Sri Lanka, March 28 -- Sri Lanka has been identified as one of the world's most vulnerable nations to a sudden shutdown of the Strait of Hormuz, according to a March 2026 report by the Kiel Institute for the World Economy.

The study, titled "The Cost of Closing the Strait of Hormuz: Energy Bottlenecks and Global Food Security," identifies Sri Lanka as the country facing the second-steepest rise in food prices globally under a short-run closure scenario.

It warns that a full closure of the Strait of Hormuz would trigger a catastrophic food security crisis for Sri Lanka, with food prices projected to soar by over 15%.

While global attention often focuses on oil prices, the study warns that for South Asian nations like Sri Lanka, the cris...