Financial Times

People's Bank urges migrants to remit money through legal channels
The People's Bank, Sri Lanka's second largest bank, last week announced a new initiative to attract foreign deposits from thousands of Sri Lankan migrant workers - mainly tapping into some Rs. 27 billion that's sent home through illegal channels.

"Last year remittances through banking channels was around Rs. 136 billion but it is believed that at least another Rs. 27 billion is being sent through unofficial channels into the country," Vasantha de Silva, Assistant General Manager - People's Bank Overseas Customer Services said in a statement.

The bank, which says it has a 20 percent market share in foreign remittances, is offering cash rewards and extra benefits to rope in remittances that come through illegal channels and also garner a larger slice of the legal remittances market. Close to a million Sri Lankans are employed abroad, mainly in the Middle East, and the money they send home is the largest segment of foreign exchange the country receives.

The bank's Rata Salli Vasana scheme offers more than six million rupees in prizes annually in addition to other benefits. Under this, 10 prizes of Rs. 50,000 each will be awarded to the winners of the tri-monthly draws while the lucky winner of the year-end grand draw will receive a prize of Rs. 2.5 million.

The second and third-prize winners of the grand draw will receive Rs. 1 million and Rs. 500,000 respectively. Also 47 consolation prizes of Rs. 50,000 each will be awarded to the lucky winners of the grand draw.

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