Impact of Remittances on the Household of the Emigrant and on the Economy of the Migrant’s Country: Sri Lanka

Abstract

The labour flow of migrants from Sri Lanka has been increasing over recent years, with the latest figures recording 20% of the entire labour force of the country. It is the responsibility of the state to maximize the development benefits of migration while providing migrant workers and their families with protection and security from the ill effects of migration. Through this study the authors aim to examine the impact of remittances on the national economy, on the households of the migrants and also the nature of the remittance flows. Both the formal and informal channels of remittance flow are studied with recommendations on how to maximize the benefits of formal channels and what incentives could be provided to encourage the use of formal channels for remittance flow.