Promoting foreign employment a drawback to economy

by Lalin Fernandopulle

A good workforce is necessary for any economy to prosper. Of approximately a seven million workforce in Sri Lanka 1.5 million are employed overseas making no significant contribution to the national economy.

Former Vice President, Sri Lanka Chamber of Small Industries (SLCSI), Lalith Kahatapitiya said no country has developed its economy by promoting foreign employment. The more people employed abroad will have a negative impact on the economy.

Kahatapitiya said Sri Lanka's workforce of nearly seven million contributed US$ 23 billion to the GDP by end 2005 which is two and a half times per person above the foreign remittances brought by a Sri Lankan working abroad. The country's annual foreign remittances are US$ 1.9 billion.

The government exploited the public sector by promoting foreign employment. Subsequent governments encouraged people to go abroad for employment rather than making use of their talents and skills to develop industries and the manufacturing sector. Promoting foreign employment was a stumbling block to local industries and the manufacturing sector.

The private sector adopted an importing and selling practice since it was more profitable and convenient than manufacturing and exporting. Businessmen preferred to import goods rather than manufacturing. This resulted in local industries taking a turn for the worse due to the drop in manufacturing, he said.

Since there were no locally manufactured products the foreign exchange earnings dropped affecting the economy severely. Such non progressive measures adopted by the private sector have influenced the thinking of local entrepreneurs even today. There is much to be desired from local industries and the manufacturing sector. The country still imports a large quantity of goods even though they could be manufactured here.

Kahatapitiya said it is time that we make good use of our workforce instead of allowing other countries to benefit from our labour.

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