Sri Lanka reviews economic risks amid Middle East conflict

The Economic Monitoring Committee met yesterday (March 10) at the Presidential Secretariat in Colombo to assess the possible economic impact of the ongoing conflict in the Middle East and to discuss urgent measures to protect Sri Lanka’s economy and citizens.

The Committee was established on a proposal by Sri Lanka President Anura Kumara Dissanayake to safeguard the country’s economic stability and ensure the welfare of the public in the face of external economic pressures.

The meeting was chaired by Deputy Minister of Finance and Planning and Minister of Labour Dr Anil Jayantha Fernando. Senior Additional Secretary to the President (Finance and Economic Affairs) Russell Aponsu serves as the Secretary and Convener of the Committee.

Members of the Committee include Governor of the Central Bank of Sri Lanka Dr P. Nandalal Weerasinghe, Secretary to the Treasury and Secretary to the Ministry of Finance, Planning and Economic Development Dr Harshana Suriyapperuma, Senior Presidential Adviser on the Digital Economy Hans Wijesuriya and Senior Economic Adviser to the President Duminda Hulangamuwa.

Other members are Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, Chairman of the Ceylon Petroleum Corporation D.J.A.S. de S. Rajakaruna, Chairman of Litro Gas Lanka Limited Channa Gunawardena and Chairman of the Sri Lanka Ports Authority Dr Parakrama Dissanayake.

The Committee also includes Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe, Special Presidential Representative on Foreign Investment Hanif Yusoof, Chairman of the Sri Lanka Tea Board R.K. Obeysekara, Chairman of the Sri Lanka Tourism Development Authority Buddhika Hewawasam and the Additional Secretary (Economic Affairs) of the Ministry of Foreign Employment and Tourism.

During the meeting, members focused on the potential negative impact of the current conflict situation in the Middle East, which has created instability in the global economic environment. Discussions were held on the steps needed to stabilise markets and protect the interests of the public if external pressures increase.

Officials also noted that Sri Lanka, as a small open economy, is highly dependent on fuel imports, remittances from migrant workers employed in the Middle East, as well as trade and investment connections with the region.

In this context, the Committee held detailed discussions on the risks posed by possible external economic shocks and the policy measures that must be continuously monitored and implemented to reduce these risks.