Given the escalating situation in the Middle East, there could be disruptions in the transportation of essential goods to the Asian region in the future, which may lead to an unexpected rise in inflation in Sri Lanka, according to the Leader of the Opposition, Sajith Premadasa.

Speaking to the media today (29), the Opposition Leader questioned whether the present government has a plan to address this issue.

“At this moment, the conflict in the Middle East is intensifying. Houthis, who control the northwestern regions of Yemen and the city of Sana’a, have become involved in the conflict and are launching new attacks. This will directly and severely affect Sri Lanka in multiple ways,” the Opposition Leader said.

He added, “due to the involvement of the Houthis in the Bab al-Mandab Strait, Sri Lanka is facing issues on several angles. As a result, oil prices may increase, and delays in the transportation of goods by sea could occur. Transportation costs and electricity tariffs will rise. Export income may decrease while import costs increase. Additionally, higher import expenses could reduce export profit margins. Due to competition, buyers of our goods may turn to other suppliers, creating further risks.

“The Sri Lankan rupee may also depreciate. There could be shortages of essential food items, goods, medicines, and fertilizer, leading to negative impacts.

“This maritime route, which connects Europe and Asia, carries about 6–9 million barrels of oil and 8% of LNG. A large number of cargo ships pass through annually. Therefore, disruptions could lead to oil shortages and increased oil prices. Basic shipping costs could rise by around 30%, affecting all sectors.

“A reduction in the number of naval vessels could also impact supply chains. The Indian Ocean, currently a zone of peace, could turn into a conflict zone. This may lead to various international influences. It is also a serious concern that different countries have requested control over terminals at the Port of Colombo.”

Due to these attacks by the Houthi, Sri Lanka will have to bear higher costs in the future and therefore, the government must implement an urgent plan adding it should also have alternative strategies to deal with the impact of a potential closure of the maritime route, said Opposition Leader Sajith Premadasa.