"Our business community should take an interest in what's happening, assess the risk and be aware there is a new situation," said Singapore Foreign Minister George Yeo during a visit to Jaffna.

"We have historical ties with Sri Lanka and it is an asset that may achieve some value," he said.

Singapore's trade with Sri Lanka totaled 1.49 billion Singapore dollars (1.07 billion US) in 2008, just 0.42 percent of the city-state's total trade last year, reported the AFP.