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By Chandani Jayatilleke and Chamitha Kuruppu

Sri Lanka's business community is yet to be hit by the war in Iraq but industry leaders say the impact will be severe if the conflict drags on.

"Tourism, exports and shipping will definitely be affected while the prices of consumer goods will also increase in the event of a continuation of the war," chamber leaders said.

The tea industry has already felt the heat of war as many buyers appear to be having a 'wait and see attitude' in purchasing tea at the auctions.

Tea industry experts said that today's tea auction would be disappointing with lower prices and unsold quantities. "There will be lots of teas that would remain unsold at today's auction," a spokesman for John Keells Ltd said. He said that of the 6.8 million Kg at tea at today's sale, at least 30% would be unsold.

"Buyers are facing uncertainty in shipping their goods due to the war and they will not purchase large stocks." This month's tea production is reported to be good. "The crop in the coming months will be even better. Amidst a war, the industry will face a setback," the spokesman said.

Hiran Cooray, Managing Director Jetwing Group said that there would be a few cancellations of short-term bookings. "But, there's nothing to worry about it. Our only concern now is a possible slow down in air travel following the war. People might be scared to travel and that will put the world tourism industry in a negative phase," he said.

As far as Sri Lanka is concerned, we are now known as a safe destination to travel to. So we hope that the war ends and the industry will get back to normalcy soon, he said. Ranjith Hettiarchchi, President of the Ceylon National Chamber of Industries said that the country was 'lucky' since the war broke out at a time the harvest is coming in. "The country will now realise the importance of the CWE and local industrialists," he said.

Hettiarchchi said that policy makers should draw up policies to develop and safeguard local farmers and industrialists, so that the country will not suffer when it comes to such a situation.

"Sri Lanka is lucky to have a ceasefire with the LTTE, otherwise with a local war situation things will be double blow," he said.

Asoka de Z Gunasekera, President of the National Chamber of Commerce said that the tea sector is the most affected due to the ongoing Middle East War. Nearly 65% of the tea small holders export tea to Middle East countries. The government and the Ministry of Plantations have assured to take measures to safeguard the tea sector. But the days and months to come will be rather bleak if the present situation continues, he said.

Migrant workers in Middle East are also badly affected by the present situation.

The chamber has informed the membership specially engaged in importing consumer items not to make use of the situation. Besides educating the business community there is nothing else we can do to overcome the present situation.

The government has assured to take steps to provide sufficient essential goods and protect industrialists as well as consumers, which is a good move. However, the proposed legislation brought in to overcome the present situation which is yet to seek approval of the Speaker should be implemented as early as possible.

Nihal Abeysekera, President, Federation of Chambers of commerce and Industries said that the country has not been badly affected by the war so far. If it is not a long drawn war, this will be the best opportunity to fully utilise local resources without depending on imports.

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