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

AIA delivers strong first half results in 2026; double-digit growth across key financial metrics

Published

22 hours ago

2026/09/5

Thilina Walpola

The Board of AIA Group Limited (the “Company”) is pleased to announce the Group’s financial results for the six months ended 30 June 2026. Growth rates are shown on a constant exchange rate basis unless otherwise stated:

New business performance and embedded value

Value of new business (VONB) of US$3,212 million, up 10 per cent overall and 14 per cent excluding Thailand(1)

Record high annualised operating ROEV of 18.0 per cent, up from 15.8 per cent in full year 2025

EV Equity of US$83.4 billion, up 6 per cent per share over the first half on an actual exchange rate basis

IFRS earnings

Operating profit after tax (OPAT) of US$4,163 million, up 13 per cent per share

AIA now expects to exceed OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026(2)

Record high annualised operating ROE of 17.5 per cent, up from 15.5 per cent in full year 2025

Cash generation and capital returns

Underlying free surplus generation (UFSG) of US$3,935 million, increased by 10 per cent per share

Net free surplus generation (net FSG) of US$2,758 million, up 12 per cent per share

US$3.6 billion returned to shareholders in the first half through dividend and share buy-back

Interim dividend increased by 10 per cent to 53.90 Hong Kong cents per share

Lee Yuan Siong, AIA’s Group Chief Executive and President, said:

“AIA has delivered another strong performance in the first half of 2026, with double-digit growth across our key financial metrics, while continuing to return substantial capital to shareholders. VONB reached a record high of US$3.2 billion with growth across all distribution channels, and all reportable segments excluding Thailand. The Group has achieved 17 per cent CAGR since the first half of 2023(3), demonstrating consistently strong demand for AIA’s professional advice and differentiated products.

“At the core of our unrivalled distribution platform is our market-leading Premier Agency. I am delighted that AIA has once again been ranked the number one Million Dollar Round Table (MDRT) multinational company globally. We have held this position for a record 12 consecutive years and we have more than double the number of MDRT members of our nearest competitor. In the first half of 2026, our Premier Agency achieved strong VONB growth of 11 per cent excluding Thailand(1). Our extensive network of strategic distribution partners further expands our market reach and generated an 18 per cent increase in VONB, supported by very strong performance in both the bancassurance and independent financial adviser (IFA) and broker channels.

“Strong new business, together with disciplined management of our in-force portfolio, has supported sustained growth in recurring earnings with OPAT per share up by 13 per cent in the first half. As a result, we expect to exceed our 9 to 11 per cent OPAT per share CAGR target for 2023 to 2026(2). UFSG, the Group’s core measure of operating cash generation, increased by 10 per cent per share. After allowing for new business investment, net FSG increased by 12 per cent per share. In accordance with our prudent, sustainable and progressive dividend policy, the Board has declared a 10 per cent increase in the interim dividend to 53.90 Hong Kong cents per share. These achievements demonstrate that our financial strategy is working as intended.

“Asia remains the most compelling growth opportunity for life and health insurance. Powerful structural tailwinds across the region continue to create substantial demand for our professional advice and differentiated products and underpin the exceptional long-term prospects for AIA’s business. I am confident that AIA’s disciplined execution of our strategic priorities will continue to deliver long-term sustainable value for all our stakeholders.”

Business

British Council Sri Lanka launches soft skills workshops to elevate learning and empower communication

Published

22 hours ago

2026/09/5

Thilina Walpola

The British Council team answering questions on Corporate English Solutions from leading corporates about professional development skills courses

The British Council Sri Lanka has launched Corporate English Solutions (CES), tailored to the Sri Lankan corporate and education ecosystem, aimed at helping organisations strengthen workplace communication and professional development.

The launch event took place recently at the NH Collection, Colombo 3, gathering corporate partners, clients and education stakeholders throughout the country.

CES extends the British Council’s long-standing work in English language education and teacher training into a dedicated offering for the corporate sector. The launch introduced two new components to the British Council’s presence in Sri Lanka such as public workshops and teacher training programmes, open to learners and educators beyond the organisation’s existing corporate and academic partners. Guests at the event were shown a short video introducing Corporate English Solutions before the formal proceedings began.

Talal Meer, British Council Regional Business Development Director, South Asia, welcomed guests and introduced the British Council’s team in Sri Lanka. In his remarks, Meer set out the scope of the CES launch, covering the introduction of public workshops in Sri Lanka, the rollout of teacher training programmes, and an overview of the CES product portfolio. Meer’s role covers educational partnerships in the South Asia region, and his address framed the Sri Lanka launch within the British Council’s broader regional strategy.

Business

Ogilvy Group tops award tally at ‘Dragons of Sri Lanka’ 2026

Published

22 hours ago

2026/09/5

Thilina Walpola

Ogilvy Group Sri Lanka delivered a standout performance at the recently concluded Dragons of Sri Lanka 2026 Awards, securing a total of nine awards comprising two Gold Dragons, one Silver Dragon and six Black Dragons, among the festival’s highest overall award tallies. Gold Dragon wins for Phoenix Ogilvy and Ogilvy Digital, together with the seven additional recognitions across multiple categories, highlighted Ogilvy’s ability to combine creativity, strategic thinking and commercial effectiveness to deliver business results.

Organised by the 4As Sri Lanka, the third edition of Dragons of Sri Lanka shortlisted more than 50 agencies and corporates, making it one of the country’s most competitive marketing communications awards. These local awards, along with the chapters in Malaysia and Pakistan are part of the Dragons of Asia platform, one of the region’s leading programmes for marketing communications effectiveness, with entries being judged on strategy, originality, execution and measurable results.

Ogilvy Digital accounted for eight awards in total, including a Gold Dragon in the Business & Trade Marketing category, and a Silver Dragon in the Innovative Idea or Concept category. The Agency additionally received six Black Dragons across the categories of Innovative Idea or Concept, Business & Trade Marketing, Content Creation, Small Budget, Event or Experiential, and Brand Trial or Sales Generation.

Commenting on the achievement, Sajith Weerasinghe, Chief Operating Officer of Ogilvy Digital, said, “These recognitions reflect the breadth of capabilities we’ve built across strategy, creative, content, experience design, technology and performance marketing. The fact that the work was recognised across so many different disciplines demonstrates our ability to apply creativity to a wide range of business challenges and objectives. We’re proud that this achievement spans multiple clients, categories and types of work, reflecting both the versatility of our people and our commitment to delivering results.”