiment also improved, with 87% of respondents stating that the climate is ‘fair’ or better. One such corporate executive pointed out that “taxes on businesses were reduced – which is good for business and investments”.

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

Its cover story pays tribute to the nation’s business leaders in LMD’s A-List of Sri Lankan businesspeople, titled ‘The 100 Club’ (for the full story, log on to www.LMD.lk).