More than 500,000 Sri Lankan workers in the Kingdom are to benefit from a scheme that would allow them to enjoy tax relief for their investments on the island.
“The Sri Lankan government has decided to grant tax relief for investments made by migrant workers who earn valuable foreign exchange for the country,” Amal Senadhilankara, chairman of the Sri Lanka Bureau of Foreign Employment (SLBFE) told Arab News from Colombo yesterday.
Senadhilankara said the Sri Lankan Cabinet has approved a proposal made by Minister of Foreign Employment Promotion and Welfare Dilan Perera to grant relevant tax exemptions for the import of machinery and equipment for returning migrant workers to invest in new businesses.
The chairman said the tax relief will be for five years for such investments.
Profits earned by migrant workers from domestic investments made through their earnings will also be free from income tax, turnover tax and the "nation-building tax" for a period of five years.
He said that the government would request that state banks provide special loan to these workers under stipulated conditions.
Remittances from expatriate workers have increased significantly, making it the highest foreign exchange earner for the country, the government announced. Foreign exchange earnings by migrant workers reached $ 5.2 billion in 2011 despite a poor global economy. More than 50 percent of foreign remittances received by the island was from the Middle East.
Sri Lanka is a leading country for domestic migrant workers seeking employment in affluent countries. It is estimated that over 1.5 million regular and irregular migrant workers from Sri Lanka work abroad, especially in countries in the Middle East and East Asia.
Sri Lanka was one of the first countries which signed the International Convention on the Protection of the Rights of Migrant Workers and Members of their Families as far back as March 16, 1996. The UN-sponsored convention took 12 years to be effective in 2002 after obtaining the minimum number of 10 ratifiers.
The SLBFE is a statutory body which looks after the interests of the island's migrant workers. Senadhilankara said the country's overseas workers are expected to register with the organization and that such enrollment would allow them to avail themselves of a wide range of services offered by the SLBFE for the welfare of workers and their families back home.
Registered workers can be provided with interest-subsidized housing loans of up to 300,000 rupees in collaboration with the People’s Bank, Bank of Ceylon and the National Savings Bank. They are also entitled to a self-employment loan from the Bank of Ceylon, basic amenity loan from the Bank of Ceylon and pre-departure loan from the People’s Bank, Bank of Ceylon and the National Savings Bank.
Besides SLBFE scholarships, the children of migrant workers stand to receive important educational items vital for their studies as well as English-Sinhala dictionaries. The SLBFE has a 24-hour service, which coordinates and provides for the protection and welfare of the children of migrant worker and also handles a variety of issues related to them.
Medical treatment is provided for migrant workers returning to Sri Lanka due to illness. Under this scheme, sick migrant workers can expect free medical treatment at the Sri Jayawardenapura General Hospital while an ambulance service is also offered free of charge.
The SLBFE has a welfare center located near the Katunayake International Airport to assist returning migrant workers who encounter difficulties due to various issues and hardships. This center offers a host of services to migrant workers prior to their departure as well.
Returning Lankan workers offered tax-free incentives
