Business confidence is edging towards an all-time high
The LMD-PEPPERCUBE Business Confidence Index (BCI) surged by 24 basis points in January to reach 198, from 174 in the month prior. This marks its highest point since January 2015, following a presidential election that installed the yahapalanaya (good governance) government.
The BCI is now approaching its all-time high of 204, recorded in September 2015 – which also followed an election – after which Sri Lanka was to be governed by a coalition.
What’s more, the index now stands 75 points above its historical median of 123 and is 79 points higher than its 12 month average of 119. And the fact that the index stood at a lowly 82 basis points a year ago bears testimony to the ground that it has gained in a matter of 12 months.
The notable upward trend in the barometer of business confidence in recent months is attributable to the outcome of twin elections and high expectations of ‘system change,’ in addition to improvements in our macroeconomic indicators.
Complementing Sri Lanka’s economic turnaround are improved ratings announced by international agencies such as Fitch and Moody’s.
