Comment

A boost to the economy

Expatriate remittances have become a significant component of the economy, on par with foreign exchange obtained from crop and gem and jewellery exports. Nearly 1.4 million Sri Lankans work overseas, excluding members of the Sri Lankan diaspora who also remit to funds to Sri Lanka. They remitted nearly US$ 1.6 billion during the first half of this year. This is a massive injection of capital to our economy, now recovering after 30 years of conflict that dragged it down.

Despite the global economic downturn which affected the foreign exchange earnings of many countries, Sri Lanka's foreign remittances from expatriate Sri Lankans working in many parts of the world recorded an increase of five percent compared to 2008, according to the latest statistics. This is an encouraging trend and we hope this momentum would be maintained for the rest of the year.

These remittances were mainly from Sri Lankans working in Middle East countries which accounts for 60 percent of the total remittances. Another 20 percent was remitted by Sri Lankan expatriates in Europe.

The remaining remittances were from North America, South East Asia and the Far East. Foreign remittances from expatriate Sri Lankans show a 20 percent annual increase despite various obstacles.

One of the prime obstacles was the global recession, which adversely affected the economies of many wealthy countries. Many companies in these countries retrenched excess employees.

Although we do not have the exact number of Sri Lankans affected by such moves, it is fair to assume that a considerable number of them were affected. Furthermore, many countries tried to impose a ceiling on the number of foreign workers primarily to protect their own nationals from the crisis, thus affecting countries supplying labour.

Despite such developments, over 117,011 workers had left for employment abroad during the first six months of 2009 through the Sri Lanka Bureau of Foreign Employment and other legal avenues.

Some would have left without going through these channels, but it cannot be a very significant number as those leaving for employment are strictly screened.

Most of the job seekers had gone to work in Middle East countries, the traditional labour market. However, some had found employment in relatively new markets such as Japan and South Korea.

The Government must negotiate with more countries in Europe and Asia to secure openings for Sri Lankans.

This will also help contain the illegal migration of youth to Europe, especially Italy, UK and Australia. They will be less likely to attempt a risky ocean voyage on ageing vessels operated by human traffickers if presented with a legal option to work abroad.

The authorities must strive to send more skilled workers and professionals for employment abroad. They command higher salaries than domestic aides, thus increasing the remittance potential. An attempt must also be made to send more males abroad.

However, the authorities should strike a balance vis-a-vis sending professionals abroad, lest it leads to a brain drain.

Migrant workers should also be educated on legal means of remitting money to Sri Lanka through established banks and money transfer companies.

There are instances when they try unconventional, unproven or fraudulent means of transferring money. This is a loss to both their families and the country's economy. More Sri Lankan banks should be established abroad to facilitate remittances.

Language training is another important factor. It is best if the prospective employees learn the language of their host country, e.g. Arabic for the Middle East. Domestic aides should know how to operate the latest gadgets and skilled workers should be familiar with the latest trends and equipment in their respective fields.

It is important that all those who seek foreign employment should go through the Foreign Employment Bureau and or licensed manpower recruitment agencies.

This will facilitate Sri Lankan missions and labour welfare officers to offer counsel and assistance in case the employee encounters trouble or harassment in the host country.

Sri Lanka has signed agreements with several countries on labour welfare, but it is difficult to take action if legal procedures have not been followed.

More facilities and incentives should be granted to expatriate workers, depending on the number of years they have worked abroad.

For example, it would be a fitting reward to offer a concessionary duty permit for a small-engined car for someone who has earned foreign exchange for the country for around 10 years.

Such incentives will encourage more Sri Lankans to seek jobs abroad and raise collective remittances to boost the economy.