Tensions in the ongoing conflict between the United States and Iran have escalated, bringing geopolitical strains closer to the Indian Ocean region and impacting Sri Lanka’s strategic waters. Six months into a war initially predicted by Washington to conclude swiftly, new US military strikes on Iran have been accompanied by a blockade of the Strait of Hormuz—a crucial passageway for global oil shipments—intensifying economic and security pressures.
In response to difficulties in reopening the strait militarily, the United States has introduced a series of Presidential Executive Orders under the banner “Operation Economic Outcast.” This strategy aims to isolate Tehran economically by severing its remaining connections to the international financial system. The broader geopolitical ramifications of this conflict were highlighted during concurrent high-level meetings: the Shanghai Cooperation Organisation (SCO) Summit in Bishkek, led by China and attended by key regional players including Russia, India, Iran, and Pakistan; and the G-20 Finance Ministers meeting in New Carolina, USA, which failed to reach consensus on global economic challenges.
Sri Lanka has found itself increasingly drawn into the complex fallout of this conflict. Earlier in the year, Sri Lankan waters became the site of ramifications following a US attack on the Iranian warship Iris Dena within the country’s Exclusive Economic Zone (EEZ), resulting in casualties among Iranian sailors. Currently, more than a dozen Iranian tankers remain anchored in ballast outside Sri Lanka’s EEZ on the island’s southwest coast. These vessels have been unable to return to their home ports in Iran after delivering oil to Asian markets, owing to the intensified US blockade.
While the United States has conducted joint military exercises with Sri Lankan forces along the island’s coast, concerns have emerged regarding the potential application of US sanctions to Sri Lankan entities providing services to these Iranian vessels. Sri Lankan authorities recently clarified that the tankers are not within their territorial waters and, therefore, falls outside their direct responsibility. Nonetheless, considerations persist regarding how to manage these ships should they seek port access in Sri Lanka for humanitarian or emergency reasons—an issue previously encountered following the Iris Dena incident.
The US military has maintained a robust presence in the region, exemplified by a recent interdiction of the sanctioned vessel MT Davina in the Indian Ocean near Sri Lanka’s southern coast. A statement from the US Indo-Pacific Command emphasized the continuation of maritime enforcement operations aimed at disrupting networks supporting Iran, underscoring that international waters cannot serve as sanctuaries for sanctioned actors.
Sri Lanka’s strategic position in the Indian Ocean has long placed it at the heart of regional power dynamics. Recent diplomatic absences have sparked scrutiny, particularly its nonattendance at this year’s SCO Summit despite its status as a Dialogue Partner, as well as earlier abstentions from the BRICS summit and the Indian Ocean conference in Mauritius. Observers note that Sri Lanka’s apparent reticence and lack of engagement in major international forums contrast with its historically active foreign policy stance, raising questions about its current strategic direction amid mounting regional tensions.
As the conflict in West Asia increasingly revolves around maritime security, freedom of navigation, and supply chain vulnerabilities, Sri Lanka’s role and responses are likely to remain pivotal in the unfolding geopolitical landscape of the Indian Ocean.