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Lanka bracing for adverse impact of Iran-Israel conflict on critical sectors
View(s):Sri Lanka is bracing for the impact of the widening of the war in West Asia amidst fears that critical sectors such as fuel supplies, tea exports and foreign employment will be affected if the conflict escalates.
While an immediate impact is not expected in the fuel and tea sectors, there are concerns for the safety of around 20,000 Sri Lankans employed in Israel and around 50 based in Tehran, government sources said.
The price of oil and gold had soared after Israel’s strikes against targets in Iran, and Iran retaliated. “The escalation of the conflict in West Asia, the focal point of global oil production, prompted a sharp increase in wholesale prices. Brent crude surged by more than 7% after news of the attacks broke, briefly moving above $75 (£55) a barrel to its highest level since April,” media reports said.
Ceylon Petroleum Corporation Chairman Janaka Rajakaruna told the Sunday Times it was difficult to say at this point what impact the conflict would have on fuel supplies to Sri Lanka and worldwide, but a clearer picture would emerge by next week.
“We have placed our order for supplies till the end of the year. Our supplies come from Singapore, the United Arab Emirates (UAE), India and Russia, and at the moment we see no disruption to these routes,” he said.
He said there was the likelihood of oil prices in the world market going up, but in such a scenario, oil-producing countries may increase production so that prices can remain stable.
Sri Lanka’s Ambassador to Israel, Nimal Bandara, described Friday night’s ballistic missile attacks on Tel Aviv by Iran as a “terrible situation” but said, “As of now all the Sri Lankans in Israel are safe.”
Friday night’s Iranian missile attacks on Tel Aviv shook up most of the neighbourhood, including the building housing the Sri Lankan Embassy and the homes of staff members, but no one was harmed, he said.
The ambassador said that about 20,000 Lankan workers are in Israel, mostly based in Tel Aviv, Jerusalem and Haifa, with some working in the agriculture sector in other areas. The bulk of Sri Lankans work as caregivers and in the construction sector, hotels and restaurants and as factory workers.
However, so far, there have been no requests from them to return to Sri Lanka due to the escalation of the conflict, the ambassador said, adding that they were safe, as about 90 per cent of Israeli homes have shelters.
Mr Bandara said a state of emergency declared by the Israeli Defence Forces remains in place while the Israeli airspace remains closed for air traffic until further notice.
Due to the closure of the airspace, ten Sri Lankans heading to Israel for employment have been left stranded in Dubai and Abu Dhabi. They’re being assisted by the Sri Lankan embassy in the UAE. Another 600 Sri Lankans who have been cleared for employment in Israel have been advised by the embassy to postpone travel for at least two weeks till the situation settles.
“I have informed the Foreign Employment Bureau of this and advised that they remain in Sri Lanka till the situation stabilises,” he said.
Tea industry sources said the developments were worrying, as disruption to shipping could impact the flow of goods and affect tea exports. With Iran being a critical market for low-grown tea, the war would adversely affect the industry, while other markets in West Asia, too, would be impacted, the sources said.
Meanwhile, the Ministry of Foreign Affairs, in a statement issued on Friday, said Sri Lanka is deeply concerned by the recent developments between Israel and Iran and urged both countries to exercise restraint, engage in dialogue and pursue diplomatic initiatives to de-escalate the tense situation.
“Sri Lanka is deeply concerned by the recent developments between Israel and Iran. We urge both countries to exercise restraint, engage in dialogue and pursue diplomatic initiatives to de-escalate the tense situation,” the statement said.
| Emergency hotlines The Ministry of Foreign Affairs, Foreign Employment and Tourism has advised all Sri Lankan nationals in Iran and Israel to remain vigilant due to the current regional situation. It has also given a dedicated 24/7 emergency assistance service with contact details. 1. Foreign Affairs, Foreign Employment and Tourism – Colombo Phone: +94 112 325 373/ +94 112 325 375/ +94 112 207 200/ +94 112 207 207 Fax: +94 112 446 091 / +94 112 333 450 / +94 112 430 220 Email: cypher@mfa.gov.lk 2. Sri Lanka Embassy – Tehran, Iran Phone: +98 939 205 5161/ +98 991 205 7522 (Sinhala/English)/ +98 936 636 0260 3. Sri Lanka Embassy – Tel Aviv, Israel Phone (WhatsApp only): +94 71 844 7305/ +94 71 683 3513/ +94 71 974 2095 | |
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