Sri Lanka’s official remittances increased by 33% to USD 729 million in February 2026, continuing an upward trend that began in 2024, according to data from the Central Bank. This rise in inflows from foreign workers follows a record-breaking month in December of the previous year, which also saw an all-time high in annual worker remittances, totaling USD 8,076.2 million.
In the first two months of this year, remittances from Sri Lankan workers abroad climbed by 32% to USD 1,480.1 million, compared to the same period last year. This increase is attributed to a larger segment of the nation’s labor force seeking employment opportunities overseas, as Sri Lanka rebounds from a severe economic crisis experienced in 2022.
Worker remittances remain the leading source of foreign exchange revenue for Sri Lanka, which is still recovering from the unprecedented economic turmoil of 2022. The consistent rise in remittances follows the Central Bank’s decision to abandon a parallel exchange rate system, which had previously driven many expatriates to use informal money transfer methods, such as Undiyal and Hawala.
In response to the economic challenges, the country has been focusing on dispatching more migrant workers, particularly professionals, to enhance foreign exchange earnings since declaring bankruptcy in 2022. Remittances through official channels had seen a significant decline in 2021 due to expatriates opting for informal channels that offered more favorable rates than formal banking options.
This shift occurred after the Central Bank engaged in currency printing to sterilize interventions and maintain lower policy rates, which led to the emergence of parallel exchange rates settled outside the formal banking system. From April 2022, the Central Bank raised interest rates to unprecedented levels, curbing credit and reducing the necessity to print money to sustain low rates. Subsequently, the Central Bank adopted a more dovish monetary policy.
(Colombo/March 07/2026)
