Workers remittances plunge to 13-year low of $ 259 m in Jan.

Workers remittances have plunged to a new low of $ 259 million in January heralding a challenging start for the new year for the Central Bank which has been executing multiple measures to woo inflows via official channels.  The figure of $ 259.2 million in January is down by nearly 62% from a year ago and lowest in 13 years. The previous lowest was $ 261.6 million in November 2009.

January performance also proved the month-month gain in inflows in December was temporary. It reversed the declining trend in three months i.e. between September to November last year prompting the CBSL to hint that its measures have begun to work. 

However, migrant workers are sending money via unofficial channels to fetch a higher and realistic exchange rate as opposed to the cap of Rs. 203 per dollar from the banking sector and Rs. 10 per dollar incentive and other gifts.

Last year workers remittances dropped to a 10 year low of $ 5.5 billion, down by 23% from 2020.