Economic Crisis-Driven OutMigration | A Study of Sri Lanka 2019-2024

Author: Hasitha KALU ARACHCHIGE

KALU ARACHCHIGE, Hasitha , 2025 Economic Crisis-Driven OutMigration | A Study of Sri Lanka 2019-2024, Flinders University, College of Humanities, Arts and Social Sciences

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Abstract

Between 2019 and 2024, Sri Lanka faced its worst economic crisis in history, marked by sovereign debt default, 94.9% inflation (food-related), severe shortages, and political instability, leading to nationwide protests and financial collapse. This thesis investigates the resulting mass migration, where over 1.3 million Sri Lankans (with potentially greater undocumented figures) left the country. Using data from government institutions, Central Bank reports, RTI obtained documents, and Sri Lanka Navy confidential reports on illegal migration and smuggling, the study analyses the drivers, patterns, and socioeconomic impacts of this crisis-induced out-migration. Applying Push-Pull Theory, Neoclassical Economic Theory, and the New Economics of Labour Migration (NELM), it explores how hyperinflation, unemployment, and governance failures turned migration into a survival strategy. the research combines a literature review with an analysis of World Bank, IMF, and media sources, while addressing data gaps on illegal migration. Despite limitations, the study offers policy recommendations to mitigate future crises, improve economic governance, overcome illegal migration, and retain skilled labour, providing insights for policymakers, academics, and international organizations.

Keywords: Sri Lanka, Economic crisis, Out-migration, Brain drain, Illegal migration, Skilled migration, Remittances

Subject: Environmental management thesis

Thesis type: Masters
Completed: 2025
School: College of Humanities, Arts and Social Sciences
Supervisor: Professor Udoy Saikia