Expatriates account for 94% of outward remittances as transaction volume jumps

Outward remittances from Maldives totalled USD 167.6 million last year, an eight‑percent increase, according to the Maldives Monetary Authority (MMA).

Remittances refer to money transferred by individuals, typically expatriate workers, to their home countries. The MMA’s annual report includes data on both outward and inward remittance flows.

According to the report, USD 167.6 million was sent abroad through 139,000 outward remittance transactions last year. This represents a 13‑percent increase in the number of transactions compared to 2024, and an eight‑percent increase in the total value of outward remittances.

The central bank said expatriates accounted for 94 percent of outward remittances, while Maldivians accounted for six percent. Outward remittances by Maldivians increased by 11 percent, while outward remittances by expatriates increased by 89 percent. The MMA attributed the overall rise in outward remittances to an increase in transfers made through official channels.

In terms of inward remittances, money received into Maldives, the number of transactions declined by five percent. However, the total value increased by one percent, generating USD 2.9 million.

According to the 2022 Census, Maldives has a population of around 500,000, including 132,493 expatriates. A large share of foreign workers remit money abroad, and the volume of these transfers continues to rise.

In January, Sudesh Mendis, former president of the Sri Lanka–Maldives Business Council, said more than 21,000 Sri Lankans are currently employed in Maldives, sending an estimated USD 129 million annually to Sri Lanka alone. MMA statistics for 2024 show that foreign workers sent USD 144 million out of Maldives as remittances, an increase of 59 percent compared to 2023.

As the number of undocumented expatriates in Maldives has grown, the current administration has been working to identify and repatriate undocumented workers, with violators being deported.

The rise in outward remittances by foreign workers has coincided with increased demand for US dollars among Maldivians. The government has taken measures to retain more dollars within the economy, including requiring a larger share of tourism revenue to be sold through official channels.

In an import‑dependent economy, a stronger dollar leads to higher commodity prices. Although the central bank maintains the official exchange rate at MVR 15.42 per dollar, most people purchase dollars on the black market, where the rate has remained above MVR 18 for several months.

The upward trend in outward remittances intersects with structural weaknesses in the foreign‑exchange system, where dollar liquidity is shaped by a handful of major business interests. As more money leaves the country through formal remittance channels, the reduced availability of dollars in the domestic market has amplified price pressures and sustained the premium in the parallel market.

On Sunday, ‘Currency Exchange MV’, one of the largest Viber groups used for US dollar exchange and foreign‑currency transactions, was blocked by the platform. The action is believed to be linked to efforts to curb informal currency trading, marking the first time such a large exchange group has been taken offline in Maldives.