Sri Lankan Remittances Reach $729 Million in February, Boosting Economic Recovery
Colombo, The Gulf Observer: Sri Lanka’s worker remittances remained strong in February 2026, reaching US$729.0 million, compared to US$548.1 million recorded in the same month last year, though slightly lower than January’s US$751.1 million, according to official data.
The solid performance in February pushed the total remittance inflows for the first two months of 2026 to US$1,480.1 million, marking a 32 percent increase compared to the same period in 2025.
Rising remittances, along with growing tourism inflows, have helped stabilize Sri Lanka’s fragile economy as the country continues to recover from the severe economic crisis that began in 2022. The crisis prompted a record number of Sri Lankans to seek employment abroad in search of better living conditions, which has gradually increased the volume of remittances sent back home.
Authorities also attribute the rise in official remittances to measures taken by the Central Bank of Sri Lanka, which cracked down on informal money changers who had been offering significantly higher premiums than the official exchange rate since 2021. The move has encouraged migrant workers to transfer funds through formal banking channels.
Worker remittances remain Sri Lanka’s largest source of foreign currency earnings. In 2025, the country recorded US$8,076.2 million in remittance inflows, representing a 22.8 percent increase compared to the previous year.
Despite the positive trend, analysts warn that external risks could still threaten the country’s economic recovery. Some commentators say that the ongoing tensions in the Middle East, following recent military actions involving the United States and Iran, could potentially disrupt remittance flows and other export earnings, including revenue from tea and commodity exports.
Rising global oil prices and commodity costs could also increase Sri Lanka’s import bill and fuel inflation, potentially undermining the country’s hard-won external sector stability.
Experts caution that if the Middle East conflict continues, it could slow the outflow of Sri Lankan workers seeking employment in the region. Some migrants already working there may even consider returning home, which could affect future remittance inflows.
