SLCSMI urges govt. to benchmark migrant worker salaries against Israel to double forex earnings

The Sri Lanka Chamber of Small and Medium Industries (SLCSMI) has called on the government to implement a regulated minimum wage mechanism for the skilled migrant workers, benchmarking the salaries against the high-paying destinations such as Israel. 

The chamber argues that by enforcing a “floor price” for Sri Lankan talent entering the global market, the country could effectively double its foreign exchange earnings while managing the severe labour shortage crippling the local manufacturers.

Addressing the media in Colombo this week, SLCSMI Senior Vice President Colin Fernando highlighted that the local industrial sector is currently facing a debilitating drain of skilled professionals, including masons, welders and machine operators, who are leaving the country in droves for foreign employment. 

He noted that while the migration of labour is inevitable, the current unregulated system allows the skilled workers to accept sub-par wages abroad, leaving the local industries starved of talent, without generating a proportionate return in remittances for the national economy.

Fernando proposed that the government establish a strict rate limit for different categories of skilled labour, using the salary scales in Israel as the standard benchmark. 

“We must look at the salary in Israel and tell the government that if a skilled person is going abroad, that rate must be matched. Otherwise, we are selling our labour too cheaply,” he stated. 

He argued that by standardising these rates, the government could ensure that the migration of a skilled worker results in a significant financial advantage to the country through higher foreign exchange inflows.

Fernando also outlined a proposal to mitigate the impact on local industries by launching targeted training programmes for youth. The plan involves recruiting school leavers and providing them with specialised vocational training to fill the gaps in the local market. Fernando explained that under a structured system, these youths could serve a tenure in local industries before being cleared for foreign employment at the higher, government-mandated salary rates.

“If we create this system, we can double the foreign exchange we currently receive. We can train our youth, give them a profession and if they choose to go abroad, ensure they go for a high salary that benefits the country,” Fernando added, emphasising that a controlled export of skilled labour is far more beneficial than the current exodus of underpaid workers. 

(NF)