The importance of foreign worker remittances to the national economy cannot be overstated. Remittance-generated income has become even more crucial currently, owing to the ongoing health crisis.
With over 2 million Sri Lankans residing and working in foreign countries, they amount to approximately 10% of the country’s population and 25% of the local workforce. In the year 2019, a total of USD 6.7 billion was generated in foreign currency remittances, corresponding to 8.03% of our total GDP. This is indicative of the significance of the contributions by migrant workers, particularly in Middle Eastern, East Asian and Western countries, to our national economy.
Of the above-stated total in 2019, a notable 40% market share of foreign currency remittances was garnered by Bank of Ceylon (BOC), which the bank has consistently maintained over numerous years.
BOC Deputy General Manager International, Treasury and Investment, R.M.N. Jeewantha, discussed the topic of BOC’s lead role in foreign remittances in Sri Lanka amid the COVID-19 pandemic, plus the bank’s role in offering uninterrupted banking services at the Bandaranaike International Airport.
Despite remittances being hard hit in the months of April and May by the Covid-19 pandemic worldwide, and extended periods of lockdown as a result, foreign remittances in Sri Lanka reached a high of USD 703 million in September 2020. BOC has maintained a market leadership position in foreign remittances in 2020 as well while managing to retain 40% market share once more.
The facilitation of real-time transfers through BOC’s Smart Remit system is another advantage offered, ensuring the customer account gets credited in mere seconds.
Additionally, for the conversion of remittances to rupees plus for foreign currency deposits, BOC provides the most attractive exchange rates market-wide. These benefits feature heavily when Sri Lankans working abroad opt for BOC to facilitate their money transfers.
BOC also maintains over 100 direct relationships with exchange houses worldwide. These partnerships are facilitated by BOC business promotion officers across the world in countries such as Qatar, South Korea, Oman, UAE, Italy, Saudi Arabia, Japan, Kuwait, and Israel.
Of equal importance, BOC has 600-plus corresponding banking relationships with foreign banks, offering financial services to Sri Lankans domiciled and working abroad while also facilitating remittances to Sri Lanka.
This is in addition to BOC’s international presence maintained through its own branches in Chennai, Malé, Seychelles, plus its UK banking subsidiary. Through its UK banking subsidiary, remittances across several Eurozone countries are also managed, with a plan for further expansion soon.
BOC’s maintenance of tie-ups with exchange houses, corresponding relationships with banks, and its own international presence has helped to promote remittances to Sri Lanka through official representatives and formal channels even amid the Covid-19 pandemic.
The BOC Smart Remit system too has been a major feature in the bank’s role as the market leader in foreign remittances, with the system being upgraded currently and additional features expected to be rolled out before the end of the year.
Aside from facilitating foreign remittance contributions to the country’s GDP, even in times of crisis, BOC has emerged as a beacon of strength to the national economy on the back of its strong industry standing.
The bank’s resolve to continue serving the nation even in times of adversity ensured state corporations, private entities and the country as a whole could operate and continue as before.
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