President Leads High-Level Discussion to study potential impact of war on Sri Lanka’s economy and to determine urgent measures required for effective management of the situation

Let us overcome these challenges together by maintaining constant vigilance over new developments in every sector - President

President instructs officials to prepare a relief package designed to promote investment in the modern technology sector

A discussion was held today (04) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake 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 President emphasised that, although the future cannot be predicted, must work collectively to overcome this challenge by remaining continuously vigilant to developments in every sector.

During the discussion, the possible challenges that could emerge in the future regarding fuel and gas supplies, the administration of essential stockpiles and matters associated with tourism, export and investment sectors, along with food security and their potential effects on inflation within the country, as well as the strategies necessary for its management, were thoroughly examined. The President instructed officials to prioritise strategies to control inflation while minimising any adverse effects on the economic stability Sri Lanka has achieved to date and on the livelihoods of ordinary citizens.

Although current fuel reserves are sufficient, a detailed discussion was held on maintaining the necessary stockpiles and managing them effectively in light of potential future risks.

Attention was drawn to the potential disruptions in the transportation of upcoming fuel shipments and the subsequent impact on domestic fuel prices. The President scrutinized the measures that need to be taken to manage this situation so as 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, in order 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 visiting 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.

The event was attended by Secretary to the President, Dr. Nandika Sanath Kumanayake, the 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.

The event was also attended by a group of senior officials representing the 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.

Source: Adaderana