Business

Good Riddance to the FBR: What Next to Increase Migrant Remittances to Sri Lanka?

Published

4 years ago

2022/07/8

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/

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Business

Sri Lanka’s 2.3% inflation is a useful macro indicator, but it acts as a veil, says analyst

Published

19 hours ago

2026/02/2

Thilina Walpola

Inflation projections made at the monetary policy round in January 2026 indicate a gradual acceleration of inflation towards the target of 5% by the second half of 2026, with the support of appropriate policies.

Disconnect between national statistics and household sentiment illustrated

Although official data points to a stable headline inflation rate of 2.3%, an independent economic analyst told The Island Financial Review that the public should look beyond this single figure.

Speaking on condition of anonymity, the analyst said, “That 2.3% is a crucial macroeconomic indicator for policymakers, but for the average household, it acts more like a veil. It obscures the sharply different economic realities in different sectors of the economy and, consequently, in different people’s lives.”

“You see, the aggregate is an average, a blend of everything from falling transport costs to soaring medical bills. But no family buys the ‘average’ basket. Your personal inflation rate is dictated by your unique spending pattern, and right now, those patterns are creating winners and losers in a low-inflation environment.”

He illustrated this by taking three contrasting Sri Lankan households.

“Consider a retired couple: their budget is dominated by healthcare, which is inflating at 4.2%, and perhaps occasional treats at restaurants, up 4.0%. For them, the cost of living is rising nearly twice as fast as the headline suggests. That 2.3% figure is of poor comfort to them.”

“Conversely, take a young professional who commutes; they are a direct beneficiary of the 0.9% deflation in transport. Their major expenses – fuel and vehicle maintenance – are supposed to be getting cheaper. Even if education inflation is high, it doesn’t affect them. This individual might feel almost no pinch, experiencing a personal inflation rate of about 1%. The headline number overstates their hardship.”

The analyst expressed his deepest concern for the typical family. “This is where the veil is most dangerous,” he said. “A family with school-going children is hit from multiple sides: Education at 3.9%, daily groceries at 3.3%, and clothing at 3.6%. The slight relief from cheaper transport is negligible against these heavy, non-negotiable expenses. Their budget is being squeezed relentlessly, a pressure the calm 2.3% aggregate completely masks.”

The analyst concluded that this sectoral divergence explains the disconnect between national statistics and household sentiment.

“When people hear ‘inflation is low and stable,’ but feel their wallet straining, it’s not ignorance. It’s because their personal basket is heavy with the sectors that are heating up – essential services, education, and food. The 2.3% is a useful indicator for the economy at large, but it should not blind us to the fact that many families are experiencing a much harder personal financial reality. Lifting that veil is key to understanding the true cost of living.”

by Sanath Nanayakkare

Business

Sri Lanka explores climate finance after Cyclone Ditwah

Published

19 hours ago

2026/02/2

Thilina Walpola

SLYCAN Trust convenes key forum on loss and damage funding

As Sri Lanka seeks funds as a climate-vulnerable nation, SLYCAN Trust convened a High-Level Forum on Climate Finance and Climate-Related Extreme Events in Colombo on January 20, 2026. The forum focused on improving access to finance for recovery and resilience, particularly following the severe impacts of Cyclone Ditwah in late 2025.

Dennis Mombauer, Director of Research and Knowledge Management at SLYCAN Trust, emphasised the urgency of building long-term resilience and addressing loss and damage.

“This Forum convenes key actors to identify pathways for accessing finance and managing climate risks,” he stated.

In a virtual keynote, Mathilde Laurans, Deputy Executive Director of the Fund for Responding to Loss and Damage (FRLD), announced that the fund opened its first call for proposals on December 15, 2025, with submissions accepted until June 15, 2026. “This milestone means that countries like Sri Lanka can now engage with us for support,” she said.

K.K.A. Chamani Kumarasinghe, Additional Director at Sri Lanka’s Climate Change Secretariat, highlighted the extensive damage caused by Cyclone Ditwah and stressed the need to strengthen response systems. She commended SLYCAN Trust for creating platforms that connect global climate processes with national priorities.

The forum included panel discussions with representatives from international climate finance institutions and technical experts, focusing on practical steps to enhance Sri Lanka’s climate resilience and improve local-level access to finance.

Business

Browns Hotels & Resorts brings a century of tea heritage to life at Newburgh Ella

Published

20 hours ago

2026/02/2

Thilina Walpola

The ribbon cutting marking the official opening of the resort

In the mist-veiled heart of Sri Lanka’s hill country, where Ella has earned global recognition as one of the island’s most photographed destinations, Browns Hotels & Resorts introduces a new chapter in experiential hospitality with Newburgh Ella – The Tea Factory Resort. Once a working tea factory, the century-old estate, originally established in 1903 by the legendary Scottish tea planter George Thomson, has been carefully transformed into a luxury resort, preserving its industrial character and historical soul while elevating it into an immersive experience. Set against dramatic mountain backdrops and defined by its iconic orange chimney, the resort commands world-famous views of the Ella Gap, framed by Ella Rock and Little Adam’s Peak — where landscape, legacy, and luxury converge.

On 30 January 2026, Newburgh Ella officially opened its doors to travellers from around the world with a ceremonial launch attended by Eksath Wijeratne, CEO of Browns Hotels & Resorts; Gangadaran Velsamy, General Manager of Newburgh Ella; Priyal Perera, Head of Projects and Procurement; Nishad Rajapakse, Manager – Engineering; along with key officials from Browns Hotels & Resorts. The event featured traditional regional performances and a ceremonial presentation of the first keycards to Newburgh Ella’s inaugural guests by the resort staff.

This unveiling marks the soft opening of Newburgh Ella, with the property currently progressing through its LEED and green certification processes. As part of its sustainability journey, the resort operates on a fully paperless concept, with digital check-in and digital menu systems in place, reinforcing Browns Hotels & Resorts’ commitment to responsible and future-ready hospitality.

Located on the Ella–Passara main road, near the Nine Arch Bridge and Pekoe Trail, Newburgh Ella features 41 thoughtfully designed rooms, categorised as Silver, Gold, and Bronze — inspired by the hierarchy of tea tips. The resort includes special family rooms, exquisite suites, and full wheelchair accessibility, offering inclusivity without compromise. Guests can witness sunrises and sunsets unfold directly from their rooms, framed by emerald vistas, connecting them to the rhythm of the hills.

Dining at Newburgh Ella celebrates the estate’s relationship with tea, land, and craft. 1903 – The Dining Room offers all-day dining with local and international flavours. Eastern Valley, an open-air restaurant, presents Pan-Asian cuisine, while Three Tips, the tea lounge, invites guests to savour the estate’s finest teas. The resort’s bar, George Thomson – The Founder’s Tavern, features specially curated beverage menus inspired by the region, reflecting the warmth of Browns hospitality. Together, these experiences offer the luxury of tea factory living, blending heritage, craft, and modern comfort.

Beyond its spaces, guests can explore Ella through curated experiences — from estate walks and visits to Ravana and Diyaluma Falls to scenic railway journeys. SKY, the resort’s observation deck, offers breathtaking vistas over tea-carpeted valleys and the world-famous Ella Gap.

Commenting on the launch, Eksath Wijeratne, CEO of Browns Hotels & Resorts, said:

“Tea is one of Sri Lanka’s most powerful global stories, and with Newburgh Ella, we wanted to honour that legacy while creating an experience that goes beyond aesthetics. Guests can connect with the very process, the people, and the land that give Sri Lanka tea its global recognition. At the same time, this project supports the local community, with many former factory staff now part of the resort team, ensuring heritage, sustainability, and hospitality thrive together.”

With the unveiling of Newburgh Ella – The Tea Factory Resort, Browns Hotels & Resorts continues to expand its portfolio of story-led destinations across Sri Lanka, inviting travelers to experience tea country differently — where the finest grade of tea meets the finest grade of stay, steeped in history, character, and heart.

: A Gold Tip Room at Newburgh Ella with a private balcony

: Eksath Wijerathne, Chief Executive Officer with Priyal Perera, Head of Projects and Procurement with Gangadaran Welasamy unveiling the property signage for Newburgh Ella