Peace between US-Iran a welcome move

There is cautious optimism in the past few days that the peace treaty between the US and Iran would lead to a de-escalation of the situation in the Middle East/Gulf region and the opening of the Straits of Hormuz, a lifeline for the world's shipping ways.

The framework of a peace deal between the US and Iran has been reached, US President Donald Trump and senior Iranian officials said on Monday, putting the entire world at ease. The reopening of the Strait of Hormuz would depend on the signing of an initial memorandum of understanding on Friday, which Pakistan, acting as mediator, said would take place in Geneva.

Much of the success of a peace deal would depend on Israel which continues to attack Lebanon, even though Iran insists that there can be no peace unless Israel ceases these attacks.

This conflict has particularly hurt countries such as Sri Lanka which depend heavily on oil imports from the region and on the expatriate  workers in the region whose inward remittances are crucial for the economy.

Since the start of the war in February, Sri Lanka has seen a rapid rise in oil prices while its tourism sector too has been hit due to the disruption  of airline services  through aviation hubs such as Dubai, Doha and Abu Dhabi.

Sri Lanka has done its best to remain neutral during the conflict trying to juggle US/Israel interests and balancing relations with Iran and the Gulf region nations. Since the inception of the conflict the Government has called for restraint and  dialogue and use of diplomatic initiatives to de-escalate the tense situation. It is the best the country can do given that all these nations are important for Sri Lanka and the country cannot afford to fall foul of any of them.

More than a million Lankans are employed in the region and while their safety and security have been of concern,  almost all of them have chosen to remain in these countries hoping for a quick resolution to the conflict.

That a majority of Sri Lankans have chosen to remain in their jobs in the conflict hit region shows a hard truth. People will not give up a lucrative job and return to the country knowing they would be hard-pressed to find proper employment here. For many Sri Lankans who have lived through years of violence and now work in the region, the random Iranian missiles coming in may not cause too much worry and hence their decision to brave the hard times.

The Government on its part will be relieved that the foreign remittances from the Sri Lankan workers have not been impacted by the crisis.

The Central Bank of Sri Lanka (CBSL) said that the country received $847 million in workers' remittances in May 2026, marking a 32% increase compared to the $641.7 million received in May 2025.

According to a CBSL report, the May 2026 figure is the second-highest monthly remittance recorded in the country's history, behind the record $879.1 million received in December 2025. During the first five months of 2026, Sri Lanka earned $3.9 billion in remittances, up 26% from the $3.10 billion recorded during the same period last year. The highest number of remittances this year came from the United Arab Emirates (UAE).

So while Sri Lanka can be thankful that its citizens are doing their part to assist the country’s economy, the world as a whole is hoping that the US-Iran agreement will see a permanent end to hostilities and more engagement to iron out the issues that have prevented peace between Iran, the US and much of Europe for decades.