Sri Lanka faces serious economic risks from the ongoing Middle East conflict, former Tourism Minister Harin Fernando said, warning of potential impacts on exports, tourism, and foreign exchange inflows.
Speaking at a media briefing, Fernando said rising global oil prices, disrupted shipping routes, and increasing inflation could affect the country’s fragile economic recovery.
He noted that Brent crude prices have surged, while global supply chain disruptions are expected to drive up the cost of transport, food, and essential services.
Fernando highlighted concerns over Sri Lanka’s export sector, particularly tea, noting that the Middle East accounts for nearly 38% of tea exports, valued at over USD 500 million. He added that disruptions to airline operations are affecting cargo capacity, especially for perishable exports such as seafood.
He said tourism is also at risk, pointing out that although direct arrivals from the Middle East are low, nearly 28.5% of tourists transit through hubs such as Dubai, Doha, and Abu Dhabi.
Fernando further raised concerns over remittances, stating that countries such as the UAE contribute significantly to Sri Lanka’s foreign exchange inflows.
On the domestic front, he warned that rising fuel prices and a possible electricity tariff hike could push inflation higher, while increased imports and fuel costs may place additional pressure on foreign reserves and the exchange rate.
Fernando also criticised President Anura Kumara Dissanayake, accusing him of making empty promises, and predicted political instability.
“Gotabaya resigned and left. Anura Kumara will have to flee in a way no one can even find him — remember, we said this,” he said.
Fernando urged the Government to take precautionary measures, including preparing for possible interest rate adjustments to manage inflation and currency pressures. (Newswire)