Govt sets up economic surveillance committee

The Cabinet of Ministers has approved the appointment of a special Committee on Economic Surveillance to assess and respond to the potential economic fallout from the ongoing conflict in the Middle East.

The proposal to establish the Committee was presented by the President and received Cabinet approval this week, according to the Department of Government Information.

The Committee will be chaired by Deputy Finance and Planning Minister and Labour Minister Dr. Anil Jayantha Fernando. It will comprise heads of relevant State institutions along with sectoral experts.

Authorities noted that the escalating conflict in the Middle East has contributed to growing global economic instability, raising concerns over possible repercussions for Sri Lanka.

As a small, open economy, Sri Lanka remains heavily dependent on external factors, particularly energy imports, remittances from Sri Lankan migrant workers employed in Middle Eastern countries, and trade and investment ties with the region. Given this exposure, the Government has identified the country as being vulnerable to external economic shocks stemming from the crisis.

The newly established Committee has been tasked with continuously monitoring global and regional developments and evaluating their potential impact on Sri Lanka across multiple sectors. It will assess risks related to fuel supplies, foreign exchange inflows, labour markets, trade, and broader macroeconomic stability.

Based on its assessments, the Committee will submit policy recommendations and propose necessary response measures to the Cabinet with a view to mitigating possible economic disruptions.

The move comes amid heightened concerns over rising global energy prices and potential disruptions to remittance flows and supply chains, as tensions in the Middle East continue to escalate.

Source  - The Morning