Sri Lanka, March 28 -- A new report by the Kiel Institute for the World Economy has sounded a sharp alarm for Sri Lanka, ranking it as one of the most vulnerable nations globally to a shutdown of the Strait of Hormuz.

Following the recent military escalations in the Persian Gulf and the subsequent de facto closure of the waterway on February 28, 2026, researchers warn that the island nation faces a "seismic shock" that could derail its delicate post-2022 economic recovery. The study highlights that while the world often focuses on oil, for Sri Lanka, the crisis will rapidly evolve into a dire food security emergency.

The vulnerability stems from a "triple threat": a near-total dependence on imported energy, a reliance on imported fert...