Sri Lanka, June 16 -- Sri Lanka is closely observing the current development of tension in the Middle-East since instability in the region involves greater implications for the country's economy recovering from the crisis, a source from the Foreign Ministry said.

The global fuel price is the immediate implication for Sri Lanka which completely depends on imports for petroleum requirements.

Global oil prices rose sharply after Israel struck Iran in a dramatic escalation of tensions in the Middle East.

The price of the benchmark Brent crude rose more than 10 percent, reaching its highest level since January, before losing some gains.

Traders were concerned that a conflict between Iran and Israel could disrupt supplies coming from the en...