Was Sri Lanka Underprepared for Iran War Impact?

The discussion explores the potential economic and geopolitical consequences of the Iran conflict on Sri Lanka’s energy security, remittances, and tourism. Dhananath and Charindra discussed how the closure of the Strait of Hormuz could disrupt fuel supplies, noting that while Sri Lanka currently has approximately 30 to 40 days of fuel stocks, many existing storage assets remain unutilised due to political issues and trade union opposition. The participants emphasised the need for diversifying the energy portfolio beyond the Middle East to include sources like Africa or the US to mitigate risks. Specific concerns were raised regarding LPG, as current storage at Litro only holds 8,000 tonnes—a supply that would last approximately four days under current consumption levels. Dhananath noted that a slowdown in Gulf economies (such as Dubai or Qatar) due to regional instability could reduce remittances from Sri Lankan workers. Tourism may be affected if high-spending Western European travellers avoid routes involving Middle Eastern transit hubs.