Sri Lanka is among the worst impacted countries in the Asia-Pacific due to the ripple effects of the West Asia crisis, a UN report said.

The report published by the United Nations Development Programme, released on Thursday, provides a preliminary assessment on how the ongoing conflict is destabilising global trade, energy markets and financial systems.

The report titled "Military escalation in the Middle East: Human Development Impacts Across Asia and the Pacific" shows that Sri Lanka is highly exposed, as 80.2 per cent of migrant-worker departures from the island nation in 2025 were to the West Asia, the report says.

Sri Lanka is among the worst impacted countries in the Asia-Pacific due to the ongoing conflict in West Asia, the UN report said.

The tourist arrivals also fell from an average of about 9,976 per day in February to 5,956 per day during March 1–8 2026, a drop of roughly 40 per cent, it added.

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 farm incomes, limit access to essential supplies, and stall production.

The estimated losses in tea exports stand at $10 to $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 per cent 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. 

Published on April 17, 2026