Thailand has begun a major recruitment drive for Sri Lankan workers in an effort to plug a sudden and severe labour shortage. The move follows the return of nearly 400,000 Cambodian workers who fled Thailand after deadly border clashes between the two countries. In a bid to stabilise its economy, Thailand has approved the hiring of 10,000 Sri Lankans in the first phase, with more than 30,000 Sri Lankan applicants already registering to take part in the programme.
This development marks a significant shift in regional labour mobility. For Sri Lanka, it represents both a fresh opportunity to boost foreign exchange earnings and a policy challenge in ensuring worker rights and long-term economic balance.
Why Thailand Needs Sri Lankan Workers
Thailand’s economy depends heavily on foreign labour. Roughly three million migrant workers form the backbone of its agriculture, construction and manufacturing industries. Cambodians, who made up about 12% of this workforce, were a critical component of that system.
The July 2025 conflict along the Thai-Cambodian border displaced more than 300,000 people and left at least 43 dead. With the abrupt departure of Cambodian workers, employers faced empty construction sites, delayed manufacturing orders and stalled harvesting in agricultural regions. To avoid a crisis in food supply chains and industrial output, Thailand had little choice but to look for alternative labour sources.
Sri Lanka’s willingness to respond quickly made it a natural choice. Workers from Nepal, Bangladesh, Indonesia and the Philippines are also being considered, but Sri Lanka’s existing migration systems and growing pool of job-seekers gave it an advantage.
Sri Lanka’s Migration Trends
Labour migration is not new to Sri Lanka. Each year, hundreds of thousands leave for employment in the Middle East, East Asia and beyond. In 2024 alone, 314,786 Sri Lankans officially registered for overseas work. The Middle East continues to dominate as the main destination, particularly for domestic workers and construction labour, but recent years have seen diversification into countries such as South Korea and Japan.
Thailand, however, represents a new frontier.
Proximity, cultural familiarity with Asia, and the type of industries on offer may attract a different demographic of Sri Lankan workers. Unlike domestic employment in the Gulf, Thailand’s opportunities are largely in semi-skilled or skilled categories such as factory operations, carpentry, farming and food processing. This could open new avenues for Sri Lankans seeking more stable working conditions and potentially better wages.
Economic Implications for Sri Lanka
The most immediate impact will be felt in foreign exchange inflows. Remittances are one of Sri Lanka’s largest sources of income, often surpassing export earnings in sectors like tea or garments. Every additional corridor of migrant labour strengthens that inflow, helping the country manage its trade deficit and debt repayments.
According to Central Bank data, remittances from Sri Lankans abroad total billions of dollars annually. Even if Thailand initially employs just 10,000 workers, the multiplier effect is considerable. If the number expands to 30,000 or more, Sri Lanka could secure a new and steady stream of remittances.
There is also a domestic benefit: unemployment relief. With youth unemployment and underemployment still pressing issues, overseas labour demand can absorb a portion of the workforce that would otherwise remain idle.
Policy Challenges and Worker Protection
While the economic benefits are clear, the risks cannot be overlooked. Over-dependence on foreign employment carries costs. Sri Lanka has already seen how brain drain affects healthcare and skilled professions. If Thailand expands recruitment into areas requiring more specialised skills, the risk of losing valuable workers from key domestic industries will grow.
Another major concern is worker welfare. Migrant labourers are often vulnerable to exploitation, poor working conditions and lack of legal protection. Thailand’s sudden demand for new labour could create gaps in oversight, leading to recruitment malpractice or unsafe employment conditions.
To avoid this, Sri Lanka must:
- Strengthen recruitment monitoring to prevent illegal fees or fraudulent contracts.
- Establish clear bilateral agreements with Thailand to guarantee fair wages, proper accommodation and legal recourse.
- Provide pre-departure training on language, rights and workplace safety.
- Ensure support systems abroad, such as embassies and labour attachés, are prepared to assist workers quickly.
These measures will determine whether the migration corridor benefits both sides equally or tilts against Sri Lankan workers.
The Regional Labour Market
Thailand’s move to recruit from Sri Lanka also has broader regional implications. The crisis has forced Thailand to diversify beyond its traditional labour sources. By bringing in workers from South Asia, it is reshaping migration flows in the region.
For Sri Lanka, this is a chance to cement itself as a reliable labour partner. Successful placement of workers in Thailand could lead to similar opportunities in neighbouring countries, particularly as demographic shifts and conflicts disrupt traditional migration routes.
It also gives Sri Lanka greater geopolitical leverage. Labour is now part of regional diplomacy. With careful negotiation, Sri Lanka can secure not just better wages for its workers but also greater recognition as a partner in economic integration across Asia.
Risks of Over-Reliance
Despite the promise, there are long-term risks. Heavy reliance on foreign employment can mask structural weaknesses at home. If too many workers leave, domestic industries may face shortages of their own, especially in sectors like construction or manufacturing.
Socially, large-scale migration often leads to family separation, with children growing up without parents at home. Over time, this has psychological and social consequences that ripple across communities.
From a macroeconomic standpoint, remittances are subject to volatility. A sudden policy change in host countries, or a conflict similar to what displaced Cambodian workers, could instantly shut down a corridor and leave Sri Lanka exposed.
The key will be balance: encouraging overseas employment for foreign exchange while simultaneously building stronger domestic industries to absorb and employ citizens at home.
The Road Ahead
Thailand’s recruitment of Sri Lankan workers is more than just a short-term fix for a labour shortage. It reflects shifting patterns in regional migration and highlights Sri Lanka’s growing importance as a labour supplier. If managed well, it could bring substantial economic benefits, diversify employment opportunities and strengthen Sri Lanka’s foreign relations.
But it also demands careful oversight. Transparent recruitment, bilateral cooperation, and a focus on worker welfare will be crucial to ensure that this opportunity does not become another cautionary tale of exploitation.
As thousands of Sri Lankans prepare to depart for Thailand, the government, private recruitment agencies and civil society all have a role to play in shaping this as a positive turning point for the economy, and for the lives of the workers themselves.
Did you check the article on “Sri Lanka’s Growth Outlook in 2025: Optimism Meets New Challenges”, Click Here.
