Monday 3 November 2014

Pensions for all!

By Mario Andree

Ceylon Finance Today: The government's decision to introduce a special pension scheme and incentives for migrant workers would benefit the economy as well as the people according to a senior minister, who claimed that Sri Lankan salary structures would improve.


Minister of Investment Promotion Lakshman Yapa Abeywardena told journalists in Colombo that the government's intensions were to reward high earning foreign workers for their immense contribution for the development of the economy.

Ceylon FT highlighted that at a time when the manufacturing sector was severely complaining of labour shortages, created by more and more people seeking foreign employment, the government's decision to introduce a pension scheme would make migration more lucrative creating a further dearth of labour in Sri Lanka.

However, Minister Abeywardena disagreeing, highlighted Sri Lanka was no longer a cheap labour destination, with its highly skilled labour pool, to attract labour intensive manufacturing plant, which required minimum skills.

According to him, while more skilled migration would in return earn increased remittances to the country to support.....the anticipated 8% GDP growth, it would also encourage more sophisticated industries to set up factories here offering higher salaries to local skilled workers.

Highlighting a 15,000 shortage of labour in the BOI zones, he said the private sector in the medium and long term would have to offer high salaries to retain workers.


According to him, while capturing sophisticated industries to industrial parks, which would offer higher wages, labour intensive manufacturing plants were planned to be shifted to rural areas creating jobs to low skilled population of the country.

Nearly two million skilled Sri Lankans, a relatively large number, were engaged in high paying jobs in overseas destinations, while the number of low skilled migrations has decreased.

Presenting the Budget, President Mahinda Rajapaksa told Parliament, that considering the increased amount of remittances by migrant workers, he proposed to allocate a further Rs 500 million to develop five dedicated vocational schools in Badulla, Kurunegala, Hambantota, Vavuniya and Ampara districts to increase the skills of those seeking foreign employment.

He also proposed to provide duty permits to import vehicles up to 60% of the remittance value to a local bank, for high income earning Sri Lankans working overseas, as well as a special pension scheme.
www.ceylontoday.lk

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