Sri Lanka Among Worst Impacted Countries in Asia-Pacific Due to West Asia Conflict: UN Report

Colombo: Sri Lanka is among the worst-hit countries in the Asia-Pacific due to the ripple effects of the West Asian crisis, according to a UN report. The report, released Thursday by the United Nations Development Programme, offers a preliminary assessment of how the ongoing conflict is destabilizing global trade, energy markets and financial systems.

The report, titled “Rise of Military Tension in the Middle East: Human Development Implications Across Asia and the Pacific”, shows that Sri Lanka is highly exposed to this situation, as 80.2 percent of migrant workers leaving the island country in 2025 will be to the Middle East.

According to the UN report, Sri Lanka is among the worst affected countries in the Asia-Pacific by the ongoing conflicts in West Asia.

Tourist arrivals also dropped from an average of 9,976 per day in February to 5,956 per day on March 1-8, 2026, which is a roughly 40 percent drop, he added.

Sri Lanka, like its South Asian neighbors Bangladesh, India and Pakistan, faces potential economic pressure from weakening export ties with the Gulf, which could reduce farmer incomes, restrict access to key resources and halt production.

Estimated losses in tea exports are around 10 to 15 million US dollars per week.

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

“Approximately 8.8 million people in the 14 simulated countries are at risk of falling into poverty,” the report stated.