Middle East Conflict: The Impact on Migration and Remittances in Sri Lanka

With the ongoing conflict in the Middle East (ME), Sri Lanka finds itself at a particularly vulnerable juncture as it carefully navigates a fragile economic recovery. Labour migration offers jobs to counteract the lack of opportunities within the economy. Related micro-level remittances prevent households from dipping back into poverty. Similarly, on a macro level, these remittances, of which about 50% come from ME countries, help build foreign reserves, stabilise the economy, and pay for much-needed imports. This blog unpacks some short- to medium-term consequences for migrant workers, highlighting what these attacks and related developments mean for the Sri Lankan economy.

The Unlocked Potential of Ageing and Silver Economy in Sri Lanka

With over 18% already aged 60 and above—and one in four projected to be 60 or older by 2041—the Sri Lankan population is rapidly ageing. IF harnessed effectively, the elderly population and the related Silver Economy have great potential to contribute to Sri Lanka’s economy. This blog analyses shows the challenges and the possibilities for Sri Lanka to reap demographic dividends by unlocking the potential of the ageing population and the related Silver Economy.

Record Remittances to Sri Lanka: Hidden Realities Behind the Headlines

Worker remittances to Sri Lanka have set a new all-time high record with USD 8.076 billion in 2025. This 22.8% growth, compared to the USD 6.6 billion received in 2024, is shaped by the high number of worker departures experienced in recent years.

While migrant workers’ contribution to easing pressure on the country’s balance of payments is widely appreciated, the hardships and sacrifices they endure are often overlooked. This blog highlights the challenges faced by migrant workers, drawing evidence from two recent studies by the Institute of Policy Studies of Sri Lanka (IPS).

Balancing Borders: How Should Sri Lanka Manage the Rohingya Influx?

While the bedrocks of migration in Sri Lanka – foreign employment and remittances – are settling, other aspects are unsettling in 2025. The year 2024 closed with estimates of over 311,000  departures for foreign employment and over USD 6.5 billion in remittances. In December 2024, 115 Rohingya people, including 78 adults and 25 children, were rescued while traveling on a multi-day trawler off the coast of Mullaitivu. The group was seeking asylum in Sri Lanka, and 12 men were identified as having facilitated the voyage.  Similarly, three batches of Sri Lankan migrants who were trafficked for forced criminal activities in cyber scamming compounds in East Asia were repatriated in 2024.  Many “were coerced into various cyber scamming activities under the pretext of legitimate job offers in the IT sector and other customer service roles”.

Voting Beyond Borders: Can Overseas Sri Lankans Finally Have Their Say?

The recent presidential election in Sri Lanka marked a series of “firsts,” setting it apart from previous elections. It saw a record-low number of 350,516 valid voters per candidate, implementation of the Regulation of Election Expenditure Act of 2023, and a second count of votes. Notably, there was also greater engagement from Overseas Sri Lankans (OSLs) in the country’s electoral process than at any time previously. However, despite this enthusiasm, the long-standing debate over granting OSLs the right to vote from abroad remains unresolved. Of the OSLs, it also means 1.5 million Sri Lankan workers abroad could not vote in the recent election according to the SLBFE.