Remittances peak in December but end 2022 at 12-year low

Monday, 16 January 2023 03:18 - - {{hitsCtrl.values.hits}}

Workers’ remittances peaked to highest in December but ended 2022 at a 12-year low as per latest data released by the Central Bank.

December 2022 saw an inflow of $ 475.6 million, as against $ 325.2 million a year ago. It was the highest for a month in 2022 and highest since June 2021 when $ 478 million worth of remittances were recorded.

Despite a pick-up in inflows, workers’ remittances in 2022 were down by 31% to $ 3.78 billion in comparison to $ 5.5 billion in 2021. The 2022 figure is the lowest in 12 years with the previous low being $ 4.1 billion in 2010.

CBSL Governor Dr. Nandalal Weerasinghe last year claimed that in the past workers’ remittances had been overstated or not properly accounted for. The pick-up in recent inflows is partly due to the rise in Sri Lankans seeking employment abroad and an uptick in remittances coming via official banking channels. Highest ever workers remittances were $ 7.24 billion achieved in 2016 whilst between 2014 and 2018 the annual average was $ 7 billion suggesting a monthly inflow of around $ 600 million.

In terms of rising migration, the Labour Ministry estimates a record 300,000 left for overseas employment in 2022.

As per CBSL total departures for foreign employment during January-November 2022 were recorded at 276,527 which has exceeded the annual departures in the pre-pandemic period.