NSB targets $ 2.5b in foreign remittances this year

Irangika Range

REMITTANCES: The country lost around 40 percent in foreign remittances since there was no economic mechanism for money transferring from around 1.5 million Sri Lankan expatriate workers.

Most of the remittances are transferred through informal methods and through other means, a top Treasury official said.

'On the one hand this is a high risk to the remitter and these funds do not reach the banks thus depriving the country of valuable foreign exchange', Treasury Secretary Dr. P.B. Jayasundara said. 'The Government is keen on facilitating NRFC account holders who are discouraged paying high commissions to financial institutions in the country.

The National Savings Bank's(NSB) has tied-up with Janatha Exchange Company under the Janatha Bank in Bangladesh to overcome this situation.

With this link NSB is targeting to increase their foreign remittances upto US$ 2.5 billion this year. It will make arrangements to open a commercial bank in Italy for the benefit of local workers in Italy to send their money directly to Sri Lanka. This programme will be launched in Korea, Malaysia and Middle-East countries as well.

Dr. Jayasundara said the Government has concentrated on promoting financial services to attract heavy investment into the country to make it as a best financial hub. Addressing the 12th Asia Pacific Regional Meeting of the World Savings Banks Institute (WSBI) hosted by the NSB, he said the country is repositioning on a daily basis to reach the millennium goals. Sri Lanka has intensified in working out trade agreements with India and Pakistan addressing all aspects of economical issues towards its success.

'We also make arrangements to have comprehensive trading arrangements with the European Union,' he said.

The Government would introduce new legislation to supervise and monitor the local micro financial agencies to create and strengthen more credibility.

Having 70 percent deposits of senior citizens and maintaining 22.2 billion deposits, NSB is committed to the social responsibility and the national development. 'We give priority to crate a private sector based economy instead of a Government oriented economy by concentrating on human rights, labour standards and increasing the commitment of CSR,"he said.

NSB Chairman Upali Gunaratne said that non resident foreign currency accounts have been introduced in February 2005 and private remittances grew by 26 percent last year.

The stability of the NSB is demonstrated by the fact that it's the only Sri Lankan bank to receive triple A rating for three consecutive years, Gunaratne said.