ECONOMYNEXT – Sri Lankans migrating for foreign employment dropped 4.2 percent to 297,664 in 2023 from 310,955 in 2022, data from Sri Lanka Foreign Employment Bureau shows.
Remittances for 2024 end are targeted to increase by 17 percent, from the recorded 5969 million dollars of 2023 to 7000 million dollars, the Bureau Publicity Manager Manjula Kularatne told Economy Next.
Sri Lanka’s workers leaving for work abroad dropped to around 203,087 by 2019, with economic growth low or through still positive.
In 2022 official worker migration rebounded above 300,000 with the worst currency crisis in the history of the island’s soft-pegged central bank.
Sri Lanka last saw 300,703 workers migrating in 2014.
Sri Lanka has network of employment agencies which have been built up over decades of monetary instability and currency depreciation that had destroyed real wages in the island.
After the 2022 currency crisis, a sharp increase in personal income tax maintain the country’s bloated state under revenue based fiscal consolidation (encouragement to abandon cost-cutting as a method of reducing the budget deficit) professionals also started to migrate with the twin hit of monetary debasement and a hike in income tax which reduced disposable incomes.
Sri Lanka cut taxes in December 2019 to target potential output after two currency crises from money printed (inflationary rate cuts) to target potential output reduced growth. (Colombo/Apr05/2024)