Sri Lanka worker remittances up 18-pct in August 2025

ECONOMYNEXT – Sri Lanka’s official remittances rose 18 percent to 680.8 million dollars in August 2025, while the total in the first eight months reached 5.12 billion dollars rising 19.5 percent from a year ago, central bank data showed, with more people leaving to work abroad.

The worker remittances hit a six-year high in 2024 after a record number from the island nation’s labour force left the country searching for foreign jobs amid Sri Lanka’s recovery from an unprecedented economic crisis, official data showed.

In 2024 full year remittances rose 10.1 percent to 6.57 billion dollars, from nearly 6 billion in the previous year, the Central Bank data showed.

Worker remittances are one of the top foreign exchange revenue earners for the island nation which is still recovering from an unprecedented economic crisis hit in 2022.

The remittances have risen continuously after the central bank gave up a parallel exchange rate regime, which compelled most expatriates to switch informal Undiyal and Hawala money transfer methods.

The island nation has been in the process of sending more migrant workers focusing on professionals to bring in higher foreign exchange since the country declared bankruptcy in 2022.

A total of 144,379 Sri Lankans have gone abroad for employment during the first six months of 2025, the official data from Sri Lanka Bureau of Foreign Employment (SLBFE) showed. The data indicates a significant increase in male workers, with 88,684 men leaving for overseas jobs compared to 55,695 women during the same period.

Worker remittances coming through official channels fell sharply in 2021 after many expatriates switched to informal money transferring channels as they were given higher rates than formal banking channels.

The move came after the Central Bank printed to sterilize interventions and keep a policy rate down, triggering parallel exchange rates, which were settled outside the formal banking system.

From April 2022, the interest rates were raised by unprecedented levels, slowing credit and the need to print money to keep rates down. Later, the Central Bank started its dovish monetary policy. (Colombo/September 08/2025)

Source - economynext