LNP – Business sentiment picks up as economic activity shows signs of a slight recovery

Sri Lanka recently received its first shipment of 264,000 vaccines of the Oxford-AstraZeneca vaccine as part of the interim allocation of 1.44 million doses to be received from the COVAX Facility in stages until May. This brings the number of doses available to around 1.3 million with nearly a million people receiving their first jab so far.

As economic activity continues to recover against this backdrop, the Central Bank of Sri Lanka notes that the economy is expected to make a notable recovery this year, supported by policy stimulus and improving business sentiment.

It states: “Positive sentiments fuelled by the COVID-19 vaccination drive in the country and the impact of growth promoting policies are expected to support the economic revival over the short to medium term.”

The outcome of the latest LMD-Nielsen Business Confidence Index (BCI) survey – which was carried out in the first week of March – also points to a cautiously growing sense of optimism in the business community as the country looks to return to a semblance of normalcy.