Financial Times

Consumer confidence bouncing back?
Consumer confidence, which had been falling ever since this government came to power, according to surveys done by a private research outfit, appears to have bottomed out and is on the rebound. Since the advent of the UNF Government on December 5, 2001, Survey Research Lanka has been conducting a monthly survey, SRL ConsumerPulse, with the aim of monitoring the 'mood' of the general public created by the current social, political and economic environment.

Unlike most other indices, which offer a measure of performance after the occurrence of an event (e.g. Cost of Living Index), the Consumer Confidence Index is a 'signal' of public outlook for the immediate future. An upward trend in the Consumer Confidence Index suggests that the potential for consumer spending to increase in the near future is real, Survey Research Lanka said in a statement about their latest survey.

According to SRL surveys, it appears that the feeling among the general public was one of "dissatisfaction" with the economic conditions that prevailed during the first 15 months of the UNF Government. "Did this dissatisfaction stem from unusually 'high expectations' on the part of the people based on 'promises' made by the UNF prior to the General Elections of December 2001?" SRL asked."Or was it due to 'poor delivery' on the part of the present Government?"

This decline in Consumer Confidence appears to have 'bottomed out' around February - April 2003 and has surged upwards by over 20 points during the last two months. SRL's calculation of the index is based on a model developed and used for over 50 years by a leading university in the United States.

SRL said the survey is based on interviews with a sample of 400 Main Earners of Households selected at random from the whole island (excluding the Northern and Eastern Provinces) during the last weekend of every month.

The data is collected by administering a structured questionnaire to each sample member at a face-to-face interview. The questions pertain to the respondents' future expectations and perceived current status within the existing environment. The latest results of SRL ConsumerPulse surveys are posted on its website www.srl.lk at the end of each month.

FCCISL to launch Key Persons' Forum
The Policy Support Unit of the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) has decided to organise a "Key Persons' Forum". This is with the objective of arranging a series of public lectures, seminars and discussions conducted by individuals with expert knowledge in various disciplines or key decision makers on matters relevant and of interest especially to the private sector.
The Sri Lanka - German Private Sector Promotion Project will be partly supporting this event, the FCCISL said.

The government expects a two-way dialogue with the private sector, which will enhance the public-private partnership. There is a continuous dialogue-taking place at the national level between the private sector and public sector on matters concerning the private sector and economic development of the country.

However, these dialogues and discussions take place in closed-door environments and many parties who are affected by the issues concerned as well as interested in the subjects are not aware of what is happening and the outcomes of such discussions.

This situation highlights the need for a more focused mechanism of dissemination of such information to the private sector and other relevant and interested parties. Organizing lectures and thereby providing an opportunity to the participants to interact with high calibre policy/decision makers would provide more information and knowledge for those who are interested in these issues.

The lecture series will be conducted once a month but if necessary, depending on the intensity of the current issues and trends, there could be more lectures organized by the Policy Support Unit of FCCCISL. The inaugural forum will be held on July 17 from 4.30 p.m. to 6.00 p.m. at Hotel Galadari.

The guest speaker for the inaugural event will be Minister of Commerce and Consumer Affairs, Ravi Karunanayake. Suggested topic will be "Balancing Consumer Protection and Investor Interest".

Back to Business