Business

June business confidence recovers from 11-year low in May

Business confidence in Sri Lanka has recovered from a constant decline since February which was exacerbated by the Easter attacks, according to the LMD-Nielsen Business Confidence Index (BCI) survey.

The results of the latest survey carried out in the first week of June signals a much needed improvement following the 11 year low of 62 the BCI hit in May, increasing by 19 basis points to 81 in June.

The index stood at 102 a year ago and the average for the last 12 months is 91.

“The country is gradually emerging from the terrible events of April. There is some level of optimism and discussions at various forums about how Sri Lanka should turn this into an opportunity to come back stronger – politically, socially and economically,” says Nielsen’s Managing Director Sharang Pant.

He also asserts that “the authorities are taking commendable steps to revive perceptions about safety and business sentiment. But citizens in general remain wary of the safety aspect – and this is impacting sentiment or confidence in general.”

With respect to recent events, Pant observes: “While tourism was impacted, positive news on export growth and a decline in imports are helping sentiment. The rupee has also remained firm during this crisis period.”