Labor Migration

Of Sri Lanka

1

Shakthi Fernando

BSc. Financial Management(Special)-Undergraduate

Sabaragamuwa University of Sri Lanka

2012 January

2

Abstract

The aim of this report is to give a proper idea about the labor migration of Sri Lanka.

Further it describes the nature of Labor Migration, the reasons which affect for Labor

Migration, effects of Labor Migration for the development of local economy, social and

cultural effects. Same as that it presents possible suggestions to overcome those issues.

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Content

Introduction 04

Literature Review 04

Nature of Labor Migration 06

Influencing Labor Migration 11

Consequences of Labor Migration 13

Suggestions 15

References 17

4

Introduction

Millions of people are on the move from country to country. There might be several

reasons for migration (Study, Leisure, Job, etc…).But here, this report is based on the

Labor Migration, since it has been the most important and significant fact among all

others.

The bitter truth is some countries have failed to provide adequate jobs and economic

opportunities to the degree that public is expecting. Unemployment and

Underemployment of countries make their public to migrate to other countries. When

people do not get sufficient income as they expect, or if they feel like they can make

more and more, they tend to migrate. Basically there are favorable effects that benefits

both host and home in Economics point of view. But when it comes to social and cultural

basis, there are results that adversely affect due to Labor Migration.

In order to reduce the pressure on unemployment in Sri Lanka, overseas job opportunities

have been a vital source of employment. The reasons which tend Sri Lankans to migrate

can be individual, family and socio economic. The total number of Sri Lankans who are

employed in abroad at present is estimated to be 1.8 million. It is said that over 250 000

persons migrate annually from Sri Lanka.

Literature Review

Impacts of remittances on the household of the Emigrant Sri Lanka, Priyanka

Jayawardena (Institute of policy studies-Sri Lanka),By a survey.

Findings

Foreign employment continued to be a vital source of foreign

currency and job opportunities.

Middle-East dominates the foreign employment market.

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Majority of migrant workers are housemaids and unskilled

workers.

A large proportion of households receive remittances.

Households receiving remittances have higher levels to total

expenditure, reflecting higher spending on food, non-food, health

and education.

Remittances have positive impact on other income sources from

properties, Financial and Physical Assets.

Although investments on health and education are higher for

migrant households, no significant improvement in school

enrolment and morbidity level.

National Labor Migration Policy for Sri Lanka, Padmini Rathnayake (Additional

Secretary-Ministry of Labor and Labor Relations-Sri Lanka),By surveys,

information bulletins, reports and statistics.

Findings

National Labor Migration Policy has been developed in three

sections.

Governance of the migration process

Institutional Framework

Regulatory

Legislative Framework

International Framework

6

Participation of Migrant workers in the

governance

Protection and empowerment of migrant workers

and their families.

Linking of migration and development process.

The difference between the current study and above two considered studies is as follows,

Current study is mainly about economic, social and cultural effects of Labor Migration.

Furthermore it includes suggestions to overcome from adverse effects to the country from

labor migration. And also it discusses about the nature of Labor Migration. It analyzes

how the Labor migration is differed from year to year by various factors.

But those two considered studies are regarding the formulation of National Labor

Migration Policy and spending of migrants’ income.

Nature of Labor Migration

Labor Migration can be simply defined as a movement from one country to another with

the purpose of seeking a better job, an employment opportunity or an economic

opportunity. Primarily, Sri Lankans migrate to Middle East countries. Migration to

Middle East countries holds a higher percentage from total migration. It can be shown by

following data.

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Table No. 1: Departures for Foreign Employment by country 2006-2010

Country/Year 2006

%

2007

%

2008

%

2009

%

2010

%

Middle Eastern

Countries

Bahrain

Jordan

Kuwait

Lebonan

Oman

Quatar

Saudi Arabia

UAE

02.18

04.03

17.18

03.41

02.12

15.58

30.42

16.74

02.35

03.86

18.81

03.17

01.78

17.82

27.71

17.83

01.86

04.13

18.74

01.98

01.90

15.76

26.92

20.40

02.40

03.65

17.16

02.39

02.16

17.70

31.49

16.02

02.65

03.55

18.05

02.28

02.39

20.13

26.61

15.79

Other Countries

Hong Kong

Malaysia

Singapore

S. Korea

Cyprus

Maldives

Italy

USA

Other

00.13

01.77

00.47

01.81

00.16

01.72

00.00

00.00

02.28

00.14

00.48

00.43

01.23

01.38

01.79

00.01

00.00

01.21

00.12

00.52

00.43

02.79

01.13

01.69

00.01

00.00

01.53

00.14

00.42

00.42

01.62

01.19

01.58

00.01

00.00

02.07

00.11

01.38

00.39

01.97

01.04

01.57

00.01

00.00

02.08

Total 100 100 100 100 100

Source: Sri Lanka Bureau of Foreign Employment

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Special implications

According to the above observation, it is concluded that most of labors have

migrated to Middle East countries. From these Middle East countries most

migrations for foreign employment have been reported for Saudi Arabia, UAE

and Quatar respectively.

Countries other than Middle East hold very less proportion from total labor

migration. It has been observed by above details. Even developed countries such

as USA and Italy own very less percentage from total migration.

A Special point that can be highlighted is the rapid increase of labor migration to

South Korea. As a result of some Agreement that both Host and Home countries

have gone through, lot of migrants have got opportunities for foreign employment

in South Korea.

Furthermore Labor Migration can be analyzed by gender and manpower category.

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Table No. 2: Departures for Foreign Employment by gender and by manpower

Employment 2009

%

2010

%

2011

%

By Gender

Male

Female

By Manpower category

Professional

Middle Level

Clerical and Related

Skilled Labor

Semi-Skilled Labor

Unskilled Labor

Housemaid

48.3

51.7

01.1

02.6

02.7

24.8

02.4

20.2

46.0

51.2

48.8

01.1

02.6

02.0

26.7

01.8

22.6

42.1

51.7

48.3

01.8

02.2

02.8

25.7

01.6

24.1

41.0

Source: Sri Lanka Bureau of Foreign Employment

Special Implications

As the above observation, it is shown that male is holding a higher proportion in

last two years from labor migration. There might be several reasons for that. Since

male have the responsibility of their families, they are always seeking for higher

remunerations. When they can have much more in foreign countries, they tend to

migrate. On the other hand they are ready to do any type of job in another country

in spite of their social states, if they are paid well. As well as, if they feel like they

do not have many economic opportunities to get them developed, they might tend

to migrate.

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Then it is shown that Labor Migration of professionals is increasing by year to

year. It is the fundamental of the brain drain of Sri Lanka, which can be affected

adversely in future. Straightforward reason for brain drain is the ability of getting

higher earnings in foreign countries.

Considerable proportion of Labor Migration is owned by skilled labors. It is a

huge issue that is going to be faced by Sri Lanka as a developing country in

future. When skilled labors have gone out from country, the benefit that can be

taken from them toward the economic development of Sri Lanka will be lost.

An adverse effect that has been discovered by those details is the increase in labor

migration of unskilled labor. Foreign Employment has become one of the major

sources of earning foreign exchanges. Foreign Countries are giving more

employment opportunities to Sri Lanka, because those countries have a favorable

impression about Sri Lankan employees. When more unskilled labors are sent by

Sri Lanka, the trust toward Sri Lankan employees will plummet. When those

unskilled labors cannot do their work as expected, it can be affected to all Sri

Lankans who are seeking for foreign jobs.

Highest percentage of total migrants is represented by housemaids. Not only that,

but also more than 90% is households from the total female migrants. Core reason

for that is insufficient household income. When family income is not adequate to

fulfill all the needs, female tend to migrate for foreign employment with the

intention of supporting their families.

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Factors Influencing Labor Migration

Inadequate and Irregular Income

It has been discovered that the leading reason for labor migration is the

inadequate income. It is stated that lot of areas in Sri Lanka do not have

alternative income sources which help to improve the living standard of public.

House Construction

It has been indicated that there has been given a priority of house construction for

labor migration. When people wish to have their own houses, they tend to make

more money from foreign employments, since the prices of construction materials

are increasing. Then public cannot afford that much amount by doing a local job.

Definitely they have to migrate.

Educating children and siblings

Another motive for migration is people want to provide a good education to their

children and siblings. Then financial difficulties are arisen and solution is decided

as migrating for foreign employments.

Debts

Debts also have become a central cause for migration. When people cannot afford

their day to day expenses with the income and past savings, they have to go for

loans from private lenders. Focal reason for taking debts is the increasing cost of

living.

Alcoholism and Violence

Alcoholism and Violence mostly affect for the migration of female. When

husbands are addicted to alcohols and when they make violence in their families,

the lives of female become really tough. Then they tend to migrate for labor with

the intention to support their families as well as for getting rid of the violence.

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Accumulate Dowry

Another reason that has been discovered is to collect dowries for their Daughters

marriages and for themselves. Higher proportion is female who migrate for above

reason.

Motivated by Role Models

Especially female are motivated by other female who have been abroad for

employment. When they boast about overseas, female feel like to migrate.

Sometimes true difficulties might have been hidden from them.

Female Headed Households

There are some families where the bread winner of the family is a female. They

might have divorced or husbands might have dead. As a result of that, female

become the sole bread winner of the family. When they face financial difficulties

inside the family, they choose to migrate.

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Consequences of Labor Migration

Economic Consequences

Brain Drain

Brain Drain can be identified as a significant fact in developing

countries like Sri Lanka. Brain drain refers to the Migration of the

highly skilled professionals to the foreign countries in search of better

opportunities. In the modern world, large numbers of skilled

professionals are migrating to other countries. Motives for migration of

professionals are basically higher remunerations and better

opportunities. Leaving of skilled labor from Sri Lanka cannot be

afforded by a country like ours, because resources of Sri Lanka drain

into developed countries through migration. Then it becomes a barrier

for the implementations of economic development programs in Sri

Lanka. When Sri Lanka losses its skilled labors who can support for its

development, it becomes harder for achieving certain goals.

Foreign Exchange

Foreign Exchange has become the most beneficial consequence of labor

migration. Labor migration is a major source of earning foreign

exchange. Since Sri Lanka is depending on imports, labor migration

contributes a lot for the continuation of Sri Lankan economy as usual.

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Reducing the Current Account deficit

Current Account of Sri Lanka is getting a deficit balance throughout

years, since it is a country which depends upon imports, even though

exports are less. When exports are compared with imports, they are

inadequate for importing everything. Then a huge deficit has been arisen

in the Capital Account. Sri Lanka is going for foreign loans for

compensation. But there is a benefit to the Capital Account, because it is

getting more foreign exchange through foreign employment. Then the

government can reduce the deficit of Capital Account as well as the sum

which is paying for foreign loans and interests.

Increasing the Living Standards

When ordinary people go for foreign employment opportunities and

earning more remuneration, Standard of Living goes up. Then they can

fulfill all their necessities and spend more for purchasing products. It

affects for the increase of Gross Domestic Product of the country.

Reducing the unemployment

Unemployment is one of the major economic issues of a country, since

there are no enough economic and job opportunities for everyone. Then

foreign job opportunities can reduce unemployment of a country even

from a small proportion. Unemployment problem of a country is partly

solved by foreign employment opportunities.

Social Consequences

Physical and sexual harassments

Recently more incidents have been reported regarding the physical and

sexual harassment. Mostly female who are employing in Middle East

countries have been harassed a lot.

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Impact of other cultures

When foreign employees adapt to the culture where they work, it

drained to Sri Lanka. It can be unsuitable to Sri Lankan culture. Then

there might be occurred some distortions in the way they dress, with

their attitudes and habits.

Family Problems

There can be family problems when a member of family migrates to

some other country. Basically it affects to the children’s education.

When there is no one to lead them, there might be misleadings with their

lives. On the other hand, husbands can be addicted to alcohols when

wives have migrated.

Suggestions

Government has a responsibility to give a proper training to unskilled labors

before they depart for employments in abroad. It can be included the language,

customs, job training, rules and regulations of the foreign country. In that case,

foreign countries will develop a favorable impression towards the Sri Lankan

employees and they will offer more opportunities.

Sri Lanka should develop a program for reducing the brain drain. Government can

improve the states and social recognition towards every skilled professional. And

also they can be rewarded a higher remuneration package.

Sri Lankan embassies which have been established in foreign countries where Sri

Lankans work have to be more efficient. Then the harassments which are faced by

Sri Lankan employees can be reduced. There should be a proper procedure to

monitor Sri Lankan workers in those foreign countries.

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Lots of employees are sent to Middle East countries for lower level jobs. They are

not heavily paid when it is compared with European countries. Government can

introduce programs to give a proper training and attract them to opportunities of

European countries. Then Sri Lanka can increase the amount of Foreign

Exchange, getting by foreign employments.

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References

Agunias, D.R. and Aghazarm, C. (2012). Labor Migration from Colombo Process

Countries: Good Practices, Challenges and Ways Forward.

Cartias Sri Lanka. (n.d.). Migration of Sri Lankan Women - Analysis of Causes & Post-

Arrival Assistance.

Central Bank of Sri Lanka. (2010). Annual Report 2010.

Central Bank of Sri Lanka. (2011). Sri Lanka Socio-Economic Data 2011, Vol 34.

Daniel, D. (n.d.). Sri Lanka Labor Migration Policy needs to look inward domestic labor

force shrinks, migration increase-IPS study, Paper article of “The Island”.

Retrieved from http://www.ips.lk/events/workshops/45_09_developmentnexus/is_

land.pdf.

Human Rights Watch. (2007).Exported and Exposed Abuses against Sri Lankan Domestic

Workers in Saudi Arabia, Kuwait, Lebanon and The United Arab Emirates.

Jayawardhana, P. (2010). Impacts of Remittances on the Household of the Emigrant: Sri

Lanka. Institute of Policy Studies of Sri Lanka.

Jayawardhana, T. and Jayathilaka, R. (2008). International Migration Outlook-Sri

Lanka: 2008. Institute of Policy Studies of Sri Lanka.

Ratnayake, P. (Additional Secretary, Ministry of Labor and Labor Relations, Sri Lanka).

(2008). Development of National Labor Migration Policy in Sri Lanka.

Thrimavithana, R.S.K. (2007). Economic Implications of Skilled Labor migration The

Case of Sri Lankan Engineers. University of Moratuwa.