Sri Lanka Warns of Middle East Conflict Impact

Colombo, Jul 31 (PTI) President Ranil Wickremesinghe on Wednesday said Sri Lanka needs to be wary of any potential economic consequences from the escalation of conflict in the Middle East region following the assassination of Hamas leader Ismail Haniyeh in Tehran.

Hamas said its political leader Haniyeh was killed in an Israeli strike in the Iranian capital of Tehran, a major development that throws the region into a dangerous new phase. Iran's Supreme Leader Ayatollah Ali Khamenei on Wednesday vowed to avenge Haniyeh's death.

“There are significant global issues today. The killing of the Hamas leader in Tehran is something I strongly condemn. It was wrong and could have been prevented from finding a solution to the Gaza conflict," Wickremesinghe, who announced his candidacy for the presidential election on September 21, said while addressing a political gathering here.

“If a war breaks out, what will happen to fuel prices? If any issues arise, we might need to bring back everyone in the Middle East to Sri Lanka similar to what we faced when Kuwait was invaded in 1991. This would result in a loss of revenue for the country," Wickremesinghe, also the finance minister, said.

Wickremesinghe said Foreign Minister Ali Sabry would engage with other countries to discuss a joint programme to manage this situation.

“Our focus should be on these activities. Our speaker is currently in Tehran and we are working to bring him back as soon as possible," Wickremesinghe said.

Sri Lankan parliament Speaker Mahinda Yapa Abeywardena is currently visiting Tehran to attend the inauguration ceremony of new Iranian President Masoud Pezeshkian.

Wickremesinghe said a committee headed by Prime Minister Dinesh Gunawardena has been set up to prepare for any eventuality.

Separately, another committee of officials will assess the potential economic consequences of the current Middle East conflict on the island nation.

Sri Lanka in April 2022 declared a sovereign debt default and faced its worst economic hardships following the island nation's independence from British rule in 1948.

Sri Lanka recorded a minus 8 per cent growth when it declared bankruptcy in April 2022 owing to a sharp increase in fuel and other essential commodity prices following Russia's invasion of Ukraine in February.