Business

Can Overseas Sri Lankans finally have their say?

Published

2 years ago

2024/11/6

Voting Beyond Borders:

Dr Bilesha Weeraratne is a Research Fellow and Head of Migration and Urbanisation Research at IPS. Prior to re-joining IPS in 2014, she was a Postdoctoral Research Associate at Princeton University, New Jersey, USA. Her research interests include internal and international migration, climate mobility, urbanisation, the economics of education, labour economics, economic development, econometrics and economic modeling. She holds an MA in Economics from Rutgers University, USA and an MPhil and PhD in Economics from the City University of New York, USA.

By Dr Bilesha Weeraratne

The recent presidential election in Sri Lanka marked a series of “firsts,” setting it apart from previous elections. It saw a record-low number of 350,516 valid voters per candidate, implementation of the Regulation of Election Expenditure Act of 2023, and a second count of votes. Notably, there was also greater engagement from Overseas Sri Lankans (OSLs) in the country’s electoral process than at any time previously.

Indeed President Anura Kumara Dissanayaka actively engaged with Sri Lankan expatriates during his campaign, visiting countries including South Korea, Australia, the USA, Canada, Sweden, the UK and Japan. Continuing a trend from the previous presidential election in 2019, there was evidence of Sri Lankans returning to vote. However, despite this enthusiasm, the long-standing debate over granting OSLs the right to vote from abroad remains unresolved. Of the OSLs, it also means 1.5 million Sri Lankan workers abroad could not vote in the recent election according to the SLBFE.

Voting with Their Wallets

While OSLs may not have voting rights yet, those who regularly remit earnings back to Sri Lanka have already demonstrated their influence—by voting with their wallets. In the run-up to the 2022 economic crisis, government efforts to attract more formal remittances by offering higher interest rates failed to convince OSLs, as the formal foreign exchange rate offered was far below the informal rate. As a result, in 2022, remittances to Sri Lanka declined by a record 42%. Compared to the steady 10-year average USD 6.4 billion inflow (from 2010 to 2020), the decline to USD 3.7 billion was the final nail in the coffin that sparked the 2022 sovereign debt default.

Remittance and Voting Rights

The literature identifies three mechanisms for linking the receipt of remittances with political participation.

1) Income Channel: those with greater resources are able to devote more resources (both in terms of material support and time) to political activities;

2) Independence Channel: remittances reduce the dependence of recipients on the government for material prosperity; and

3) Insurance Channel -remittances promote feelings of economic security in recipients that allow them to pay more attention to non-material concerns.

While these mechanisms are for all voters in households receiving remittances, OSLs prefer a say in how the macroeconomy back in Sri Lanka is managed by elected officials, i.e. how does the government spend the foreign exchange OSLs regularly send as remittances? what are the interest rates on their savings? how is inflation feeding into the purchasing power of their remittances? how is the foreign exchange rate affecting the disposable income of their remittances? how are savings and investments of their remittances taxed? and what are the public services available to their families left behind? to name a few. The answers to such questions are linked to election promises and how governments actually perform when in office. Voting rights would allow OSLs a voice in economic policies that impact their remittances and financial interests in Sri Lanka.

Overseas Absentee Voting:

A Long-Awaited Promise

Providing voting rights or Overseas Absentee Voting (OAV) has been in discussion for many years, with various candidates, including the current president, promising to make it a reality. Sri Lanka has also ratified the United Nations Convention on the Rights of All Migrant Workers and Members of their Families, which calls for migrant workers’ voting rights (Article 41). Many previous governments, though keen, have not been successful on this front. Previous efforts include a Parliamentary Select Committee for Electoral Reforms recommending voting rights for OSLs in 2021, and a Special Presidential Commission in 2023 (among other issues) being required to make recommendations on a mechanism for OSL voting rights. In 2023, the Election Commission developed a beta version of an online method for registering OSLs for voting. However, according to the Commissioner General of Elections their hands are tied “until the Parliament passes a law to enable migrant workers to vote from their destination states.”

How to Make Overseas Absentee Voting a Reality

There are many possible and sophisticated ways to implement OAV, including advanced in-person (similar to postal voting in Sri Lanka), voting by mail, facsimile, or internet, as well as proxy voting (where a duly authorised representative or a proxy vote on behalf of the absent voter). Some countries such as the Philippines, for instance, use a combination of in-person and postal voting.

For Sri Lanka, keeping things simple would be one important mindset in transitioning from an eternal election promise to making overseas absentee voting a reality. A manageable starting point could be advanced in-person in-embassy voting, which would function analogous to Sri Lanka’s postal voting system. Embassies could serve as analogous to postal voting centers for expatriates, and OLSs to postal voters.

Hence, learning from the Philippines, a few key steps in the process of allowing in-person in-embassy voting are:

Enshrine in the Constitution the right of qualified OSLs to vote

Enact an Act related to OAV

Define a system and the mechanism for exercising such rights, covering aspects of

Defining qualifications for OAV

Identifying a registration procedure for eligible OSL

Identifying voting and vote counting mechanisms.

Not an Easy Road

Implementing OAV will not be without challenges. For Sri Lankans residing in countries without a local embassy, registration and voting might require travel to the nearest consular post. While critics would highlight that time and financial cost would “deter the diaspora from proactively partaking in voting”, employees such as female domestic workers would have the added challenge of seeking “approval of their masters and traveling a long distance to both register and vote”. Mail voting or assigning longer voting periods, including weekends, could alleviate some of these concerns.

Other concerns of out-of-country voting include potential vote buying and exploitation. Activists also raise concerns about whether politically appointed staff in diplomatic missions would influence, especially the unskilled and voiceless OSLs. Therefore, there is a need for a “mechanism with checks and balances” to “prevent the integrity of the electoral result from being questioned”.

While criticisms of each optional OAV method will likely emerge, it is important to start taking initial steps toward one feasible and practical option. The issues can be ironed out with time, and more sophisticated options can be pursued.

Finally, it is important to realise that achieving this goal in time for the upcoming Parliamentary election on 14 November or the pending provincial or local government elections in 2025 is not easy. Yet, initial steps towards this change are much needed and the time is right for it.

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Business

PEOTV secures media rights for FIFA World Cup

Published

36 mins ago

2026/06/6

Priyan

SLT-MOBITEL PEOTV, Sri Lanka’s pioneering Internet Protocol Television (IPTV) service provider and leading digital entertainment platform, announced a landmark partnership with Fédération Internationale de Football Association (FIFA), securing the exclusive media broadcasting rights for the FIFA World Cup 2026™ in Sri Lanka.

The strategic partnership marks one of the most significant sports media acquisitions in the country’s broadcasting landscape, granting SLT-MOBITEL PEOTV exclusive rights to deliver every match of the FIFA World Cup 2026™ to audiences across Sri Lanka. Through PEOTV, PEO MOBILE, and digital platforms, football fans nationwide will have unparalleled access to the world’s most prestigious sporting event, ensuring they experience every moment of the tournament live, from the opening match to the final championship.

The acquisition of FIFA World Cup 2026™ rights represents another significant milestone in SLT-MOBITEL PEOTV’s continued investment in premium sports broadcasting. Over the years, PEOTV has built a strong reputation for delivering major international sporting events, offering customers reliable, high-quality coverage and enhanced viewing experiences through advanced IPTV technology. Viewers will enjoy the tournament in true High Definition (HD), delivering exceptional picture quality and an immersive viewing experience. Whether watching from home through PEOTV, on the move via PEO MOBILE, or through digital access points, fans can follow every defining goal and unforgettable celebration throughout the competition.

The FIFA World Cup 2026™ is set to make history as the largest edition of the tournament ever staged, with 104 matches featuring 48 nations competing across Canada, Mexico, and the United States. Expected to captivate billions of viewers worldwide, the tournament represents the pinnacle of international football and stands among the most celebrated sporting events on the global calendar.

Business

Ceylon Chamber expresses concern over new US labour-related tariffs and calls for urgent engagement

Published

5 hours ago

2026/06/6

Thilina Walpola

The Ceylon Chamber of Commerce is concerned by the announcement of new labour-related tariffs by the United States on several countries, including a proposed 12.5% tariff on exports from Sri Lanka. This development comes at a time when Sri Lanka was continuing discussions with the US following the suspension of the previously announced reciprocal tariffs and was seeking to secure a more favourable trading arrangement.

The imposition of an additional tariff on Sri Lankan exports risks undermining the competitiveness of key export sectors compared to other countries, which are at a lower rate of 10%. At a time when Sri Lanka is working to accelerate export growth, attract investment, and create employment opportunities, any increase in trade barriers presents a significant challenge. At present, key goods exports such as Apparel and Tea are down by 7% and 6% respectively in the first four months of 2026.

Sri Lanka has built a strong reputation as a responsible sourcing destination, with many industries adhering to high labour, environmental, and governance standards. The country has also made substantial progress in strengthening regulatory frameworks and promoting ethical business practices.

The Ceylon Chamber therefore requests the relevant authorities to engage proactively and at the highest levels with the United States to better understand the basis for the tariff and to present Sri Lanka’s case. Every effort should be made to secure a reduction in the proposed tariff and, ultimately, to seek its removal altogether. It is important that Sri Lanka seeks to return to the lower tariff band while continuing discussions towards achieving a more competitive and predictable trading environment.

Given the importance of the US market to Sri Lankan exports, timely engagement and clear communication on the way forward will be critical in providing confidence to exporters and investors. The Ceylon Chamber stands ready to support these efforts and work collaboratively with all stakeholders to safeguard Sri Lanka’s export competitiveness and long-term economic interests.

Business

Rupee weakens sharply against dollar as energy cost concerns resurface

Published

6 hours ago

2026/06/6

Thilina Walpola

The Sri Lankan rupee came under renewed pressure recently, depreciating significantly against the US dollar across several commercial banks, with the greenback’s selling rate reaching as high as Rs. 340 in some instances, triggering concerns among businesses, industrialists and consumers over the potential impact on inflation, electricity tariffs and the broader economy.

The latest depreciation marks one of the sharpest daily movements in recent months and comes at a time when Sri Lanka is striving to consolidate economic gains achieved through painful fiscal and monetary reforms.

Banking and financial sector sources said increased demand for foreign exchange, coupled with market uncertainty and rising import requirements, had contributed to the weakening of the local currency.

The development is expected to increase the cost of imports across a range of sectors, including fuel, pharmaceuticals, food items, industrial raw materials and machinery.

Economists note that while exporters may benefit from higher rupee returns on foreign currency earnings, the wider economy is likely to face increased cost pressures.

“The exchange rate affects virtually every sector of the economy. Any sustained depreciation inevitably filters through to consumer prices and business operating costs, a senior financial analyst said.

Particular concern is being expressed within the energy sector, where electricity generation costs remain closely linked to movements in the exchange rate.

Sri Lanka continues to rely heavily on imported fuel and energy-related inputs, all of which are purchased in foreign currency. A weaker rupee therefore translates directly into higher generation costs for the power sector.

Energy economists warn that if the depreciation trend continues, the financial burden on the electricity sector could increase substantially, potentially paving the way for future tariff revisions.

The issue has gained added significance amid ongoing discussions on Sri Lanka’s long-term energy transition and commitments to reduce dependence on coal-fired power generation.

Several energy experts argue that the country is entering a delicate phase where policymakers must carefully balance environmental objectives with affordability and energy security.

According to industry observers, the gradual move away from coal-based electricity generation—supported by international climate financing frameworks and policy reforms associated with multilateral lending programmes—could increase the country’s exposure to imported fuel costs unless sufficient low-cost alternatives are developed in time.

They point out that coal has historically provided relatively inexpensive baseload power to the national grid. While renewable energy sources such as solar and wind are essential components of Sri Lanka’s future energy strategy, experts note that large-scale storage systems and backup generation capacity remain costly and technologically demanding.

As a result, any future reduction in coal-based generation without corresponding investments in affordable alternatives could place additional pressure on electricity prices.

The latest weakening of the rupee further compounds these concerns.

“Every depreciation of the rupee increases the local currency cost of imported fuel, spare parts, equipment and energy-sector obligations. Ultimately, those costs have to be absorbed either by the utility provider, the Treasury or consumers, an energy sector specialist observed.

Industrialists have meanwhile warned that rising electricity costs could affect competitiveness, particularly among export-oriented manufacturers that are already operating under challenging global market conditions.

By Ifham Nizam