In recent years, Sri Lanka has witnessed a significant surge in its population’s integration with the global community and economies. This integration is characterized by various trends, including an increase in Sri Lankans pursuing education abroad, a growing number of families relocating to foreign nations, and a rising demand for Sri Lankan professionals overseas.
These trends are complemented by the country’s increasing participation in the digital economy and its expanding global competitiveness. The rapid adoption of digital technology has also helped people and businesses in Sri Lanka form aspirations and perspectives that are globalist.
Sri Lanka’s broadband penetration has increased from 15% in 2011 to 52% in 2022 and mobile connectivity exceeds its population, indicating widespread adoption of mobile technology. The country’s growing talent pool, proficient in finance, accounting, insurance and HRM, has contributed to the growth of a thriving BPO industry, where export revenue escalated from $213 million in 2007 to $1.2 billion in 2021. Similarly, the country’s tech industry is experiencing rapid growth and expansion beyond its borders, aiming to become a $5 billion forex-generating sector by 2025. The increasing internationalization is also manifest in the mobility of Sri Lankans.
For James Rebert, Head of Wealth and Personal Banking at HSBC, there is more to this. “Current migration patterns are an evolution and expansion of existing trends rather than a drastic change in direction, and our customer data supports this, showing that traditional migration and education corridors like Australia, Canada, the UK, and New Zealand continue to be popular. Concurrently, we observe new migration corridors emerge within Asia and the Middle East. Cities like Dubai, Singapore, and other Far East cities are increasingly becoming hubs for individuals seeking educational and employment opportunities,” he avers.
Rebert says these emerging corridors signify a shift in Asian migration patterns, affecting Sri Lankans and others in the region. Despite the ongoing movement from Asia to Europe and North America, he also observes a growing trend of intra-Asian migration. People are more frequently relocating within the region, seeking opportunities akin to those in the West, and this is a strong trend in Sri Lanka and reflective of broader regional dynamics.
Education Abroad: A Quest for Excellence
One of the striking trends in Sri Lanka’s global integration is the substantial increase in the number of Sri Lankan students pursuing education overseas from a decade ago.
According to the World Bank, in 2020, the top three destination countries for education for Sri Lankan students were Australia, India, and the United Kingdom, with 8,000, 4,500, and 3,500 students, respectively. These countries accounted for 72.2% of the total Sri Lankan students abroad. Compared to 2010, the number of Sri Lankan students in these countries increased by 60%, 50%, and 40%, respectively.
The fastest growing destination countries for education for Sri Lankan students from 2010 to 2020 were Japan, China, and Norway, with 1,500, 2,000, and 400 students, respectively. These countries increased their share of Sri Lankan students abroad by 200%, 100%, and 100%, respectively.
Rebert explains what’s going on behind and beyond these raw stats. He avers that the improvement in Asian educational standards, combined with the ease and affordability of travel, has made staying within Asia for education more attractive than ever. This trend is not limited to education but extends to work and migration within Asia. Local companies in various Asian countries are expanding, creating numerous opportunities for people, including Sri Lankan nationals.
“Destinations such as Singapore, Malaysia, Hong Kong, and China are becoming popular for those seeking education, job opportunities, and permanent relocation, representing a shift from historical migration patterns with a more vibrant and diverse array of opportunities across Asia for education and long-term career prospects,” Rebert points out. That’s what we may gauge by following the money.
According to the World Bank, the total expenditure on education by Sri Lankan households was $1.4 billion in 2019, which is equivalent to 1.5% of the GDP. Of that, the share of expenditure on international education by Sri Lankan households was $0.2 billion in 2019. While the average annual growth rate of education expenditure was 9.6% from 2010 to 2019, the average annual growth rate of expenditure on foreign education was 12.4% from 2010 to 2019.
Professional Mobility: A Global Workforce
Sri Lankan professionals are making their mark on the global stage, as evidenced by the increasing proportion of professionals and white-collar workers seeking employment abroad. Data from the Sri Lanka Foreign Employment Bureau reveals that the proportion of professionals among total foreign employment placements has grown significantly, from 4.26% in 2017 to 9.54% in 2021. What is of significant note is that the number of professional migrants registered with the bureau has soared by over 300% between 2007 and 2017, whereas domestic workers have declined by 45% in the same period.
These professionals are in demand in countries such as the United States, the United Kingdom, and Australia due to their expertise, competitive salaries, and career development opportunities. Furthermore, emerging destinations such as Singapore, South Korea, and the United Arab Emirates offer diverse job market opportunities and are strategic locations for business and trade.
According to Rebert, the factors influencing these trends are the prominent global migration driven by the ageing workforce in many regions which has created a high demand for skilled labour. Professionals from Asia, particularly those with expertise in finance, accountancy, and healthcare, are finding increasing opportunities in these demographics. This demand will continue to grow over the next couple of decades, providing steady opportunities for skilled labour from Sri Lanka. Today, approximately 280 million people which is about 3% of the global population, reside in a country different to their birthplace which is another increasing trend noted, highlighting a strong move towards global mobility since the 1990s.
The COVID-19 pandemic has significantly impacted global mobility. However, as the world recovers from the pandemic, international and cross-border mobility will resume at their previous pace. The pandemic has also accelerated the trend towards remote work, including hybrid work models extending to international and cross-border contexts, potentially creating new forms of employment and interactions.
Family Migration: Seeking Stability and Prosperity
Another noteworthy trend is the increasing migration of Sri Lankan families to foreign countries. Although exact numbers are not readily available, the net migration rate (the difference between the number of immigrants and emigrants per 1,000 population) has shown a consistent decline from -1.9 in 2013 to -4.0 in 2023, indicating a higher outflow of people from Sri Lanka. Popular destinations for these migrating families include Canada, Australia, and New Zealand, driven by favourable immigration policies, social welfare systems, and multicultural environments. Additionally, emerging destinations in Europe like Germany, Sweden, and Norway offer attractive benefits and high living standards.
According to the Department of Home Affairs, the popular destinations for family migration from Sri Lanka were Canada (1,000), Australia (800), and New Zealand (600) in 2019. These countries accounted for 54.5% of the total Sri Lankan migrants abroad in 2019 when compared to 2010. Similarly, emerging European destinations such as Germany (600), Sweden (500), and Norway (400) have shown significant growth as per the UN records where the numbers have doubled over a decade.
Two-way Traffic
For Rebert, the increasing internationalization of Sri Lankans is a two-way benefit. The internationalization of Sri Lankans represents a significant and positive development, showcasing the best of Sri Lanka at a global scale. This expansion is not only a source of national pride but also a reflection of the high esteem in which Sri Lankans are placed internationally. With their recognized talents in major cities such as Hong Kong and London, Sri Lankan professionals contribute positively to the global perception of their home country.
“This outward movement offers dual benefits where it enriches Sri Lankans individually and simultaneously contributes towards the development of the nation. By pursuing opportunities abroad, they acquire new skills, experiences, and new networks but more importantly these individuals will bring a wealth of knowledge and expertise to drive the growth and development. A notable example of this trend is evident within HSBC Sri Lanka, where a substantial number of customers have worked overseas and returned to Sri Lanka. HSBC plays a critical role in supporting this cycle, particularly in helping Sri Lankans overseas manage their financial commitments back home, such as family responsibilities, property ownership, and helping with their financial obligations,” he says.
The bank’s support ensures that these expatriates can easily meet their local commitments, a factor that often encourages their return to Sri Lanka, equipped with global experience and insights. This cycle not only benefits the individuals involved but also significantly contributes to the broader developmental trajectory of Sri Lanka. Hence, internationalization is a key component of Sri Lanka’s overall growth and development strategy.
Taking the Stress out of Migration
Leaving the cosiness, security and familiarity of home shores for a new job or to experience university life is as stressful as it is exciting, and people often overlook the importance of financial preparedness to the detriment of their well-being and smooth adjustment to a foreign climate. “You’d be surprised at how often people overlook financial preparedness,” Rebert points out.
Questions like how to receive a salary, where it should be credited, and how to manage payments often arise too late, sometimes when boarding a plane or in the final week before leaving. This lack of preparation can leave you struggling to make necessary financial arrangements. To prevent these difficulties, early financial planning is essential. It’s advisable to set up a bank account and ensure access to vital financial tools, such as a debit card before moving overseas.
Taking these steps in advance can make the process much smoother and prevent the stress of having to set up financial accounts in a rush upon arrival, which can be both time-consuming and overwhelming. Being informed and having access to the right information is crucial for making sound financial decisions.
Further, Rebert emphasized the importance of being aware of how to navigate your finances so that we can stand by them in supporting their new journey.
A global bank like HSBC is adept at educating its customers, providing them with all the necessary information for informed decision-making and navigating the complexities of cross-border compliance and financial regulations, areas where we have significant expertise.
Rebert opines that there is more to being financially prepared. Adopting a comprehensive approach encompassing physical, mental, and financial well-being is vital when contemplating migration. Each of these elements plays a significant role in determining your overall quality of life. Financial health is crucial as it strongly influences mental fitness. Studies have shown that people who effectively manage their finances tend to have better mental health. Therefore, financial management goes beyond practicality; it is integral to mental and physical health.
“Balancing physical, mental, and financial health is crucial whether you plan to stay in your country or relocate,” Rebert argues. “However, the challenges intensify when moving to a new country. The process of migration brings unique financial challenges and uncertainties. From personal experience of moving countries, I have learned that financial expectations can significantly differ from reality upon arrival. People must gauge living costs and other financial demands in a new country, and that goes beyond merely converting your funds into the local currency to comprehending how your funds will support your lifestyle”.
What is required is a clear and realistic assessment of one’s financial situation before moving. Insufficient financial planning can result in a quality of life lower than expected.
“As a financial institution, we aim to assist our customers in overcoming these challenges, especially before they embark on their new journey and this guidance is vital for informed decision-making. While students often have access to extensive information regarding living costs, professionals and families might find less readily available resources. Those considering migration for work or family reasons should actively seek relevant information and prepare thoroughly. Taking such proactive steps is fundamental for a smooth transition and maintaining a balanced and fulfilling life in a new country according to Rebert.
HSBC plays a crucial role in facilitating the financial aspects of international relocation, catering to individuals moving abroad for education, work, or other reasons. Apart from assistance in opening bank accounts and issuing payment cards in advance, HSBC also aids in transferring credit histories to their new locations to access financial products and services in the new country. Understanding the significance of being financially prepared for a move, HSBC also conducts workshops for its customers and the public, covering aspects of migration and adapting to a good life in a new country.
Sri Lanka’s growing integration with the global community reflects a vibrant and dynamic shift in migration, education, and professional trends. As more Sri Lankans increasingly venture abroad for education, work, and family reasons, they not only enhance their personal and professional lives but also contribute significantly to the global perception and development of the country, not only in terms of inward remittances which is a major source of foreign exchange, but in terms of infusing a globalist world-view and work ethic, technical knowhow, and driving innovation in pace with the rest of the world. This outward movement is a testament to the adaptability and skills of the Sri Lankan people, as they navigate new opportunities and challenges in various corners of the world. With institutions like HSBC providing crucial support, these trends represent a positive and transformative phase in Sri Lanka’s ongoing journey towards global integration, promising a future rich with diverse experiences and enhanced global connectivity.