Worker remittances surge 23% in July to US$ 697mn

• Seven-month inflows rise to US$ 4.4 bn, putting Sri Lanka on track for record year

Remittances from Sri Lankans working abroad surged in July, bolstering the nation’s external account and providing crucial support to the economy. 

Inflows for July reached US$ 697.3 million, a 23 percent increase from the US$ 566.8 million received in the same month last year and a notable rise from June’s US$ 635.7 million. This strong performance brought the cumulative total for the first seven months of 2025 to US$ 4.44 billion, up 19.5 percent year-on-year.

The consistent growth in remittances puts Sri Lanka on a path to potentially surpass its recent records. In 2024, the country earned US$ 6.58 billion from remittances. If the current trend continues, total inflows for 2025 could exceed US$ 7.8 billion, potentially setting a new annual record.

A key driver behind the rising inflows is the significant increase in outward migration over the past few years. The economic crisis of 2022, preceded by the pandemic, prompted a large number of Sri Lankans to seek employment overseas for better income opportunities. As these migrant workers have settled into their new roles, their financial contributions to family members back home have steadily increased.

The shift towards formal banking channels has also been a critical factor. Policy changes, including the move to a flexible exchange rate in 2022 and measures to curtail informal money transfer systems have made it more attractive and reliable for workers to send money through official channels. This has helped regularise the flow of remittances and ensure they are accurately captured in national accounts.