Srilanka, May 1 -- The escalating military tensions between India and Pakistan are casting a shadow over Sri Lanka's aviation and maritime sectors, with SriLankan Airlines facing higher operational costs and the Port of Colombo risking lost transshipment revenue, according to an analysis by Asha Securities Research.

SriLankan Airlines could see rising fuel expenses, as Europe-bound flights detour around closed Pakistani airspace, compounding operational challenges. The conflict also threatens tourism recovery, with India contributing roughly 20 percent of Sri Lanka's tourist arrivals. A decline in Indian travellers, driven by safety concerns or travel disruptions, may slow the sector's rebound in 2025.

India has reportedly urged the ...