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Extent of Poverty Alleviation by Migrant Remittances in Sri Lanka

Ms Ayako Kageyama completed an MSc Social Policy and Planning in 2006 at the London School of Economics and Political Science, and is currently working for the Japan Bank for International Cooperation. Address: 2-28-17-201 Kouenji kita, Suginami-ku, Tokyo, Japan. [email: ayakokageyama{at}hotmail.com]

After reviewing some of the available empirical literature on current trends of remittances and their economic impact on welfare of migrating countries, this study focuses on the case of Sri Lanka to demonstrate that workers’ remittances may have both positive and negative consequences in home communities. Economically, remittances will benefit migrant households, particularly poorer ones, by increased income in the short term. However, they may sometimes cause negative social effects, particularly through disruption in family relations and also by creating a sense of relative deprivation in non-migrant communities. Therefore, migration and remittances are not the sole solution of poverty alleviation and appropriate policies also need to address unexpected adverse effects.

Key Words: domestic servants • Gulf states • Middle Eastern migration • migration and development • remittances • Sri Lanka • unskilled migrants

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