Workers’ remittances record 10.1% y-o-y growth of Workers’
Reserves up to USD 6.1 Bn by end 2024 compared to USD 4.4 Bn in 2023
The External Sector of the Sri Lankan economy improved notably in 2024, with robust inflows to the current account for the second consecutive year and strengthened reserves.
Gross Official Reserves (GOR) stood at USD 6.1 billion at end 2024 compared to USD 4.4 billion at end 2023, supported by net purchases by the Central Bank from the domestic foreign exchange market during 2024 at historically highest levels and funds received from multilateral institutions.
GOR includes the swap facility with the People’s Bank of China (PBOC), which was renewed for 3 years in December 2024. Meanwhile, import coverage of GOR (including the PBOC swap) was 3.9 months as at end December 2024. Earnings from merchandise exports in 2024 increased by 7.2% compared to 2023, reaching US dollars 12,772 million, which is the second highest annual export earnings in history.
Meanwhile, earnings from merchandise exports in December 2024 increased to US dollars 1,102 million, supported by growth in both industrial and agricultural exports. Inflows and outflows in both tourism and non-tourism related services (Transport, IT/BPO, etc) recorded improved performance in 2024.
Workers’ remittances in 2024 amounted to US dollars 6,575 million, compared to US dollars 5,970 million in 2023, recording a y-o-y growth of 10.1%.
Workers’ remittances amounted to US dollars 614 million in December 2024. Earnings from tourism in 2024 are estimated at US dollars 3,169 million, compared to US dollars 2,068 million in 2023, recording a y-o-y growth of 53.2%. Foreign investments in CSE recorded a net inflow in 2024, mostly driven by foreign investments in the primary market.
Cumulative foreign investments in the government securities market recorded a net outflow of US dollars 179 million in 2024. Total inflows to the services sector in 2024, excluding earnings from tourism, amounted to US dollars 3,714 million, compared to US dollars 3,348 million in 2023.
Sea transport services and computer & IT/BPO related services were the main contributors to the inflows in 2024. Total inflows to the services sector, excluding earnings from tourism, were estimated at US dollars 335 million in December 2024.
Following the 10.7 per cent appreciation in 2024, the Sri Lanka rupee depreciated by 1.7% against the US dollar during January 2025.
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