Upward trend in worker remittance income continues

• Jan. worker remittance income up 16% to US$ 675mn
• SL recorded US$ 7.1bn remittance income in 2020

Continuing the upward trend, worker remittance income marked a robust increase in the month of January, probably setting the tone for this year.

Sri Lankans working abroad, mainly in the Gulf region, sent back US$ 675.3 million in January, logging a robust 16.3 percent increase from a year ago. 

This translated into 22.1 percent surge in the income when converted into rupees at the current
exchange rate.

Remittance income has been on a tear during recent months, as total remittances hit US$ 7.1 billion in 2020, reaching a four-year high in comparison to US$ 6.7
billion in 2019. 

COVID-19 disruptions to unofficial money sending methods and migrant workers sending more money back home to their loved ones to cope with the difficult times are considered as the two main reasons for the rise in worker remittance income in 2020.

Upbeat on the 2020 remittance income, the government is now expecting US$ 7.5 billion in worker remittances this year.

When export income decelerated and other financial inflows mostly ran dry in 2020, it was the worker remittance income that buttressed the country’s external current account.

As Sri Lanka is hopeful of recording a rare current account surplus in 2021, higher remittance income will certainly help the authorities to ride the challenges facing the country’s external sector.