Business
Good Riddance to the FBR: What Next to Increase Migrant Remittances to Sri Lanka?
By Dr Bilesha Weeraratne
The decision by the Cabinet to partially lift the Family Background Report (FBR) requirement for female migrants is long overdue and a welcome move to promote female labour migration from Sri Lanka. The discriminatory FBR policy was introduced in June 2013 in order to restrict females with children under the age of five and to discourage females with older children from taking up foreign employment. The FBR initially covered only female domestic worker departures, but in August 2015, this was expanded to cover all females. As a result, from 2013 onwards the dominance of women among worker departures declined significantly.
The FBR’s Intended Objectives
The FBR requirement was introduced based on the notion that a mother’s absence has negative social implications for the children left behind. Generally, this is an acceptable argument. However, it is important to consider the economic context and income constraints faced by the mother, the related stress and other facets that contribute to the wellbeing of a child. The critical weakness around the introduction of this policy was the absence of sound empirical evidence of the negative social impacts brought about by the absence of the migrant mother, which the policy aimed to address. Similarly, the continuation of the policy lacked empirical evidence to prove any improvement to the wellbeing of children of mothers held back by the policy. Hence, although the FBR purportedly “protected against family breakdown,” it is unclear whether staying together as a family contributed to the greater well-being of the children”.
Outcomes of the FBR Policy
Apart from the absence of evidence confirming any positive outcome of the policy, there was ample evidence of the unintended negative consequences. Research conducted by the Institute of Policy Studies of Sri Lanka (IPS) in 2016 showed that although the FBR was successful in restricting females migrating for domestic work, the policy promoted migration outside Sri Lanka’s legal framework or through visitor visas and thus increasing their vulnerability at destination. Additionally, vulnerability was heightened due to women resorting to corrupt practices to circumvent the FBR requirement by forging documents. In 2015, the price of a forged FBR ranged from LKR 25,000-85,000. Often, these amounts were paid by the sub-agent or the licensed recruitment agent, leading to abuse and exploitation of the potential migrant women during recruitment. Similarly, FBR is also associated with delays in the recruitment process.
More recent evidence from IPS research shows that the FBR policy resulted in decreased departures among lower-skilled groups and increased departures among middle-level and professional workers. This increase in higher-skilled workers is linked to FBR-related corruption and misreporting of skills to avoid the policy. Thus, the policy is associated with greater involvement of lower-skilled workers in recruitment-related corruption, higher exposure to recruitment-related vulnerability, and lower foreign employment opportunities. One of the most critical gaps in this policy as highlighted in previous IPS research was the absence of a mechanism to support those who were “not recommended” for migration under the FBR and were forced to remain in Sri Lanka with their children.
Reluctance to Reverse
Until its removal in June 2022, the FBR policy had been revisited several times. For example, in 2016, as a result of research evidence and lobbying by different stakeholders, a Parliamentary Sub-committee was established to review the policy. As noted by the author in another study for the Global Knowledge Partnership on Migration and Development (KNOMAD), the then ministry-in-charge and the Sri Lanka Bureau of Foreign Employment (SLBFE) encouraged repealing the FBR based on both evidence and stakeholder perceptions. Yet, the Sub-committee favoured continuation of the policy. Despite mounting evidence and support from the relevant stakeholders, the FBR mandate remained for nine years mainly due to the absence of political will to accept evidence-based research and advice by qualified/relevant stakeholders. The underlying reason for this was the possible political backlash for removing a populist policy – though not backed by an iota of evidence.
Increasing Formal Remittances
Migration and remittances can contribute significantly to bridge Sri Lanka’s foreign exchange shortage. Research reveals that compared to men, women are more reliable remitters, although their wages are relatively lower. As such, it is important to facilitate foreign employment opportunities for women. The removal of the FBR requirement is likely to increase female departures by enabling women to make a labour market decision independent of their maternal status, while minimising delays and vulnerability in the recruitment process.
However, to reap the desired outcome of more remittances from higher departures, the new stock of females departing for foreign employment in the absence of the FBR must be convinced to remit through formal channels. Here, it is important to identify the key demographics of this segment of migrants who now face more relaxed regulations for migration (likely to be married women with mostly young children and leaving children in the care of a female extended family member) and design incentives accordingly.
In addition to the traditional incentive schemes proposed in recent weeks to promote formal remittances, a few recommendations targeting female migrants are as follows:
1. Provide unmatched incentives for remittances sent through children’s bank accounts.
a. For every X amount (i.e. USD 100) remitted per month through a child’s bank account
i. Y amount (i.e. USD 5) will be contributed by the state towards an education fund account for that child maintained in the same bank, which can be withdrawn annually for year-end educational expenses.
ii. Tie a children’s medical insurance, where medical reimbursement to the value of Y amount (i.e. LKR 2000) per month can be received.
iii. Receive a child nutrition pack
b. Once remittances sent through the child’s bank account exceed X amount (i.e. USD 1000),
i. The child will receive a free life insurance cover.
ii. Become eligible for an internship at the bank upon reaching the age of 18.
2. Tie incentives for remittances through support towards the children’s caregiver.
a. For every X amount (i.e. USD 100) remitted per month through a bank account
i. Receive a caregiver nutrition pack worth Y amount.
ii. Receive a caregiver medical care insurance coverage.
Link to the blog: https://www.ips.lk/talkingeconomics/2022/07/04/good-riddance-to-the-fbr-what-next-to-increase-migrant-remittances-to-sri-lanka/
Sri Lanka is not quite ready to join the Regional Comprehensive Economic Partnership (RCEP), since it is lacking sufficient development, Trade Ministry Secretary K.A. Vimalenthirarajah said.
‘At present the Trade Ministry is establishing Sri Lanka’s readiness to join RCEP, which consists of 15 countries, through several channels, Vimalenthirarajah said at a recent round table discussion titled, ‘Sri Lanka’s Pathway to RCEP and the Emerging Global Trading Order’, organized by the Pathfinder Foundation and held at the Colombo Club, Taj Samudra.
‘Sri Lanka is actively accelerating its compliance efforts to join the 15-nation RCEP having submitted its required accession questionnaire in early 2026, he explained.
Vimalenthirarajah added: ‘The Cabinet has established a high-level policy and working committee and also obtained some technical assistance from multilateral partners because complying with RCEP requirements is challenging. Subsequently, this body responded to the follow-up questions that came up and had discussions with RCEP representatives and it expects more follow-up questions with regard to Sri Lanka’s readiness to join RCEP.
‘Sri Lanka has also secured political and diplomatic support from current RCEP members, including Australia, New Zealand, and Indonesia, to facilitate its entry process.’
Meanwhile, state officials, including Industries and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, are implementing key economic structural reforms, a new tariff policy, and transparent investment criteria required by the bloc. Because formal accession protocols for RCEP are still being finalized, Sri Lanka is also simultaneously negotiating bilateral trade and investment agreements with regional members to accelerate integration.
Abeysinghe, participating virtually in the event said that Sri Lanka cannot achieve sustained export growth and attract large-scale investment by relying solely on its domestic market. ‘As a small economy, the country’s future lies in deeper integration with regional and global value chains. RCEP connects 15 economies, including Japan, South Korea, Australia, New Zealand, China and ASEAN member states, collectively accounting for nearly 30% of global trade, he explained.
Abeysinghe added: ‘Access to such a market would create new opportunities for Sri Lankan businesses, particularly the country’s Small and Medium Enterprises (SMEs), which currently contribute only around 10 percent to national exports.
‘However, Sri Lanka is at least a decade behind in implementing many of the reforms required to fully participate in modern global trade. Recognizing this challenge, the government is now moving forward with several critical reforms: A new tariff policy to improve competitiveness and eliminate barriers to trade, transparent and predictable investment criteria, investment facilitation reforms to improve the ease of doing business, new legislation including the Public-Private Partnership (PPP) Act and SOE reforms to strengthen investor confidence and measures to improve investment protection and unlock new sources of capital, including venture capital and angel investment funds.
‘Sri Lanka’s exports currently stand at approximately US$ 17 billion and have grown only gradually over the years. Expanding market access through bilateral and multilateral agreements, while continuing domestic reforms, is essential if the country is to achieve its long-term economic ambitions.’
By Hiran H Senewiratne
In a landmark development for Sri Lanka’s organic spice sector, Pussalla Agri Ventures has been awarded both EU Organic and USDA Organic certifications for its premium Ceylon cinnamon products. The certifications were officially conferred at Control Union Sri Lanka, signaling a major milestone in the company’s strategic transformation toward fully certified organic operations.
The recognition strengthens Pussalla Agri Ventures’ position as an emerging exporter of certified organic products, with its flagship offering, organic Ceylon cinnamon (Cinnamomum verum, also known as Cinnamomum zeylanicum), cultivated in Sri Lanka’s traditional cinnamon-growing regions.
Notably, the dual certification opens doors to some of the world’s most lucrative and compliance-driven organic markets, including the European Union and the United States.
Pussalla Agri Ventures began its structured transition into organic cinnamon cultivation several years ago, building a fully integrated system covering cultivation, processing, and value addition. The company currently manages extensive cinnamon cultivation lands and operates under strict organic agricultural principles, ensuring compliance with global certification standards.
These certifications, issued through Control Union Sri Lanka, validate that the company’s farming and processing systems meet rigorous international requirements, including restrictions on synthetic chemicals, comprehensive traceability controls, and environmental sustainability practices. These certifications add to an existing portfolio that already includes SL GAP, Food GMP, and Cosmetic GMP certifications.
Company representatives described the achievement as a “milestone” in the Pussalla organic journey, one that paves the way for expanded access to premium export markets in Europe and the United States. According to them, the certifications are expected to enhance buyer confidence, particularly among health-conscious consumers and clean-label food brands.
Pussalla Agri Ventures emphasised that its organic cinnamon is sourced entirely from its own cultivated estates.
“This estate-to-exporter integration ensures full control over quality, traceability, and processing integrity. The company’s model allows cinnamon to be harvested, processed, and packed under continuously monitored conditions, maintaining strict alignment with international organic standards,” they noted.
Speaking further they said:
“Sri Lanka supplies the majority of the world’s True Ceylon Cinnamon, a spice prized for its delicate aroma, low coumarin levels, and reputed medicinal properties. The growing global demand for certified organic spices has created new opportunities for local producers who meet international compliance standards. Pussalla Agri Ventures’ certification achievement places it among a select group of Sri Lankan exporters adopting globally recognised organic systems, thereby enhancing the country’s reputation in high-value spice markets.”
“As organic food sales continue to rise in North America and Europe, certifications such as these are becoming essential rather than optional. For Pussalla Agri Ventures, the journey from conventional to certified organic is not merely a compliance exercise but a strategic repositioning aimed at long-term sustainability and premium pricing power.”
By Sanath Nanayakkare
The National Chamber of Commerce of Sri Lanka (NCCSL) will host a timely and insightful seminar titled “Data Protection & Privacy: Safeguarding Businesses in the Digital Era” on 18th June 2026, from 9.00 a.m. to 12.30 p.m., at the National Chamber of Commerce Auditorium, Colombo 10 with the objective of enhancing awareness among businesses on emerging cyber risks, data protection requirements, and digital security best practices.
As organizations increasingly rely on digital platforms, online transactions, cloud-based systems, and data-driven operations, protecting sensitive information and ensuring privacy compliance have become critical priorities for organizations of all sizes. The seminar aims to provide practical knowledge and strategic guidance to help businesses strengthen resilience against cyber threats while fostering trust and confidence among customers and stakeholders.
Interested parties are encouraged to register by contacting Udula – 0714034775/ 0114741788 | udula.nccsl@gmail.com or Nishanthi – 0762555707 | nishanthi@nationalchamber.lk
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