How global migrant flows correspond with remittances to Sri Lanka Why Remittance

Online remittance service is the most convenient and easy way to transfer the money internationally. This is the fastest and safest method of sending money from one country to another country. Remittance service is the most preferred method of sending money because while sending money through remittance, there is no tax levied on the money and only a reasonable amount of in the form of the service charge is paid by the sender. The money in remittance is directly floated into the account of the receiver.

In Sri Lanka, there are lots of people who work outside the country, and they need to send money to their family members. Along with the migrants from Sri Lanka, the economy is mostly dependent on the import and export activities. People always need to send and receive money from their business partner. Mostly the overseas money transaction is done through online remittance services. Remittance industry becomes more necessary for the growth of the country as there is almost 55% contribution of import and export activities in the Gross domestic product of the country.

Remittance pattern in Sri Lanka

The ratio of people migrated to another country from Sri Lanka for employment is very high. Two of the most preferred region to migrate are the Middle East and the USA. People who have been migrated to the Middle East are not shifted permanently to there but living for a fixed period. Most of the people do not carry their family members with them. They always international money transfer to Sri Lanka for their families. This pattern increases the number of remittances to Sri Lanka; it leads to increase the size of the Remittance industry in the Country. The ratio of the people who remit money to Sri Lanka from the USA is little less in comparison with the Middle East migrants because most of the people are shifted permanently with their families, and they required sending money to Sri Lanka in rare cases only.

Impact of Remittance in Sri Lanka

Most of the people who have migrated from Sri Lanka to the Middle East and the USA are from the good educational background and making a good amount of money outside. By the year 2016, total remittance to Sri Lanka was almost 10% of the GDP of the country. The primary utilization of the remittance money is done in investment in capital goods, especially in land and properties.

People doing well outside the country and remitting money to their countries of origin are more capable of starting their own business which increases the GDP of the country.

Remittance Business in Sri Lanka

Remittance industry is doing well in Sri Lanka because there a good number of people who have been migrated overseas to work. In the year 2014, there were almost three lacs individuals who were relocated to work outside the county bring foreign currency into the country. in the next year, the numbers were reduced to two lac sixty-three thousand with a decline rate of 12.5%. The total value which was remitted to Sri Lanka especially from the Middle East was $7800 in the year 2014, which was reduced to $ 6980 Million in the next year 2015. In the year 2016, total remittance received in the country was $ 7.2 Billion.

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