Dollar starved Government is now offering more benefits for migrant workers with the aim of encouraging them to provide more much needed foreign exchange for the country in economic dire straits at present, official sources said.

Remittances by Sri Lankans employed abroad have been an important flow of foreign exchange into the country, with an annual average value of over US $ 7 billion in the past five years.

But it was at $ 359.3 last month ,$ 325 million in August $279.50 in July of 2022 recording to unbelievable drop in the past few months.

Considering the importance of this steady non-debt inflow, the Government and the Central Bank are in the process of taking steps to ensure that remittances reach their full potential in a manner that is beneficial to the worker as well as to the country.

In order to encourage migrant workers to remit dollar in proper banking channels the government ha s introduce an incentive package for migrant workers, which includes pension/superannuation benefits, accident/life insurance benefits, banking facilities including low interest loans for housing and / or self-employment on return to Sri Lanka, and enhanced duty-free concessions.

Sri Lankans fed up with the country’s economic crisis are increasingly desperate to go abroad, where they can make the most of the rupee’s plunge and help their families survive hyperinflation through heftier remittances.

The foreign currency-starved government, in turn, appears all too happy to let them go, though experts warn that the South Asian nation is at risk of worsening brain drain.

Sri Lanka has seen a tenfold increase in migrant numbers in the last two decades, and current estimates suggest that about 1.7 million migrants work abroad, with an annual outflow of about 200,000 persons.

The Cabinet of Ministers, at its meeting held on Tuesday (Oct. 25), has green-lighted the implementation of two measures proposed to further promote migrant worker remittances.

Accordingly, Sri Lankan migrant workers will be allowed to import four-wheeled electric vehicles equivalent to 50% of the value of remittances they have transmitted to Sri Lanka through official channels from May 01, 2022 to December 31, 2023.

In addition, Sri Lankan migrant workers will be permitted to import motorcycles equivalent to 50% of the value of remittances they have transmitted through legal channels until April 30, 2023 or the day application is submitted.

On August 31, the Ministry of Labour and Foreign Employment issued a circular to allow migrant workers to import electric vehicles.

As per the decision taken by the government, a migrant worker who has transferred more than US$ 3,000 would be allowed to import an electric motorcycle, worth US$ 25,000 or less.

Meanwhile, it was decided that those who have transferred more than US$ 20,000 would be allowed to import an electric car priced half of the amount transmitted to Sri Lanka, up to a maximum of US$ 65,000

India reiterated its commitment to strengthen Defense Corporation with Sri Lanka expressing its readiness to continue to support the island nation in the defense sphere.

This was highlighted at a meeting between the visiting Sri Lankan delegation headed by by State Minister of Defence Premitha Bandara Tennakoon and the Minister of State for Defence and Tourism of India Shri Ajay Bhatt recently in the sidelines of DefExpo2022 held in Gandhinagar, Gujarat. India.

The Sri Lankan delegation also had cordial interactions with Defence Minister, Defence Secretary, Chief of Defence Staff and all three Service Chiefs of India during the visit.

A three-member official delegation from Sri Lanka, led by State Minister of Defence Premitha Bandara Tennakoon and comprising Army and Navy officers, is currently on a visit to India for attending India’s premier biennial global defence exhibition DefExpo2022.

The exhibition was inaugurated by Prime Minister Narendra Modi on 19 October 2022 at Gandhinagar, Gujarat. This is the second occasion in the past year during which a Minister from Sri Lanka is participating at an event inaugurated by Prime Minister Modi. It may be recalled that Ministers from Sri Lanka were a part of the inaugural international flight to Kushinagar airport in October 2021.

Speaking at DefExpo2022, State Minister Premitha Bandara Tennakoon hailed the partnership between India and Sri Lanka in the defence sphere. He highlighted the importance of defence industrial base in augmenting Security policy and noted that DefExpo 2022 provided a great avenue for a deeper understanding of the nature of transformation in modern warfare across five dimensions.

DefExpo2022 is the biggest-defence exhibition, which showcases the growing prowess of India’s defence industry to achieve the vision of ‘Make in India, Make for the World’ as well as self-reliance in the defence domain. Live demonstrations showcasing the equipment and skill sets of the Armed Forces, Defence Public Sector Units and industry were also organized.

Bilateral engagement in defence is multi-dimensional in nature. High level exchanges continued both ways despite the challenges posed by COVID-19. SLINEX (Naval Exercise) and exercise MITRA SHAKTI (Army Exercise) are held every year alternatively in India and Sri Lanka.

Both Armed Forces collaborate closely in dealing with common security challenges such as drug and human trafficking, Indian High Commission in Colombo said.

Sri Lanka and the Netherlands are to sign a bilateral aviation agreement aiming to launch direct passenger and cargo flights between the two countries

The main aim is to boost tourism and investment as there was no aviation bilateral agreement between the two countries although both countries started diplomatic relations in 1951,

The proposed agreement is also expected to promote, education, trade, investment, agriculture and cultural sectors in the country, foreign ministry sources said.

“With this agreement, Sri Lanka and the Netherlands will be able to start direct flights, and a smoother exchange of travelers and cargo can be expected,” a top official of the Aviation Ministry said.

Due to the severe forex shortage in the country, the government is exploring possible ways of bringing in more forex and the authorities expect to generate around US$800 million through tourism in 2022.

Minister of Tourism Harin Fernando said his ministry has already begun promotions in the Asian region and said the country can expect a boost in tourist arrivals in the last quarter of December.

This will further enhance, agriculture, and cultural ties between Sri Lanka and the Netherlands and it was aimed at economic development.

The Chicago Convention, signed in 1944, mandates that airlines enter into agreements to operate international commercial flights between two or more states

There are currently 193 countries registered with the International Civil Aviation Organisation.

Minister Nimal Siripala de Silva pointed out that by entering into agreements with those countries, it will be possible to engage in aviation activities when required

Diplomatic relations between Sri Lanka and the Netherlands date back to 1951. During the preliminary discussions, it was decided to operate 14 flights a week between Sri Lanka and the Netherlands.

SriLankan Airlines and KLM Royal Dutch Airlines in the Netherlands are also planned to be used for this purpose, he noted.