Inflation

This development comes at a time when the economy is navigating multiple global headwinds.

As geopolitical tensions escalate in West Asia, the economic ripple effects are hitting Indian shores with growing intensity.

While international charitable organizations and foreign aid have provided some temporary relief through donations of medicine and supplies, experts agree that short-term charity cannot replace a functioning national pharmaceutical supply chain.

Sri Lanka has successfully navigated its way out of the darkest days of sovereign default, rebuilding a foundation of stability. However, as the World Bank’s latest assessment makes clear, this recovery remains deeply uneven.

UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific Kanni Wignaraja emphasized that standard economic management measures will not suffice in this landscape.

As tensions persist, the world watches closely, aware that even minor escalations could have far-reaching consequences. The Strait of Hormuz, long recognised for its strategic importance in energy markets, is now emerging as a critical node in the global food supply chain.

IMF says, with tensions still high and no immediate resolution in sight, policymakers, businesses and households must prepare for a more challenging economic environment.

In its policy brief released on Monday, the UNDP described the conflict as “development in reverse”, cautioning that even a fragile ceasefire may not prevent long-lasting economic damage.