ECONOMYNEXT – Sri Lanka has requested Maldives to consider the local currencies of the both countries to be used for cross-border transactions, Foreign Minister Vijitha Herath said amid complaints of Sri Lankan expatriate workers in Male of difficulties in remitting their earnings.
Sri Lanka plays a significant role in providing skilled professionals and tourism services to Maldives with hundreds of locals working in the hospitality industry in Male.
Maldives has imposed a limit in foreign remittances sent by Sri Lankan migrant workers in a move to prevent large dollar outflow from the country with an aim to prevent a forex shortage.
A large number of Sri Lankans work in the Maldives in high executive jobs in the hospitality sector in other categories including labourers and housemaids. Some of them earn around $3,000 worth salary monthly, paid in Maldivian rufiyaa.
“I also requested the Maldives side to consider the possibility of using the Maldivian Rufiyaa (MVR) and Sri Lankan Rupee (LKR) for cross-border transactions by the Sri Lankan workforce for the benefit of our migrant workers in Maldives,” Foreign Minister Herath told reporters on Wednesday after meeting his Maldivian counterpart Abdulla Khaleel.
Minister Herath’s request comes after a previous request from Maldives to revisit the current limit imposed on outward foreign currency remittances with an aim to benefit the Sri Lankan migrant workers in Maldives.
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Sri Lanka requests Maldives to relax migrant worker remittances limit
Sri Lankan workers in the Maldives have been sending their excess remittances beyond the Maldivian dollar limit via informal Undiyal method without channelling through the official banking network.
Maldives has a strong Sri Lankan expatriate community mainly working in the hospitality and education sectors. (Colombo/February 21/2025)