Energy Security on the Edge: The Strait of Hormuz Warning

As we close the month of March, the “Warnomics” analysis is reaching a fever pitch. Today’s reports warn that Sri Lanka’s energy security is “on the edge” due to its heavy reliance on the Strait of Hormuz, where one-fifth of the world’s oil flows. With prices rising and supply decreasing, the economy is facing a “perfect storm” of increasing consumption and sluggish energy reforms.

However, a long-term solution is on the horizon. The tripartite MoU between Sri Lanka, India, and the UAE for the development of Trincomalee—including a million-metric-tonne oil tank farm and a bi-directional pipeline—is being fast-tracked. This will position Trincomalee as the central hub for regional energy logistics, finally decoupling our energy security from the volatile Gulf waterways.

Source: Daily News – Energy security on the edge – March 31, 2026