Business
Skills Beyond Borders: Are Sri Lankan returnee migrant workers equipped for migration triumph?
Piyumi Ranadewa is a Research Assistant working on migration and urbanisation policy research at IPS. She holds a BSc (Hons) in Agriculture, specialising in Agriculture Economics and Business (First Class) from Wayamba University of Sri Lanka, graduating with Dean’s Honours. She also holds a Master of Agri-Enterprise and Technology Management from Wayamba University of Sri Lanka. Her research interests include urbanisation, tourism, green economy, climate change and agribusiness value chains. (Talk with Piyumi – piyumir@ips.lk)
By Piyumi Ranadewa
“I can speak the language and based on my previous experiences, I believe I can handle the work once I remigrate, and I don’t need further training,” says Ms Herath Manike from Maho in Kurunegala. She has previously migrated to Kuwait and Jordan as a domestic housekeeping assistant and is now contemplating re-migration.
Returnee migrant workers often possess a wealth of knowledge and skills acquired during their time overseas, leading them to feel adequately equipped for the global job market. However, in today’s rapidly evolving international job market, adaptability and acquiring new skill sets are essential for sustained career growth. Relying solely on existing skills can lead to complacency and hinder long-term prospects. Continuous up-skilling can open doors to more stable and higher-earning employment opportunities. The Global Compact for Safe, Orderly and Regular Migration (GCM) also underscores the necessity to invest in skills development and promote mutual recognition of skills, qualifications, and competencies.
A recent study by the Institute of Policy Studies of Sri Lanka (IPS) for Skilled and Resilient Migrant Workers (SRMW) project focusing on 511 return migrants in Sri Lanka revealed that among the surveyed participants, 56% of respondents had taken steps towards re-migration, and 193 are considering re-migration within 2023. Notably, among them [out of 193), 68% have not pursued further formal training. Moreover, 84% of these respondents believed their current skills were sufficient for overseas employment. As Sri Lanka unveils its Labour Migration Policy 2023-2027, it is timely to shed light on the importance of skill development for re-migration.
The Context: Potential for Upskilling
In Sri Lanka, migration is seen as a promising pathway to improved job opportunities, as evident from the recent long queues at passport offices. A significant proportion of Sri Lankan migrant workers were in semi-skilled and low-skilled categories. Most labour migrants are concentrated in Middle Eastern countries, which are common destinations for both skilled and unskilled workers. This aligns with the study findings, which indicated that many of these migrants were engaged in elementary occupations (domestic workers and other low and semi-skilled categories) during their recent overseas employment.
Although most re-migrants from Sri Lanka have been employed in lower-skilled jobs, they have great potential to improve their prospects by acquiring new skills through upskilling. However, the practice of upskilling is not widespread among this group. For example, Sri Lanka predominantly relies on foreign domestic workers among its migrant workers. However, there is a growing demand for specialised services like nursing and elderly care. These specialised jobs often offer better pay than foreign domestic workers. Enhancing the skills of returning domestic workers can open up job opportunities in sectors beyond domestic work, particularly in healthcare.
Reluctance for Skill Development
Ms Manike, who pursued a small coir business after her recent migration, is now facing economic difficulties that have led her to consider re-migration. However, she hesitates to participate in skill development programmes, driven by her immediate need to generate income through migration and her confidence in her past experience. Therefore, her primary focus is on addressing urgent financial needs, leaving limited space for dedicating time and effort to upskilling.
Similar to Manike’s perspective, most returnee migrant workers planning to remigrate believe their previous training or experience from overseas would suffice, overlooking the need for continuous skill upgrading. Furthermore, in scenarios where re-migration is not voluntary but a necessity due to compelling circumstances, individuals may be forced to re-migrate without the opportunity or motivation to upgrade skills to pursue better employment opportunities overseas.
If returnee migrant workers consider upskilling, many often opt for informal training or overlook skill development due to perceived opportunity costs and age-related barriers associated with formal skill training programmes available in the country. They fear that dedicating time and resources to formal training might not yield immediate returns on investment, leading them to choose informal learning options instead. Additionally, age-related concerns can make some migrant workers reluctant to enrol in formal training, as they feel they are past the ideal age for learning new skills.
Another significant barrier to skill development for returning migrants is the lack of targeted and tailored training programmes. For instance, during a Focus Group Discussion (FGD) conducted in Anuradhapura, reluctance to undergo formal training on the grounds that there is no suitable training available in Sri Lanka for the specific machines used while working abroad, was cited as an example. As these workers aspire to find better opportunities upon their return, access to advanced and customised training becomes a pivotal factor in their career growth.
Skill Gap and Awareness
While Sri Lanka has taken many steps to provide support services for upskilling and skill recognition for migrant workers, such as the recent collaboration between the SLBFE and the Vocational Training Authority (VTA) to offer specialised training tailored to foreign employment needs, concerns remain regarding the effective dissemination of vital information to the intended beneficiaries.
As found in the IPS’ study, while a majority of respondents have completed their education up to Grade 10, surprisingly, only 20% were aware of National Vocational Qualification (NVQ) levels. Although returnee migrant workers tend to favour informal training, a notable 76% (out of 511 individuals) had not acquired Recognition of Prior Learning (RPL) credentials. These credentials serve to formally acknowledge the skills acquired through informal means. This highlights a significant gap and lack of awareness regarding formal skill development and recognition among the respondents.
The Way Forward
While the self-perceived competence of returnee migrant workers is a positive attribute, relying solely on existing skills without further training and formal recognition of available qualifications may hinder the personal and professional growth opportunities of returnee migrant workers. Therefore, it is crucial to foster a culture of lifelong learning and skill development to support returnee migrant workers in their re-migration journey and enable them to thrive in a dynamic job market. This involves creating awareness about the importance of ongoing education and training and providing accessible and relevant learning opportunities. Some recommended strategies include:
Improve dissemination of information and guidance about skill development programmes and raise awareness about the importance of upskilling,
Facilitate awareness and accessibility to available skill development programmes through easily accessible user-friendly platforms like websites or mobile applications.
Foster collaboration between the public and private sectors and educational institutes to develop targeted training programmes specifically tailored for migrant workers planning to remigrate. These programmes should align closely with industry needs and incorporate hands-on experience.
Establish networking and mentorship programmes that connect migrant workers with professionals in their fields, providing guidance, collaboration opportunities, and skill enhancement support.
Promote existing RPL and accreditation of informal skills, encouraging migrant workers to pursue upskilling opportunities.
Link to original blog: https://www.ips.lk/talkingeconomics/2023/09/11/skills-beyond-borders-are-sri-lankan-returnee-migrant-workers-equipped-for-migration-triumph/
Business
Diplomatic thaw in Middle East sparks hope for Sri Lankan tea exports
Amid softening diplomatic rhetoric between the United States and Iran, a senior economist told The Island Financial Review yesterday that the stability of Sri Lanka’s tea exports to the Middle East, particularly Iran, would be maintained.
The economist, who closely follows regional developments, pointed to recent statements by Iranian Foreign Minister Abbas Araghchi and U.S. President Donald Trump as signs of de-escalation. Araghchi denied plans to execute anti-government protesters, while Trump indicated he had received assurances that killings had stopped and that the U.S. was “watching the process.”
“When geopolitical tensions ease, trade channels stabilise,” the economist said. “Iran and the Middle East are important markets for Sri Lankan tea. Any reduction in political risk is likely to support demand and reduce vulnerability in our export earnings,” he added.
The comments come against the backdrop of this week’s Colombo tea auction, where offerings totalled 6.0 million kilograms. The auction report noted “less activity from Iran and the Middle Eastern markets following recent restrictions in trading conditions,” reflecting the sensitivity of tea exports to regional instability.
Western Slopes and Nuwara Eliya teas showed mixed trends, with some grades firm and others declining. High and Medium Grown CTC teas sold around previous levels, while Low Grown varieties were easier by up to Rs. 20 per kg. Ex-Estate offerings remained steady at 0.74 million kilograms, with no significant change in quality, according to Forbes and Walker Research.
Low Growns, which accounted for approximately 2.4 million kilograms, saw varied demand: the Leafy category was quieter, while Semi-Leafy met with fair interest. Tippy teas faced pressure, especially in the Premium catalogue, where a lack of suitable bids left many unsold.
Selective demand was noted from shippers to the UK, Europe, and South Africa, while markets in Japan, China, the Middle East, and the CIS were reasonably active mostly at lower levels, Forbes and Walker said.
The economist added that while global tea markets remain volatile, any sustained calm in the Middle East could help restore buyer confidence from Iran – a key destination for Sri Lankan Orthodox teas.
“We are not out of the woods yet, but the signs are encouraging,” he said. “If the diplomatic tone continues to improve, we could see firmer demand from the region in the coming weeks,” he said.
By Sanath Nanayakkare
Business
Call for stepped-up economic engagement between SL and Maldives
Sri Lanka is looking to significantly expand its commercial engagement with the Maldives, with business leaders calling for a more focused strategy to capitalise on growing opportunities in trade, services and tourism-linked investments.
Immediate Past President of the Sri Lanka-Maldives Business Council Sudesh Mendis said that the Maldives remains a high-potential market for Sri Lankan exporters and service providers, particularly in construction materials, food and beverage supplies, logistics and professional services aligned with the island nation’s expanding tourism and infrastructure sectors.
“The Maldives offers a demand-driven market where Sri Lankan products and services already enjoy strong acceptance, Mendis said, noting that geographical proximity and long-standing business ties give Sri Lanka a natural competitive advantage.
He said continued resort development, urban housing projects and public infrastructure investments in the Maldives have sustained demand for Sri Lankan goods, while services such as engineering, consultancy and skilled manpower also present room for growth.
However, Mendis stressed that logistical inefficiencies and administrative bottlenecks continue to limit expansion. “Improving shipping connectivity, reducing customs delays and ensuring smoother payment mechanisms are essential if Sri Lankan businesses are to scale up operations, he said.
Tourism collaboration was identified as another underdeveloped area, with Sri Lanka and the Maldives increasingly viewed as complementary destinations rather than rivals. Joint marketing initiatives and multi-destination travel packages could help increase visitor arrivals to both countries, Mendis added.
He also called for stronger private-sector leadership through regular trade missions, sector-focused business forums and targeted policy support to sustain momentum.
“With a coordinated and commercially driven approach, Sri Lanka can substantially deepen its economic presence in the Maldivian market, Mendis said.
Sri Lanka and the Maldives have maintained close economic relations, with bilateral trade expected to gain further traction as regional connectivity improves.
By Ifham Nizam
Business
News of IMF delegation’s visit to SL brings cheer to bourse
The CSE commenced trading yesterday on a negative note due to profit-takings but later turned positive, when sections of the media reported that an IMF delegation is to visit Sri Lanka next week to facilitate the fifth review of the extended fund facility to Sri Lanka.
Amid those developments both indices moved upwards. The All Share Price Index went up by 41.42 points, while the S and P SL20 rose by 25.28 points.
Turnover stood at Rs 4.73 billion with ten crossings. Top seven crossings were reported in DFCC, which crossed 4.4 million shares to the tune of Rs 701 million and its shares traded at Rs 159, HNB 250,000 shares crossed for Rs 105 million; its shares traded at Rs 420, Sierra Cables 2 million shares crossed for Rs 75 million; its shares traded at Rs 37.57, Seylan Bank 666,000 shares crossed for Rs 73.4 million; its shares traded at Rs 110.50.
Commercial Bank 300,000 shares crossed for Rs 57.2 million; its shares traded at Rs 225, Sampath Bank 300,000 shares crossed to the tune of Rs 46.6 million; its shares traded at Rs 155 and Ambeon Capital 1 million shares crossed for Rs 42 million; its shares traded at Rs 43.
In the retail market top seven companies that have mainly contributed to the turnover were; ACL Cables Rs 171 million (1.7 million shares traded), Commercial Bank Rs 153 million (686,000 shares traded), Sierra Cables Rs 130 million (3.5 million shares traded), Sampath Bank Rs 109 million (703,000 shares traded) , HNB Rs 109 million (250,000 shares traded), Lanka Credit and Business Finance Rs 76 million (8.2 million shares traded) and HNB (Non-Voting) Rs 76 million (213,000 shares traded). During the day 132 million share volumes changed hands in 37857 transactions.
It is said that the banking and finance sector led the market, especially HNB and Commercial Bank, while construction related companies, especially Sierra Cables, also performed well at the floor.
The manufacturing and travel and tourism sectors also performed well.
Yesterday the rupee was quoted at Rs 309.50/60 to the US dollar in the spot market weaker from Rs 309.35/50 Wednesday, having depreciated in recent weeks, dealers said, while bond yields were broadly steady.
The telegraphic transfer rates for the American dollar were 305.9000 buying, 312.9000 selling; the British pound was 408.2980 buying, and 419.6162 selling, and the euro was 352.7488 buying, 364.1370 selling.
By Hiran H Senewiratne
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