• Ongoing conflict contributes to slight decline in remittances 
• Decline partly due to strengthening of US Dollar
• No new policy changes under consideration at present

Despite a recent dip in foreign worker remittances, the Government has no immediate plans to reconsider its decision to relax vehicle import restrictions as current import volumes remain within manageable levels, the Deputy Minister of Trade, Commerce, Food Security, and Cooperative Development has revealed.

Speaking to The Sunday Morning Business, Deputy Minister R.M. Jayawardana stated that the ongoing conflict in the Middle East had contributed to a decline in remittances from Sri Lankan workers abroad.

He further explained that the decrease was partly due to the strengthening of the US Dollar, which had led foreign workers to retain their earnings in anticipation of further currency appreciation. 

Additionally, job insecurity arising from the current geopolitical situation had encouraged workers to hold back remittances, he said. 

However, the Deputy Minister clarified that the Government did not expect the decline in remittances linked to the Middle East crisis to be significant. Accordingly, he noted that there was no need at present to revisit the policy decision to ease the ban on vehicle imports, adding that no new policy changes were currently under consideration.

“Last year, we imported around $ 1.8 billion worth of vehicles due to pent-up demand. We do not expect import volumes to reach those levels this year,” he stated.

Jayawardana further emphasised that the Government believed the country could manage vehicle import volumes this year, with foreign exchange outflows expected to remain within acceptable limits.

Commenting on ongoing oversight, he added that the Ministry of Finance, along with several committees appointed under President Anura Kumara Dissanayake, was continuously monitoring the country’s external sector performance. He noted that if conditions deteriorated or external developments warranted a policy shift, immediate corrective measures would be taken.

In 2025, Sri Lanka recorded worker remittance inflows of $ 8 billion, marking a 22.8% Year-on-Year (YoY) increase from $ 6.6 billion in 2024. 

Continuing this upward trend, remittances in January this year rose to $ 751 million, up 31.1% YoY. Similarly, February 2026 recorded inflows of $ 729 million, reflecting a 33% increase compared to February 2025, while March 2026 remittances grew by 17.5% YoY to $ 814.5 million, up from $ 693.3 million in March 2025.