CB establishes dedicated department to facilitate and streamline workers’ remittances

The Central Bank yesterday announced the establishment of a new department named ‘Foreign Remittances Facilitation Department’ (FRFD), with effect from November 3, 2021, which is tasked to facilitate and streamline workers’ remittances inflows to the country, under the provisions of Monetary Law Act No. 58 of 1949. Workers’ remittances have been a key pillar of Sri Lanka’s foreign currency earnings that have nearly 100 percent of domestic value addition, providing a substantial cushion for external sector resilience of the country. 

Workers’ remittances have covered around 80 percent of the annual trade deficit over the past two decades and strengthening remittances inflows to the country brings several socio-economic benefits, including the smooth supply of forex inflows to the formal banking system and the reduction of income and regional disparities. 

After a study carried out by a working committee comprising of the banking sector professionals, under the aegis of the Central Bank recently, it was also proposed to implement a national remittance mobile application titled ‘SL - Remit’, with additional services to attract more remittances to Sri Lanka via official channels. As of September this year, Sri Lanka had received US $ 4,577.5 million in cumulative remittances in 2021, down 10 percent from a year ago.