News
Forex from Lankans abroad surpasses US$4.4 billion
View(s):By Kapila Bandara
Multibillion-dollar remittances sent in by Sri Lankans working overseas, mostly domestic helpers and a small percentage of professionals, are reaching unprecedented levels.
In the seven months to July, forex remittances of Sri Lankans have exceeded US$4.43 billion (Rs 1.32 trillion). The amounts from the same period in 2024 were US$3.71b.
The value of the seven-month remittances exceeds the entire annual income tax collection estimate in the 2025 Budget and is also enough to pay government salaries and wages estimated for the financial year.
This US$4.43b remittance inflow is nearly nine times the foreign direct investment of US$507m in the first half.
In July alone, remittances of Sri Lankans were US$697.3 million (US$566.8m in July 2024), more than twice the tourism income of US$318.5m that month.
In comparison, in the first seven months, forex earnings from tourism were US$2.031b, based on Tourism Development Authority data. But, as with apparel export earnings, this is not a net gain. Textile and garment exports in the first half were a mere US$2.60b.
Hundreds of millions in foreign exchange earned from tourism do flow out. In the first half, US$346.1 million in forex was spent by Sri Lankans and others for overseas travel. That is US$36m more than the same period in 2024. Air and sea transport swallowed up another US$525.2m.
Also, a part of forex from tourist bookings goes to global travel sites, airlines and travel agents (see the Tourism Minister’s remarks in the Business Times).
Kuwait, the United Arab Emirates, and Saudi Arabia made up the top three sources of remittances of workers in the first quarter of this year. More than 78% of Sri Lankan workers are in West Asia.
Remittances from the United Kingdom were less than US$138m in the first quarter, and some of them were not direct inflows but instead were routed to Sri Lanka from other countries.
In the first three months, the monthly average inflow was US$604.8m, well above the levels in the past year.
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