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WB: Migration wave key to South Asia’s economic future
Migrants from India, Pakistan, and Sri Lanka are well-represented in advanced economies like the United Kingdom, Canada, and Australia.
As job creation in South Asia struggles to keep pace with a booming working-age population, millions are looking beyond national borders for opportunity—fueling a powerful wave of migration that is reshaping economies both at home and abroad, the World Bank said in a report yesterday.
With the region’s adult population projected to grow by 22 million annually until 2030, and only 19 million jobs created each year over the past decade, migration has become a vital economic outlet. Today, South Asian migrants—who make up three percent of the region’s workforce—are doing more than just sending money home; they are driving trade, bringing back skills, and forging global connections that could transform the region’s development trajectory, if guided by smarter, forward-looking policies.
The report by Chief Economist, South Asia Region Franziska Ohnsorge and Senior Economist, Chief Economist Office for South Asia Zoe Leiyu Xie said: About half of South Asian migrants live and work in Gulf Cooperation Council (GCC) countries such as Saudi Arabia, the United Arab Emirates, and Qatar. These migrants—especially from countries like Bangladesh, Nepal, and Pakistan—typically work in low-skilled occupations under short-term contracts.
In contrast, a quarter of the South Asian diaspora resides in advanced economies like the United Kingdom, Canada, and Australia. Migrants from India, Pakistan, and Sri Lanka are especially well-represented in these destinations. This group is generally more educated. For example, over 60 percent of South Asian migrants in the United Kingdom hold post-secondary qualifications—far higher than the averages in their home countries and higher than migrants from other developing countries.
The difference in destination often determines not only the nature of employment and length of stay, but also the kind of contribution migrants can make to their home economies.
For many South Asian economies, remittances are a lifeline. Between 2020 and 2023, remittances averaged 4 percent of GDP across the region. In Nepal, it was 24 percent. These funds help families meet basic needs, invest in education, and weather economic shocks. But remittances are just one way South Asian diasporas contribute to their home economies.
Migrants contribute to development in many other ways.
Returning migrants bring back savings, skills, and global perspectives that go into entrepreneurship, local investment, and community development. Evidence from Bangladesh, for example, shows that returning workers often use their savings to start small businesses and increase household incomes.
Diaspora networks serve as bridges to frontier knowledge and international markets. High-skilled migrants, particularly in technology and services sectors, can spur innovation and enable cross-border business partnerships, even without their permanent return to the home country. India’s vibrant tech industry owes much to this dynamic.
Trade and investment ties often deepen between migrant-sending countries and host countries, as evidence from other countries has shown. U.S. states with large Vietnamese communities saw significantly faster growth in trade with Vietnam in the 1990s; FDI inflows in China in the 1970s were predominantly from high-income economies with large Chinese diasporas.
In short, migration is not just a one-way ticket to opportunity—it can be a two-way channel for growth and development. If supported by the right policies, migration can yield quadruple wins for the home country, the host country, migrants, as well as their families.
The Need for Smarter Migration Policies
To unlock the full benefits of migration, governments need to take a more proactive and strategic approach. International experiences such as those shared during the recent South Asia Labor Mobility Conference, hosted in Bhutan, offer several lessons:
Formal bilateral labor agreements can greatly improve outcomes for migrants. Skilling arrangements such as the Global Skill Partnerships complement these agreements and maximize benefits for all parties involved.
Pre-departure training and support matter. Korea’s Employment Permit System, which includes skills training, health insurance, and legal protections, has served over 56,000 migrants annually, many from South Asia. With proper preparation and safeguards, even low-skilled migration can deliver long-term gains.
Engagement with the diaspora helps. Policies that remove barriers to investment and trade and create platforms for knowledge exchange while diasporas are abroad, and encourage return migration can help translate brain drain into brain gain.
Support to reintegration helps smooth the transition to domestic labor markets. Policies that support business incubation, credit access, and job placement—can amplify the impact of returnees. Removing regulatory obstacles to their return and improving business climates will help encourage returnees to bring entrepreneurial ambitions and capital back.
In the face of sluggish growth and limited job creation, tapping the full economic potential of South Asia diasporas abroad is more important than ever. By shifting the focus from short-term remittances to long-term partnerships, South Asia can turn migration into a source of resilience, prosperity, and shared opportunity. By shifting the focus from short-term remittances to long-term partnerships, South Asia can turn migration into a source of resilience, prosperity, and shared opportunity.
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New circular issued to support disaster-affected Micro, Small and Self-Employed Businesses
A new circular has been issued by the Ministry of Finance, Planning and Economic Development to provide relief to micro, small and self-employed businesses affected by the emergency situation caused by Cyclone Ditwah. The circular has been issued in line with Circular No. 08/2025, which was introduced to restore disrupted livelihoods following the disaster.
The Government programme to empower communities affected by the disaster was introduced through Budget Circular No. 08/2025 dated December 5, 2025. Expanding this relief framework further and ensuring more effective and efficient delivery of assistance, additional circulars No. 08/2025(i) dated December 20, 2025 and No. 08/2025(iii) dated January 22, 2026 have been issued.
The social empowerment programme under the newly issued circular is structured as follows.
Assistance for affected individual, small and micro businesses
A one-time grant to restore businesses damaged by the disaster to a condition suitable for reopening.
LKR 200,000 for individual, small and micro-businesses registered with the Ministry of Industry.
LKR 200,000 for individual, small and micro-businesses registered with the Divisional Secretariat as a business entity.
LKR 50,000 for unregistered home-based businesses operated from a permanent structure.
LKR 50,000 per unit for unregistered production industries, including greenhouses.
LKR 25,000 for temporary business setups, including mobile and street hawking.
A grant will be provided to owners of the commercial buildings affected by the disaster to restore their business premises to operational condition.
A grant of Rs. 500,000/- will be provided to each business building owner who voluntarily opts to receive assistance without a damage assessment.
A grant of up to Rs. 5,000,000/- will be provided to each business building owner who opts to receive assistance after a damage assessment, based on the assessed value of the building.
In addition to the above grants, the following loan facilities have also been provided.
In addition to these grants, the Treasury has introduced a new credit scheme to provide loans for business owners whose enterprises were affected by the disaster, enabling them to restart their operations and meet essential requirements.
Accordingly:
Facilities have been provided for affected businesses to obtain loans ranging from Rs. 250,000 to Rs. 25,000,000 through the banking system at an interest rate of 3%, with a 6-month grace period and repayment over 3 years to restart their operations.
As part of the investment loans for business reconstruction, entrepreneurs whose businesses were damaged can access bank loans of up to Rs. 25 million at an interest rate of 5%, with a 12-month grace period and repayment over 10 years.
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Food safety practices should not be confined to the school curriculum alone, but must become an integral part of the attitude and daily behavioral patterns of the child -PM
Prime Minister Dr. Harini Amarasuriya stated that food safety practices should not be confined merely to the school curriculum, but should be nurtured as an integral part of a child’s attitudes and behavioral patterns.
The Prime Minister made these remarks today (28) while addressing the National Workshop on Education for Building and Strengthening a Domestic Circular Economy, held at the Galle Face Hotel, Colombo, under the Circular Economy in the Food Sector Project (2024–2027).
Implemented with financial support from the European Union, under the Global Gateway programme in collaboration with the Food and Agriculture Organization of the United Nations (FAO), the workshop aimed to identify challenges and opportunities in integrating circular economy concepts into school education; to develop practical action plans through policymakers, youth and skills development sectors, and formal education stakeholders; and to establish a educational foundation to promote sustainable circular economy practices in the food sector of Sri Lanka by 2027.
The Prime Minister stated:
“Education is not merely about passing examinations and securing employment. True education fosters a sense of responsibility and connection towards society and the environment. At present, what is most important is the concept of the circular economy, which promotes the repeated and efficient use of resources.
This concept is not unfamiliar to our ancestors. I am reminded of my grandmother, who demonstrated remarkable skill in minimizing food waste. From what we discard today such as passion fruit peels, she prepared delicious jams and chutneys. Even the metal lids of milk bottles were not thrown away. Instead, she transformed them into creative household decorations. ’Nothing should be wasted’ was a core philosophy of their way of life.
However, today, women deal with intense time pressures. Balancing employment and childcare responsibilities, food waste such as vegetables or cooked meals left unused in refrigerators has become increasingly common due to time restrictions. This should not be seen as the sole responsibility of women; rather, household responsibilities and labour must be shared collectively within the family”.
The Prime Minister further emphasized that practices such as taking only the required portion of food, cleaning one’s own plate, and developing respect for conserving resources should not remain theoretical lessons, but should be embraced as everyday life practices. She also reaffirmed that the Ministry of Education would extend its full support towards achieving this goal.
The event was attended by Carmen Moreno, Ambassador of the European Union to Sri Lanka and the Maldives; Dr. Johann Hesse, Head of Cooperation of the European Union; FAO Representative Vimlendra Sharan; along with representatives from the National Institute of Education (NIE), and a number of government and non-governmental organizations.

[Prime Minister’s Media Division]
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Cabinet nod for MOU between Sri Lanka and Romania on the cooperation in the Labour Field
Romania, a country that has maintained diplomatic relationship with Sri Lanka for several decades in various fields, has become an increasingly popular destination among Sri Lankan skilled and semi-skilled Labour categories, especially in the fields of construction, manufacturing, hospitality, and services sectors.
At present, the recruitment of Sri Lankan workers to Romania is carried out by licensed private employment agencies under the
supervision of the Sri Lanka Foreign Employment Bureau. However, since both parties have recognized the need of establishing a more organized and sustainable recruitment method due to increasing demand, the Cabinet of Ministers has approved the proposal presented by the Minister of Foreign Affairs, Foreign Employment, and Tourism to enter into a Memorandum of Understanding between the Government of the Democratic Socialist Republic of Sri Lanka and the Government of Romania regarding cooperation in the field of the labour sector with the following objectives.
• Establishment of proper mechanism for recruitment and management of workers.
• Promotion of ethical and transparent recruitment practices.
• Protection of rights and welfare of the migrant workers.
• Facilitation of regular discussions between the formal and relevant authorities ofboth countries.
• Improvement of technical cooperation, skills recognition, and capacity building in the labour sector.
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