By: Staff Writer
Colombo (LNW): Sri Lanka’s businesses perform below expectations up to now this year as there was a significant anxiety on economic resurgence among them.
This was largely attributable to the fact that businesses started to show signs of slow recovery, amidst the economic crisis in the first half of this year amidst high interest rates until recently.
Several CEOs indicate that their businesses performed up to some expectations with the highest optimistic outlook signifying that some industries weathered the storm and performed well, despite a challenging macro environment in 2023 up to now.
Pioneering business magazine LMD reported, in its September edition: “Once again, the one-of-kind LMD-NielsenIQ Business Confidence Index (BCI) survey highlights the steep decline in economic sentiment in business circles.”
NielsenIQ’s Market Leader – Sri Lanka Adrian Hakel added: “A large majority of businesspeople feel there is still no conducive environment for investment while the economic climate is poor.”
He explained: “Inflation and taxes are highlighted as the most pressing issues for doing business in the current context, followed by interest rates and the financial instability of both businesses and consumers.”
In the most recent BCI survey, the percentage of businesspeople expressing optimism about the economy ‘improving’ in the next 12 months dropped by 13% (down to 13% in August, from 26% in the preceding month).
“A quarter (25%) envision the economy remaining steady although expectations of a turnaround were short-lived: a notable 62% of poll participants now anticipate a decline – that’s a 17% uptick from July,” LMD noted.
The magazine also reported that: “The lack of optimism about sales volumes in the 12 months ahead continues with one-in-three (31%) expecting an ‘improvement’ as opposed to the 40% recorded in July.”
LMD’s report also revealed: “Slightly more than one-in-five (22%) survey participants foresee sales volumes ‘staying the same,’ marking a fall from 28% in the month prior.
Meanwhile, expectations of sales ‘worsening’ surged to nearly half (47%) – up from 32% in July.”
LMD’s publisher, Media Services, said the latest edition of the magazine will be released shortly. Its digital edition is shared on WhatsApp and the publisher’s social media platforms.
