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| Tuesday, 23 March 2004 |
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Prime source of foreign exchange Nearly 1.2 million Sri Lankans are working abroad. The Middle East has the biggest concentration of Sri Lankan expatriates, followed by Hong Kong, Singapore, Europe and Japan. They are a prime source of foreign exchange, vying with tea and garments for the first three spots in terms of remittances. Sri Lankan expatriates remit an average of Rs. 1,300 million annually. Most Sri Lankan migrant workers were females, employed as housemaids. Now, the number of Sri Lankan male workers in the Gulf is increasing. Females are also choosing better jobs in sectors such as nursing and the garments industry. This augurs well for the country's economic prospects, as skilled workers can command better salaries. The Middle East needs skilled labour for hotels, banks, transport, healthcare, garments and Information Technology. Sri Lanka is the fourth largest human resource supplier to the Middle East. Sending more skilled workers and professionals to the Middle East will lead to bigger foreign exchange earnings. Moreover, wages have increased - even an unskilled housemaid can now earn around US$ 160 per month. Turning unskilled workers into skilled workers is vital. The Sri Lanka Bureau of Foreign Employment (SLBFE) conducts training programs for prospective migrant workers. A domestic worker who does not know how to operate a washing machine has little chance of getting employed in the Middle East. Language training is also important, as this is one of the few areas that India and Pakistan score over Sri Lanka. Most Pakistanis can speak Arabic, which is spoken widely in the Middle East. A basic knowledge of Arabic will help Sri Lankans who look for jobs in the Middle East. A good knowledge of English is required elsewhere, i.e. in Hong Kong. Regulating job agencies must be a priority. There have been instances of innocent job seekers being duped by unscrupulous businessmen posing as job agents. Workers who go through unlicensed job agencies should not be allowed to leave the country. Registration at the SLBFE should also be a mandatory requirement. The SLBFE should explore the possibility of getting more jobs in regions other than the Middle East for Sri Lankans. Italy has offered jobs for Sri Lankan professionals. Malaysia is another country which has openings for skilled workers. Another area of concern is the proliferation of illegal money-transfer agents. Agency reports received yesterday said that an underground remittance market is thriving as overseas workers continue using informal channels to send money home despite governments' efforts to regulate and police the US$ 95 billion dollar industry in Asia. The SLBFE and banking authorities here must look into this issue and take appropriate action, as there is every possibility of a revenue loss to the Government. Unlike banks and recognised money transfer services, there is no guarantee that these shady agents honour their side of the agreement. This is why Governments and financial regulators should at least try to formalise the underground money remittance industry if they cannot eliminate it altogether. Economists have pointed out that remittances can be only be tapped effectively for national development if sent through official channels. One way of addressing this problem is encouraging Sri Lankan banks to establish more branches in the Middle East and other countries with significant Sri Lankan populations and to offer more favourable exchange rates that deter customers from going to illegal agents. The duty free allowance granted to workers is another contentious issue. Workers who return to Sri Lanka after one year are eligible to purchase goods worth US$ 1,500 on arrival at the Bandaranaike International Airport. Some workers do not use this facility at all, while others allow third parties to get the goods using their allowance. It is a reward for expatriates' contribution to the local economy. Migrant workers should be educated on taking advantage of the duty free allowance in a proper manner, while the government should devise more ways to recognise their role in economic uplift. |
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