Discussion held at Presidential Secretariat to examine impacts on Sri Lanka’s economy because of the Middle East situation

President Anura Kumara Dissanayake led a discussion at the Presidential Secretariat today to examine the potential impact of the current war situation in the Middle East on Sri Lanka’s economy and to identify the urgent measures required to manage it effectively.

The discussions focused on current fuel reserves, which are sufficient, but we need to maintain the stockpiles and avoid future risks.

Attention was drawn to the potential disruptions in the transportation of upcoming fuel shipments and the subsequent impact on domestic fuel prices. Measures need to be taken to manage this situation to minimise any impact on the public.

The discussion also focused on the challenges arising from insufficient storage facilities for maintaining gas reserves and potential solutions to address this issue. In this regard, the possibility of utilising the Hambantota Port as a short-term measure was also taken into consideration.

Discussions were also held on exploring the possibility of providing the necessary facilities to shipping companies that have long-standing operations with Sri Lanka to avoid potential congestion at Colombo Port caused by disruptions to maritime traffic from the temporary closure of locations such as Suez Canal and the Hormuz Strait.

The Secretary of the Ministry of Trade, Commerce, Food Security and Cooperative Development stated that, while current food reserves in the country are sufficient, plans have been prepared to take the necessary measures in view of potential risks that may arise in the future.

Officials from the Ministry of Tourism noted that, as the majority of tourists visit Sri Lanka from Europe travel via the Middle East, discussions are currently underway on alternative measures in air traffic to mitigate any potential impact on the country’s tourism sector. Officials from the Ministry of Ports and Civil Aviation outlined the measures currently being implemented for this purpose.

The President also drew attention to potential challenges in the investment sector, emphasising the need for planned and coordinated action. The President instructed the Ministry of Finance to explore the preparation of a relief package to encourage investment, particularly leveraging new technologies such as data centres and to examine these measures under the guidance of the Senior Advisor to the President on the Digital Economy, Hans Wijayasuriya.