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

“RDB Drives Unprecedented Growth with Record Profits Fueling Expansion and Development Impact”

Published

4 days ago

2026/04/12

Thilina Walpola

The Regional Development Bank (RDB) delivered an exceptional financial performance for the year ended 31 December 2025, recording an 86% year-on-year increase in Profit After Tax to LKR 2.37 billion. The Bank’s total income reached LKR 42.81 billion, driven by a 23.89% growth in Net Interest Income to LKR 24.23 billion, complemented by steady contributions from both interest and fee-based income streams. This performance highlights the Bank’s ability to optimise its asset base while sustaining a well-diversified and resilient revenue profile.

Marking its 40th anniversary in 2025, the Bank’s exemplary performance underscores the strength of its resilient operating model, disciplined execution, and its growing role as a catalyst for inclusive economic progress in Sri Lanka. Profitability metrics strengthened notably, with Return on Assets (ROA) improving to 1.70% and Return on Equity (ROE) increasing to 11.77%, demonstrating enhanced efficiency in capital deployment and earnings generation.

Commenting on the Bank’s performance, Chairman Lasantha Fernando stated,

“Our performance in 2025 reflects the strength of a purpose-driven banking model that successfully balances financial sustainability with national development priorities. As Sri Lanka progresses on its path to recovery, our commitment to enabling inclusive growth remains unwavering.”

The Bank continued to expand its development-focused lending portfolio, with loans and receivables growing by 23.59% to LKR 302.54 billion. This growth supported priority sectors including agriculture, SMEs, manufacturing, housing, and rural enterprises representing segments critical to national economic revitalisation. Importantly, this expansion was achieved alongside improved asset quality, with the Stage 3 impaired loans ratio declining to 4.06% from 6.25%, demonstrating robust credit risk management and effective recovery strategies.

Customer confidence remained strong, with deposits increasing by 11.85% to LKR 283.72 billion, driven by growth in both savings and fixed deposits. The Bank also maintained liquidity ratios well above regulatory thresholds, reinforcing its financial stability and resilience

Asanga Tennakoon General Manager/Chief Executive Officer, highlighted” last year’s results underscore the impact of disciplined execution, prudent risk management, and a strong customer-centric approach. Looking ahead, we will continue to expand our reach, strengthen digital capabilities, and deepen financial inclusion to create sustainable value for all stakeholders.”

Business

SLIC Life and SLIC General Create New Employment Opportunities

Published

4 days ago

2026/04/12

Thilina Walpola

New Trainee Insurance Assistants receiving their appointment letters from (L-R) Nalin Subasinghe (CEO of SLICLL), Nusith Kumaratunga (Chairman of SLIC) and Dr. Sameera Dharmasena (CEO of SLICGL

Sri Lanka Insurance Life Ltd (SLICLL) and Sri Lanka Insurance General Ltd (SLICGL) together appointed 112 Trainee Insurance Assistants, marking one of the largest recruitments across both companies in recent years.

Of the total intake, 87 candidates joined SLICGL while 25 candidates were appointed to SLICLL. This recruitment reflects the continued efforts of both companies to strengthen their workforce while contributing to employment opportunities.

The recruitment process was conducted through a structured and independent evaluation framework to ensure transparency and merit-based selection. Applications were invited from eligible candidates island-wide, followed by a written examination. Candidates who met the required benchmarks were shortlisted for interviews conducted by an independent panel, reinforcing fairness and credibility throughout the process.

The newly appointed Trainee Insurance Assistants represent a diverse and capable talent pool. Approximately 30% of the recruits are graduates, while all candidates possess the required academic qualifications, including G.C.E. Ordinary Level and Advanced Level certifications, or equivalent diplomas and higher qualifications.

This intake is aligned with the long-term focus of SLICLL and SLICGL on developing human capital and nurturing future-ready professionals within the insurance industry. The new recruits will have access to structured career growth opportunities, enabling them to build sustainable careers within the organisations. Efforts have also been made to assign employees to locations closest to their places of residence, subject to operational requirements, ensuring both efficiency and employee convenience.

Commenting on the appointments, Nusith Kumaratunga, Chairman of Sri Lanka Insurance stated, “The onboarding of this new group of Trainee Insurance Assistants reflected our continued focus on building strong and capable teams across both SLICLL and SLICGL. By maintaining a transparent and merit-based selection process, we remained committed to creating opportunities for talented individuals while strengthening the foundations for long-term organisational growth. This initiative also aligned with our broader role in supporting employment generation and contributing to the country’s economic progress.”

The official appointment ceremony was held on 7th April 2026 at the SLIC Head Office, in the presence of the Chairman and the Corporate Management of SLICLL and SLICGL, marking an important milestone in the organisations’ ongoing people development journey.

Business

99x Wins Five Awards at Best Management Practices Awards ‘26, Showcasing AI-led Transformation

Published

4 days ago

2026/04/12

Thilina Walpola

Team 99x winning the Overall Gold Award at the CPM Best Management Practices Awards 2026

99x, a leading global product engineering company, has secured five major accolades at the CPM Best Management Practices Awards 2026, including an Overall Gold Award, positioning the company among Sri Lanka’s top-performing organisations in management excellence. The company was also recognised as the Sector Winner for IT, Software & BPO Services, named among the Forty Outstanding Companies, and received the Best Management Practices Excellence Award. In addition, Hasith Yaggahavita, CEO of 99x, was honoured with the Leadership Excellence Award, acknowledging his role in driving the organisation’s AI-led transformation.

The recognition was awarded for 99x’s submission titled ‘Embracing AI: Rethinking Talent, Products & Services,’ which addressed one of the most pressing shifts facing the global technology services industry today. As AI continues to redefine how software is built and delivered, traditional outsourcing models are being challenged from reduced reliance on large engineering teams to a growing shift toward outcome-based delivery and faster go-to-market expectations.

Chatura De Silva, Chief AI Officer at 99x, stated, “Winning five awards at one stage is a proud moment for us as a team. While AI is driving change across the industry, what made this possible is how we chose to adapt to it. We recognised that AI is not just a layer on top of what we do, but that it changes the foundation of how value is created. This transformation was about connecting both our talent and delivery, while embedding AI across everything we do”.

Selected from over 150 award submissions, 99x was also among the top 10 organisations invited to present its journey at the CPM Management Insights Summit 2026, placing its transformation on a national stage among the country’s most forward-thinking enterprises. Chatura De Silva, Kalana Wijesekara, Chief Developer Experience Officer and Chrishan de Mel, Chief Marketing and Corporate Affairs Officer, presented 99x’s story.

Commenting on the significance of this year’s awards, Dilshan Arsakularathna, CEO of The Institute of Chartered Professional Managers of Sri Lanka, stated, “99x securing the Overall Gold Award among organisations across multiple industries reflects the level at which Sri Lanka’s IT sector is progressing today. It demonstrates how companies are building real capability and driving innovation that can confidently stand on a global stage. Notably, 99x has now become the first organisation to secure the Overall Gold Award twice across the five editions of the BMPC Awards. This remarkable achievement reflects their strong commitment to sustaining excellence and continuously embedding best management practices within their operations. What stood out with 99x was how they have adapted to change in a practical and forward-thinking manner, reshaping how they operate and deliver value, while setting a compelling benchmark for modern management practices.”