Sri Lanka’s growth prospects for 2021 had dimmed from the 5 percent levels expected in October amid a surge in Corona virus and with the Census and statistics latest controversial data released with much delay, economic analysts said.
The Department of Census and Statistics revealed that the GDP growth rate for the second quarter of 2020 has been estimated as negative 16.3 percent
The country is now walking on a tight rope, they said adding that the government’s inclination would be to carry on as much as possible to contain the health crisis but ensure that the economy keeps its stability continuing.
Business Confidence in Sri Lanka is expected to be 37 points by the end of this quarter, eroding investor sentiment according to Trading Economics global macro models and analysts
The Business Condition Index measures entrepreneurs’ sentiment about current business situation and expectation about business conditions.
It includes Profitability, Skilled Labour Availability, Demand, Sales and Capacity Utilization.
However Business Confidence in Sri Lanka increased to 45 points in the third quarter of 2020 from 20 points in the second quarter of 2020 Central Bank said.
The latest LMD-Nielsen Business Confidence Index (BCI) survey reveals that sentiment surrounding the economy diminished in November with only 23% of businesspeople consulted expecting economic conditions to improve in the coming 12 months – a decline from 34% in the preceding month.
Nearly half (48%) of the survey respondents say the economy is likely to deteriorate during this period while 29% of executives expect it to ‘stay the same’.
(LIN)