Biz confidence rebounds amid macro challenges

The results of the latest LMD-Nielsen Business Confidence Index (BCI) survey registered a notable increase of 10 basis points to 119 in December from 109 of the previous month, reflecting a seven month high.

According to LMD, this marks an improvement compared to where the index stood a year ago (83) and places it 10 points above its 12-month average.

NielsenIQ’s Director – Consumer Insights Therica Miyanadeniya notes that 2021 “has been both a difficult and turbulent year for businesses, the population and the country as a whole. Sri Lanka has paid a high price, and it’s hoped that 2022 will bring new life and energy to a country reeling from the fallout from COVID-19.”

Commenting on the sensitivities impacting the index, she said: “As business, people and the nation look forward to a better year, business confidence is likely to continue rising as corporates formulate new strategies to salvage and improve on what was lost due to the pandemic.”

Meanwhile, a spokesperson for LMD points out that “as 2021 came to a close, sentiment remained resilient – even following Budget 2022, which has been viewed with some concern in business circles.”

“As Sri Lanka’s economic challenges are set to continue in the New Year, with uncertainty adversely impacting the global landscape as well, the trajectory of the BCI is likely to depend on how the Government plans to avert further economic hardships,” she adds.

Media Services, which publishes LMD, says the latest edition of the magazine will be released shortly, along with its digital version which will be shared on WhatsApp and its social media platforms (for the full BCI report, visit www.LMD.lk).