Sri Lanka braces for new economic crisis as war on Iran continues

"Sri Lanka imports 60 percent of its energy needs, much of it through the Strait of Hormuz, which has been largely closed due to the war on Iran."

"The South Asian island nation introduced a QR-based fuel ration arrangement, a system followed during the economic crisis of Sri Lanka in 2022."

"Experts expect food prices in Asia to rise significantly, with researchers estimating a 15 percent overall increase in food prices in Sri Lanka."

Sri Lanka is experiencing a fuel shortage and increased prices due to the war on Iran, which has disrupted oil traffic through the Strait of Hormuz. The government has implemented a QR-based fuel rationing system reminiscent of the 2022 economic crisis. Fuel prices have risen by approximately 33 percent, and experts predict a 15 percent increase in food prices as fertiliser supplies are also affected. The situation has left many Sri Lankans recalling the hardships of the previous crisis.

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