Sri Lanka has been identified as the second most vulnerable country to sharp increases in food prices if the Strait of Hormuz is closed, according to a study by the Kiel Institute for the World Economy.
Disruptions to fuel and gas shipments through the Strait, triggered by the ongoing US–Israel conflict with Iran, have already driven global energy prices higher, affecting many countries, including Sri Lanka.
However, the impact extends beyond fuel, as the Strait of Hormuz is a critical route for a wide range of goods, including essential chemicals used in global supply chains, the study found.
According to BBC Verify, daily shipping traffic through the Strait has dropped significantly, from over 100 vessels to only a handful, raising concerns over supply shortages.
The research indicates that if the Strait is fully closed, Sri Lanka would rank second among countries facing the steepest rise in food prices, with an increase of over 15% anticipated.
Zimbabwe has been identified as the country where food price increases are expected to be the highest globally, with an increase of over 30%.
Fertiliser is among the key commodities at risk. Petrochemical-based fertilisers, largely produced in Gulf countries, are heavily transported through the Strait. (NewsWire)