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Monday June 3rd, 2024

Sri Lanka gets more remittances from Maldives than Australia

ECONOMYNEXT – Sri Lanka has received 160.5 million US dollars of official remittances from Kuwait, followed by Qatar at 146.2 million US dollars and the UAE at 130.3 million US dollars in the first quarter of 2023, official data shows.

Workers in Saudi Arabia remitted 123.1 million US dollars, according to central bank data.

South Korea came in fifth place with 105 million US dollars in remittances.

Sri Lanka got 95.2 million dollars in remittances from the US, 85.7 million from Italy, 75.4 million from the UK.

More remittances came from Maldives in South Asia, that Australia. Sri Lankan worker remitted 29.3 million US dollars from Maldives and from Australia 26.5 million US dollars.

Maldives has the soundest money in South Asia, through a partially credible peg, without activist inflationism (macro-economic policy) to push growth and trigger currency collapses forcing people to flee to other countries.

Kuwait, Qatar, UAE and Saudi Arabia also has sound money through currency-board-like arrangements with high credibility.

When Korea had monetary instability in the 1960s, manpower exports were promoted by the state to earn foreign exchange. South Koreans were exported to the US military as well as the Middle East. In the 1970s construction firms which had gained experience during the Vietnam war won contract in the Middle East.

The won appreciated for the first time in 1987 following a stabilization program. By the end of the 1980s, the wage gap between Korea and the Middle East had disappeared.

Sri Lanka also had monetary stability and imported labour until a central bank was created in 1950 on the basis of Harvard-Cambridge inflationism, giving macro-economists power to print money.

In the first decade of the setting up the central bank in Sri Lanka, as macro-economists printed money triggering forex shortages, restrictions on outward transactions began.

“The small improvement in the adverse balance on invisibles account in 1960 was mainly due to the substantial drop in private remittances and migrants’ transfers from Rs. 85-4 million in 1958 and Rs. 63-5 million in 1959 to Rs. 38-6 million in 1960,” the central bank’s annual report said in 1960.

“The contraction in this item was the direct result of the successive measures taken in 1959 and 1960 to restrict such remittances.”

“A decline in the expenditures on foreign travel (as a result of tightening of exchange control on travel) …was another factor which contributed to the improvement on invisible account.”

Sri Lanka has severely restricted economic freedoms of the the people in subsequent years to maintain the central bank and give monetary printing powers to macro-economists.

In 2022, the country defaulted under the worst macro-economy deployment in the history of the agency to target an output gap. (Colombo/Aug20/2023)

Comments (2)

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  1. Darshana Attanayake says:

    Those working in the Maldives can send more remittances. In Maldives, they have not been able to send their salary to LKR because they do not have a proper banking system.

  2. Gihan Jayaweera says:

    Sri Lankan expats in the Maldives remit money to Sri lanka. But the remittance limits of Sri Lankans who receive their salary in MVR are only permitted to remit 250 USD a month. They have to seek unofficial methods to remit the rest of the money.

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Your email address will not be published. Required fields are marked *

  1. Darshana Attanayake says:

    Those working in the Maldives can send more remittances. In Maldives, they have not been able to send their salary to LKR because they do not have a proper banking system.

  2. Gihan Jayaweera says:

    Sri Lankan expats in the Maldives remit money to Sri lanka. But the remittance limits of Sri Lankans who receive their salary in MVR are only permitted to remit 250 USD a month. They have to seek unofficial methods to remit the rest of the money.

Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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