Business

Record Remittances to Sri Lanka: Hidden Realities Behind the Headlines

Published

2 months ago

2026/02/6

BY Dr Bilesha Weeraratne,
Research Fellow and Head of
Migration and Urbanisation Policy Research,
Institute of Policy Studies of Sri Lanka (IPS)

Worker remittances to Sri Lanka have set a new all-time high record with USD 8.076 billion in 2025. This 22.8% growth, compared to the USD 6.6 billion received in 2024, is shaped by the high number of worker departures experienced in recent years.

While migrant workers’ contribution to easing pressure on the country’s balance of payments is widely appreciated, the hardships and sacrifices they endure are often overlooked. This blog highlights the challenges faced by migrant workers, drawing evidence from two recent studies by the Institute of Policy Studies of Sri Lanka (IPS).

Migrant Destinations and Remittance Origins

The composition of the largest remittance-sending countries corresponds with the main destinations of Sri Lankan migrant workers. In 2025, the top destination for Sri Lankan migrant workers continued to be the Middle Eastern region, with Kuwait ranked first, followed by the United Arab Emirates (UAE) and Saudi Arabia.

Similarly, the largest share of remittances to Sri Lanka is sent by migrant workers in the Middle Eastern region. Available data for the first three quarters of 2025 indicate that the highest share of remittances were sent from Kuwait (10.7%), UAE (10.4%) and Saudi Arabia (9.4%). Yet the share of remittances from these countries has either stagnated or declined in recent quarters,while countries that attract more skilled and long-term migrants have increased their contribution to remittances to Sri Lanka. For instance, remittances from countries such as France, Canada, and Australia have doubled their shares between the fourth quarter of 2022 and third quarter of 2025, while shares from Kuwait, Qatar, and Oman have declined in the same period.

As such, one key reason for growth in remittances could be the increase in departures of higher skilled workers in recent years, and their related capacity to remit more with their higher incomes. Other possible reasons include an increase in formal remittances driven by a reduced gap in official and unofficial foreign exchange rates, and an increased confidence in the financial system and the overall economy due to the post-crisis recovery process.

Impact on Families Left Behind

Despite the higher inflows and the undoubted positive impacts of migration and remittance earnings, families left behind make immense sacrifices in coping with the realities of migration. A study to which the IPS contributed highlights the trade-offs between the economic opportunities provided by international migration and the benefits of a mother’s presence for child development.

Although around 9% of households in Sri Lanka receive remittances from abroad, this study, based on data from three waves (2009/10, 2012/13 and 2016) of the Household Income and Expenditure Survey (HIES) finds that the mothers’ presence at home, arising from the Family Background Report (FBR) restriction, contributes to better health and educational outcomes for children. Adherence to this restrictive migration policy reduces outpatient visits for illness among children under 5 years of age by 14% and inpatient stays by 15.2%, relative to similar children whose mothers are not at home.

A possible counterargument is that restricting mothers’ foreign employment—and the resulting decline in overseas remittances—could reduce access to healthcare services, without any real change in the children’s underlying health status. However, the analysis shows that when the FBR restriction lowers remittances from abroad, this is offset by a corresponding increase in domestic remittances, leaving overall household income largely unchanged. Moreover, healthcare in Sri Lanka is largely free. Together this means it is more likely that the improvement in child health comes from the mothers’ presence at home.

This study also shows that among older children, a mother’s presence at home has a causal effect in reducing students from failing/repeating a grade (grade retention) by 60% when compared to a control group. Therefore, women’s migration for foreign employment and related remittances has a trade-off with their children’s health and education-related human capital development outcomes.

Abuse and Exploitation Abroad

Amidst multiple positive implications associated with migration, including improved income, skills development, human capital accumulation, enhanced career mobility, and increased empowerment, migrant workers also make considerable sacrifices and, at times, endure hardship while working abroad. These sacrifices include family separation and, on occasion, debt, financial pressure, limited rights, reduced autonomy, and exposure to exploitation and abuse. One reason for the introduction of the FBR policy was to safeguard female workers against the exposure to exploitation and abuse in the countries of destination.

An IPS study also shows that 7,448 complaints were made in 2024 by migrant workers (equivalent to 2% of departure in same year). Of these, 41% were reported from Saudi Arabia, 34% from Kuwait, and 10% from the UAE. Of all complaints, a majority (76%) were made by female domestic workers originating from Middle Eastern countries.

The study suggests that many Sri Lankan female domestic workers migrate due to dire financial conditions, including high household debt, lack of employment opportunities, and the need to support dependents, which makes them economically dependent on remittances. While underscoring that NOT all female domestic workers experience hardship or sexual and gender-based violence (SGBV), among those who do experience such issues, “this economic dependency increases their vulnerability to abuse”. This is mainly because of delays in or avoidance of reporting abuse due to fear of job loss, related income decline, and their inability to remit earnings.

As such, in “this heightened level of acquired tolerance, female domestic workers often delay seeking support”. For instance, some migrant workers continued their employment despite abuse and non-payment of wages, in the hope of accessing their accumulated wages. Similarly, many were compelled to take up the sub‑optimal choice of changing employers even when their preferred solution was repatriation. In some cases, financial challenges associated with losing the employment opportunity and difficulties in affording repatriation forced them to return to the same employer instead.

Policy Recommendations

As such, while acknowledging the record high remittances sent by migrant workers, it is also important to understand the sacrifices and hardship endured by them and their families and minimise these negative impacts. A key policy recommendation emerging from both these recent studies is to safeguard the rights of female workers. Towards this, it is important to transition from a reactive support structure to a preemptive one. The current support mainly involves warning or changing employers and repatriation of workers after facing and reporting SGBV. A pre-emptive support structure can help identify risk for vulnerability early and provide support to prevent exposure to SGBV. For example, contacting a migrant worker within the first month of employment to assess working and living conditions can help identify the extent to which actual conditions align with the formal employment contract, thereby minimising future issues.

This procedure could be implemented once or routinely, through a telephone interview conducted by an official at the Sri Lanka Bureau of Foreign Employment, the Sri Lankan Embassy, or via a social media survey. Such enhanced safeguarding of female workers’ rights would minimise the trade-offs between the benefits of migration and remittances, and the hardships and sacrifices experienced by migrant workers and their families.

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Business

Cargills adopts Crow Island Beach in partnership with Clean Ocean Force Lanka

Published

12 hours ago

2026/03/26

Sahan Weerasooriya

Cargills Food and Beverage Ltd. through its brands KIST and Knuckles, has signed a Memorandum of Understanding (MoU) with Clean Ocean Force Lanka (COF) to adopt Crow Island Beach for one year, reinforcing its commitment to long-term coastal conservation in Sri Lanka.

This pioneering initiative is designed to protect and preserve the coastal environment through several key measures, including the removal of plastic and other pollutants from the beach and surrounding coastal area. As part of the adoption programme, the beach will be maintained daily with the support of dedicated beach caretakers, while also supporting their livelihoods by providing meaningful income opportunities.

Marking the partnership and in celebration of World Recycling Day, a coastal clean-up programme was conducted at Crow Island Beach to remove plastic and other manmade pollutants. Volunteers from Cargills, Clean Ocean Force Lanka, the Interact Club of Colombo, the Colombo Municipal Council and the Women’s Force of COF Negombo (Sri Vimukthi Association) participated in the clean-up with support from the Marine Environment Protection Authority (MEPA), the Sri Lanka Police Environmental Division and the Ministry of Local Government and Environment as well as the Crow Island Beach Park Society.

Jerome Fernando, Chairman & Co-founder of Clean Ocean Force Lanka said that, “Marine & Coast Conservation demands a unified front. Our unique Public-Private-People Partnership model is the cornerstone of our mission, and today, we are thrilled to welcome Cargills (Ceylon) PLC as a vital partner in this journey adopting the Crow Island Beach for the next one year. This collaboration will not only amplify our efforts to eliminate plastic and manmade pollutants from our beaches, but also reinforce our commitment to empowering marginalized communities through sustainable livelihood opportunities. Cargills’ deep-rooted dedication to environmental sustainability and community wellbeing perfectly aligns with our vision.”

Jagath Gunasekara, General Manager of MEPA added, “The Marine Environment Protection Authority consistently promotes active private sector engagement in marine and coastal conservation, as well as pollution control initiatives. This approach aligns closely with our Beach Caretaker Programme. We are pleased to collaborate with Cargills (Ceylon) PLC in the adoption of Crow Island Beach through our long-standing partnership with Clean Ocean Force Lanka.”

During the event, Knuckles also launched Sri Lanka’s first tethered bottle cap, introducing a packaging innovation aimed at improving plastic waste management and supporting recycling efforts. The tethered cap is designed to remain attached to the bottle after opening, reducing the likelihood of caps being discarded separately. Bottle caps are among the most commonly littered plastic items globally and frequently enter landfills and waterways due to their small size and low collection rates.

Speaking on the initiative, Arjuna Kumarasinghe, Managing Director of Cargills Food & Beverage Ltd., said, “Cargills has always believed in taking responsibility for the communities and environments around us. By adopting Crow Island Beach, we’re able to work closely with our partners and local volunteers to protect this part of our coastline. Launching the tethered bottle cap is another way we’re addressing plastic waste and making recycling easier for everyone.”

Business

CBSL adopts cautious stance in the face of economic uncertainties

Published

12 hours ago

2026/03/26

Sahan Weerasooriya

Dr. Nandalal Weerasinghe; focus on inflation stabilization

The Central Bank is keeping its overnight policy rates unchanged, adopting a cautious stance amid uncertainty over the inflationary impact of energy prices due to the Middle East crisis.

‘We maintained the overnight policy rate at 7.75 percent, considering low inflation and a restrained approach on the fallout of the US-Israeli war on Iran, Central Bank Governor Dr Nandalal Weerasinghe said.

The Governor made these remarks yesterday at a press briefing held at the Central Bank head office in Colombo to announce the monthly monetary policy stance.

Dr Weerasinghe added: ‘Inflation is now expected to reach the Central Bank’s target of 5 percent in the second quarter of 2026, after Sri Lanka raised fuel prices by about 35 percent this month.

‘However, spillovers from the ongoing conflict could weigh on domestic economic activity in the period ahead should the conflict be prolonged.

‘The rates were steady since last May as the nation recovers from a 2022 financial crisis driven by a severe dollar shortage.

‘Supported by a US$ 2.9 billion programme with the IMF, Sri Lanka posted a strong economic recovery last year, growing by 5 percent and now targeting growth between 4 percent and 5 per cent in 2026.

‘What stands out is that they see space for inflation to rise because of energy prices but still stay contained.

‘From now to June, underlying economic momentum has the space to keep pace despite the disruption because domestic liquidity and credit has been quite substantial as well.

‘An IMF team will arrive in Colombo on Friday for the combined fifth and sixth reviews of the bailout.

‘Furthermore, Gross Official Reserves increased to US$ 7.3 billion at end February 2026 and the Central Bank purchased a substantial amount of foreign exchange from the market in the first two months of the year.

‘However, the ongoing conflict in the Middle East poses risks to Sri Lanka’s external sector outlook, particularly through energy, tourism, trade and remittance flows, although the overall magnitude of the impact remains uncertain.

‘While the Sri Lanka rupee remained relatively stable in early 2026, some depreciation pressures were observed following the onset of the Middle East conflict, similar to the exchange rates of regional peers.

‘Meanwhile, the Monetary Policy Board remains prepared to implement appropriate policy measures to ensure that inflation stabilizes around the target, while supporting the economy to reach its potential.’

By Hiran H Senewiratne

Business

Dialog Unveils Dialog Play Mini with Netflix and Apple TV

Published

12 hours ago

2026/03/26

Sahan Weerasooriya

Dialog Television, Sri Lanka’s #1 Pay-TV service provider, has announced the latest upgrade to its smart entertainment lineup with the Dialog Play Mini, featuring seamless access to global streaming platforms including Netflix, Apple TV and YouTube, alongside the Dialog Play entertainment ecosystem for a unified viewing experience. Previously known as the ViU Mini, the device has now been reintroduced as the Dialog Play Mini, reflecting the evolution of Dialog’s digital entertainment platform under the Dialog Play brand.

The Dialog Play Mini transforms any television into a smart 4K entertainment hub by enabling hybrid multi-platform streaming across leading global and local content platforms, delivering a smoother, more intuitive viewing experience. Whether enjoying Netflix originals, Apple TV exclusives, or local favorites, households can now experience world-class entertainment in one compact device.

The Dialog Play Mini brings a streamlined, user-friendly experience to any home setup. Its single numeric-keypad remote controls both the TV and the device, offering simplicity and convenience for everyday viewing. With multiple connectivity options including Wi-Fi, hotspot, LAN, or wingle, the device ensures uninterrupted entertainment even in areas without smart TVs or advanced broadband setups.

Bridging the gap between entry-level set-top boxes and premium Android TV devices, the Dialog Play Mini offers a plug-and-play smart experience. Supported by Dialog’s nationwide service network, local warranty, and after-sales care, it delivers a reliable, feature-rich entertainment experience for Sri Lankan homes.

“With Dialog Play Mini, entertainment becomes more directly accessible for every Sri Lankan home – with or without a Smart TV,” said Lim Li San, Group Chief Operating Officer of Dialog Axiata PLC. “By bringing Netflix, Apple TV, YouTube, and Dialog Play together in one compact 4K-ready device, we’re redefining home entertainment through simplicity, innovation, and the power of connectivity.”

The Dialog Play Mini is now available at Dialog Experience Centers and authorized retailers islandwide. To purchase online, please visit

https://dialog.lk/dialog-play-mini