Economic sentiment in no man’s land: Survey

Monday, 8 April 2019 00:14 - - {{hitsCtrl.values.hits}}

The latest LMD-Nielsen Business Confidence (BCI) poll reveals that in the eyes of a majority (55%) in the corporate community, the economy is likely to deteriorate in the next 12 months. However, 45% of those spoken to say that economic conditions will ‘improve’ or ‘stay the same’ during this period.

In terms of business prospects, 32% and 24% of businesspeople consulted by Nielsen expect sales volumes to improve in the long- and short-terms respectively, compared with 50% and 34% in the previous month.

To this end, one survey respondent states: “We can’t really say if our business will get better in the coming months mainly due to the continuing political instability in our country.” The respondent notes that “many businesses are waiting to see how the budget will affect business for the rest of the year”.

Meanwhile, sentiment surrounding the investment climate has remained largely the same with nine in 100 respondents saying it is ‘good’ or ‘better’.

One corporate executive opines that “currently, the investment climate is fair. Most investments are taking place in the construction field and tourism industry; however, we need to focus on driving investment in other sectors as well”.

In contrast, another respondent highlights the need to for affirmative action: “As the political climate in the country is volatile, investors do not have the confidence to invest in Sri Lanka. The Government first needs to build the trust of (prospective) investors.”

Media Services, the publisher of LMD, says the April edition of the magazine has been released to leading supermarkets and bookstores in Colombo and the outstations. Its Cover Story features an in-depth analysis of income inequality, and factors contributing to the gap between the rich and poor across the world. (For the full story, log onto www.LMD.lk)