This brief report of the Perceived Economic Opportunity (PEO) presents the analysis of a random survey carried out using a random sample of 400 men and women covering all districts in Sri Lanka on their expectations of economic prospects in the ensuing twelve months.

STATUS OF JOB PROSPECTS OR BUSINESS PERFORMANCE

Analysis of the perceived economic opportunities in the months of April, May and June 2019 indicate that the expectations in terms of job prospects of people or developing the status of their business in the ensuing 12 months has reduced further from the first quarter of the year 2019.

The same expectation started a decreasing trend in the third quarter of 2018 and continued the reduction in the fourth quarter of 2018 and in the first quarter of 2019.

The uncertainty caused by the unexpected political transformation in Sri Lanka, in the month of November 2018, may have contributed to the lowering of expectations, and in the same time period and during this period, the rupee was rapidly depreciating against the foreign exchange. Political uncertainty in the country was also seen in the first quarter of 2019 and continued into the second quarter of 2019.

Sri Lanka's real economic growth slowed during the period, the Central Bank said.

Especially in the second quarter of 2019, the Easter bomb attack on Sri Lanka has severely damaged the tourism industry and caused a recession in the economy.

Due to the Easter bomb attack, many people lost employment in the tourism industry and the prospects for employment were drastically reduced.

With the sudden hit to the tourism industry, the other businesses who provided food, vehicles and other insulation services to the tourism industry were also collapsed.

The below graph shows the change of expectations in terms of job prospects of people, or development of the status of their business, in the ensuing 12 months.

Refer the graph 01 below;

ABILITY TO SAVE

According to the analysis in the months of April, May and June 2019, the expectation among the people to save a little more from their personal earnings in the ensuing 12 months has slightly increased compared to the first quarter of the year 2019.

Please Refer the Graph 02;

EXPECTATION FOR REDUCTION OF CORRUPTION

The expectation for reduction of corruption in the country showed a significant positive trend in the first quarter of 2019 and the same trend continued to grow in the second quarter of 2019.

Please Refer the Graph 03;

PEO; Perceived Economic Opportunity is developed and surveyed by the Foundation for Economic Freedom in Sri Lanka. PepperCube Consultants carry out the field research covering the entire country.

The Perceived Economic Opportunity was developed and is measured by the Foundation for Economic Freedom in Sri Lanka (FEF) in partnership with Friedrich Naumann Stiftung Fur Die Freiheit.