Impact of Worker’s Remittances on Household Income and Welfare in Sri Lanka

Abstract

According to Economic and Social Statistic of Sri Lanka report in 2013, (p.21) the foreign employment was recorded as 23.8% of total labour force in the 2010. The total remittances income from abroad has risen steadily over the last years. As per the report, the remittances from Middle East countries were SLRS (Mn) 428,593 and it was SLRS (Mn) 335,387 from all other countries in 2012. Sri Lanka is struggling to strike a balance between maximizing the development benefits of migration while protecting migrant workers and their families from the adverse impacts of migration. While Sri Lankan government currently faces some challenges on economic development, other hand remittances have become as the second largest income source of foreign exchange. Migration also affects negatively on the social life style of migrants families and well as education & health of their children. Brain drain is other negative impact (Economic and Social Statistic of Sri Lanka report 2013). This study is based on the findings of a filed survey of 150 purposive samples of Migrant Workers. The primary data was collected from the migrant itself and in case of unavailability of migrant worker, the information were collected from one of the family member of household. This survey has been carried out aiming two districts in Sri Lanka (Kalutara and Colombo) where a major number of migrants are departing for foreign jobs on yearly basis. It was aimed to investigate the impact of worker’s remittances for household income and welfare. In particular, the study shall also examine how such remittances have been able to contribute their income in varies activities. In addition, I also investigate the effects of remittances on human capital formation at the household level. As per the findings, majority of the respondents have increased their family income and well-being in migrant worker and their families. There are some positive and negative effect on children’s’ education and health. This study mainly focuses to investigate how migrant worker distribute their income in various ways. In addition this thesis discusses some basic information regarding migration and remittances. Further, it shall be briefly described on the history & services of SLBFE and sustainable development by remittances.