Should we export labour

Sri Lankan labourers' moving abroad has been a source of concern for some industrialists in recent times as it has resulted in a shortage of skilled laborers. There has been some talk on how industrialists are moving their industry to countries such as India and Bangladesh or even less developed countries as there are plenty of trainable and manageable labourers. Some have questioned if there really is unemployment in Sri Lanka as opposed to the unavailability of employment according to qualifications acquired or the non availability of skill required by certain industries.

President of the Federation of Chambers of Commerce and Industries in Sri Lanka (FCCISL), Nawaz Rajabdeen said there is a short fall of labour, resulting in the closing of factories related to the construction and garment industry because of this shortage. "If the labor force is skilled, it would be different," he said.

Rajabdeen does not believe this is a large scale problem for industrialists at present but said the country has to get its development program on the right path. "The government is talking about exporting nurses. That is rubbish because we don't have skilled nurses ourselves." Some Sri Lankan companies have started in places like Madagascar but have not been successful due to security problems. However, Brandix, for example, has started a 'township' in India and like Indian companies investing in Sri Lanka, Rajabdeen said Sri Lankan companies should be investing there. He also said that setting up factories outside the country is time consuming and may not be successful but there are other openings, particularly in the European market.

With the cost of living escalating, the standards of living should also be going up. Migrant workers are moving to the Middle East due to the increasing costs and with minimum wage at Rs.6000, people will not be able to make ends meet even if their salary is raised to Rs.10,000. "We are in big trouble because of these subsidies," Rajabdeen said. "Nobody will grumble about the cost of living going up if standards are also going up. We are sending people abroad who are trained and untrained like maid. We have lost all skilled labor." The fiber glass industry is facing a labor shortage mainly due to the fact that workers stay on for six months or so and then head off for the Middle East where they can earn up to Rs.25,000 to Rs.30,000 as opposed to a Rs.10,000 to Rs.12,000 salary here. Rajabdeen said foreign companies such as Dialog Telekom and those in the IT sector are paying their employees well.

Moving industries to countries such as India and Bangladesh is a process which has already commenced said Ceylon Chamber of Commerce (CCC) Chairman Mahen Dayananda. "Specific examples could be identified as apparel factories in Bangladesh, a biscuit/confectionery plant in India, a furniture factory in India and local hotel chains which are now well entrenched in the Maldives whilst also expanding to different locations in India." He added that this phenomenon could be the result of the inevitable process of globalisation and also a move in search of trainable, manageable and more competitive labour inputs.

"In my opinion, there is a shortage of skilled workers in Sri Lanka," Dayananda said. "These workers have moved to other counties in search of higher salaries which are very often paid in US dollars. I have read just this morning that the estimated inflow of foreign employment income into Sri Lanka for 2007 would be in the region of US$ 3 billion representing a substantial increase from the figure for 2006. This clearly indicates a component of skilled workers from quite apart from Sri Lankan maids accepting job opportunities in foreign counties."

Dayananda said it is a fact that unemployment in Sri Lanka is now estimated at a little over six percent and is no longer a two digit number but that this is bound to impact on the overall skills level in Sri Lanka and added that this issue needs to be addressed n an urgent basis. "There is no doubt at all in my mind that we do not focus sufficient attention on training initiatives in relation to our work force. This applies to both in-house training as well as external training programmes and initiatives." Dayananda said that training and upgrading of the work force should be an ongoing process without any let up. Insufficient attention is paid to this most important aspect which ultimately impacts on the overall competitiveness of Sri Lanka. A good example is Singapore where continuous training and upgrading programmes are in place not only for all categories of workers but also for management executives.