Prices are escalating for goods traded between Sri Lanka and Europe via Suez Canal as a result of a war risk premium imposed by insurers over the Israel-Palestine conflict.
This has been confirmed by the head of a leading local firm in international trade.
Meanwhile, fees for sailing in the Suez Canal are to rise by almost 15% for most vessel types from 15 January 2024.
Some relaxations are expected for container vessels out of ports of North Europe.
If the war intensifies further, trade via the Suez Canal will come to a halt and Israel close its airspace, which will effectively raise the prices of import commodities to Asian countries.