Business

Record Remittances to Sri Lanka: Hidden Realities Behind the Headlines

Published

1 week 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

First Capital Holdings records Rs. 3.23Bn Total Comprehensive Income for 9M FY2025/26

Published

14 hours ago

2026/02/13

Thilina Walpola

First Capital Holdings PLC, a subsidiary of JXG (Janashakthi Group) and a pioneering force in Sri Lanka’s investment bank landscape recorded a Total Comprehensive Income of Rs. 3.23Bn for the nine months ended 31 December 2025, compared to Rs. 4.53Bn in the corresponding period of the previous year. For the third quarter of 2025/26, the Group reported a Total Comprehensive Loss of Rs. 0.17Bn, after accounting for a dividend tax expense of Rs. 0.41Bn.

The Group’s Net Income before Operating Expenses for the nine months of 2025/26 amounted to Rs.6.33Bn compared to Rs. 7.69Bn reported in the corresponding period of the previous year. Trading income was primarily driven by the Primary Dealer and Corporate Dealing Securities divisions, reinforcing the Group’s positioning across fixed income and equity market segments.

The Primary Dealer division reported a Profit after Tax of Rs. 1.64Bn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 2.45Bn). The results include trading gains on the government securities portfolio of Rs. 1.66Bn and net interest income of Rs. 1.41Bn (1st nine months of 2024/25 – trading gains of Rs. 3.18Bn and net interest income of Rs. 1.31Bn), reflecting movements in yields and trading conditions during the period.

The Corporate Finance Advisory and Dealing Securities division recorded a Profit after Tax of Rs. 1.86Bn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 1.94Bn). The business unit reported total trading gains of Rs. 2.33Bn on its equity portfolio, compared to Rs. 2.23Bn in the corresponding period of the previous year, supported by market participation and portfolio positioning.

The Wealth Management division reported a Profit after Tax of Rs. 78.1Mn for the nine months ended 31 December 2025 (1st nine months of 2024/25 – Profit after Tax of Rs. 90.1Mn). Assets under Management stood at Rs. 96.4Bn as at 31 December 2025, compared to Rs. 115.9Bn as at 31 March 2025, reflecting market conditions and client portfolio adjustments.

The Stock Brokering division recorded a Profit after Tax of Rs. 166.3Mn for the nine months ended 31 December 2025, compared to Rs. 39.5Mn reported in the corresponding period of the previous year, supported by increased trading activities.

Commenting on the Group’s performance, Rajendra Theagarajah, Chairman of First Capital Holdings PLC, stated, “The operating environment during the period was shaped by shifts in interest rates, capital market activities, and fiscal adjustments. Against this backdrop, the Group’s performance reflects the structural strength of its capital markets platform and its ability to generate income across multiple market cycles while maintaining financial discipline.”

Dilshan Wirasekara, Managing Director / CEO of First Capital Holdings PLC, said, “Our priority during the period was to manage each business line with a clear focus on risk, liquidity and execution. Improved performance in stock brokering and consistent contributions from corporate finance reflect our ability to respond to market conditions while aligning capital deployment with client and market opportunities.”

Business

Keells Nexus introduces an all new Loyalty App

Published

14 hours ago

2026/02/13

Thilina Walpola

Keells is set to usher a new chapter in customer experience with the relaunch of Keells Nexus with the introduction of its all-new loyalty app on 13th February. For 25 years, Keells Nexus has been at the heart of Sri Lankan retail, pioneering coalition loyalty and even introducing mobile-based loyalty as early as 2014. The loyalty program is building on this legacy, combining state-of-the-art technology with richer, more personalized rewards and seamless integration across the Keells ecosystem with an intuitive mobile experience.

Today, Keells Nexus stands at over 2 million registered members, a reflection of the trust customers place in Keells and the brand’s commitment to improving the quality of life for the nation. The launch further strengthens Keells’ long-standing focus on tech-enabled retail efficiency, following innovative retail experiences to customers such as self-checkout counters and retail technology that drives efficiency such as advanced inventory management systems.

The new app therefore is the next logical step in this journey, bringing together rewards, offers, and account visibility in one intuitive, streamlined interface. The new Keells Nexus app brings together all deals, savings and partner offers in one place, giving customers complete visibility and control. Members can track their points in real time, scan a QR code at checkout to earn rewards instantly, and enjoy a more personalised, more connected shopping experience.

“At the heart of Keells Nexus is a simple but powerful belief that life is better when we’re connected,” said Nilusha Fernando Head of Marketing, Keells Supermarkets & Senior Vice President, John Keells Group.

Business

IDL, Clouds by SOZO and the Rukmini Tissanayagam Trust partner with the HSBC Ceylon Literary & Arts Festival 2026

Published

14 hours ago

2026/02/13

Thilina Walpola

The HSBC Ceylon Literary & Arts Festival 2026, taking place from 13 to 15 February at Cinnamon Lakeside, Colombo, promises to be one of those rare cultural moments that linger long after the last session ends. It is a gathering not only of writers, artists and thinkers, but of ideas, shared, challenged and celebrated in spaces where curiosity feels welcome.

The HSBC Ceylon Literary & Arts Festival 2026 is supported by several organizations through non-promotional CSR initiatives, including Clouds by SOZO and the Rukmini Tissanayagam Trust. International Distillers Limited contributes in a strictly neutral CSR capacity, providing logistical and resource support for the event without any brand promotion or product visibility.

The Festival celebrates Sri Lanka’s creative voice by showcasing literature, arts, and cultural talent from across the country. All supporting organizations participate solely in a philanthropic and educational role, ensuring that the focus remains on artistic expression and community engagement.

The Rukmini Tissanayagam Trust brings to the Festival a deep and enduring commitment to nurturing literature and the arts as essential pillars of society. Its work is driven by the belief that creative spaces are not optional additions, but vital platforms that shape how communities think, feel and engage with the world around them.

Speaking on this collaboration, Indhu Selvaratnam, Director of SOZO Beverages and Trustee

of The Rukmini Tissanayagam Trust, stated, “The Rukmini Tissanayagam Trust is delighted to partner with the Ceylon Literary Festival for the second time. We are deeply committed to enriching Sri Lanka’s intellectual and cultural landscape and admire the festival’s evolution in embracing literature, art, music, and initiatives that nurture emerging local talent. These efforts align closely with the Trust’s mission to support creative expression, and we look forward to continuing our support as the festival strengthens Sri Lanka’s global cultural presence.”

Adding a complementary dimension to this partnership is Clouds by SOZO, Sri Lanka’s premium mountain spring water brand, whose ethos of purity, sustainability and thoughtful living aligns naturally with the spirit of the Festival. Sourced from a pristine spring in the Knuckles mountain range, Clouds represents a return to authenticity, an idea that resonates strongly within creative and cultural spaces.

Speaking on the partnership, Dushyantha De Silva, Founder of SOZO Beverages (Pvt) Ltd, said, “The arts invite us to slow down, to observe, and to think more deeply, and Clouds comes from that same place of intention. Supporting the HSBC Ceylon Literary & Arts Festival is about being part of a space where ideas flow freely and thoughtfully. It’s a privilege for us to align with a platform that values creativity, dialogue and conscious choices.”

The HSBC Ceylon Literary & Arts Festival 2026 offers something increasingly rare: three uninterrupted days of ideas. Of language and imagination. Of conversations that do not require a screen to feel alive. It is a reminder of the power of gathering, of listening, discovering and engaging with perspectives that challenge and inspire.

As February approaches, the hope is simple: that more people choose to attend, to listen, and to support Sri Lankan creativity in all its forms. Because when a country invests in its writers and artists, it is not merely celebrating talent, it is shaping how it remembers, how it questions, and how it evolves.