Workers’ remittances surge in February to US$ 476.2 mn

Remittances from Sri Lankans working abroad surged in February, surpassing last year’s figures. Although slightly lower than the previous month, these remittances continue to remain as a pillar supporting the nation’s fragile external sector, adding impetus to its ongoing economic revival.

According to February data released by the Central Bank, the worker remittances were recorded at US$ 476.2 million, up from 407.4 million received in the same month last year when such receipts were largely normalising at the time.
In January, Sri Lanka received US$ 487.6 million in remittances.

Remittance income, despite reaching a high of US$ 7.1 billion in the first year of the pandemic in 2020, fell substantially in the subsequent two years due to the fixed exchange rate which was later abandoned in March 2022 and the powerful misinformation campaign by the sections with vested political interests who propagated that the moneys sent back were being robbed from them from those who were in power at the time.
This condition was further exacerbated by the extremely low migration out of Sri Lanka during 2020 and 2021 for work due to the pandemic. Instead the government at the time facilitated scores of people to return to Sri Lanka as they felt safer back at home as the vaccination drive was also in full throttle.

However, with the float of the currency, confidence in the system being re-established for a greater degree and record high migration out of the country seeking better pastures collectively appear to have caused remittance flows to regain strength.
Sri Lanka’s economy which fell into depths back in 2022 has broadly regained footing thanks largely to the robust inflows from tourism and remittances which together make up for about US$ 12.0 billion in a normal year, totally erasing the trade deficit in the economy.