ECONOMYNEXT – Sri Lanka’s official remittances rose 32 percent to US$847 million in May 2026, continuing the rising trend from 2024, central bank data showed.
The May inflows from foreign workers come amid escalation in the Middle East, the largest foreign job market for Sri Lankans and the depreciation of the rupee currency to a near four-year low.
Inflows from Sri Lankan workers abroad rose 26 percent to US$3,909.7 million in the first five months of this year compared to the same period last year.
The island nation saw a record monthly remittance of US$879.1 million in December last year and historically high annual high worker remittances of US$ 8,076.2 million in 2025.
Higher worker remittances follow a higher number of the island nation’s labour force leaving the country to search for foreign jobs amid Sri Lanka’s recovery from an unprecedented 2022 economic crisis, official data showed.
Remittances have risen continuously after the central bank abandoned a parallel exchange rate regime, which compelled most expatriates to switch from informal Undiyal and Hawala money transfer methods.
The island nation has been in the process of sending more migrant workers focusing on professionals to bring in higher foreign exchange since the country declared bankruptcy in 2022.
Worker remittances through official channels fell sharply in 2021 after many expatriates switched to informal money transferring channels because they were offered higher rates than formal banking channels.
The move followed the Central Bank printing money to sterilize interventions and keep a policy rate down, which triggered parallel exchange rates settled outside the formal banking system.
From April 2022, the interest rates were raised by unprecedented levels, slowing credit and the need to print money to keep rates down. Later, the Central Bank started its dovish monetary policy. (Colombo/June 07/2026)