West Asia conflict: Sri Lanka among worst impacted in APAC: UN

Sri Lanka is among the worst impacted countries in the Asia-Pacific due to the ripple effects of the West Asia conflict, a United Nations Development Programme report titled: “Military escalation in the Middle East: Human Development Impacts Across Asia and the Pacific,” released on Thursday (16) said.

The report, providing a preliminary assessment on how the ongoing conflict is destabilising global trade, energy markets, and financial systems, stated that Sri Lanka is highly exposed, as 80.2% of migrant-worker departed to the Middle East in 2025.

Further, it noted that tourist arrivals to the country fell from an average of about 9,976 per day in February to 5,956 per day during 1-8 March 2026, a drop of roughly 40%.

Sri Lanka, like its South Asian neighbours, namely Bangladesh, India and Pakistan, faces potential economic strain from weakened export ties to the Gulf, which can slash agricultural incomes, limit access to essential supplies, and stall production.

The estimated losses in tea exports stand at USD 10-15 million per week.

The report adds that trade output losses in the Asia-Pacific could range from roughly $ 97 billion to 299 billion, equivalent to 0.3 to 0.8% of the total Gross Domestic Product of the region.

“Around 8.8 million people across the 14 countries simulated are at risk of falling into poverty,” the report said.

Source - The Morning