New measures to increase FDI, worker remittances

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He emphasised the need of removing any obstacles against Sri Lanka foreign employment aspirants as they have a ready demand in the overseas job market.

Mr. Rajapaksa has instructed the officials to immediately settle the issue of booking seats in relevant flights by seeking the assistance of local and foreign travel agents and airlines.

It was stated that the fixed exchange rate system enforced by the Central Bank has increased the transfer of remittances via informal channels causing a considerable loss of foreign exchange to the country.

The new policy strategy will be introduced in accordance with the proposed streamlined and integrated mechanism in the medium term to enhance foreign remittances.

The lockdowns in West Asia and other countries made it difficult for Sri Lankan migrant workers to remit their wages via traditional methods, such as visiting a bank or a money transfer operator (MTO), the official said.

Earnings from worker remittances have come down significantly in June this year ending the 13-month long spell of continued increases in monthly repatriations recorded year- on- year after it began in May last year.

Sri Lankans working overseas have remitted a sum of US$478.4 million in June 2021, compared to $ 572.5 million sent by them in the same month in 2020. Worker remittances continued its downward trend in July recording a sum of$453.3 million compared to $ 702 million in 2020 while in August 2021, remittances were recorded at $ 446.6 million compared to $ 664.5 million during the same month last year. Treasury estimates say foreign remittances are estimated to fall this year from $7.1 billion in 2020.