THE PLACE OF WORKERS’ REMITTANCES GLOBALLY AND LOCALLY

The “International Family Remittance Day” is observed on June 16 in recognition of the critical role remittances play worldwide.

- By P.K. Balachandran

Global inward remittances totalled US$ 905 billion in 2025, an increase of 4.6% compared to 2023.

For middle-income countries in Asia, Africa, and Latin America, this massive flow of private capital is larger than the combined total of global Foreign Direct Investment (FDI) and Official Development Assistance (ODA).

India has consistently led the world in total inward remittances, receiving US$ 137 billion in 2025. Mexico got US$ 66 billion; China US$ 50 billion; Philippines US$ 39 billion; Pakistan; U$ 34.9 billion; and Egypt, US$ 42 billion.

Sri Lanka recorded an all-time high of US$ 8 billion in 2025, a 22.8% growth year-on-year. This momentum has continued into 2026, with the country securing US$ 3.06 billion during the first four months, including inflows of USD 767.9 million in April.

Globally, the vast majority of remittances originate from developed nations where migrants are employed. The United States tops the list of sources, accounting for US$ 100 billion annually. Saudi Arabia accounts for US$ 47 billion; Switzerland, US$ 40 billion; and Germany, US$ 24 billion.

Globally, about 1 billion people (or 1 in 7) participate in remittances, either as senders or as recipients. For labour-exporting economies, these inward flows serve as a vital lifeline for both household income and national foreign currency reserves.

Total departures for foreign employment from Sri Lanka amounted to 310,915 during 2025, with a monthly average of 25,910.

In 2025, the top destination for Sri Lankan migrant workers continued to be the Middle Eastern region, with Kuwait being first, followed by the United Arab Emirates (UAE) and Saudi Arabia. The largest share of remittances to Sri Lanka is sent by migrant workers in the Middle Eastern region.