October remittances at US$ 588mn provide strong bulwark for economy

11 November 2024 02:45 am Views - {{hitsCtrl.values.hits}} 7 Bookmark

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Worker remittances for October continued to come in stronger against both a month ago as well as a year ago period helping both the foreign currency reserves and the rupee to remain strong.

Sri Lankans working abroad sent back US$ 587.7 million in October, just ahead of the year end festive season which usually sees a further bump up in the monies that the country typically receives.

What the country received in October is compared with US$ 555.6 million in September 2024 and US$ 517.4 million received in the same month last year, reflecting the strength of the inflow.

The October receipts brought the total earnings received from remittances to US$ 5,431.5 million, up 11.7 percent from the same period last year, and also bringing the full year income at a striking distance from the once elusive US$ 7.0 billion.

The last time Sri Lanka was able to surpass the US$ 7.0 billion income mark from remittances was back in 2020 and then the inflow faltered, causing the economy to sputter by early 2022.

The continued strength in remittances and the tourism inflows, helped the country’s Central Bank to purchase US$ 189.5 million from the domestic foreign currency market, a fairly large amount for a single month and extend its months-long streak in remaining a net buyer of foreign currency.

This helped the country to further bolster its gross official reserves which rose to US$ 6,467 million from US$ 5,994 million by the end of September.

These strong inflows amid the debt standstill on most of the foreign currency debt repayments also helped the country to strengthen the rupee against the dollar.

The rupee has appreciated by 10.7 percent year-to-date on top of a 12 percent gain in value in 2023.

Remittances have not only helped the country to regain the external sector strength but also to partly reverse much of inflationary pressures seen during the last two years, by easing prices of imported goods.

Sri Lanka, going forward should be able to collect well over US$ 7.0 billion from remittances as a large number of people left the country in the last two years, seeking better jobs and living conditions elsewhere and they will send part of their earnings to help support their families back home.

Comments - 7

Lion Monday, 11 November 2024 08:12 AM

This itself shows that foreign employees know very well that fund they send will be utilized favorably to the economic development of the country

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Adwani Monday, 11 November 2024 08:43 AM

The customs must co-operate with expatriate workers and the Employment Bureau too, must extend their support. There are lot of drunkards and hooligans in customs and foreign employment bureau who harass expatriate workers, demanding bribes and something.

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D P P Prasad Monday, 11 November 2024 08:51 AM

This show cases that the expatriate workers are keeping the confidence on the government due to the financial hardships large number of youths left the country seeking overseas jobs two years ago even during the struggle (Aragalaya). Therefore both the foreign remittance and sufficient tourist arrivals may make our economy stable gradually. As we believe the people will use their franchise in order to strengthen the further economic development during the upcoming general election

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Mirosaan Monday, 11 November 2024 09:31 AM

The bitter truth is that the country has lost majority of the young work force as well as gone through brain drain. Hence, there is nothing to be proud about the inward remittance. We have a huge concern and the gap to be filled with younger generation which takes considerable time.

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SLEx Monday, 11 November 2024 09:56 AM

Good news for Sri Lanka. Guess finally the NPP supporters in high places within the Sri Lankan communities overseas have finally asked people to send money and also via the legal channels. As an Expat, I have seen multiple posts where NPP supporters were asking fellow Sri Lankans not to send money. And that affected the poor and middle class more than anyone else. I hope people make a big deal about it so it never happens again. No Party should be promoting actions that cause hardships to people, especially during the darkest time for our country.

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Dilakshan Seneviratne Monday, 11 November 2024 11:57 AM

This is rubbish, no such generalisations are possible. Some people were concerned about the corruption and wastage of the RW government, which has now been proven beyond doubt. Everyone now can see a clean government in place. Not only remittances even foreign investments will start to come in under this environment.

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kamal Monday, 11 November 2024 05:05 PM

Look at the graph. There is no correlation to this and new government. In 2023 March, same amount was sent. Please send money care for their family. Not because NPP is in power.

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