The Gathering Storm:

Impact of US Involvement in Iran-Israel War on Sri Lanka

- By Major General Dr. Boniface Perera PHD in Economics

As of June 22, 2025, Sunday morning hours, the United States has launched strikes against three Iranian nuclear sites: Fordow, Natanz, and Isfahan. President Trump confirmed the "massive precision strikes," stating they "completely and fully obliterated" the facilities, aiming to dismantle Iran's nuclear enrichment capacity.

This decisive action inserts the U.S. directly into the ongoing conflict between Israel and Iran. While Iranian authorities have acknowledged the attacks, they insist their nuclear programme will continue and reported no immediate radioactive contamination. The strikes, utilising advanced "bunker-buster" bombs, mark a significant escalation in regional tensions, with global reactions closely monitoring potential retaliatory measures from Tehran.

However, Iran declared US attacks on its nuclear sites "empty," stating enriched uranium and personnel were removed beforehand. Tehran asserted no contamination, warning of "everlasting consequences" for the "savage aggression."

The spectre of direct US involvement in the escalating conflict between Israel and Iran looms large, threatening to transform a regional dispute into a global conflagration. While the immediate focus remains on the Middle East, the ripple effects of such an intervention would be felt across continents, with particularly dire consequences for small, import-dependent economies such as Sri Lanka. Having just emerged from its worst economic crisis in decades, Sri Lanka's fragile recovery would be immediately imperilled, leading to a cascade of negative impacts on its energy sector, trade, tourism, and overall financial stability. The island nation, highly susceptible to external shocks, would face an existential threat to its hard-won stability, potentially plunging it back into the depths of economic despair.

Vulnerability Amplified in the Energy Sector