After reviewing some of the available empirical literature on current trends of remittances and their economic impact on welfare of migrating countries, this study focuses on the case of Sri Lanka to demonstrate that workers’ remittances may have both positive and negative consequences in home communities. Economically, remittances will benefit migrant households, particularly poorer ones, by increased income in the short term. However, they may sometimes cause negative social effects, particularly through disruption in family relations and also by creating a sense of relative deprivation in non-migrant communities. Therefore, migration and remittances are not the sole solution of poverty alleviation and appropriate policies also need to address unexpected adverse effects.
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