Prime Minister Dr. Harini Amarasuriya has stressed that wars such as the ongoing conflict involving Iran serve no one’s interests, saying Sri Lanka’s priority has been to preserve regional peace, protect its maritime security and remain outside the conflict while dealing with its economic consequences.

Speaking in an interview with CNN, the Prime Minister said Sri Lanka had maintained a neutral position amid the conflict, with particular concern over the possibility of hostilities spreading into the country’s surrounding waters.

Given Sri Lanka’s strategic maritime location, ensuring regional stability and preventing the conflict from affecting its territorial waters remained key priorities, she said.

However, the country has not been insulated from the economic fallout, with rising energy costs adding pressure to an economy still recovering from its severe economic crisis.

Turning to Sri Lanka’s economic performance, Prime Minister Amarasuriya said the country was doing remarkably well considering the challenges it had experienced over the past several years.

“We are doing remarkably well given what we’ve been through,” she said, attributing the progress primarily to fiscal management, adherence to the International Monetary Fund (IMF) programme, efforts to tackle corruption and waste, and improvements in governance.

The Prime Minister acknowledged that the government had initially been reluctant to follow the IMF programme but had subsequently recognised the possibility of working with the international financial institution.

“We didn’t like the IMF programme, but we had to follow it,” she said, explaining that the government agreed with some of the programme’s conditions while prioritising economic stability.

She said Sri Lanka had reached a more stable position after two years, although the latest international developments underscored the vulnerability of the economy to external shocks.