Sri Lanka Business Confidence Index (BCI) Plunges in November 📉

• The LMD-PEPPERCUBE Business Confidence Index (BCI) tumbled by 23 basis points in November, dropping to 189 from its record high of 212 in October. • The drop is attributed to a wave of uncertainty and apprehension among the business community, largely due to pre-budget caution and the lack of major reforms in Budget 2026. • Sentiment shifted towards greater caution regarding long-term economic and sales prospects, though overall optimism persists. • Context: The BCI at 189 remains 64 points above its historic median (125) and significantly higher than 154 recorded in November last year. • Economic Projections: The World Bank forecasts moderate economic growth of 4.6% in 2025 and 3.5% in 2026, but notes the rebound is incomplete, with output below pre-crisis levels. • Outlook: The recent confidence resurgence appears unsustainable; the BCI is expected to fluctuate significantly ("seesaw") over the next 6-12 months. Sustaining confidence requires implementing targeted policies.