Sri Lanka’s leading business body has urged the government to take coordinated and proactive steps to safeguard the country’s economic stability as global uncertainty intensifies, particularly amid the escalating conflict in the Middle East. In a series of policy recommendations submitted earlier this month, the Ceylon Chamber of Commerce outlined measures aimed at mitigating potential economic risks and maintaining continuity in key sectors of the economy.
In its submission dated March 11, the Chamber stressed the importance of prioritizing the continuation of Sri Lanka’s programme with the International Monetary Fund and ensuring the timely receipt of upcoming funding tranches. The organization also recommended introducing a more dynamic fuel pricing mechanism and reintroducing the QR-based fuel distribution system to manage supply effectively during periods of disruption. The Chamber welcomed the fact that the government has already begun taking steps toward implementing some of these fuel-related measures.
The recommendations also focused on strengthening supply chains and key economic sectors. The Chamber urged authorities to expedite fuel procurement processes and ensure sufficient fertilizer stocks are available ahead of the next cultivation season. In addition, it called for stronger tourism promotion efforts, particularly targeting regional markets such as India and East Asia, which are seen as critical to sustaining visitor arrivals and foreign exchange inflows. Improving trade efficiency was another priority highlighted in the submission, with the Chamber recommending faster port clearance procedures and a review of policies that could place additional pressure on the country’s foreign exchange reserves during a period of global volatility.
Building on these proposals, the Chamber this week presented further measures designed to protect economic activity in the event of supply disruptions. One of the key proposals was for the government to designate a clear list of essential services and priority economic sectors to guide the allocation of limited resources such as fuel and foreign currency if shortages arise. Such a framework, the Chamber said, would help ensure that critical industries continue operating even during external shocks.
The Chamber also recommended adopting a more strategic approach to fuel procurement by exploring supply arrangements with a broader range of international suppliers. Ensuring an adequate supply of aviation fuel was highlighted as particularly important to maintaining inbound tourism, a sector that remains vital for Sri Lanka’s economic recovery.
Another proposal focused on allowing licensed local bunkering companies to independently procure fuel for supply to export-oriented industries and tourism operators, potentially using foreign currency. According to the Chamber, similar arrangements were successfully implemented during the recent economic crisis and helped sustain key sectors without placing additional pressure on domestic fuel supplies.
To reduce fuel consumption while keeping economic activity running, the Chamber suggested that both public and private sector institutions consider flexible work arrangements, including work-from-home options where feasible. It also proposed that the government consider bringing forward the closure of schools and universities ahead of the upcoming Awurudu holidays while temporarily relying on online learning platforms where possible.
In addition, the Chamber recommended temporarily limiting non-essential foreign currency outflows and prioritizing foreign exchange for critical imports such as fuel, food, pharmaceuticals and essential inputs required by export industries. These measures, it argued, would help safeguard the country’s limited reserves during a period of heightened global risk.
The Ceylon Chamber emphasized that close coordination between the government and the private sector will be essential to navigating potential global shocks. It reaffirmed its readiness to work with authorities to refine these policy measures and facilitate dialogue with businesses, while stressing the importance of keeping the private sector informed of policy decisions so companies can plan effectively and respond quickly to emerging challenges.
