Business confidence plummets

The LMD-Nielsen Business Confidence Index (BCI) continued to decline for the fourth consecutive month to register 93 in April, plummeting 52 basis points from the previous month. 

However, LMD notes that the index remains above the 12 month low of 62 recorded in May 2019 – also during a time of crisis following the Easter Sunday bombings. Nielsen’s Director – Consumer Insights Therica Miyanadeniya explains in the magazine’s latest issue that “COVID-19 is the talk of the town right now, be it in the mainstream media, social media, conversations or otherwise”. “People are anxiously waiting to see whether the count goes up or down and what other measures the government is taking to curb the spread of the virus,” she adds.

Miyanadeniya continues: “So far, Sri Lanka has been fortunate in that the early measures taken by the government have resulted in comparatively low numbers compared to other countries in the region and world…”

According to the leading business magazine, the coronavirus and value of the rupee are cited as the main concerns in corporate circles. Meanwhile, the economy, political culture and COVID-19 are among the pressing national concerns, it adds.

Commenting on the outlook for the index, a spokesperson for LMD states: “It appears gloomy as the corporate sector has come to a virtual standstill following the imposition of the curfew.” This, he says, is reflected by nine in 10 respondents stating that their businesses have been negatively impacted by the pandemic.

In addition, 41% of those consulted expect that their businesses will take six to 12 months to recover from the COVID-19 pandemic.

The publisher of LMD, Media Services, says the latest edition of the magazine will be released this week while its digital edition is available on WhatsApp and its social media platforms (for the full BCI report, visit www.LMD.lk).