Labour migration makes a considerable contribution to the growth and development of Sri Lanka. It continues to be an important and essential means to reduce domestic employment pressures, and has been a major source of foreign exchange for the Sri Lankan economy for nearly four decades. Over the past five years there has been a steady increase in the annual number of
migrant workers deployed and the remittances received from abroad. Several factors contribute to the growing numbers including the search for better paying jobs, poverty, climate change, natural disasters, conflict and social factors.

However, more recently the economic downturn and labour market reforms in the Gulf Cooperation Council (GCC) countries has led to a deceleration in the aggregate demand across major oil and other commodity exporting countries. At the same time, Sri Lankan regulations have stemmed the outflow of females migrating for domestic work. These trends are changing the nature of migration and its contribution to growth and development in Sri Lanka.