Workers’ Remittances top US$ 5,969.6 Mn in 2023
January 08, Colombo (LNW): Amidst a challenging year, Sri Lanka demonstrated remarkable resilience, recording a substantial surge in Workers’ Remittances. Figures for 2023 showcased a staggering 57.5% increase, reaching USD 5,969.6 million compared to USD 3,789.5 million in 2022. December alone drew USD 569.7 million in remittances, marking a positive trend.
Rejuvenating its economic health post a severe crisis, Sri Lanka saw pivotal improvements across key indicators. Notably, the gross official reserves crossed the USD 4 billion threshold for the first time in three years, provisionally estimated at USD 4,400 million by December 2023. This notable surge includes a People’s Bank of China (PBOC) swap, approximating USD 1.4 billion, albeit with certain conditionalities on its usage.
Making a pivotal shift from negative growth, the country achieved a 1.2% economic growth rate, signaling a promising trajectory ahead. The nation, once known for its staggering inflation rate surpassing 70%, managed to reduce it to about 3% in the final quarter of 2023. The Central Bank anticipates maintaining inflation below 5% in 2024, indicating stable economic prospects.
Tourism also experienced an uptick, with arrivals reaching 1.5 million in 2023, generating revenue exceeding USD 2.068 million, a significant leap from USD 1,136 billion in 2022.
An official from the Ministry of Labour Relations attributed the economic crisis to several factors, including low remittances, tourism receipts, and inadequate foreign reserves. Notably, a shift in expatriates’ remittance channels from non-banking to banking avenues, alongside a stabilized US dollar, contributed to robust foreign remittances.
During the period leading up to January 5, 2024, the Sri Lankan rupee appreciated against major currencies: the US dollar by 0.5%, the Japanese Yen by 2.8%, the Pound Sterling by 0.8%, the Euro by 1.6%, and the Indian Rupee by 0.6%. At the Colombo Stock Exchange, the ASPI surged by 25.5%, indicating positive market sentiment.
