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Govt. loses up to Rs. 300m by reducing registration fee for overseas employment
Government will lose between Rs. 250 and Rs. 300 million annually, compared to its present income of Rs. 1,200 million, following its decision to slash by nearly half, registration fees charged from Lankan workers taking up employment overseas, senior officials warned yesterday.
From the start of this month, Lankan workers leaving through a licensed foreign employment agency or in a private capacity, will have to pay Rs. 5,800, down from Rs. 7,200 and Rs. 11,300, respectively charged earlier. They said the Government’s decision did not benefit the bulk of the workers, as the fee is usually paid by the foreign sponsor/employer through the local handling agent.
“Some 60% of the 300,000 Sri Lankans who take up overseas employment each year are recruited by local agents who are the only ones to benefit since this fee is collected from the foreign sponsor,” the officials explained. The concession on the fees was announced in the mini-budget by Finance Minister Ravi Karunanayake shortly after the January 8 Presidential election.
SLFEB spokesman-cum Additional General Manager Mangala Randeniya said the reduction of the fee will impact adversely on the Bureau’s reserves, mainly used for the welfare of Lankan expatriate workers. Hence, it will be hard pressed to raise monies during a crisis involving Lankan expatriate workers.
“In case of an emergency such as a war or strife in a region with a large number of Lankan workers, it will be difficult to raise the necessary funds for their repatriation at short notice. Hence, new resources will have to be found towards this end,” Mr. Randeniya said.