Economic sentiment continues to decline: Survey

Monday, 15 October 2018 01:05 - - {{hitsCtrl.values.hits}}

The latest LMD-Nielsen Business Confidence Index (BCI) survey reveals that economic sentiment deteriorated in September with only 5% of respondents expecting conditions to improve in the next 12 months.

One corporate respondent notes: “Tourism seems to be the only industry [that is] not affected by adverse economic conditions – this industry seems to be improving month on month. Compared to the corresponding period of the prior year, there has been an increase in tourist arrivals in 2018.”

Meanwhile, business prospects have remained largely the same with 16% and 18% (compared to 15% and 19% in the previous month) of survey respondents expecting sales volumes to improve in the short and long terms respectively.

One corporate executive states: “At present, we do not think that there will be any change in our company’s activities; however, this is dependent on foreign investors and local establishments. We’re trying our best to maintain our level of business but there’s a possibility that it could deteriorate.”

The investment climate is also viewed in a negative light with 71% of respondents considering it to be ‘poor’ or worse while 4% of the businesspeople polled by Nielsen perceive it favourably.

“Although investments are taking place, the climate seems to have slowed down a little due to the instability of the Government, the economy and constantly changing policies,” a survey respondent observes.

LMD’s publisher Media Services says the October edition of the magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story centres on the advent of artificial intelligence and its implications for humankind (for the full story, log onto www.LMD.lk).