Biz confidence dips marginally

After recording a six-month high in August, the LMD-Nielsen Business Confidence Index (BCI) declined by four basis points to register 90 in September. According to business magazine LMD, the index stood at 87 a year ago and is currently above its 12-month average of 89.

Commenting on this result, Nielsen Managing Director Sharang Pant said: “This comes on the back of sustained growth in exports, a decline in imports amid controls, stable inflation levels, and tourism arrivals moving back to an average of 140,000 in the last couple of months.”

He added: “There is anticipation in the air, too, with an election coming up soon. Businesses expect changes to the tax structure and other incentives that can help draw investments.”

Meanwhile, LMD reports that taxes, political interference, and inflation are among the major concerns in the corporate sector, while respondents cite the economy, the political culture, and poverty as the most pressing national issues.

A businessperson explained: “Controlling the dollar exchange rate is very important. Else, all our businesses will fail. With inflation, our costs are rising and it is difficult for us to increase prices to match.”

As for the immediate future, a spokesperson for the magazine echoes Pant stated that “the next three months will be critical to gauge the direction of the country’s political future – and this will drive business and consumer sentiment”.

LMD’s publisher, Media Services, said the latest edition of the magazine has been released to leading bookstores and supermarkets. For the full BCI report, visit www.LMD.lk