Sri Lanka’s foreign reserves on a gradual pick up as worker remittances pick up in March
Daily FT: Workers’ remittances in the month of March ended their month-on-month declining course with a modest gain.
Workers’ remittances in March amounted to US$ 318.4 million bringing the first quarter haul to US$ 782.5 million. From a year earlier, the cumulative figure is down by 58%.
In January, workers remittances amounted to US$ 259 million and in February it was US$ 205 million.
The gain in March can be partly linked to the free float of the currency which saw the rupee plunge by over 30% in early March.
During the year up to 22 April, the rupee depreciated against the dollar by 40.1%. Given the cross-currency exchange rate movements, the rupee depreciated against the Japanese yen by 33.1%, the euro by 37.5%, the pound sterling by 37.9% and the Indian rupee by 38.6%.
The gradual increase in workers’ remittances to the country is indicative of the increasing level of confidence in Sri Lanka’s economy. The Sri Lankan economy has shown its resilience to external and internal challenges through the years and is once more on the path to recovery after facing the pandemic challenges. Several key economic sectors recorded a growth even amidst the pandemic. The country is also engaged in a development programme and is working towards placing Sri Lanka as a growing business destination in the South Asian region. The country’s geographical positioning in the Indian Ocean and the strong trade ties also add to Sri Lanka’s positioning as an emerging regional business hub. Given the positive movements in the country’s economy and overall expansion in key economic sectors, foreign businesses/investors could confidently explore the growing opportunities in Sri Lanka.
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