SL’s remittance inflow to moderate with fresh demand for services sector

8 January 2014 03:39 am Views - 9714

Sri Lanka expects a moderation in the growth of remittance inflows in the future, owing to structural changes that are expected to take place in the economy.

According to Central Bank Governor Ajith Nivard Cabraal, the growth of services related economy (BPO/KPO/tourism and port) would lead to a fresh demand for overseas employment.

The Central Bank IT/BPO sector including KPOs and the transportation sector are both estimated to surpass US $ 1 billion each by 2016.

Providing of computer and information services alone (excluding KPO) earned US $ 471 million for the country in 2013. It is projected that sector earnings will be around US $ 661 million in 2016.

The transportation sector earnings rose from US $ 254 million in 2012 to US $ 418 million in 2013.

In 2016, the sector earnings are expected to surpass US $ 1.5 billion.

The country which is estimated to have received US $ 6.6 billion worth of remittances in 2013, almost 10 percent of its GDP, expects the number to grow to US $ 9 billion in 2016 (8.9 percent of GDP) and beyond US $ 10 billion in 2017.