Prime Minister Harini Amarasuriya says the ongoing Middle East conflict is beginning to affect Sri Lanka’s economy, warning that the country must remain cautious and manage its finances carefully.
Speaking on the issue, the Prime Minister said Sri Lanka had been working towards economic recovery when the war in the Middle East began, creating several challenges for the country.
She noted that a significant portion of Sri Lanka’s foreign remittances comes from citizens working in the Middle East, and their employment and livelihoods are now under threat due to the conflict.
The Prime Minister also pointed out that many tourists travel to Sri Lanka through Middle Eastern airspace, and the closure of certain air routes and airports has resulted in a decline in tourist arrivals.
Another concern is fuel transportation, which she said has become a global issue affecting not only Sri Lanka but many other countries as well.
Prime Minister Amarasuriya warned that if the conflict continues for a prolonged period, it could have further impacts on Sri Lanka, stressing the need for preparedness and careful economic management, including reducing certain expenditures.
She added that although Sri Lanka has the ability to borrow, the government does not intend to weaken the country’s economy by relying heavily on loans. (Newswire)
