Economic sentiment rebounds: Survey

Monday, 22 July 2019 01:00 - - {{hitsCtrl.values.hits}}

Sentiment surrounding the economy improved in June with 11% of respondents to the monthly LMD-Nielsen Business Confidence Index (BCI) poll stating that it will improve, compared to only 6% in May.

“Many of the economic problems witnessed are because local companies don’t produce enough and due to high taxes,” a businessperson laments.

When it comes to business prospects, the outlook has improved with 25% and 28% (versus 3% and 15% in the preceding month) expecting sales volumes to improve in the short and long terms respectively.

A respondent to the exclusive survey states: “The current business climate is not promising in terms of sales volume growth. However, we anticipate that conditions would improve once the situation calms down.”

“People don’t have enough money to purchase the things they need. Therefore, they stick to spending on essentials and trying to save the little money they have left. So we have a hard time selling our products,” notes another respondent.

A majority (89%) of those consulted by Nielsen view the investment climate in a negative light, considering it to be ‘poor’ or worse.

A poll participant says that “we’ve faced delays in many activities and planned investments because we had to depend on Board of Investment (BOI) approvals that weren’t provided on time, resulting in substantial costs being incurred.”

The publisher of LMD, Media Services, says the July edition of the pioneering business magazine has been released to leading supermarkets and bookstores in Colombo and the outstations.

Its Cover Story features the 25 Best Workplaces in Sri Lanka, based on a study conducted by Great Place To Work Institute (for the full story, log onto www.LMD.lk).