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Monday Nov 18, 2024
Wednesday, 24 July 2019 00:00 - - {{hitsCtrl.values.hits}}
Currently, over one in every 14 households in Sri Lanka has an international migrant, while one in every 11 households receives remittances.
In this context, the latest study by the Institute of Policy Studies of Sri Lanka (IPS) and the Sri Lanka Bureau of Foreign Employment (SLBFE) investigated the impact of migration and remittances on the financial behaviour of family members left behind in Sri Lanka, using data from the Household and Expenditure Survey (HIES) 2016.
Authored by IPS Research Fellow Bilesha Weeraratne, ‘Migration & Remittances: Impact on Financial Behaviour of Families Left Behind in Sri Lanka’ reveals that migration and remittances promote savings among families left behind in Sri Lanka. Moreover, remittance-receiving households are also less likely to borrow and are better at paying off existing loans, making them less indebted in the long run.
In her publication, Weeraratne notes, “the broader picture of debt repayment and loan income hints that left behind households are less likely to borrow while the migrant is overseas, and ongoing debt in more likely to be associated with debt taken before migration.”
She further highlights that prudent financial management at the household level enables migrant households to expand their income earning opportunities.
“As such, it is important to educate these families on smart financial management practices through awareness programs, and instil better savings habits among them,” the author recommends.
‘Migration & Remittances: Impact on Financial Behaviour of Families Left Behind in Sri Lanka’ can be purchased from the Publications Unit of the IPS, located at 100/20, Independence Avenue, Colombo 7, and leading bookstores island-wide. For more information, contact the Publications Officer (Amesh) on 0112143107/0112143100 or email [email protected].
