Further gains in biz confidence in February

The latest edition of leading business magazine LMD reports that the LMD-Nielsen Business Confidence Index (BCI) continued its upward momentum by inching up another four notches to 127 in February.

Nielsen’s Managing Director Sharang Pant remarksin the magazine that“the negative sentiment on the economy seems to be gradually diminishing … Businesses seem to have adjusted to the new tax regime and are willing to stick to their plans.”

ButPant also points out that “the overall investment climate is still seen as cautious to negative… The upward movement of interest rates and inflation is seen as a deterrent to the cost of doing business. However, the investment climate has improved marginally over December 2016. These reasons are seen holding up foreign investors.”

The exclusive monthly survey reveals that a majority of respondents feel that the state of the economy will ‘stay the same,’ while 28% expect conditions to improve in the next 12 months.

Where business prospects are concerned, LMD notes that at least four-in-five respondents feel that their business volumes will remain the same or improve in the 12 months ahead – this figurestood at about 70% at the end of 2016, indicating a reasonably healthy movement in the last two months.

Looking ahead, a spokesperson for LMD states:“Judging by the results of the latestBCIsurvey, a mild recovery in sentiment is seemingly in place, provided that there’s better direction from the government and a cap on political interference in business”

LMD’s publisher Media Services says the Marchedition of the magazine will be released to bookstores and supermarkets today, 10 March (for the full BCI report, go to www.LMD.lk).