The CEO of MTI Consulting, speaking from Bahrain, has issued a warning regarding the potential stress on the Sri Lankan economy as tensions rise in the Gulf region. Hilmy Cader noted that airlines from the six Gulf countries operate approximately 140 scheduled commercial flights per week, serving as a primary conduit for European tourists traveling to Sri Lanka.
With the closure of Gulf airspaces, European airlines may also face challenges flying directly into Sri Lanka, potentially leading to a significant decline in hotel bookings in the near term. Additionally, disruptions to cargo flights could adversely affect Sri Lanka’s exports of perishables and other time-sensitive goods.
Cader also pointed out that nearly 50% of Sri Lankan tea exports, amounting to approximately US$1.5 billion, are destined for the Middle East. With nearly one million Sri Lankans employed in the Gulf, any economic downturn in the region could impact employment figures and, consequently, remittances sent back home.
MTI Consulting is an internationally networked strategy consultancy, having undertaken assignments in 51 countries over the past 29 years. For more information, visit www.mtiworldwide.com.
Photo: Hilmy Cader, Bahrain-based CEO of MTI Consulting
