Business confidence unchanged in March

Tuesday, 10 May 2016 00:00 - - {{hitsCtrl.values.hits}}

The March LMD-Nielsen Business Confidence Index (BCI)remained in line with the previous month, shedding a single point (to 154) from where the unique barometer of corporate sentiment stood in the previous month, the latest edition of business magazine LMD reports. “Concerns about the economy and investment climate, as well as interest rates, mirror a slight dip in business confidence, with fiscal reforms set to lead to further discontent,” it explains.

Nielsen’s Managing Director Shaheen Cader cautions that “concerns about the state of the economy and investment climate have increased, and the index has been propped up mainly by good earnings in the last quarter. Concerns about prevailing interest rates BUP_DFTDFT-1-04 are also rising.”

The exclusive monthly survey reveals that the business community has somewhat mixed sentiments on the economy in general. Of those consulted, 62 % predict that sales volumes will improve in the next 12 months, while more than a quarter (38%) believe that the status quo will prevail or get worse.

As for the nearer term, a majority (54%) of respondents are of the view that business ‘will get better.’

Meanwhile, findings from the survey reveal that the business community is visibly concerned about the investment climate, whereby only 24 % view Sri Lanka’s FDI prospects positively.

“In the face of looming tax hikes, and a growing sense of discontent regarding the nation’s governance structures and inconsistent policymaking, the BCI must surely be in for a rough ride.” the magazine concludes (for the full BCI report, go to www.LMD.lk).