Sri Lanka President orders urgent safeguards over Middle East war impact

Sri Lanka President Anura Kumara Dissanayake today (March 04) reviewed the possible economic impact of the ongoing Middle East war and ordered urgent measures to protect fuel, gas, food supplies, tourism and investment while controlling inflation.

The high-level discussion was held at the Presidential Secretariat in Colombo under the patronage of the President. The meeting focused on examining how the current conflict situation in the Middle East could affect Sri Lanka’s economy and identifying immediate steps to manage potential risks.

The President stressed that although future developments cannot be predicted, the country must act collectively and remain continuously alert to changes across all sectors.

During the meeting, officials discussed possible future challenges related to fuel and gas supplies, management of essential stockpiles, tourism, exports, investments, and food security. The likely impact of these factors on inflation was also examined, along with strategies to manage price pressures. The President instructed officials to prioritise inflation control while minimising any negative impact on the economic stability achieved so far and on the livelihoods of ordinary citizens.

Although current fuel reserves are sufficient, detailed discussions were held on maintaining required stock levels and managing them effectively in view of potential risks. Attention was also drawn to possible disruptions in the transportation of upcoming fuel shipments and the resulting effect on domestic fuel prices. The President closely reviewed measures needed to reduce any burden on the public.

The issue of limited storage capacity for gas reserves was also discussed, along with possible solutions. As a short-term measure, the use of the Hambantota Port was considered.

The meeting further examined the risk of congestion at the Colombo Port due to disruptions in maritime traffic caused by temporary closures of key global routes such as the Suez Canal and the Strait of Hormuz. Discussions were held on providing necessary facilities to shipping companies with long-standing operations in Sri Lanka to ease potential congestion.

The Secretary of the Ministry of Trade, Commerce, Food Security and Cooperative Development stated that current food reserves are adequate, and contingency plans have been prepared to address possible future risks.

Tourism officials noted that most European tourists visiting Sri Lanka travel via the Middle East. Therefore, discussions are ongoing on alternative air traffic arrangements to reduce any possible disruption to the tourism sector. Officials from the Ministry of Ports and Civil Aviation outlined measures currently being implemented in this regard.

The President also highlighted possible challenges in the investment sector and called for planned and coordinated action. He directed the Ministry of Finance to explore preparing a relief package to encourage investment, particularly by leveraging emerging technologies such as data centres. These measures are to be examined under the guidance of Senior Advisor to the President on the Digital Economy, Hans Wijayasuriya.

Among those who attended were Secretary to the President Dr. Nandika Sanath Kumanayake, Chief of Staff to the President Prabath Chandrakeerthi, Senior Economic Advisor to the President Duminda Hulangamuwa, Secretary to the Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development K.A. Wimalenthirajah, Senior Additional Secretary to the President G.M.R.G. Aponsu, Director General of Customs Seevali Arukgoda, and Chairman of the Sri Lanka Ports Authority Parakrama Dissanayake.

Senior officials representing line institutions of the Ministry of Finance, Planning and Economic Development, the Central Bank of Sri Lanka, and the Board of Investment of Sri Lanka were also present at the discussion.