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Millions in Sri Lankan Workers' Funds Trapped in Israeli Legal Dispute

25 Jun 2026 By Lankanewspapers.com Local
Millions in Sri Lankan Workers' Funds Trapped in Israeli Legal Dispute

Approximately USD 6.9 million belonging to Sri Lankan migrant workers and other foreign nationals remains frozen and inaccessible due to an ongoing legal dispute in Israel, raising serious concerns among labour officials and affected families back home.

Funds Caught in Legal Proceedings

The substantial sum, accumulated by Sri Lankan workers employed in Israel along with workers of other nationalities, has become entangled in Israeli court proceedings, preventing its rightful owners from accessing their hard-earned money. The situation has left many families in Sri Lanka in financial uncertainty, as remittances form a critical lifeline for thousands of households across the island.

Impact on Sri Lankan Migrant Workers

Sri Lanka has long relied on its overseas workforce as a significant source of foreign exchange, with migrant workers sending billions of rupees home each year. The freezing of these funds deals a direct blow to workers who depend on timely transfers to support their dependants, settle debts, and manage daily expenses.

  • The total amount held up stands at USD 6.9 million
  • Sri Lankan workers are among the foreign nationals affected
  • The funds are currently inaccessible due to active legal proceedings in Israel

Authorities Called to Intervene

The development has prompted calls for the Sri Lankan government and relevant labour authorities to engage diplomatically with their Israeli counterparts to expedite a resolution. Advocacy groups representing overseas workers have urged the Foreign Employment Bureau and the Ministry of Foreign Affairs to take immediate steps to safeguard the interests of the affected workers.

The resolution of this matter is urgent, as the affected workers and their families cannot afford prolonged delays in accessing funds they have lawfully earned.

Broader Concerns for Overseas Workers

This incident has once again highlighted the vulnerabilities faced by Sri Lankan migrant workers operating in foreign legal and financial systems. Experts note that stronger bilateral agreements and more robust legal protections for overseas workers are essential to prevent similar situations from arising in the future.

The government is yet to issue a formal statement outlining the specific steps being taken to resolve the matter and ensure that the affected workers receive their dues without further delay.

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Nadeesha Kumari 25 Jun 2026

Poor workers struggling and their money stuck in some legal case. Goverment do something!

T
Tharindu Silva 25 Jun 2026

what goverment, they dont even know where the money is probably

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