Manusha calls on Sri Lankan foreign expatriates to help fellow citizens

• Assures Govt. will take accountability and responsibility for each dollar remittance
• Says at least an inflow of $ 500 m monthly required to ensure basics to people
• Claims anomaly in political and fiscal mechanisms were responsible for people losing trust in official banking system
• Calls on Lankan expats to help to secure people’s right to live first
• Plans to grant tax reliefs and other benefits for expatriate workers
• Observes movement of foreign currency via unofficial channels 
• Says CBSL continue on clamp down on forex hoarders

Labour and Foreign Employment Minister Manusha Nanayakkara yesterday called on all Sri Lankans living abroad to send foreign currency only via the banking system, assuring that the Government will take accountability and responsibility for proper use of each dollar. 

“To overcome the economic crisis, the earnings from exports alone are insufficient. We also need the foreign migrant workers’ remittances to flow into the economy through the banking system as the country cannot resort to loans too. It is critical that we at least receive $ 500 million monthly to bring in the essentials for the people,” he told journalists at the post-Cabinet meeting media briefing yesterday.

Acknowledging that people have lost their trust and confidence due to anomalies in political and fiscal mechanisms, Nanayakkara assured that as representatives of Opposition who had come for the sake of the country – will assure to take accountability and responsibility for each dollar expatriate Sri Lankans will send this hour of need.

“The people are in dire need of essential items, milk powder for children, medicine, food, fuel and electricity. If we all wait till an election is held, there will be no country in the first place. First of all, we must all collectively help Sri Lankans to secure their right to live. We all can fight on the political perspectives later, but we cannot let people resort to anarchy for a living like it used to be in the 80’s,” he pointed out.

Minister Nanayakkara warned that if foreign expatriates continue to ignore the requests due to their political beliefs, the country will get into a deeper crisis where it will not be able to overcome it for even decades.

“Our children will be malnourished, industries will shut down, unemployment will shoot up, there will be greater brain drain, poverty will hit record levels, people will resort to anarchy for a living and no one will be able to save Sri Lanka. Therefore, take this opportunity to repay all your debts to the country as a responsible and a true patriotic citizen. Do justice for those tax money that provided free education for all the expatriates living abroad today,” he pleaded.

In April, workers’ remittances dropped to $ 249 million in as against $ 318 million in March. The decline is significant considering the fact that Sri Lanka opted to a free-float exchange regime from early March onwards.

During the first four months of 2022, workers’ remittances amounted to $ 1 billion, down by 57% from the corresponding period of last year. The April figure is also down by 52% from $ 519 million inflow a year ago.

Latest Central Bank data reinforces Sri Lanka’s struggle to woo workers’ remittances via official banking channels and the dip despite sharp 30% depreciation in March appears not attractive enough. However, the increase in inflows in March to $ 318 million from $ 205 million was credited to the depreciation of the rupee and in that context the 22% dip in April from March is of concern.

Minister Nanayakkara also said that the Government is exploring options to grant tax relief and other benefits such as housing loans for expatriate workers who send their earnings through the mainstream banking network.

“We observe that foreign currency is still moving via unofficial channels such as Undiyal at higher premiums. However, the Central Bank together with law enforcement agencies are continuing to clamp down individuals and entities engaged in the grey market activities,” he said.

He said, the discussions are being held to give expatriate workers tax reliefs, duty relief, interest free or low interest rate housing loans to encourage them sending money via official banking channels.

In addition, the Minister said that they will soon start introducing a beneficiary card for migrant workers to gain their confidence back.