The attack, which killed seven people and wounded seven team members and a team official, has sent shockwaves through the international cricket community and is expected to have dire ramifications for cricket in the country.
The terrorist attack forced the immediate cancellation of the Sri Lankan tour and New Zealand Cricket is considering cancelling the Black Caps' planned November-December tour.
The media in Pakistan has blamed Islamist militants and al-Qaeda for the attacks on the Sri Lankan cricket team, saying they had sounded "the requiem of cricket" in the country.
Laxman, who is in Dunedin to play for Otago in its four-day match against Wellington beginning at the University Oval tomorrow, said he had taken the news hard.
"It definitely came as a shock to all of us because you expect top security for cricketers there," he said.
"It is so unfortunate that this incident happened.
I feel for the Sri Lankan cricketers because any person should not be exposed to that kind of risk.
"I feel really bad for them.
Hopefully, they are fine.
The reports say they are fine and some of them just have minor injuries."
Laxman knows many of the Sri Lankans personally and was appalled by the attack.
He also felt the latest tragedy would have a negative impact on international cricket.
"It is bad for international cricket and for Pakistan cricket.
I think it [Pakistan] is a great place to be and to play cricket, and people love cricket there.
So, it so unfortunate that this has happened."
Laxman has toured Pakistan twice and said he would tour there again if he felt the security was up to standard.
