December 10, 2022 (LBO) - Sri Lanka foreign remittances are moving closer to a US$5bn annualized rate based on November monthly data. Sri Lanka remittances for the month of November totaled US4mn, up about 10% from the prior months figure.
Before the economic crisis in Sri Lanka, the country used to receive over US$7bn per year in foreign remittance. This figure had dropped in half to an annualized rate of approximately US$3.5bn during the worst of the crisis.
Sri Lankans have been lining up in droves to migrate overseas for job opportunities that will allow them to earn foreign currency based salaries. With the Sri Lankan rupee having crashed close to 50%, foreign currency remittances go much farther in Sri Lanka today.
As record numbers of migrants depart Sri Lanka, there is an expectation of an increase of foreign currency remittances in the medium term future. This, coupled with a tourism industry recovery and stable global oil price will be key to Sri Lanka's economic recovery.
Tourism in Sri Lanka is showing some signs of life, however earnings are still trending over 50% lower than pre covid levels.
Brent crude oil prices have been trading less than US$80/barrel, down close to 40% from recent highs of over US$120/barrel.