By: Staff Writer
November 11, Colombo (LNW): Sri Lanka’s workers’ remittances reached a new high in October 2025, surging to $712 million, marking the strongest monthly inflow this year and the second-highest in the country’s history, according to the latest data from the Central Bank of Sri Lanka (CBSL). This robust growth underscores the resilience of overseas Sri Lankan workers who continue to anchor the nation’s foreign exchange reserves at a time of fragile recovery and limited export earnings.
The October figure represents a 21.2% year-on-year increase, continuing a seven-month streak of record inflows. It falls just short of the all-time high of $812.7 million recorded in December 2020, during the height of the pandemic when remittance inflows peaked globally. Compared with the $702.6 million in September 2020, the latest figure signals a steady upward trend through 2025, offering a critical buffer against the country’s external vulnerabilities.
Cumulatively, remittances in the first ten months of 2025 topped $6.5 billion, reflecting a 20.1% increase year-on-year and marking the strongest performance for this period since 2016. The total is also 9% higher than the corresponding period in 2016, the benchmark year that saw a record annual inflow of $7.24 billion. With this pace, Sri Lanka is on track to potentially match or exceed its historical high by year-end, provided the current migration and exchange rate trends persist.
The remarkable rebound comes after a turbulent period. In 2022, remittances collapsed to a 12-year low of $3.78 billion amid the island’s worst economic crisis, currency depreciation, and a thriving unofficial hawala market that diverted flows away from the formal banking system. However, since then, a series of policy corrections including the unification of exchange rates, improved banking channels, and tighter monitoring have restored confidence among expatriates.
By 2023, inflows jumped 57% to $5.96 billion, and in 2024, they rose a further 10.1% to $6.57 billion, largely driven by an exodus of workers seeking employment in the Middle East and Europe as domestic job markets remained stagnant.
Looking ahead, the short-term outlook remains favourable. Analysts expect inflows to remain strong through the final quarter of 2025, buoyed by seasonal factors such as year-end remittances, wage bonuses, and higher deployment of skilled workers abroad. This will provide much-needed relief for Sri Lanka’s foreign reserves, help stabilise the rupee, and support import financing in the coming months.
However, economists caution that overdependence on remittances carries risks. Without parallel growth in exports, investment, and tourism, Sri Lanka’s external position remains vulnerable to global shocks and policy shifts in host countries. To sustain this momentum, experts urge continued reforms in labour migration policy, better welfare for migrant workers, and digital innovation in remittance systems to curb informal transfers.
In essence, Sri Lanka’s remittance boom reflects not only the resilience and sacrifice of its overseas workforce but also the crucial role of foreign earnings in cushioning the nation’s fragile recovery a reminder that sustainable economic growth depends on diversifying beyond the remittance lifeline
