The money that Sri Lanka earns directly from her overseas workers is expected to top Rs550 Billion. With that kind of money coming in it is worth more than the total tangible product exports of Sri Lanka when you consider the value addition. To explain the latter statement as many will not understand what I say I will use an example.
If we sell a Bra overseas for US$100 foreign exchange. If the material cost was US$30 for the various items from cloth, buttons, elastic, zips etc. The depreciation cost of the high value imported machinery used of US$5, the imported energy component of the electricity and other fuels was US$5, the cost of imported items of the overheads of the enterprise, such as sales people's overseas travel, wear and tear of the company motor vehicle fleet, and use of imported energy and depreciation of imported office equipment from photocopiers to laptops etc. was US$20 and then the repatriation of profits to foreign owners of the organization is US$30, then the economic benefit to Sri Lanka of that bra is after netting all this which comes to a mere US$10 mainly for the value addition of the labor component which is the only local input here. The net export value therefore is just US$10 and not US$100.
This clearly shows the value of the remittances. I am told that in 2011 the Middle East uprisings will actually result in a higher remittance through formal channels because the workers who had banked some of their prior earnings in the those countries feel it is safer to remit it to Sri Lanka and therefore there is a further one off boost to remittances arising from that source.
This staggering amount of money is how this country is getting its growth no matter how incompetent the Government is. Sadly the Govt. takes credit for the hard work all our people do overseas, and not give credit where credit is due. The Country will be a basket case if not for this money and we will probably be starving also. Remember we have a further 2million fewer mouths to feed in Sri Lanka as they are overseas, not burdening the state with health or food costs and in the case of the families, the education of their children, all of which are direct benefits for the state.
It is truly tragic that hardly any reference is made to this contribution, and little is done to assist those people who are the lifeline of this country who even do not have a vote in the land, as we do not allow our foreign workers to vote in our local elections from our embassies overseas. This is permitted for US, Australian and citizens of many other countries and is sadly not offered to Sri Lankans.
An important point to bear in mind in this remittance issue is that migrants to places like USA, UK, Canada, Australia, NZ etc do not remit as higher a proportion of their earnings as those who go for shorter periods on work contracts, and only remit funds for aging parents or if they eventually decide to retire in Sri Lanka, and send funds to buy a luxury apartment or such like.
The only reason I firmly believe this important Revenue source is not acknowledged is because the Government of Sri Lanka will be shown to be jokers who are just spunging off these people, and claiming all the growth is due to the policies of the Government when in fact it is just due to this income from overseas.
IN TRUST FUND TERMS THIS MONEY IS EQUIVALENT TO HAVING US$250 BILLION INVESTED IN US TREASURY BILLS AND WE ARE LIVING OFF OF THE INTEREST THEREON. THAT IN ESSENCE IS THE VALUE OF THIS INHERITANCE
No comments:
Post a Comment