📉 Business Sentiment: Confidence Slips as Doubts Linger

• Overall BCI Trend: The LMD-PEPPERCUBE Business Confidence Index (BCI) edged down by 2 points to 149 in August 2026 (from 151 in July). It sits 23 points above its historic median of 126, but trails 18 points below the 12-month average (167) and is down from 192 in August 2025. • Macro Economic Respite: Official foreign exchange reserves rose marginally to US$ 6.591 Bn at end-July. Additionally, the PUCSL decided against an electricity tariff revision for Q3, offering relief to businesses and energy consumers. • Key Domestic Headwinds: Severe wet weather and flash floods disrupted operations. Public health concerns grew as dengue cases approached 100,000. Corporate sentiment was also influenced by political debates over the 22nd Amendment to the Constitution and security concerns surrounding law and order. • Global Risks & Projections: Sentiment remains broadly stable yet cautious. World Bank downside warnings—including potential escalation in the Middle East and global supply disruptions—keep local business leaders in a watchful, risk-averse stance for the final four months of 2026.