NSB expects increase in foreign remittances

Harshini PERERA

Foreign remittances through illegal channels are on the decline.

A substantial amount is remitted to Sri Lanka through illegal channels, NSB chairman Pradeep Kariyawasam said.

"A third party is earning a lot of money from the illegal channels and they earn an unwanted profit," he said.

"There will be an increase in remittances to the country by the latter part of this year. It is expected that the post war condition prevailing in the country will result in this growth.

The NSB receives 15,000 remittances per month from migrant workers in the Gulf Coorperation Council (GCC). It is expected that remittances will increase to 22,000 a month by the latter part of this year," he said."We expect to strengthen the markets in Saudi Arabia and Cyprus in one months time. The NSB handled Rs six billion remittances at all the branches for the last six months.

Many of them were from countries such as Kuwait, Qatar, Lebanon, Italy, Korea and Israel.

"We have connected with postal services of Israel and Korea to transfer remittances," Kariyawasam saidNational Savings Bank handles only 0.8 percent of remittances to the country currently.

They expect to increase it to 30 to 35 percent by the end of 2012.

"We expect to get a large number of remittances from GCC and Middle East countries. We are currently receiving remittances from countries such as Italy, Israel and Korea", the Chairman said.