Two Sub-Committees to monitor Middle East crisis impact on economy

Thursday, 26 June 2025 00:12 - - {{hitsCtrl.values.hits}}

Cabinet green lights to appoint Cabinet Sub-Committee and Technical Committee comprising Ministry Secretaries; structure to function as early-warning system and policy advisory units
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath to Chair Cabinet Sub-Committee

By Charumini de Silva

Amid the rising instability in the Middle East, the Cabinet of Ministers at their meeting on Tuesday approved the formulating of high-level dual sub-committees tasked with evaluating potential risks and devising early action strategies to avoid any adverse impacts on the economy.

The move comes as concerns mount over the broader geopolitical fallout from the situation in the Middle East, particularly with regard to energy security, foreign employment, trade, logistics and tourism—all critical sectors for Sri Lanka amid the recovery process from the worst economic crisis faced

post-independence.

The newly appointed Cabinet Sub-Committee will be Chaired by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath, along with Plantation and Community Infrastructure Facilities Minister Samantha Vidyarathne, Trade, Commerce, Food Security and Cooperative Development Minister Wasantha Samarasinghe, and Power Minister Kumara Jayakody.

To support the work of the Ministerial panel, the Cabinet also approved forming a secondary Technical Committee comprising Secretaries to relevant Ministries. This team is mandated to monitor the evolving situation in real-time and assess its likely impacts across multiple sectors.

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa yesterday said this dual-committee structure is expected to function as an early-warning system and policy advisory unit, delivering strategic recommendations to the Cabinet as events unfold.

“The sub-committees work as a response mechanism, shifting from usual reactive to proactive policy-making to insulate the economy from any external volatility as much as possible, particularly to the workers’ remittances, oil, exports, and tourism sectors,” he said at the post-Cabinet meeting media briefing.

With a large number of Sri Lankans working in the Middle East, he acknowledged that there are concerns on lower remittances inflows, disruption to oil supply, and decline in tea exports and tourism footfall.

When asked if the Government intends to have an all-party engagement to avert the impact, Dr. Jayatissa said the two sub-committees were proposed way ahead before the Opposition called for it, but the Government is open for dialogue and is ready to discuss or debate at Parliament level.

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