By: Staff Writer
March 23, Colombo (LNW): Sri Lanka businesses currently struggling to survive will re over in the coming months with the economic recovery is envisioned to be driven by rising consumer spending, along with the revival of the tourism sector and investment spending.
Household incomes were hit hard with the sharp devaluation of the Sri Lankan rupee (LKR), which sparked a painful inflationary shock.
But with the easing of inflation in the last quarter and its expected stability this year, households are expected to be able to rebuild their purchasing power, encouraging consumption once again.
“Businesses continue to grapple with a widespread sense of uncertainty – and this sense of ambiguity is mirrored in the latest findings of the LMD-PEPPERCUBE Business Confidence Index (BCI) survey,” business magazine LMD reveals, in its March edition.
It reports that “23% of survey participants are positive about the economy ‘improving’ over the next 12 months despite the two point drop from January (25%) – and 18% of respondents anticipate the economy will ‘stay the same,’ which reflects a percentage point difference over the previous month (19%).”
“But most tellingly, nearly six in 10 (59%) expect the economy will ‘get worse’ – up three percent from January’s 56%, although this outcome represents a 14% improvement from three months ago,” LMD adds.
The magazine also notes that in February, hopes that sales volumes will ‘get better’ over the next 12 months dipped with 27% anticipating such a scenario – that’s a two point drop compared to the preceding month.
“A quarter of survey participants (25%) expect their numbers will ‘stay the same,’ representing an increase from the previous 21%. And the proportion anticipating sales volumes to ‘get worse’ declined to 48% – down from 50% in the month prior,” it observes.
A spokesperson for the pioneering magazine adds, “Looking at the three months ahead, there’s a sense of gloom surrounding sales volumes improving with only 27% expressing optimism.”
“But economic sentiment remains subdued as nearly half of the survey participants expect their sales to get worse over the next three months,” she adds.
LMD’s publisher, Media Services, says the latest edition of the magazine has been released. And its digital edition has been shared on WhatsApp and the publisher’s social media platforms.
The magazine’s Cover Story features insights from leading lights from Sri Lanka’s export sector along with winners of export awards in the recent past.
