A high-level Committee on Economic Surveillance will now monitor potential risks to the national economy arising from the escalating conflict in the Middle East. Approved by the Cabinet this week following a proposal by President Anura Kumara Dissanayake, the committee serves as an early-warning body to advise the government on emerging geopolitical risks. Because Sri Lanka functions as a small open economy heavily reliant on Middle Eastern energy imports and remittances from over one million migrant workers, the government identified the region as a critical pillar for economic stability.

The committee will focus on safeguarding foreign exchange inflows, managing fuel costs, and maintaining overall economic activity. Dr Nalinda Jayatissa, the Cabinet Spokesman, noted that any disruption in the Middle East could create severe ripple effects for the country's recovery process. Chaired by Labour Minister Dr. Anil Jayantha Fernando, the team includes prominent figures such as Central Bank Governor Dr Nandalal Weerasinghe, Treasury Secretary Dr Harshana Suriyapperuma, and industry leaders like Hanif Yusoof and Dr Hans Wijayasuriya.

The formation of this watchdog aligns with a recent UN Trade and Development (UNCTAD) analysis detailing how disruptions in the Strait of Hormuz threaten global trade. UNCTAD warned that the passage, which carries 25% of the world’s seaborne oil and a third of global fertiliser trade, has seen ship traffic drop by 97% since late February 2026. With Brent crude prices climbing above $90 per barrel and freight rates surging, the committee is expected to recommend urgent policy responses to mitigate the impact of rising energy and transport costs on the public.