Sri Lanka's Migrant Labour Remittances: Enhancing the Quality and Outreach of the Rural Remittance Infrastructure

Abstract

The remittances of migrant workers contribute significantly to the country’s foreign coffers, and it is estimated that the trend in the outflow of workers will continue, given the poor economic climate in their homes. In this backdrop, the Central Bank has given much thought to several key issues with regard to the developmental impact of remittances, the high transaction costs associated with remittances and the level of transparency and accountability in the remittance industry, especially the informal remittance sector. This paper highlights the key policy issues associated with the remittance industry of the country.