The open economy reforms in Sri Lanka coincided with large scale migration flows
from Asian countries including Sri Lanka to the Middle East region triggered by the Gulf
oil boom of the early 1970s. The economic reforms facilitated freer migration flows by
easing foreign travel, liberalizing foreign exchange controls, and promoting the role of
the private sector in recruitment and placements. In the recent past, migration pressures
also seem to have increased due to globalization, migrant community networks, ethnic
conflict, limited legal avenues for migration, and a sluggish home economy.
The government provided an enabling framework through the enactment of the Sri
Lanka Bureau of Foreign Employment Act of 1985 and the creation of the Sri Lanka
Bureau of Foreign Employment as a specialized one stop agency for administering
foreign employment. Yet protection issues surfaced from the inception highlighting that
the process cannot be left entirely to market forces. While migration absorbed local
workers, the net impact on the domestic labour market has been moderated by several
factors. A good number of migrant workers may have been drawn from the ranks of the
employed. Those departing as housemaids were often not active in the labour market.
Overseas migration could not be considered decent work for a large number of migrants
in view of the exploitative and poor working conditions and low wages received. Most
jobs have been also for temporary periods. Similarly migration did not cater to the
educated unemployed youth who were queuing for public sector jobs. Some of the
unemployed were absorbed into free trade zones, especially female youth, which may
have reduced some migration pressures.
Yet some positive effects on the labour market can be observed: multiplier effects
of remittances; vacancies created by those departing; jobs created in ancillary services of
travel, recruitment industry, housing, real estate, and banking and financial services; and
emancipation of women from unpaid household work into the labour market.
There has however, been a lag in developing appropriate policies, and legislative
and regulatory frameworks. Market oriented policies generally result in governance and
protection issues. The ratification of the 1990 International Convention on the Protection
of the Rights of All Migrant Workers and their Families was a step in the right direction,
but no related legislation has been changed in line with the provisions of the Convention
up to now.
The government has recently elaborated a comprehensive national labour migration
policy focusing on three elements – good governance, protection and empowerment of
workers and development benefits. The major challenges however lie in enforcement of
this policy framework and action plan which involves revision of the legislative and
regulatory framework, achieving the desired skill profile of migration, and promoting the
protection of workers. Policies and strategies also need to be finely balanced with a long
term vision where decent jobs for the local population need to be generated at home
promoting migration by choice – rather than by poverty and need.