Business
Middle East Conflict: The impact on migration and remittances in Sri Lanka
With the ongoing conflict in the Middle East (ME), Sri Lanka finds itself at a particularly vulnerable juncture as it carefully navigates a fragile economic recovery. Labour migration offers jobs to counteract the lack of opportunities within the economy. Related micro-level remittances prevent households from dipping back into poverty. Similarly, on a macro level, these remittances, of which about 50% come from ME countries, help build foreign reserves, stabilise the economy, and pay for much-needed imports. This blog unpacks some short- to medium-term consequences for migrant workers, highlighting what these attacks and related developments mean for the Sri Lankan economy.
Cancelled Flights and Migrant Departures
Sri Lankan migrant departures to Iran have been negligible in recent years. However, a far larger number of Sri Lankan workers in other Gulf destinations have been affected by the conflict. The United Arab Emirates (UAE) and Qatar, which reported, respectively, 52,067 and 46,693 Sri Lankan migrant departures in 2024, came under attack on 2 March 2026 and 7 March 2026.
Recent departure statistics show that of the 862 Sri Lankans who depart daily for foreign employment through official channels, 666 head to the ME. Additionally, an unknown number depart outside official channels. The large number of flight cancellations indicates that many could not take up or return to their jobs in the Gulf on time. Moreover, growing concerns about the war discourage new migrants from travelling to the ME for employment, while emerging repatriation efforts by other countries and the risk of a prolonged conflict are influencing those already there to return home. There is also a concern that employers may scale back recruitment or suspend existing projects that rely on migrant workers if the conflict continues. These contribute to reducing the stock of Sri Lankan migrant workers in the ME in the short run and weakening potential remittances to Sri Lanka during this critical period of transitioning from economic recovery to stabilisation.
If the conflict continues and the above concerns materialise, preventing Sri Lankans from taking up new jobs in the ME and the extension of expiring contracts, approximately 19,980 foreign employment opportunities would be lost in a month. If those affected look for but do not find jobs in Sri Lanka, the decline in migration could translate to a 5% increase in the stock of unemployed individuals, relative to the third quarter of 2025. Assuming an average contract length of 2.5 years and that 85% of the total 310,915 departures in 2025 went to the ME, the stock of Sri Lankan migrant workers in the region is roughly 660,000. (This number of migrant workers is lower than recent estimates of 1,007,855 Sri Lankans in the ME, as the latter figure includes both workers and other Sri Lankan nationals.) Given that about half of Sri Lanka’s remittances originate from the ME, this implies an average monthly remittance of roughly USD 509 per worker. At the current exchange rate of LKR 311 per USD, the decrease in monthly income in affected households in Sri Lanka is over LKR 150,000. The related drop in consumption can increase risks of poverty and vulnerability with negative implications for human capital development, affecting long-term growth.
Remittances
Despite significant efforts to diversify, Sri Lanka continues to be over-reliant on the ME for remittances. This over-reliance on a highly volatile region further heightens Sri Lanka’s already high vulnerability to remittance shocks. If the ongoing conflict disrupts access to formal remittance channels, i.e., with the disruption of internet connectivity or loss of access credentials/devices during evacuations, there is a growing risk of migrants shifting to informal channels, as was evident in Sri Lanka during the COVID-19 pandemic and the economic crisis in Sri Lanka. Remittances sent through informal channels bypass the Central Bank and balance of payment records, reducing migrant workers’ contribution to recorded foreign exchange reserves used, for example, for imports or debt repayment. In February 2026, the formal monthly remittances of USD 729 Mn covered more than the increase in foreign reserve assets of USD 452 Mn or the previous month’s imported consumer goods bill (USD 475 Mn).
Navigating Implications
As such, the conflict, weaker employer capacity in the ME, and disruptions to flights, employment, and economic activity can translate into risks for Sri Lanka through declines in the stock and flow of migrants and remittances. Similarly, the uptick in informal remittances could challenge the stability of Sri Lanka’s foreign reserves. The combined effect implies that the ME conflict could lead to concerning implications for foreign exchange reserves, import capacity, unemployment, consumer demand, poverty, and vulnerability. These implications contribute to slowing the economic recovery process in Sri Lanka.
To address the potential threats, Sri Lanka can adopt a few strategies.
To ensure consistent income and remittances, the Sri Lankan foreign missions in the ME can play an important role by reaching out to large-scale employers to reaffirm contractual obligations for wages. Similarly, the missions can explore available social protection measures, such as insurance, wage protection mechanisms, and compensation to migrant workers. Moreover, the Sri Lanka Bureau of Foreign Employment (SLBFE) can increase awareness of available unilateral social protection mechanisms in Sri Lanka, such as insurance schemes, to help migrants weather any immediate income gap. Additionally, the SLBFE can introduce programmes to ensure that those who would have been deployed retain their skills for redeployment or are redirected to reskilling and upskilling activities, providing appropriate certifications.
Sri Lanka should also prepare for large scale repatriation, should the need arise. Learning from experience during the COVID-19 pandemic, a starting point would be the reactivation of the Contact Sri Lanka portal for the government to connect with Sri Lankans in the ME. Initially, this portal could be used as a mechanism to assess the sentiment among overseas Sri Lankans about their safety and need to return and prepare for large-scale socioeconomic reintegration. If repatriation does take place, Sri Lanka ought to take measures to ensure that returning migrant workers have received their service letters and other such credentials, as well as payments and benefits.
To minimise the risk of remittance diversion to informal channels, the formal remittance channels in Sri Lanka can offer timely and attractive incentives such as competitive exchange rates and waiving or reducing transaction fees associated with formal remittances from the ME. At the same time, Sri Lanka should urgently finalise the initial steps taken to further diversify destination countries of migrant workers, such as Thailand, Italy, Romania, and Germany, minimising the risk of over-reliance on ME remittances.
by Dr. Bilesha Weeraratne, Research Fellow, Institute of Policy Studies,Sri Lanka
Business
Malaysia courts more Sri Lankan travelers as ‘Visit Malaysia 2026’ gathers steam
Malaysia is intensifying efforts to attract more Sri Lankan travelers by promoting its diverse tourism offerings, strong air connectivity, Muslim-friendly facilities and expanding business partnerships ahead of the ‘Visit Malaysia 2026’ (VMY2026) campaign.
Addressing the Tourism Malaysia product presentation yesterday in Colombo, Malaysian High Commissioner to Sri Lanka Badli Hisham Adam said tourism remains one of the strongest pillars of the long-standing bilateral relationship between Malaysia and Sri Lanka, helping strengthen cultural understanding, business links and people-to-people ties.
The event, organised by Tourism Malaysia Chennai in collaboration with the High Commission of Malaysia in Colombo, brought together Malaysian tourism stakeholders, airline representatives, Sri Lankan travel industry professionals and members of the media to explore new business opportunities.
The High Commissioner said Sri Lanka continues to be an important source market for Malaysia, with growing numbers of Sri Lankan travelers seeking destinations that combine diversity, affordability, quality experiences and convenient connectivity.
“As part of ‘Visit Malaysia 2026’, we warmly invite Sri Lankan travelers to discover the richness of Malaysia, he said.
Highlighting Malaysia’s tourism strengths, the envoy said the country offers a wide range of attractions, including multicultural cities, UNESCO World Heritage Sites, pristine beaches, tropical rainforests, cool highlands and unique wildlife.
These are complemented by world-class shopping, family-friendly attractions, educational opportunities, wellness and medical tourism, business events and internationally renowned hospitality.
He also stressed Malaysia’s position as the world’s leading Muslim-friendly destination, supported by an extensive halal ecosystem with internationally recognised certification, halal-certified restaurants, easily accessible prayer facilities and family-oriented amenities across the country.
Despite ongoing geopolitical uncertainties around the world, the High Commissioner said Malaysia remains a stable, peaceful and welcoming destination for international travelers.
He urged Sri Lankan travel agents to strengthen collaboration with Malaysian tourism providers by developing innovative travel packages targeting leisure travelers, business visitors and event participants.
The presentation featured leading Malaysian tourism partners, including Wyndham Ion Majestic, Lotus Desaru, Key Term Holidays representing the Sabah Tourism Board and Asian Overland representing The PULSE Group, showcasing Malaysia’s diverse tourism experiences and investment in the Sri Lankan market.
The envoy also acknowledged the contribution of airline partners and the media in enhancing Malaysia’s visibility and improving travel connectivity between the two countries.
Looking ahead to ‘Visit Malaysia 2026’, he said the future growth of tourism would depend on stronger collaboration, innovation and meaningful partnerships between industry stakeholders.
He expressed confidence that closer cooperation between Malaysia and Sri Lanka would generate fresh business opportunities while encouraging more Sri Lankan visitors to experience Malaysia’s culture, diversity and hospitality.
The High Commissioner concluded by expressing hope that the networking session would lead to stronger commercial partnerships and contribute to the success of ‘Visit Malaysia 2026’, further deepening tourism and economic ties between the two friendly nations.
By Ifham Nizam
Business
Women Empowered Global launches ‘Leadership Lab’
Women Empowered Global (WEG), a network of award‑winning female leaders, corporate CXOs and entrepreneurs, experts and thought leaders dedicated to empowering women from six continents, unveiled the ‘WEG Leadership Lab’, a 24‑week virtual intensive programme, commencing 26 September. The programme is designed exclusively for women leaders who are ready to accelerate their careers, amplify leadership visibility, and drive transformational growth.
The women‑only leadership experience breaks the mould of conventional training, offering a powerful blend of masterclasses, mentorship, and practical leadership tools tailored for rising leaders, managers, and senior professionals. Participants will gain international exposure, sharpen essential skills, and the opportunity to join a vibrant knowledge‑sharing community which fosters confidence, resilience, and impact.
“The WEG Leadership Lab is not for casual growth. It is for women who are serious about transforming their leadership journey,” said Senela Jayasuriya, Founder/CEO, Women Empowered Global. “By combining global expertise with local delivery, we are creating pathways for women across manufacturing, trading, finance, marketing, technology, and management, as entrepreneurs, business owners, fractional executives, or corporate leaders, to thrive and build a more inclusive leadership landscape.”
WEG’s platform facilitates international exposure and career development for professionals and connects more than 4,000 members worldwide. The Leadership Lab builds on WEG’s flagship initiatives, including the 1 Million Women in Power campaign, the African Women Leadership Forum, the Business Hub, and the Global Online Academy. The programme aims to deliver a transformative journey equipping women to step boldly into leadership roles locally and internationally.
Led by Senela Jayasuriya (MBA, UK), an internationally recognized and awarded leadership & empowerment coach and innovation partner, keynote speaker, and certified expert, WEG collaborates with DEI specialists, corporate boards, Business and HR leaders, to design programmes which advance women’s careers, leadership visibility, equity, and inclusion. To date, she has successfully delivered leadership development programmes to more than 20,000 professionals.
Business
JKCG Auto and Green EV join forces to build Sri Lanka’s most expansive EV charging network
John Keells CG Auto (JKCG Auto), the authorised distributor of BYD and Denza in Sri Lanka, has launched a strategic partnership with Green EV on 26th June 2026 to significantly expand the charging infrastructure available to its customers across the island. The collaboration, formalised through a Memorandum of Understanding (MOU), marks a pivotal step in JKCG Auto’s ongoing commitment to building a comprehensive and reliable New Energy Vehicle (NEV) ecosystem in Sri Lanka.
Through this partnership, BYD and Denza owners will gain seamless access to Green EV’s public charging network of 100+ DC fast chargers and 70 AC chargers, spanning 20 districts and all nine provinces of Sri Lanka, from Jaffna in the north to Hambantota in the south, and from Puttalam on the northwest coast to Trincomalee and Ampara on the eastern seaboard, encompassing a mix of 40kW, 60kW, and 120kW fast-charging infrastructure. The network has been designed to ensure that customers can charge conveniently and confidently, whether in the heart of Colombo or in suburban and outstation communities, removing one of the most commonly cited barriers to EV adoption in Sri Lanka. Further strengthening customer confidence, Green EV has partnered with SLIC to provide a comprehensive insurance cover of LKR 100 million for every Green EV charging station, offering protection against potential damages and ensuring complete peace of mind for every user.
The initiative reflects JKCG Auto’s broader strategy to invest in the foundations of sustainable mobility, ensuring that the transition to electric vehicles is supported not only by world-class vehicles, but by a dependable ecosystem that addresses the practical needs of everyday ownership.
“If the future of mobility in Sri Lanka is going to be electric, success will hinge on how accessible we are able to make the actual vehicles, as well as the enabling infrastructure around them. JKCG Auto is proud to partner with other visionaries like Green EV to ensure that we eliminate range anxiety, so that every customer – whether in Colombo or anywhere in Sri Lanka will have the confidence to go electric,” JKCG Auto Chief Executive Officer, Charith Panditharatne.
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