The Middle East security crisis has thrown the Sri Lankan tourist industry into “special arrangements” due to the closed airspace and ongoing oil shortages in what is a key connecting region for the Indian Ocean destination.
Fuel purchases are being capped by the Sri Lankan government; a four-day working week has been instituted with every Wednesday declared a holiday for public institutions, including schools; and now the Sri Lanka Tourism Development Authority (SLTDA) is proposing a tourism fuel quota, which can be applied for through its website, to help prop up and shield the sector.
Sri Lanka just declared every Wednesday a public holiday. Government offices closed. Schools shut. Universities dark. Effective March 18. The Commissioner General of Essential Services confirmed it. The reason is fuel conservation.
— Shanaka Anslem Perera ⚡ (@shanaka86) March 17, 2026
But fuel is not the crisis. Fuel is the… pic.twitter.com/r2vvhFv7cZ
The World Travel and Tourism Council (WTTC) estimated earlier in March that the conflict between Israel and the US, and Iran, and the resulting closing of airspace and the Strait of Hormuz, was costing the trade €600 million every day. For Sri Lanka, which relies heavily on connecting flights through major international hubs like Abu Dhabi, Doha, and Dubai, the impact has been undeniable. Arrivals for the first half of March plummeted by over 52% year-on-year, from 229,298 to just 109,410 visitors.
Deputy Minister of Tourism Ruwan Ranasinghe acknowledged but underplayed the impact that the Middle East conflict has already had, saying: “The Middle East is a transit point for tourists arriving from European countries. We see a drop in tourist arrivals from such transit flights. But tourists are arriving via direct flights. However, there is a notable 25-30% drop in tourists from the Middle East at present,” he added.
The fuel shortage has led Sri Lanka to rekindle its “Fuel Pass QR code” rationing system, first seen during the republic’s 2022 financial woes. Special dispensations will be in place for a number of key industries, such as farming, medical and school suppliers, and public transport and tourism. This means special fuel supply arrangements will be applied via the Sri Lanka Transport Board, with part of the remit to ensure tourism operators are able to procure fuel to continue their service offer uninterrupted.
Fuel per vehicle per week under the QR Code system increased from Midnight today.
— Sri Lanka Tweet 🇱🇰 (@SriLankaTweet) March 21, 2026
⛽️Buses – 100 L
⛽️Motorcycles – 8
⛽️Motor cars – 25 L
⛽️Vans – 50 L
⛽️Land Vehicles – 40 L
⛽️Three-Wheelers – 20 L pic.twitter.com/TT3ICQE1b5
Describing the fuel allocations, Ranasinghe said: “A similar system was introduced in the past. A discussion took place today. We hope to introduce the new system by this evening with the aim of ensuring that those in the tourism sector can carry out their work without any issues.”
Although international officials, such as the UK’s Foreign and Commonwealth Development Office (FCDO), warn that Sri Lankan government services will remain inaccessible on Wednesdays, the Sri Lanka Tourism Information Centre has set up a 24/7 tourism hotline offering advice and guidance to visitors affected by airspace closures in the Gulf region.
Meanwhile, the situation could see a turnaround if more airlines decide to shift capacity away from Middle East or Gulf hubs. British Airways, for example, has expanded its network in response to both the Middle East conflict and fuel crisis, and customer demand for “alternative getaways,” in a travel market that, it says, remains strong.
