Following the rise in COVID-19 cases towards the end of April, the LMD-Nielsen Business Confidence Index (BCI) plunged by 49 basis points to 89 in May, registering a five-month low. 

Business magazine LMD notes that this decline largely negates the gains witnessed this year and marks the highest fall since April 2020 when the Government imposed an islandwide curfew.

Nielsen Director - Consumer Insights Therica Miyanadeniya explained: “Predi-ctions of the possibility of a third wave unfolding after the Avurudu season have become a stark reality. The country is reeling from the effects of unchecked crowds in and around retail outlets, as well as carefree celebrations and fiestas in various parts of the island during the season.”

LMD reports that the impact of COVID-19 continues to be the most pressing issue in business circles, followed by inflation and political instability. Meanwhile, the spread of the pandemic continues to be cited as the main concern for the country.

When it comes to the future of the unique index, Miyanadeniya notes that it could fall to an all-time low if the trend of COVID-19 cases continues.

Adding to this, a spokesperson for LMD notes that the outlook for the BCI may depend on the success of the country’s immunisation drive. “The future direction of the index will likely hinge on the Government’s ability to secure more vaccines and fast track the roll-out of the islandwide vaccination campaign.”

Media Services says the latest edition of LMD will be released shortly while its digital version is available on WhatsApp and its social media platforms. For the full BCI report, visit www.LMD.lk

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