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Foreign job industry at stake
View(s):Minister seeks revision of budget decision on minimum salaries for migrant workers
By Sandran Rubatheesan
With a significant decrease in the number of Sri Lankans going overseas for jobs, the Foreign Employment Ministry is to seek Cabinet approval to reverse a budget decision on a minimum salary for skilled and unskilled Sri Lankan workers, a senior official said.
Ministry Secretary G.S. Withanage told the Sunday Times that a Cabinet paper was being submitted by Minister Thalatha Athukorala, showing the possible repercussions on Sri Lanka’s economy if this decision was implemented. Last year Sri Lanka earned a revenue of US$ 7.2 billion (Rs. 1.12 trillion) from the remittances of migrant workers, making it the biggest source of foreign revenue.
Earlier this month, a circular was issued by the Sri Lanka Bureau of Foreign Employment (SLBFE) to all licensed foreign employment agencies over the revision of the minimum salary of Sri Lankan migrant workers. Accordingly, the minimum salary of an unskilled worker should be at US$ 350 a month and a skilled worker at US$ 450.
The circular was issued in keeping with a proposal in the National Budget for 2017. It specified that new salary scales applicable shall not include any allowance, overtime or other benefits and refers only to the basic salary. The Secretary said the minister would inform the Cabinet that Sri Lanka could not expect the revenue of US$ 7.2 billion if the decision was implemented.
“Realising these possible negative outcomes, we are seeking Cabinet approval to suspend the decision till we develop the skills of our migrant workers,” Mr. Withanage said. He said the original budget decision was taken by the Treasury without consulting the Foreign Employment Ministry or the Bureau.
An SLBFE official said that since the new circular was issued early this month, the number of migrant workers going to West Asia went down significantly though exact figures were not available immediately.
The Association of Licensed Foreign Employment Agencies (ALFEA), a collective body of foreign employment agencies, expressed serious concerns over the new circular saying it would be the end of the foreign job sector if the government implemented the circular.
“Our industry is already unstable due to the crisis in West Asia with the plunging oil prices. As a major voice in the industry we were not asked for our opinions or proposals. Many have started to leave the business also,” ALFEA General Secretary Wijaya Undupitiya said.
He said there were many other countries in South Asia ready to supply domestic workers at lower salaries.