Business

Youth migration: Challenges and opportunities for Sri Lanka

Published

4 years ago

2022/02/9

By Thisuri Ekanayake

A great deal of discussion is underway on what appears to be the latest wave of migration from Sri Lanka. These conversations focus on the desire of young people to migrate in search of greener pastures in the face of the soaring cost of living and uncertainty about the country’s future. While the exact scale and nature of youth migration remain unclear, the costs of brain drain dominate these discussions. The brain drain concern is valid, yet focusing on it alone can limit our understanding of the complex implications of migration. This blog argues that apart from its challenges, youth migration can also present some surprising opportunities for socio-economic development if strategically managed.

Youth Migrants

According to the latest Social and Economic Statistics and the Labour Force Surveys of Sri Lanka, departures for foreign employment among young people aged 15-29 years in relation to their population has not seen a noticeable rise in the recent past.

While it can be argued that the perceived increase in migration is a more recent phenomenon accentuated by the pandemic in 2020, it is also possible that young people depart more frequently for other pursuits such as education, for which statistics are not publicly available. To further complicate matters, it is unclear whether most youth consider education as a pathway for long-term residence abroad or intend to return to Sri Lanka with their acquired qualifications.

An Opinion Tracker Survey carried out by the Institute of Health Policy provides a clearer answer. This survey suggested that youth aged 18-29 have the highest desire to migrate at around 48%. But it was people in areas such as the Western province who indicated greater capability of preparing for migration. This is likely due to the high initial cost including airfare, tuition fees, and initial living expenses. Departures in categories other than short-term employment, therefore, seem to be mainly associated with high and middle-income groups. One frequently discussed implication of this is brain drain or the emigration of highly knowledgeable people. Out-migration can also affect economic growth as these social segments provide a stable source of demand for goods and services and contribute to investments. Beyond economic impacts, such communities also hold significant socio-political power in the country. Although understanding the full extent of the desire of young people to migrate remains difficult due to the lack of comprehensive data, a more strategic approach is still warranted to mitigate the adverse effects of migration and leverage its unique advantages.

Youth Migration and Development

Return Migration

As human capital is one of the most valuable resources in Sri Lanka, brain drain can be detrimental. Conversely, return-migration of those who have acquired greater knowledge and skills would increase the stock of human capital. However, the challenges of absorbing returning youth must also be acknowledged, since there can be a mismatch in acquired skills, expectations, and the existing labour market demand. Aside from this, a high unemployment rate (26.5%) among those aged 15-24 years is already prevalent in the country. As such, it is necessary to create more opportunities for youth especially in areas such as science and technology which have a potential for growth and innovation, and also facilitate a conducive business environment and financial system so that knowledge and skills can be utilised in a productive, profitable manner.

Remittances

Migration and remittances have been widely discussed in relation to the current foreign exchange shortage in the country. Although there is some difficulty in estimating the remittances by the youth alone due to data availability, the Sri Lanka Foreign Employment Bureau finds that in 2020, the overall highest contributions originated from areas such as the Middle East (51.7%) and the European Union (19%) whereas destinations such as North America or Australia and New Zealand only account for 2.5% of the total remittances each. This can be expected as many who depart to the former regions are temporary workers regularly remitting to support their families and livelihoods in Sri Lanka.

There is some potential then, to improve flows from the latter regions with sizable communities of Sri Lankans or those of Sri Lankan origin. Proactive engagement of young people can be carried out especially through networks such as school or university alumni associations, voluntary groups, and educational institutions in collaboration with government and non-government bodies.

Investment

As a somewhat risk-averse society, investment and entrepreneurship in Sri Lanka tend to suffer, especially among the youth. But this is understandable given the volatile economic conditions, relatively poor business environment (99th position in the Ease of Doing Business Index in 2020), limited capital, and negative societal attitudes. Conversely, youth from diaspora communities, once securely established are likely to have greater access to capital and may also be less risk-averse due to their exposure to new norms and attitudes.

Another benefit of connecting with expatriate communities is that they tend to be mutually interested in maintaining ties with their country of origin due to various reasons including economic opportunities, a desire to support family and friends and even to contribute towards national development. Identifying and communicating opportunities, as well as facilitating ventures through simpler processes and incentives are some measures that can be taken to achieve this win-win outcome.

In short, while some young people have recently shown a greater desire to migrate, this scenario presents both challenges as well as opportunities. Young migrants residing abroad maintain a significant potential to contribute to Sri Lanka’s development if they are proactively engaged. However, such initiatives should be carried out with caution since false commitments and major inconveniences can dishearten and discourage migrant communities from further attempts at maintaining ties with their motherland.

Link to the full Talking Economics Blog: https://www.ips.lk/talkingeconomics/2022/02/07/youth-migration-challenges-and-opportunities-for-sri-lanka/

Thisuri is a Research Assistant working on migration and urbanisation policy research at IPS. She holds a BA (Honours) in Economics from the University of Colombo. Thisuri participated in the 2020 IMF Fund Challenge and was selected to present a paper at the FISU World Conference on Innovation, Education and Sport in Lucerne, Switzerland. As an undergraduate, Thisuri received a scholarship for obtaining the best results in the first-year examination of the Faculty of Arts. (Talk with Thisuri: thisuri@ips.lk)

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Business

Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

Published

16 hours ago

2026/05/9

Priyan

Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

Business

SL to launch first Dedicated Sustainable Tourism Association in South Asia

Published

18 hours ago

2026/05/9

Thilina Walpola

Tourism personnel at the press briefing

‘Sri Lanka embarks on a journey towards a more sustainable and prosperous tourism industry.’

The Executive Committee of the Sustainable Tourism Association of Sri Lanka (SusTour) announced the above at its final meeting held on May 6, at Connaisance head office, Colombo. The committee finalised all preparations for the official launch in August of the first private sector led, non-governmental Sustainable Tourism Association in South Asia, as most tourism associations in Asia operate as dedicated Eco Tourism entities while this is probably the first in Asia.

This momentous event will be officiated by Prof. Ruwan Ranasinghe, the Deputy Minister of Tourism, who has agreed to inaugurate the Association in conjunction with a media launch.

Prof. Ranasinghe is not only a qualified academic specializing in sustainable tourism but also a passionate advocate for the development of sustainable tourism practices in Sri Lanka. His involvement is pivotal, as he has expressed his commitment to provide unwavering support to the Sustainable Tourism Association of Sri Lanka.

In addition to Prof. Ranasinghe’s support, Buddhika Hewawasam, chairman, SLTDA and Dheera Hettiarchchi, chairman, Sri Lanka Institute of Tourism and Hospitality Management, have also pledged their cooperation in the implementation of sustainable tourism initiatives through their respective state organisations. Their combined expertise and resources are expected to play a crucial role in shaping the future of tourism in Sri Lanka, ensuring that it aligns with sustainable development goals.

This inauguration marks a significant step towards fostering a sustainable tourism framework in Sri Lanka, one that prioritizes environmental preservation, cultural heritage and economic viability. The Sustainable Tourism Association of Sri Lanka is poised to lead the charge in promoting responsible tourism practices, ensuring that the industry flourishes while respecting the rich natural and cultural resources of the island.

Speaking at an exclusive press interview the Tourism Deputy Minister noted; “I am thrilled to see the private sector actively participating in the promotion of sustainable development, particularly within the tourism industry. This partnership is not just beneficial but essential, as it represents a viable mission that requires the joint engagement of both government and private entities. By working together, we can ensure that our tourism practices not only enhance economic growth but also preserve our natural resources and cultural heritage for future generations. It is through this collaborative approach that we can create lasting change and fulfill our commitment to sustainability.”

Adding to this collaborative effort, Australian High Commissioner Matthew Duckworth said Australia would continue its long-term support for sustainable tourism development in Sri Lanka. Australia has contributed more than 50 million Australian dollars over the past decade to sustainable tourism initiatives in Sri Lanka, including to support more sustainable planning, accreditation and skills development for this crucial sector. The High Commissioner confirmed that this support would continue into the future and highlighted Australia’s partnership with the Market Development Facility (MDF), which had recently launched a new initiative using data analytics to help Sri Lankan policy makers better understand how travelers discover and engage with destinations.

“Our vision is to create a platform where all stakeholders including product manufacturers can collaborate and share best practices in sustainable tourism, said Chandra Wickramasinghe, elected founder president of the Association. “We aim to ensure that tourism in Sri Lanka not only provides economic benefits but also contributes positively to the environment and local communities, he added.

The founders of STASL-SusTour believe that sustainable tourism is the ‘Future of World Tourism’ and is crucial for the long-term viability of Sri Lanka’s tourism sector, which is a significant contributor to the nation’s economy. By fostering responsible travel practices, the association seeks to educate stakeholders, including tourists and businesses along with manufacturers about the importance of sustainability.

‘ The association plans to launch various initiatives, including workshops, awareness campaigns and partnerships with local and international organizations focused on sustainable tourism, said Nalin Malwenna, newly elected secretary. Through these efforts, SusTour hopes to position Sri Lanka as a leading destination for eco-conscious travelers looking for authentic and responsible travel experiences.

“The establishment of the Sustainable Tourism Association of Sri Lanka arrives at a pivotal moment, signaling a commitment to a more sustainable future in the nation’s tourism landscape, said elected treasurer Dr. Samantha Pathirathne.

By Claude Gunasekera

Business

Siyapatha Finance unveils 62nd branch in dynamic Horana City

Published

18 hours ago

2026/05/9

Thilina Walpola

Premier finance company Siyapatha Finance PLC recently unveiled its newest branch in Horana, successfully expanding its islandwide branch network to 62 branches. Located in one of the fastest-emerging economic hotspots in the Kalutara District, the Horana branch offers Siyapatha Finance’s wide range of holistic financial services including leasing, fixed deposits, gold financing, business loans,fast draft, factoring, and Smart Pay – the Company’s bill payment facility.

The branch was declared open by Siyapatha Finance PLC Directors- Jayanath Gunawardena and Ms. Sriyani Ranathunga , Chief Executive Officer (CEO) Mathisha Hewavitharana in the presence of Chief Operating Officer (COO) Rajeev De Silva, Ms. Dinuli Gihansi Perera -student of Govinna Maha Vidyalaya , Horana who has been selected to represent Sri Lanka for Asian Boxing Championship 2026 , Senior Management, staff members as well as Police HQI Ranga Perera , Grama Niladhari Mr. Chaminda Kumara, representatives of the government and private banks and insurance companies and well-wishers.

Speaking at the ceremony, Siyapatha Finance PLC CEO Mathisha Hewavitharana remarked: “Horana is a region that has captured massive interest nationally in terms of commercial and social development in recent years. Expanding our branch network to this area gives us a significant opportunity to broaden our reach and serve a larger, diverse ;;customer base’’.