Lanka to benefit from skilled labour demand in Middle East

BoC remittances top Rs. 109 billion in 2005

HIRAN H. Senewiratne

SKILLED LABOUR MARKET: Sri Lankan skilled and semi- skilled workers would be in high demand in Middle Eastern countries following the oil related economic boom in the region in the coming years, sources said.

Currently many Middle Eastern countries are investing heavily in their own major development projects. Therefore major construction work is happening in those countries, which would attract Sri Lankan skilled and semi-skilled workers.

The embankment on the King Abdullah City in Saudi Arabia is a case in point, which will be one of the major metropolitan city projects in the Middle Eastern region. Therefore, demand for skilled and semi-skilled labour would be high.

Last year, Sri Lanka exported more than 230,000 workers and with the increase of development activities in Middle Easter countries, it will create more than 250,000 employment opportunities especially white-collar and blue-collar jobs in those countries.

Sri Lanka will have more advantages for foreign employment as most of the Middle Eastern countries are trying to divide employment opportunities equally to all labour supplying countries.

Given the current situation, Bank of Ceylon concentrates on those countries to attract Sri Lankan employees' to remit money from their channels, Deputy General Manager International and Treasury Douglas Weerasinghe said.

He said that BoC has recorded Rs. 109 billion as proceeds of inward remittances from overseas employee remittances and from Sri Lankan residents abroad, crossing the Rs. 100 billion mark for the first time in 2005.

This represents a mammoth market share of 66 per cent with an annual growth rate of 16 per cent for the period 2001 to 2005, which in terms of volumes is equivalent to an average annual growth of US$80 million during the period.

A major part of the remittances is generated from over 1.5 million Sri Lankans working overseas especially in the Middle Eastern region whose numbers have been growing annually.

Weerasinghe said the BoC has taken an early lead through a network of overseas agencies and correspondent banks to channel funds.

He said that while a major part of the foreign currency inward remittances are sent in as credits to rupee accounts or as rupee payments to sustain families in Sri Lanka, significant foreign currency remittances are also sent into various foreign currency accounts such as NRFC account maintained in the BoC network.

At present Qatar, Abu Dhabi, Dubai and Saudi Arabia has a high demand for Sri Lankan labour and to facilitate such remittances BoC is now in the process of expanding their operations, he said. Further, BoC will introduce a new e-cash remittance scheme and it is expected to affiliate with 60 Arabian agencies before end of this year.