Cabinet Approves New Economic Watchdog Amid Rising External Risks

COLOMBO (News 1st); Sri Lanka has established a high‑level Committee on Economic Surveillance in response to the growing risk posed by the escalating conflict in the Middle East.

According to the government, the current war‑tone environment in the region has created a precarious situation with the potential to significantly impact the Sri Lankan economy.

As a small, open economy heavily dependent on imported energy, remittances from migrant workers in the Middle East, and commercial and investment ties with the region, Sri Lanka remains vulnerable to external economic shocks. 

The Cabinet therefore approved a resolution submitted by the President to appoint the Committee on Economic Surveillance.

The committee will be chaired by the Minister of Labour, Dr. Anil Jayantha Fernando, in his capacity as the Deputy Minister of Finance and Planning. It will include heads of relevant institutions as well as experts in the field. 

Its mandate is to provide recommendations to the Cabinet by continuously monitoring the economic impact of the ongoing regional crisis, evaluating risks across key sectors, and reviewing emerging developments.

The government said the committee’s work will guide essential policy precautions required to safeguard the economy under the present circumstances.