Sri Lanka, June 24 -- International Monetary Fund (IMF) Resident Representative Martha Tesfaye Woldemichael responds to questions by Daily Mirror regarding the economy and the impact from the Middle East war.

Q What is your assessment of the impact of the Middle East war on Sri Lanka?

A: The war in the Middle East constitutes a major external shock for Sri Lanka. This is because the Middle East accounts for roughly half of Sri Lanka's petroleum imports, around 40 percent of remittances, and serves as a transit hub for over a third of flights bringing tourists to the island. So, when the war broke out and the shock hit the Sri Lankan economy, the transmission channels were immediate: fuel prices went up, tourist arrivals dropped, and i...