Remittance Utilisation of Returnee Sri Lankan Migrant Workers in the Skill Spectrum From the Gulf Region

Abstract

Since the Gulf region's economic boom in the mid-1970s, the region has attracted Sri Lankan migrant workers of all skill levels. These workers accumulate savings that, if productively invested upon return, could support their reintegration and generate broader economic benefits. However, most studies on remittance use of Sri Lankan migrants have focused on returnee domestic workers and other workers at the lower end of the skill spectrum, overlooking higher skilled migrants who have greater investment potential. This study fills the gap by examining the use of remittances among high-skilled, skilled and semi-skilled returnees. Drawing on primary data from seven key informant interviews, 21 in-depth interviews and a survey of 205 returnee migrants, the research reveals that across the skill spectrum, the majority of remittances are spent on consumption and non-productive purposes. The study identifies three key barriers to investment in sustainable income-generating activities: consumption-driven expenditure patterns, insufficient support for business ventures from the Sri Lankan government and structural barriers to investment in the country.