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Last Updated : 2024-05-21 10:02:00
15 August 2022 03:18 am - 14 - {{hitsCtrl.values.hits}}
- July remittance income at US$ 279.5mn. slightly up from June, but down from US$ 453.3 mn a year ago
- Cumulative figure for the seven-month period down 50% YoY to US$ 1.8bn
- Stubbornly low remittances question the validity of path taken by authorities to restore such incomes
- Analysts say while offering incentives, authorities should try to plug the trust deficit between people and rulers to restore remittances.
Despite various incentive schemes introduced by the authorities to attract more worker remittances to the country
via formal channels, such incomes continue to fall, triggering questions about the validity of the path taken to restore remittances income to the country.
In the month of July, Sri Lankan migrant workers sent in just US$ 279.5 million to their loved ones via official channels compared to US$ 453.3 million recorded for the same month in 2021 and US$ 274.1 million in June 2022.
The cumulative seven-month remittance income fell by 50 percent year-on-year to US$ 1889.4 million.
The Central Bank and the authorities have taken measures to crackdown on informal channels such as undiyal and hawala to boost the remittance income via official channels.
Despite such crackdowns, migrant Lankan workers seem to prefer unofficial channels to send back their moneys home largely due to the parallel interest rates offered by these channels, which are always higher than the official
exchange rate.
However, unlike earlier, there is no massive difference between the official exchange rate and the parallel interest rates following the sharp devaluation of the rupee against the US dollar.
A couple of weeks ago, the Cabinet of Ministers decided to offer a host of additional benefits to migrant workers who use official channels to repatriate their moneys, including increased duty-free allowances and permits to import electric vehicles.
It is yet to see how these incentives will encourage migrant workers to send back more moneys via official channels.
However, according to analysts, the key reason for the Lankan migrant workers not to send much money back to the country could be the trust deficit between the Sri Lankan people and the ruling class of the country.
Social media posts by some migrant workers reflect their unwillingness to send moneys to Sri Lanka because of the widely-perceived corruption of the country’s ruling class.
Some analysts believe that until that trust deficit is plugged, Sri Lanka may not see remittance incomes that it used to see a couple of years ago.
Cheers Monday, 15 August 2022 01:22 AM
Sri lankans overseas will stop remitting now the way democracy failure after the protesters unseated democratically elected president. International shame was written for 153 days and chaos
Ara Monday, 15 August 2022 01:56 AM
Correct, this is a good thing, let's get rid of this corrupt ruling class, then lot will improve
Nihal S Monday, 15 August 2022 02:04 AM
People do not trust the current regime controlled by Rajapakse to send $s. Too much corruption. Expect this to reduce further over the next 6 months.
Gabriella Monday, 15 August 2022 02:45 AM
The Central Bank exchange rate does not reflect ground realities, and significantly undervalues the dollar when compared to the previous rate and, the subsequent rise in inflation. Any neophyte with a basic knowledge of maths can work that out.
Dayawathie Monday, 15 August 2022 03:49 AM
We are not sending any dollars to Sri Lanka until the MPs who damaged the interior of the Parliament are punished. No ifs and no buts.
Lion Monday, 15 August 2022 04:15 AM
The undiyal system will flourish as long this government and the fake president remain in governance of this country.
M .M Monday, 15 August 2022 05:35 AM
We will not send dollars for thieve sand corrupt politician. Have a election let the choose who they want
jan Monday, 15 August 2022 05:49 AM
Foreign Reserves Not Properly used and Maintained At PETTAH ANYBODY CAN SEE TRADERS SELLING SLIGHTLY ROTTEN FRUITS ALONG ROADS IMPORTING OF Apples,Grapes,Oranges,OVER FLOWING Costs Billions of USD$$$ : MILK POWDER COSTS BILLIONS OF USD$$$ ,ALSO IMPORTING OF BROOMS,KITES,BRUSHES, FANCY ITEMS NON ESSENTIAL ITEMS OVER FLOWING ABSOLUTELY NO CONTROL,ALSO WHY IMPORTING PETROL:DIESEL KEROSENE BILLIONS OF USD$$$ WASTED WHY NOT IMPORTING CRUDE OIL FROM RUSSIA IN A VLCC N CAN PRODUCE VARIETIES OF OIL GREASE TAR KEROSENE etc:etc:
No more Tax man Monday, 15 August 2022 06:16 AM
People will not send money until money eating SOEs are privatize or PPP
maha Monday, 15 August 2022 07:29 AM
rather than introducing peanuts time to time, should address the root cause of choosing other channels. However, looks Workers are smarter than CB decision makers
Gamini Wickramanayake Monday, 15 August 2022 07:29 AM
Everybody want to get rid of the govt. So why you send money to feed the political sharks. Restore the law and order and human rights and hold election everything will be fine
Rascals Monday, 15 August 2022 07:35 AM
No one trusts the government any more and all offers are known to be temporary. People know that once the economy is stabilized, the government will retort to its early tactics in cracking down people who send these monies and begin to use their personal information to penalize them thereafter. So, the government is solely responsible for this mess and not the people. Sad that the government pretends to not know that.
Sangaralingham Monday, 15 August 2022 07:50 AM
Remittance down.hard working citizens of the country is concerned their remittances are not properly managed by the government and other agencies. Possibly they may decide to deposit in other foreign banks
Sangaralingham Monday, 15 August 2022 07:55 AM
Electric vehicle in Lanka has no practical value for migrant workers. The use of those vehicle is dismissed by availability charging stations maintain acne problems service requirements
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