Workers' Remittances Hit $1.1 Billion In 2025

by Zulfick Farzan 26-03-2025 | 12:58 PM

COLOMBO (News 1st); Sri Lanka's gross official reserves remain at healthy levels by the end of February, and the Central Bank of Sri Lanka expects by the end of March it will further improve with the receipt of IMF-EFF tranche as well as notable purchases of forex by the Central Bank.

The exchange rate, which recorded 10.7% appreciation last year, has recorded 1.4% depreciation thus far during the year.

"We see continued improvement in earnings from tourism as well as workers' remittances, which largely supports the external current account surplus. On the tourist arrivals, we see up to 23rd March there have been more than 172,000 tourist arrivals recorded. And during the first two months, tourism earnings have been registered at around US$768 million. Workers' remittances continue to be above 500 level for several months now, and during the first two months, workers' remittances have been recorded at US$1.1 billion," said Dr. S. Jegajeevan, the Director of Economic Research at the Central Bank Of Sri Lanka on Wednesday (25).

She noted that headline inflation is projected to remain negative in the near term and turn positive from mid-2025. The projections also suggest that inflation would reach the targeted level by the year-end.

The co-inflation, which is currently at a lower level, will gradually stabilise at the rate required to maintain headline inflation at 5%.

Over the medium-term, headline inflation is expected to converge towards the targeted level of 5%.

She also noted that Sri Lanka's economy recorded a robust growth of 5% in 2024 after two consecutive years of contraction.

"This growth has come in a broad-based manner, with all key sectors contributing positively to this growth. In 2024, expansion in sub-sectors of construction, accommodation, manufacturing of food and beverages, as well as textiles and apparels have largely contributed to this positive growth. The leading indicators, such as PMI manufacturing, PMI services, and PMI construction, as well as Index of Industrial Production, reveal that the growth momentum continues in 2025 as well."