Business confidence at a 12-month high

“The IMF’s US$ 3 billion Extended Fund Facility (EFF), which was approved on 20 March, has surely been instrumental in bolstering business confidence. And efforts to restructure Sri Lanka’s mountain of debt has since taken a positive turn with three key sovereign creditors – India, Japan and the Paris Club of nations – announcing on 13 April that formal talks are underway,” business magazine LMD reports in its May edition. 

LMD adds: “The hype surrounding the long awaited IMF facility – in business circles at least – has translated into sending the LMD-NielsenIQ Business Confidence Index (BCI) skywards, even if the barometer has yet to reach its point of a year ago (116 basis points) as well as the all-time average of 124.”

It also notes that the 36-basis-point increase in the BCI – the highest rise since January 2021, following news that Sri Lanka was to receive its first consignment of COVID-19 vaccines, represents a 12-month high for the unique index.

NielsenIQ Director – Consumer Insights Therica Miyanadeniya says in the magazine that “with the country slowly beginning to pick up once again and as socioeconomic indicators continue to improve, it is expected that the BCI will continue to gain ground.”

Meanwhile, a spokesperson for LMD explains: “The confidence boost from the IMF facility and news that many major state-owned entities are under consideration for divestiture may have the gumption that’s needed to maintain the momentum of the last two months.”

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