Business confidence dips

Friday, 30 October 2020 00:12 - - {{hitsCtrl.values.hits}}

Following a four-month uptrend, the LMD-Nielsen Business Confidence Index (BCI) declined by five basis points to 115 in October. This, the business magazine says, is due to the prevailing state of the nation.

In the latest edition of LMD, Nielsen Director – Consumer Insights Therica Miyanadeniya explained: “Alas, with the coming of a ‘second wave’ of COVID-19 in Sri Lanka, where numbers have been escalating by the day and isolated cases connected to the Minuwangoda cluster are emerging all over, fear has begun to grip the country once again.”

She adds: “Although there is no official lockdown of the nation as a whole, a number of businesses and private corporates are in a state of self-imposed lockdown.”

“Among the more informed and learned, working from home (WFH), minimising travel, adhering to physical distancing, and wearing masks at all times have once again taken precedence. With schools and universities shutting down, as well as a ban on social gatherings, the State is once more plunged into a state of crisis,” she adds.

According to LMD, the impact of the coronavirus is cited as the most pressing issue in business circles, followed by inflation, high taxes and interest rates.

A spokesperson for the magazine notes that the index is likely to remain below its 12-month average of 125 and all-time average of 127, stating: “With the budget scheduled for presentation in Parliament soon, a turnaround in the BCI appears somewhat bleak.”

The publisher of LMD, Media Services, says the latest edition of the magazine 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