The Cabinet of Ministers has granted approval to the proposal to appoint a ‘Committee on Economic Surveillance’ to review potential economic impacts on Sri Lanka from the ongoing conflict in the Middle East.

The proposal to establish the committee was presented by the President and received Cabinet approval.

The committee will be chaired by Dr. Anil Jayantha Fernando, who serves as the Deputy Minister of Finance and Planning as well as the Minister of Labour. It will also include heads of relevant institutions and experts from the respective sectors.

Authorities noted that the current conflict in the Middle East has created a globally unstable economic environment, which could potentially have negative repercussions for Sri Lanka’s economy.

As a small open economy, Sri Lanka remains highly dependent on several external factors, including energy imports, remittances from Sri Lankan migrant workers in the Middle East and trade and investment ties with the region, the Department of Government Information said in a statement.

Due to the dependence, the country is considered vulnerable to external economic shocks arising from the ongoing crisis, the statement added.

Due to these concerns, the newly formed ‘Committee on Economic Surveillance’ will be tasked with continuously monitoring potential economic impacts, assessing risks across multiple sectors and regularly reviewing the evolving situation. Based on its findings, the committee will submit policy recommendations and necessary response measures to the Cabinet to mitigate possible economic disruptions.