February 10, Colombo (LNW): Sri Lanka’s economy has been bolstered by a significant increase in remittances from its overseas workforce, providing vital support to the country’s external sector and broader economic recovery.
Figures for January 2025 show that Sri Lankans living abroad sent back a total of US$ 573 million through official channels, marking a sharp rise from the US$ 487.6 million recorded in the same month the previous year.
This represents a 17.5 per cent increase year-on-year, underscoring the continued strength of remittance inflows as a key contributor to the nation’s financial stability.
The January data follows a particularly strong performance in December 2024, when Sri Lanka received US$ 613.8 million in remittances. This brought the total for the year to US$ 6.58 billion, a 10.1 per cent increase from the previous year and the highest total since 2020.
December has traditionally been one of the peak months for remittance inflows, alongside March, due to the seasonal flow of funds related to the New Year celebrations and other cultural events, which drive many Sri Lankans abroad to send money home.
This consistent rise in remittances also reflects the increasing number of Sri Lankans seeking work opportunities abroad, particularly in the wake of the pandemic and the economic crisis that followed.
Over the past three years, approximately one million Sri Lankans have migrated in search of better livelihoods, with many of them coming from the professional and skilled sectors.
Many of these individuals have opted to make permanent moves, disillusioned by the challenges and hardships they faced in Sri Lanka.
Looking forward, experts predict that remittances could reach as much as US$ 7 billion in 2025, with another US$ 5 billion expected from the tourism sector.
Remittances have long been Sri Lanka’s single largest source of foreign currency, ahead of textiles, garments, and tourism.
The significant rebound in both remittances and tourism—sectors that were heavily impacted by the pandemic—has played a crucial role in stabilising the Sri Lankan economy.
These inflows are helping to restore confidence, strengthen the national currency, and fuel domestic consumption and investment, aiding the island nation’s ongoing recovery efforts.
