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Workers' Remittances

Importance of Foreign Remittances to Sri Lanka

Workers’ remittances have been a key pillar of Sri Lanka’s foreign currency earnings providing a substantial cushion against the widening trade deficit and thereby enhancing the external sector resilience of the country. Being a major source of foreign exchange earnings, workers’ remittances have covered around 80 per cent of the annual trade deficit, on average, over the past two decades and remittance inflows have exceeded the trade deficit in 2020.

Moreover, unlike many merchandise export categories, there is no import content involved in this source of foreign exchange earnings. Therefore, strengthening remittance inflows to the country brings several macroeconomic and socioeconomic benefits, mainly narrowing of the current account deficit of Balance of Payments (BOP), support economic growth, improve forex liquidity in the banking system, alleviation of poverty, reducing income disparities and regional disparities, and, reducing the fiscal burden on social security payments.

The Central Bank of Sri Lanka (CBSL) established the Foreign Remittance Facilitation Department (FRFD) on 03.11.2021 to facilitate and streamline workers’ remittances flows to the country. FRFD is expected to play a strategic role in enhancing workers’ remittances into the country and to uplift the migrant workers’ welfare by liaising with other authorities engaged in worker migration and remittances

Contact Details
Telephone    : 0112477426
Fax               : 0112477477
Email            :
Address        : 15 Floor, Tower 3, Central Bank of Sri Lanka

 

Key functions of the FRFD includes;

  1. Encouraging remittance inflows through the formal channels by introducing incentive schemes.
  2. Facilitating the diversification of migration destinations and job categories through relevant agencies to enhance the foreign remittance inflows to the country.
  3. Facilitating foreign employment earnings under different categories for people living in all parts of the island by enhancing awareness on the availability of information on foreign employment opportunities.
  4. Facilitating the generation of employment opportunities by liaising with relevant domestic and foreign authorities.

 

 

Directions issued to Authorized Dealers on Personal Foreign Currency Accounts (PFCAs)

Direction No. 04 of 2021

Directions issued to Authorized Dealers on Business Foreign Currency Accounts (BFCAs)

Direction No. 05 of 2021
Direction No. 24 of 2021
Direction No. 27 of 2021