Sri Lanka, March 2 -- The escalation of military conflict in the Middle East and the subsequent closure of the Strait of Hormuz represent a systemic shock to the global economy with profound implications for Sri Lanka. As a vital maritime chokepoint handling approximately 20% of the world's oil supply and a significant portion of liquefied natural gas (LNG), the disruption of shipping through this narrow passage threatens to destabilise energy markets, inflate commodity prices, and disrupt the livelihoods of millions of Sri Lankan migrant workers in the Gulf region. This paper examines the multifaceted impact of the Hormuz closure on Sri Lanka's economy, drawing on recent developments in February-March 2026 and analysing the transmission ...
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