Business confidence in Sri Lanka is at its lowest in years, according to the chairman of the Ceylon Chambers of Commerce Vish Govindasamy.

Sri Lanka Business Confidence dropped by 39.6 % in Nov 2022, compared with a decrease of 44.0 % YoY in the previous month.

“Business confidence is probably at its lowest since I’ve been in business. It’s probably the most difficult time that we have faced. But we are resilient,” he said.

In Sri Lanka, the Business Condition Index measures entrepreneurs’ sentiment about current business situations and expectations about business conditions. It includes Profitability, Skilled Labour Availability, Demand, Sales and Capacity Utilization.

“A slight dip in the rate of inflation fails to inspire business people, as gloom pervades the private sector,” leading business magazine LMD said, in its January edition.

Nielsen IQ’s Director – Consumer Insights Therica Miyanadeniya noted in LMD: “Year 2022, one of the most controversial and difficult in the history of Sri Lanka, is coming to an end.

As one looks back, the country has weathered turbulent times with untold hardships faced by businesses and people alike.”

“Though the fuel crisis has subsided somewhat, the cost of goods and services is keeping the rate of inflation high … However, inflation is showing signs of going down with the National Consumer Price Index (NCPI) at 70.6% in October, compared to less than 75% in September,” she added.

Miyanadeniya asserted that: “the optimism that was evident in November has been quenched, and this disappointment and the continued hardships faced by business and the populace at large are also reflected in both the LMD-NielsenIQ Business Confidence Index and the Consumer Confidence Index.”

LMD reports that 75% of executives responding to the exclusive survey carried out in the first week of December anticipate that the economy in general ‘will get worse’ in the year ahead (up from 59% in November) and only one-in-10 say it will ‘stay the same’ (down from 20% in November).

“Pessimism is evident re expectations of sales volumes with only 41% of executives anticipating an increase in the next 12 months (51% in November) and 17% stating that sales volumes would ‘stay the same’,” a spokesperson for LMD added.

The magazine also noted: “Once more, there’s no significant change in executive opinion with regard to sales volumes compared to the same time last year with only 27% observing an increase in business (29% in November and 27% in October).”

LMD’s publisher, Media Services, said the latest edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

With its golden beaches, towering mountains, ancient monuments and stunning wildlife all encircled in the pearl of the Indian Ocean, Sri Lanka is set to meet the target of 105,000 tourist arrivals for January having already received a record 62,334 tourists, tourist arrivals in the first 19 days of January.

The island nation is on its way towards meeting an end-of-year revenue target of US$ 2.8 billion from an anticipated 1.55 million arrivals

As per the latest data released by the Sri Lanka Tourism Development Authority (SLTDA), a total of 20,875 travelers arrived in the first week, while 23,295 in the second week and 10,445 in the other three days, the provisional data released by the Sri Lanka Tourism Development Authority showed.

Sri Lanka Tourism Development Authority (SLTDA) Chairman Priyantha Fernando said that tourist arrivals for 2022 were at a satisfactory 719,978, which marked a 270-percent increase from the 194,495 tourists who traveled to Sri Lanka in 2021.

Mr Fernnado disclosed that a 10-year national tourism policy will be introduced in early January.

“This will help the industry have a clear vision of the industry objectives and goals. It includes regional development, increasing female participation, identifying new tourist attractions, markets and so on,” he said.

SLTDA Chief noted that around 33 to 35 percent of the travelers coming to Sri Lanka are repeat customers and it was important to ensure there are new attractions for them as well as to promote the destination through word of mouth.

The boost in arrivals was largely influenced by the Russian tourist, maintaining the lead ahead of India. Daily arrivals have also reached 3,281 compared to over 2,000 levels last year showing a significant improvement.

Russia accounted for 15,572 or 25percent of the total tourists, followed by India with 7,853 or 13percent, Germany 5,668 or 9 percent, UK with 5,033 or 8 percent, and France with 2,799 or 4 percent.

Originally for 2023, Sri Lanka Tourism set an ambitious target of 1.5 million arrivals and an income of $ 5 billion by attracting high-end travellers who spend over $ 400 per day from the current $ 200.

Despite it being a ‘crisis year’ Sri Lanka ended 2022 with 719,978 tourists, up by 207percent over 2021. Though missing the original target of 750,000 arrivals, the Minister said the provisional data shows that the earnings target of $ 1.2 billion was achieved last year.