By: Staff Writer
June 03, Colombo (LNW):Over 350,000 Sri Lankans left the country for foreign employment in 2024, with tens of thousands more departing in the first half of 2025. However, this outward trend has now slowed significantly, with a 20% drop in overseas job seekers reported compared to previous years.
Industry stakeholders warn that this decline could deal a serious blow to Sri Lanka’s already fragile economy, especially in terms of foreign exchange inflows.
The Association of Licensed Foreign Employment Agencies (ALFEA) attributes the reduction to growing public distrust in the Sri Lanka Bureau of Foreign Employment (SLBFE) and a surge in malpractice by rogue job agencies. ALFEA Secretary Mohamed Farooq Mohamed blamed so-called social activists for running disinformation campaigns that have discouraged potential migrant workers.
He emphasized that the fallout is already visible, with fewer Sri Lankans opting for foreign employment. “This will inevitably hurt the country’s foreign exchange reserves,” he cautioned.
Meanwhile, the Committee on Public Enterprises (COPE) has uncovered a host of financial and administrative irregularities at the SLBFE. Notably, more than Rs. 1.3 billion was spent on two programs that were not approved in the Bureau’s 2024 action plan.
These include Rs. 63 million spent on the ‘Vigamanika Harasara’ initiative and over Rs. 1.25 billion on the ‘Glocal Fair’, which was launched without Cabinet approval.
COPE also raised concerns about the mismatch in scale, noting that such events typically receive only Rs. 2 million in annual funding. The Bureau further came under fire for failing to recover Rs. 100 million from a 2013 housing loan scheme due to the non-implementation of an MoU with the Samurdhi Authority. Officials admitted they had no data on beneficiaries and were instructed to submit a detailed report.
Additional concerns include underutilized fixed deposits worth Rs. 18 billion, misuse of registration fees by fraudulent agencies, and the lack of action on a dormant Rs. 5.1 billion Kuwait Compensation Fund. A sub-committee is to be appointed to investigate these financial misappropriations.
Despite these issues, Farooq said ALFEA supports strict action against any official, agency, or individual engaged in malpractice. However, he warned that continued disruption in the foreign employment sector could mirror the 2022 economic crisis. He urged the government to intervene urgently to restore confidence in the system and stabilize the sector.
