Are remittances “resilient?” Evidence from Sri Lanka between COVID-19 and the crisis

Abstract

Remittances have been characterized as resilient flows of capital that provide financial relief to migrant households and emerging economies during downturns, crises and other periods of hardship. This article examines patterns of remittance transfer to Sri Lanka between January 2020 and December 2022, drawing on Central Bank statistics and online remittance surveys with migrant workers to test prominent assumptions about the drivers of remittance behavior. Findings indicate little evidence to support explanatory factors linked to the resilience hypothesis, instead pointing to the likelihood that fluctuations in official remittance figures reflect shifts between formal and informal remittance channels.