President Warns Middle East Conflict May Strain Energy Supply Despite Strong Reserves 📈

President Anura Kumara Dissanayake has cautioned that a prolonged Middle East war could pressure Sri Lanka’s economic recovery due to global supply chain disruptions. While current reserves are stable, energy certainty is guaranteed only for the next two months. • Energy & Fuel Volatility: Global crude prices surged ~42% from US$ 70 to nearly US$ 100 per barrel in early March. This triggered a sharp spike in domestic demand, with diesel sales jumping from 4,500 KL to 10,500 KL and petrol from 4,000 KL to 9,000 KL within days due to market uncertainty. • Economic Context: Unlike the 2022 crisis, the current risk is not a lack of foreign exchange. Sri Lanka’s foreign reserves currently stand at a robust US$ 7.2 Bn. The primary threat is now external logistics and global supply route disruptions rather than a domestic dollar shortage. • Government Response: An Economic Monitoring Committee has been established to track risks. The state is engaging with friendly nations to secure energy supply chains and protect recent economic stabilization gains. • Public Advisory: The government urged citizens to avoid panic buying and moderate consumption, emphasizing that the challenge is an external supply shock that requires collective responsibility to manage.