Sri Lanka’s remittance inflows continue to grow in February 2025

Sri Lanka saw continued growth in remittances sent home by its citizens working abroad, with US$ 548.1 million received in February 2025.

This marks an increase from US$ 476.2 million in February 2024, although slightly down from the US$ 573.0 million sent in January 2025.

Despite the monthly fluctuation, the year-over-year increase shows strong growth, with the first two months of 2025 totaling over US$ 1.12 billion, a 16.3% rise compared to the same period last year.

Over the past three years, at least a million Sri Lankans have moved abroad in search of better job opportunities, prompted by the economic crisis and the pandemic’s impact on the local job market.

Many citizens lined up at the Department of Immigration and Emigration to obtain passports, sometimes waiting for days due to long queues and shortages of materials for passport printing.

The economic crisis of 2022 led to a slowdown in regular migration, while those working abroad returned to Sri Lanka for safety during the pandemic. The government facilitated their return with charter flights and quarantine facilities.

During this time, many people relied on informal money exchange methods, such as Undiyal and Hawala, due to the government’s fixed exchange rate that was not competitive with market rates.

The lack of foreign currency caused shortages in essential goods such as energy, gas, medicine, and food, further aggravated by the global rise in oil prices due to the Ukraine war.

In response, Sri Lanka’s Central Bank took action, cracking down on money changers and devaluing the rupee in March 2022, which helped normalize remittance inflows.

In 2024, remittances amounted to US$ 6.57 billion, a 10.1% increase from 2023 and the highest since 2020.

For 2025, Sri Lanka is expected to receive over US$ 7 billion in remittances, which will strengthen its foreign currency reserves and support the country’s balance of payments.

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