According to the latest monthly LMD-Nielsen Business Confidence index (BCI) survey, almost one in four business people –that is twice as many as in July consulted by Nielsen, for LMD’s publisher Media Services, anticipates that the economy will improve over the next 12 months.

Meanwhile 28% of respondents expect economic to stay the same.

“We operate in the tourism industry and our hotel’s business has declined. But we’re hoping this would turn around and lead to a positive situation in the coming months. We have to be optimistic about the situation in the country; now that the terrorist threat has reduced, tourists are arriving once again,” states a member of the corporate community.

Approximately a third of those surveyed also feel that their business will improve in both the short and long terms.

“We hope that our sales will continue to improve. However we are looking at export markets as we don’t believe that Sri Lanka supports local products in the domestic market,” a corporate executive notes.

Another respondent also affirms that, “If as a business you continue to supply quality goods and services, there will eventually be customers coming in to purchase items from you regardless of the situation of the country.”

Sentiment on the investment climate has yet to recover as 80% of respondents continue to feel that this is not a good time to invest in the country.

To this end, a businessperson asserts that, “the Central Bank of Sri Lanka has introduced more restrictions and taxes so investors are backing off. Moreover, the investment climate is not stable because of the upcoming election.”

A respondent also pose the following question: “How can we be sure about the country and invest when there are different rules for different people?”

More than one in five corporate executives reveal plans to increase their workforce in the next six months, which is in contrast to the prior month when only 8% were looking to do so.

Meanwhile, a clear majority (66%) of respondents state that they will maintain employee numbers while 11% disclose plans to retrench excess staff.