FINANCIAL CHRONICLE – In April 2026, Sri Lanka experienced an 18.9 percent increase in official remittances, totaling US$767.9 million, as reported by the central bank. This growth trend has been consistent since 2024.
The surge in remittances from overseas workers occurs against the backdrop of heightened tensions in the Middle East, which serves as the primary employment market for Sri Lankans.
In the initial four months of 2026, remittances from Sri Lankan expatriates surged by 24.5 percent, amounting to US$3,062.8 million compared to the same period last year.
The country previously set a new monthly remittance record in December 2025, culminating in an all-time annual high of US$8,076.2 million in worker remittances for that year.
This increase in remittances can be attributed to a growing number of Sri Lankan workers seeking employment abroad, particularly as the nation continues its recovery from the severe economic crisis experienced in 2022, according to official statistics.
Remittances from workers abroad represent a crucial source of foreign exchange for Sri Lanka, which is still on its path to economic recovery following the crisis.
The rise in official remittances is linked to the central bank’s decision to discontinue a parallel exchange rate system, prompting many expatriates to transition from informal money transfer methods, such as Undiyal and Hawala, to official channels.
Since declaring bankruptcy in 2022, Sri Lanka has focused on increasing the number of migrant workers, particularly professionals, to enhance foreign exchange inflows.
In 2021, the volume of remittances through official channels plummeted as many expatriates opted for informal alternatives that offered more favorable rates. This shift occurred after the central bank implemented monetary policies that led to the establishment of parallel exchange rates outside the formal banking system.
Starting in April 2022, the central bank drastically raised interest rates to control inflation and reduce the need for money printing, which had previously kept rates artificially low. Subsequently, the central bank adopted a more accommodative monetary policy. (Colombo/May 09/2026)
