Sri Lanka’s Remittances Surge 23% in July amid growth in Labour Migration

Sri Lanka’s official worker remittances rose 23% year-on-year to US $697.3 million in July 2025, pushing total inflows for the first seven months to US $4.44 billion, up 19.5%, Central Bank data showed. The rise follows continued labour migration as more Sri Lankans seek employment abroad, particularly professionals, to boost foreign exchange earnings during the country’s post-crisis recovery.

In 2024, remittances hit a six-year high, growing 10.1% to US $6.57 billion from US $5.97 billion in 2023, supported by record overseas departures amid the economic downturn. Remittances remain a key foreign exchange source for the island nation, which declared bankruptcy in 2022.

Inflows through official channels have steadily improved since the Central Bank abandoned a parallel exchange rate regime in 2022, prompting expatriates to shift from informal systems such as Undiyal and Hawala back to banks. Earlier, remittances had plunged in 2021 when informal channels offered better rates during a period of heavy money printing and suppressed interest rates.

Following sharp interest rate hikes from April 2022 to curb inflation and currency pressure, monetary policy has since eased, while the government intensifies efforts to send more skilled workers abroad

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