Sri Lanka’s economic future has become increasingly uncertain due to the ongoing global conflicts and rising geopolitical tensions, Central Bank Governor Nandalal Weerasinghe said.
Speaking at the Parliamentary Committee on Public Finance, Weerasinghe warned that the rapidly changing international situation could create serious economic risks for Sri Lanka.
He recalled Indian Prime Minister Narendra Modi’s recent remarks on the need to reduce fuel consumption due to the conflict situation in the Middle East and other global tensions. Weerasinghe noted that India has already started taking precautionary measures despite holding nearly USD 700 billion in reserves.
“If a country like India takes such preventive action despite its strong reserve position, Sri Lanka must remain extremely cautious,” he said.
He also stressed that if the current unstable global environment continues, Sri Lanka could face even greater economic difficulties. According to the Governor, the speed of current global developments makes it difficult to accurately predict what may happen even within the next three months.
Concerns Over Energy and Economic Preparedness
Weerasinghe highlighted the importance of preparing for potential disruptions, especially in energy and fuel-related sectors, as global conflicts continue to affect international markets.
He emphasized that Sri Lanka must closely monitor external risks and take early action to protect economic stability.
