Lucky Sydney

Why do we support?

Sri Lankans have fulfilled their responsibility by electing Anura Kumara Dissanayake as their leader. Now, it is time for the Sri Lankan diaspora to play their crucial role.

Sri Lanka is currently in dire need of foreign capital. If the new NPP government begins negotiations with the IMF, the situation could worsen. The country risks losing IMF instalments and support from the World Bank and the Asian Development Bank.

Considering these circumstances, it would be incredibly valuable if the Sri Lankan diaspora could increase their remittances in US dollars or their equivalent. This additional financial support would help offset the potential loss of international aid and strengthen the new government’s position in negotiations. Furthermore, these increased remittances would enable the government to kick-start essential projects and initiatives.

What can be done

The chart given below illustrates the remittances received by Sri Lanka and Pakistan over the past eight years. As shown, the sharp decline in remittances in 2022 played a significant role in Sri Lanka’s economic crisis.

Remittances and yearly increase/decrease in US dollars
Year	2016	2017	2018	2019	2020	3021	2022	2023
Sri Lanka	7,26 +0.26	7.19     -0.07	7.04    -0.14	6.75    -0.29	7.14    +0.39	5.52    -1.62	3.82    -1.70	5.4      +1.58
Pakistan	19.82 +0.51	19.86 +0.04	21.19 +1.33	22.25 +1.06	26.09 +3.84	31.31 +5.22	30.18 -1.13	26.56 -3.62

Why include Pakistan in this comparison? The focus here is on the “Imran Khan effect.” When Imran Khan assumed office in 2018-2019,

Pakistani diaspora significantly increased their remittances by USD 9.06 billion over the next two years.

If the Pakistani diaspora can achieve such an increase, there’s no reason why the Sri Lankan diaspora couldn’t similarly remit an additional USD 2 billion over two years. If successful, this would allow the new government to launch critical projects without relying on external aid.

When can be done

Current and Projected remittances in US dollars
Year	2022	2023	2024	2025	2026
Sri Lanka	3.82	5.4	> 7.0	> 8.0	> 9.0

I have included a table above projecting the timeline and the minimum amount of dollars required. Here’s a simple scenario: the Sri Lankan diaspora currently numbers around 3 million people. Excluding the 2 million who are either new arrivals or not yet settled, we are left with approximately 1 million individuals, which translates to about 250,000 families.

“If each family were to contribute a substantial amount as a gesture of goodwill or appreciation, it could generate several hundred million US dollars—enough to meet the immediate needs for 2024.”

Please note that this is a preliminary estimate and is subject to change pending official government announcements. I am confident that once the new government is fully established, they will implement more formalized procedures for investing in Sri Lanka. The focus will likely be on attracting investment funds rather than increasing debt through investment bonds.

It is time for Sri Lankans to save Sri Lanka from this catastrophe.