Labour Migration: Imperative to look beyond West Asia
Sri Lanka’s labour migration patterns are greatly determined by the demand for labour in West Asia. The preference for migrating to West Asia for work has been largely promoted by its burgeoning economy in the past and the consequent demand for cheap labour both for domestic work and other semi-skilled workers in the economy. According to the Sri Lanka Bureau of Foreign Employment (SLBFE), in 2015, a majority of all migrant workers were concentrated in this region, with Saudi Arabia continuing to be one of the leading destination countries – for both men and women. With such a large stock of migrant workers in the region, the implications of the ongoing, rather volatile political and economic conditions affecting the region requires the special focus of the Government of Sri Lanka.
The importance of focusing on this emerging concern is exacerbated by the pivotal role the Sri Lankan migrant workers perform in the local economy. Ironically, by working overseas as unskilled or skilled labour – lacking comprehensive labour protection and under difficult working and living conditions – this considerably large stock of Sri Lankan workers is helping keep the local economy afloat. These migrant workers alone contribute over 50 per cent of the total US$7.2 billion received as foreign remittances in the past year alone.
The associated risk of this over-reliance on one region to absorb a large number of migrant workers from Sri Lanka has not been completely lost on the government. The Central Bank has cited the economic conditions in West Asia as one of the contributing factors affecting a decline in foreign remittances. Earlier this year, the Prime Minister, citing these “unstable” political and economic conditions, reiterated the importance of reducing the reliance on migrant workers and their remittances as a continued source of stable foreign exchange. Despite these declarations, it is not clear how the government seeks to address this growing concern, especially given that the people’s desire to work overseas has not been doused in any way.
Working overseas helps Sri Lankan migrant workers earn a steady income that many believe they cannot earn locally. While this argument may be challenged in policy arenas, particularly given the dearth of labour in the construction and garment sectors in Sri Lanka, changing the opinion of those who seek work overseas is an uphill task. Furthermore, attempting to retain them in the local labour market is even more challenging, as the reasons for migration are a complex mix of socio-economic reasons for which the government cannot offer solutions in the short-term.
There is also no clarity with regard to how the government would “manage” an ingress of returnees in the event of an economic slowdown or political crisis in West Asia.
While there is a sub-policy and an accompanying national action plan for the return and reintegration of migrant workers, how this works at the ground level is not yet clear. Furthermore, whether government agencies and respective institutions are prepared for the possible eventuality of a large number of migrant workers returning home within a short time span, is also not clear.
This raises the issue of looking elsewhere for “placements” for employment especially for semi- and unskilled categories, since they constitute the majority of the migrant workforce from Sri Lanka. South-south migration has been the benchmark of patterns of migration for work in Sri Lanka for three decades. While it is understandable such trends cannot be reversed overnight or in the short-term, the need to focus on other countries where there is a demand for foreign labour is of importance.
The government appears to be working towards this, with South Korea tapped as one such potential source for unskilled and semi-skilled workers. Countries like Cyprus have remained popular destinations for female domestic workers but the high cost associated with migrating to such destinations is a major deterrent and hence available only to those with access to adequate finances. But looking beyond West Asia for work options may not necessarily be merely state-led. In the event of continued instability in one region, prospective and current migrant workers may seek out new countries of destination for work by tapping into informal social networks where the government may follow suit.
The absence of any visible policy position towards diversifying destination countries and preparing for the possibility of the return of Sri Lankan migrant workers concentrated in a specific region, cannot necessarily be taken to mean that the government is not taking action to address these concerns. But Sri Lanka must be prepared in advance, for an eventuality where the region’s economic and political stability remains shaky and look beyond West Asia as a destination region. Sri Lanka’s continued reliance on foreign remittances as the principal foreign exchange earner makes such efforts critical at this particular juncture.
(WALK the LINE is a monthly column contributed by CEPA, an independent, Sri Lankan think-tank promoting a better understanding of poverty related development issues. CEPA can reached at www.cepa.lk or via info@cepa.lk)