In June 2013 Sri Lanka introduced a new policy, the Family Background Report (FBR), to restrict mothers migrating for domestic work. This article performs an impact evaluation of the FBR using monthly departure statistics of female migrant workers from January 2012 to December 2014 in a difference‐in‐difference methodology. The identification is based on the inter‐temporal variation between the treatment and control groups. As anticipated, the FBR has a negative causal effect on female departures for foreign employment in the range of 449–812 departures per month. The findings are robust to placebo and sensitivity tests. Although successful in restricting females migrating for domestic work, this policy promotes migration outside the institutional framework of Sri Lanka and thereby increases their vulnerability at destination. For the policy initiative to be effective, its myopic focus has to be transformed into a long‐term plan to support those deterred from migrating.