Sri Lanka’s Labour Migration surged remittances to US$4 billion in 2024
August 13, Colombo (LNW): Labour migration has had a profound and multifaceted impact on Sri Lanka, with remittances from migrant workers showing substantial growth over time to around US$ 4 billion from January to July 2024, ,
Amid evolving dynamics in migrant labor, including significant state involvement in the large-scale movement of people, Sri Lanka has observed various trends in labour migration, leading to increased remittance inflows and notable economic effects, particularly in the aftermath of the economic crisis during the 2020-2022 period.
Remittances have gained growing importance as a crucial source of external financing, providing a significant boost to domestic economic growth, shaping development policies, and addressing gender issues.
In a notable contribution to the economy, workers’ remittances have nearly reached the $4 billion mark within the first seven months of 2024, according to the latest data from the Central Bank.
From January to July 2024, cumulative remittance inflows have reached an impressive $3.71 billion, representing a 10.3% increase compared to the same period in the previous year.
This growth underscores the resilience and continued financial support from overseas workers. In July alone, remittances amounted to $566.8 million, showing a steady rise from $519.6 million in June 2024.
This figure also marks a Year-on-Year (YoY) increase, surpassing the $540.965 million received in July 2023.
The upward trend in remittances is a positive development for the economy, providing essential foreign currency inflows that help alleviate pressure on the exchange rate and bolster national reserves.
In the first three months of 2024, approximately 75,000 Sri Lankan workers have emigrated, as reported by the Sri Lanka Bureau of Foreign Employment (SLBFE).
The SLBFE noted that 74,499 Sri Lankans left the country in the first quarter of 2024, compared to 76,025 during the same period in 2023. Among these migrants, 34,599 were women, accounting for 46% of the total number.
A significant number of Sri Lankans have reportedly emigrated to Kuwait, totaling 17,793 individuals.
Additionally, the SLBFE reported that compared to previous years, there is now a growing trend of Sri Lankans seeking employment in countries such as South Korea, Israel, and Japan. Specifically, 2,374 Sri Lankans migrated to South Korea, 2,114 to Israel, 1,899 to Romania, and 1,947 to Japan in the first quarter of 2024.
Moreover, in just the first two months of 2024, remittances from Sri Lankan migrant workers were recorded at $963.8 million, according to the SLBFE. The number of Sri Lankans who went abroad for work in the first three months of 2023 was 76,025.
