Background and Aims: The financial crisis in Sri Lanka (SL) has marked a significant growth in temporary labor migration to Gulf Cooperation Countries (GCC). Temporary labor migration refers to migration from one state to another in pursuit of employment opportunities for a temporary period. The National Policy on Migration for Employment (NPME) and the National Action Plan of SL asserted the importance of developing labor migration policies in response to the country’s severe need for remittances during the financial crisis. A financial crisis occurs when a country's expenditure exceeds its national income, resulting in a shortage of goods and services for its citizens. Along with this understanding, this paper examines how the temporary labor migration from SL to GCC has developed in response to the financial crisis in the country. It argues that reforming labor migration policies solely based on remittance does not appear to be adequate to protect migrants from trafficking. In this setting, the key research question is how labor trafficking has risen amidst the financial crisis in SL. Methodology: In this study, Delphi indicators have been utilized to identify the demarcations of labor trafficking. The data was collected from thirty interviews conducted with family members of labor migrants who migrated to GCC in 2022. Results: The results indicate that shortcomings in the governance of labor migration during the financial crisis in SL have led to an increase in labor trafficking. Conclusion: The paper concludes with the discursive, implementation, and efficacy gaps in the governance of labor migration and suggests a right-based framework to guarantee equitable recruitment procedures.