Sri Lanka’s 2024 Remittances Remain Robust amid Economic Transition
By: Staff Writer
October 15, Colombo (LNW): In September 2024, remittances from Sri Lankans working abroad remained strong, although they saw a slight decline compared to the previous month.
The total inflow in September reached US$ 555.6 million, down slightly from US$ 577.5 million in August but up 15.2% from the US$ 482.4 million recorded in September 2023.
This minor decline from August’s figures isn’t seen as a significant concern, as month-to-month variations in remittance levels are common.
The cumulative inflows for the first nine months of 2024 amounted to US$ 4,843.8 million, an increase of 11.5% compared to the same period in 2023. Sri Lanka used to receive US$ 7.0 billion annually from those working abroad.
Despite largely a people’s favourite government coming into power at the Presidential election held on September 21, there are still a large number of Sri Lankans who want to leave the country seeking better jobs and greener pastures.
This trend puts Sri Lanka on track to approach the annual remittance levels of US$ 7 billion, which was typical in pre-pandemic times.
As the country heads into the year-end festive season, it’s expected that remittance inflows will increase, driven by higher-than-average contributions from Sri Lankans abroad.
The recent change in political leadership following the Presidential election on September 21 has not significantly deterred the outflow of people seeking better opportunities abroad.
While a new government has come to power with a pledge to tackle corruption, the economy remains significantly smaller than it was before the pandemic, limiting job opportunities for many citizens.
The hyperinflation and shortages of essentials that plagued the country in 2022 and much of 2023 continue to influence people’s decisions to seek greener pastures.
Despite a recent period of deflation in September 2024, the effects of prior inflation, which caused a steep rise in prices, remain a challenge for the economy.
Factors contributing to this inflationary period include supply chain disruptions due to the pandemic and the ongoing Ukraine war, along with increased demand within the country.
During the peak of the pandemic, many Sri Lankans working in the Middle East and other regions returned home, seeking safety.
However, the situation has now reversed, with more people willing to work abroad, which is likely to boost remittance inflows.
The new government’s focus on rooting out corruption might also be encouraging confidence among expatriates to repatriate their earnings, suggesting that Sri Lanka’s remittance outlook for the coming months could remain optimistic.
