12 August 2024 12:45 am Views - 1019
Sri Lanka’s remittances from overseas workers continued to rise in July, providing a boost to the country’s external sector.
The country received US$ 566.8 million in foreign currency from migrant workers last month, bringing the total for the first seven months of 2024 to US$ 3.71 billion. This marks a 10.3 percent increase compared to the same period a year earlier.
The remittance inflows in July were notably higher than the US$ 541.0 million recorded in July 2023 and the US$ 519.6 million received in June 2024. This growth reflects a broader trend of increasing remittances that has been crucial in strengthening Sri Lanka’s external sector amid global economic recovery.
Sri Lanka’s external sector, which plays a critical role in the overall economy, has shown significant improvement over the past two years. This progress is largely due to the gradual recovery of remittance inflows and a rebound in tourism, as global economies stabilise following the disruptions caused by the Covid pandemic.
The easing of energy and commodity prices, which had surged following the Ukraine conflict, has also contributed to the stabilisation of the external sector.
The recent improvement in remittance inflows is also linked to local developments. The political and social stability restored in the country has allowed people to resume normal activities after the economic crisis.
Additionally, the decision by the Central Bank of Sri Lanka to float the currency in March 2022 has played a significant role in attracting higher remittance inflows. The move, initiated by then-Governor Ajith Nivard Cabraal, coupled with an increasing number of Sri Lankans seeking employment abroad since 2021, has resulted in a steady rise in foreign currency sent back home.