March 12, Colombo (LNW): President Anura Kumara Dissanayake has cautioned that Sri Lanka’s ability to maintain stable fuel supplies could become uncertain if the conflict in the Middle East drags on for an extended period.
Addressing the 2026 Annual General Meeting of the Chamber of Lankan Entrepreneurs (COYLE), the President said the government is currently confident of maintaining an uninterrupted energy supply for the immediate future.
However, he noted that reliable projections can only be made for roughly the next two months should tensions in the Middle East persist.
He explained that global oil markets have become increasingly volatile amid the ongoing hostilities, with prices fluctuating frequently and traders adopting a cautious approach. According to the President, the uncertainty has even led to the cancellation of several fuel procurement tenders, as suppliers remain hesitant to commit to shipments under unstable market conditions.
Despite these challenges, he said the government is actively working with a number of friendly countries to secure alternative supply arrangements in case traditional fuel routes are disrupted. Such contingency planning, he stressed, is vital to protect the country’s energy needs and economic stability.
The President pointed out that the situation today differs significantly from the crisis Sri Lanka experienced in 2022. At that time, fuel shortages were largely driven by the country’s lack of foreign currency to pay for imports. In contrast, he said Sri Lanka’s current foreign reserves stand at approximately USD 7.2 billion, providing a stronger financial position to purchase fuel if supplies remain available.
Nevertheless, he acknowledged that modern conflicts—fuelled by advanced technology and sophisticated military capabilities—can have unpredictable consequences, making long-term forecasting difficult. While short-term planning remains possible, he said the trajectory of a prolonged conflict could produce outcomes that are impossible to anticipate.
President Dissanayake emphasised that ensuring consistent energy supply remains a central priority for the government, warning that any disruption could undermine the economic progress made in recent months. He also urged businesses and citizens to work collectively with authorities to navigate the uncertain global environment and safeguard the country’s economic recovery.