Hi - with labour migration diversifying and possibly getting skewed further towards the skilled category, going forward do you think there will be a risk of remittances declining? Reason being most often skilled labour migrate with their immediate family, so there is a lesser need to remit funds to SL. On the other hand, most low skilled labour leave their families behind and go, hence they tend to send back a higher percentage of their earnings. Keen to hear your thoughts.
Hi, it's an interesting point you bring out. I see this in two ways. First, since the structural composition of our migration is changing (more skilled labour migrating compared to the past), this could also translate as to why our remittance earnings have been growing at a much faster pace than ever before. While I partly agree with the point that you make, when skilled labour migrates, often with their families, they still leave their parents or immediate family behind. Secondly, when more high-skilled labour migrates and since their earnings are much higher than low low-skilled labour, this could also mean that they have a higher propensity to invest (land or houses) back home or in our financial markets since our interest rates tend to be higher than those of foreign countries. While this may not reflect in our remittance earnings this could also contribute to our economic growth.
Hi - with labour migration diversifying and possibly getting skewed further towards the skilled category, going forward do you think there will be a risk of remittances declining? Reason being most often skilled labour migrate with their immediate family, so there is a lesser need to remit funds to SL. On the other hand, most low skilled labour leave their families behind and go, hence they tend to send back a higher percentage of their earnings. Keen to hear your thoughts.
Hi, it's an interesting point you bring out. I see this in two ways. First, since the structural composition of our migration is changing (more skilled labour migrating compared to the past), this could also translate as to why our remittance earnings have been growing at a much faster pace than ever before. While I partly agree with the point that you make, when skilled labour migrates, often with their families, they still leave their parents or immediate family behind. Secondly, when more high-skilled labour migrates and since their earnings are much higher than low low-skilled labour, this could also mean that they have a higher propensity to invest (land or houses) back home or in our financial markets since our interest rates tend to be higher than those of foreign countries. While this may not reflect in our remittance earnings this could also contribute to our economic growth.
Interesting perspective. Thanks.