Anura Kumara Dissanayake yesterday addressed the Parliament of Sri Lanka, outlining a comprehensive plan to shield the country from the escalating conflict in the Middle East, with a focus on energy security, the safety of migrant workers and economic stability.
The President said the Government is preparing for potential worst-case scenarios while taking immediate steps to ensure the uninterrupted supply of fuel and protect foreign exchange inflows.
Energy reserves and storage expansion
President Dissanayake stated that Sri Lanka currently has diesel stocks sufficient for 33 days and petrol stocks for 27 days, with an incoming shipment expected to increase petrol reserves to around 40 days. Aviation fuel stocks are sufficient for 49 days, while crude oil supplies for refinery operations stand at 44 days.
He noted that a scientific management system has been introduced to optimise limited storage capacity and prevent a recurrence of the fuel shortages experienced in recent years.
Addressing concerns over liquefied petroleum gas (LPG), the President acknowledged that existing storage capacity covers only about one week of demand. To mitigate this risk, the Government has secured temporary access to 15,000 metric tonnes of private sector storage facilities in Hambantota. Emergency regulations have also been enacted to allow private suppliers, including Laugfs Gas, to distribute gas more freely to the local market.
As part of long-term measures, he said a Rs. 5 billion expansion of the Kolonnawa storage complex is scheduled for completion by 2027, while plans are underway to increase refinery capacity to 100,000 metric tonnes.
Protection of migrant workers
With an estimated 1 to 1.5 million Sri Lankans employed in Middle Eastern countries, the President stressed that their safety and welfare remain a top priority.
He said 24-hour hotlines have been activated at Sri Lankan embassies in the region, as well as at the Ministry of Foreign Affairs and the Sri Lanka Bureau of Foreign Employment. A mechanism has also been established to enable relatives in Sri Lanka to report concerns and receive updates through the relevant authorities.
The President further stated that a diplomatic roadmap has been prepared to engage international partners should evacuation efforts or enhanced protection measures become necessary.
Tourism and economic impact
President Dissanayake acknowledged that the crisis poses risks to Sri Lanka’s tourism and export sectors. Although 300,000 tourist arrivals had been projected for March, some cancellations have already been reported. To assist visitors currently in the country, the Government has authorised free two-week visa extensions.
He also highlighted disruptions at major transit hubs in Dubai, Doha and Abu Dhabi, which have affected connecting flights from Europe.
On the economic front, the President said the Government is closely monitoring the annual foreign remittance inflow of approximately US$8.2 billion, warning that prolonged instability could impact earnings. Export industries may also face pressure due to reduced demand in conflict-affected markets and the possibility of a broader global economic slowdown.
He added that the Colombo Port is assessing requests from international shipping lines seeking temporary storage for containers diverted from Middle Eastern ports, stressing that any such arrangements would be carefully managed to prevent congestion or misuse.
Concluding his address, President Dissanayake reaffirmed the Government’s commitment to maintaining social and economic stability through forward planning, coordinated institutional response and active international engagement.
