Sri Lanka is closely observing the current development of tension in the Middle-East since instability in the region involves greater implications for the country’s economy recovering from the crisis, a source from the Foreign Ministry said.
The global fuel price is the immediate implication for Sri Lanka which completely depends on imports for petroleum requirements.
Global oil prices rose sharply after Israel struck Iran in a dramatic escalation of tensions in the Middle East.
The price of the benchmark Brent crude rose more than 10 percent, reaching its highest level since January, before losing some gains.
Traders were concerned that a conflict between Iran and Israel could disrupt supplies coming from the energy-rich region, according to the BBC.
Sri Lanka also depends heavily on remittances from its expatriate workers in the region and full – blown tension will hamper work for them.
“If tension eases off in the span of two or three weeks, it will be alright. If tension persists for a prolonged period, it will impact the economy,” the source said.
Besides, Sri Lankan exports such as tea will also be hit badly if tension prevails